Risk of supplier bankruptcy, non-delivery and inability to recover advance payments in the trading business
First written in FY2019. 2 of 4 entries say "Restated". Latest entry: FY2026.
SHINTO Holdings moved to the "Worse" side of this theme in 2026.
The whole theme swung hardest in 2020: 1 of 6 companies on the "Worse" side.
1 other company's latest entry also says "Reframed".
- FY2026ReframedAnnual report
「In the ordinary course of business, the Group frequently advances suppliers an amount equivalent to the purchase consideration at the same time as receiving sales orders.」
The scope of the risk of nondelivery and inability to recover advance payments if a supplier becomes insolvent has been expanded from the former trading business to the risks of the Group's entire business, including metal and plastics recycling. - FY2024RestatedAnnual report
「If a supplier becomes insolvent, there is a risk that the raw materials or goods ordered cannot be retrieved or that the advance payment cannot be recovered.」
The Group continues to manage the risks associated with advance-payment transactions in the trading business, including supplier insolvency, nondelivery, and the inability to recover advance payments, through credit information gathering and systems for communication and visits. - FY2023RestatedAnnual report
「Because the Group's trading business frequently pays most domestic and overseas suppliers for purchases in advance at the same time as receiving sales orders, there is a risk that, if a supplier becomes insolvent, the purchased goods or raw materials will not be delivered or the prepaid purchase consideration will become uncollectible. To mitigate this risk, the Group will regularly obtain credit information on suppliers and establish a management system that enables ongoing mutual communication and visits.」
The Group continues to manage the risks associated with advance-payment transactions in the trading business, including supplier insolvency, nondelivery, and the inability to recover prepaid amounts, through credit information gathering and systems for communication and visits. - FY2019First statedAnnual report
「Because the Company's trading business pays most domestic and overseas suppliers for purchases in advance at the same time as receiving sales orders, there is a risk that, if a supplier becomes insolvent, the purchased goods or raw materials will not be delivered or the prepaid purchase consideration will become uncollectible. To mitigate this risk, the Company will regularly obtain credit information on suppliers and establish a management system that enables ongoing mutual communication and visits.」
The Company identified, as new risks associated with advance payments in the trading business, nondelivery of goods and the inability to recover prepaid amounts if a supplier becomes insolvent. It described obtaining credit information on suppliers and establishing a system for communication and visits as mitigation measures.