Counterparty Credit Risk and Credit Management
First written in FY2019. 5 of 11 entries say "Materialised", first in FY2023. Latest entry: 2026-11-10.
Shinden Hightex moved to the "Worse" side of this theme in 2026, 4 years after the typical company in this theme (2022).
The whole theme swung hardest in 2026: 22 of 71 companies on the "Worse" side.
17 other companies' latest entry also says "Worsened".
- FY2026RestatedAnnual report
「In accordance with the credit management regulations, the group sets credit limits for each customer and seeks to prevent bad debts by continuously monitoring their credit status.」
The company continues its policy of managing customer credit risk through credit limits, continuous monitoring of credit status, allowances for doubtful accounts and credit insurance. - FY2025MitigatedAnnual report
「Operating income increased significantly because no allowance for doubtful accounts expense arose in connection with the petition for commencement of civil rehabilitation proceedings by a major customer in the display business in May of the previous fiscal year, reducing selling, general and administrative expenses.」
No bad debt loss associated with the major customer's civil rehabilitation arose during the current period, and the allowance for doubtful accounts expense also fell from approximately ¥134 million in the previous year to ¥28 million. The impact of credit risk on profit and loss declined, but the collection risk for trade receivables itself continues. - FY2025-H1MitigatedAnnual report
「Operating income increased significantly because no allowance for doubtful accounts expense arose in connection with the petition for commencement of civil rehabilitation proceedings by a major customer in the display business in May of the previous fiscal year, reducing selling, general and administrative expenses.」
The allowance for doubtful accounts expense associated with the major customer's civil rehabilitation fell sharply from approximately ¥700 million in the same period of the previous year to approximately ¥34 million, reducing the impact of credit risk on profit and loss. However, the disclosure does not state that the collection risk itself has been eliminated. - FY2024MaterialisedAnnual report
「During the consolidated fiscal year, the company recorded the relevant trade receivables associated with the major customer's civil rehabilitation in the display business as bad debt expense, included in selling, general and administrative expenses, and recorded the result of its review of the collectibility of other ordinary trade receivables as an allowance for doubtful accounts, also included in selling, general and administrative expenses. This had a significant impact on results from operating income downward.」
Credit risk associated with the major customer's civil rehabilitation materialized in full-year results as ¥419 million in bad debt losses and allowance for doubtful accounts expense, among other items. - FY2024-Q3RestatedAnnual report
「In the first quarter of the fiscal year, the company reviewed the collectibility of the relevant trade receivables and other ordinary trade receivables following a major customer's petition in the display business for commencement of civil rehabilitation proceedings, and recorded the result as an allowance for doubtful accounts, referred to below as the special factor. As a result, selling, general and administrative expenses increased significantly, materially affecting indicators from operating income downward.」
Credit risk and the related allowance for doubtful accounts arising from the major customer's civil rehabilitation continued to have a significant impact on indicators from operating income downward during the cumulative third quarter. - FY2024-Q2MaterialisedAnnual report
「In the first quarter of the fiscal year, the company reviewed the collectibility of the relevant trade receivables and other ordinary trade receivables following a major customer's petition in the display business for commencement of civil rehabilitation proceedings, and recorded the result as an allowance for doubtful accounts, referred to below as the special factor. As a result, selling, general and administrative expenses increased significantly, affecting indicators from operating income downward.」
Credit risk associated with the major customer's civil rehabilitation has continued to materialize in the form of more than ¥700 million in cumulative bad debt expense and its impact on profit indicators. - FY2024-Q1MaterialisedAnnual report
「Following the petition by a major customer in the display business for commencement of civil rehabilitation proceedings, the company reviewed the collectibility of the relevant trade receivables and other ordinary trade receivables and recorded the result as an allowance for doubtful accounts. As a result, selling, general and administrative expenses increased significantly, resulting in an operating loss.」
Following a major customer's petition for commencement of civil rehabilitation proceedings, the company reviewed the collectibility of trade receivables and other receivables and recorded an allowance for doubtful accounts of ¥692 million. Customer credit risk actually materialized as a loss. - FY2023MaterialisedAnnual report
「FCNT株式会社, one of the company's customers, filed a petition with the Tokyo District Court on 30 May 2023 for commencement of civil rehabilitation proceedings, and the receivables from the company became at risk of being uncollectible or collected late.」
Following the customer's petition for commencement of civil rehabilitation proceedings, receivables of ¥475 million became actually at risk of being uncollectible or collected late. The company plans to record an allowance for doubtful accounts in the fiscal year ending March 2024. - FY2019First statedAnnual report
「With respect to trade receivables, the sales division regularly monitors the status of customers in accordance with the credit management regulations, manages the due dates and balances for each customer, and seeks to identify and mitigate at an early stage any concerns regarding collection arising from deterioration in financial condition or other factors.」
The company explicitly identifies trade receivables as exposed to customer credit risk and describes the credit management regulations, regular monitoring and early identification of collection concerns as its measures.