Addressing Credit, Market Price and Liquidity Risks
First written in FY2017. 7 of 22 entries say "Restated". Latest entry: FY2026.
Showa Paxxs moved to the "Worse" side of this theme in 2023, 3 years after the typical company in this theme (2020).
The whole theme swung hardest in 2020: 9 of 34 companies on the "Worse" side.
5 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「On 4 June 2026, the defendant, the business partner in question, received the written judgment granting the claims of the plaintiff, NESCO. As no appeal was filed by 18 June 2026, the appeal deadline, the judgment became final on that date. NESCO will continue to demand that the business partner fulfill its payment obligations.」
It states that the judgment granting NESCO's claims in the litigation concerning the ¥381.755 million trade receivable has become final. It also states that NESCO will demand fulfillment of the payment obligations going forward. - 2026-05-13RestatedEarnings
「The dispute is still ongoing, but we will continue to demand that the business partner fulfill its payment obligations. As the related trade receivable has remained unpaid for a certain period, an allowance for doubtful accounts has been recorded under current assets in accordance with our internal rules.」
The company continues to report the litigation involving receivables from ネスコ, the outstanding payment, and the recording of an allowance for doubtful accounts. - FY2026-H1RestatedAnnual report
「In December 2022, NESCO filed a lawsuit against the business partner to recover the ¥381.755 million trade receivable outstanding at the end of the current interim consolidated accounting period, which was at risk of becoming uncollectible or experiencing delayed collection. The matter remains in dispute, but we will continue to demand that the business partner fulfill its payment obligations. As no payment has been received on the trade receivable for a certain period, a provision for doubtful accounts has been recorded in current assets in accordance with our internal rules.」
NESCO continues to disclose the litigation concerning its ¥381.755 million trade receivable from a business partner and the recognition of a provision for doubtful accounts due to the lack of payment. - FY2025-H1RestatedAnnual report
「In December 2022, NESCO filed a lawsuit against the business partner to recover the ¥381.755 million trade receivable outstanding at the end of the current interim consolidated accounting period, which was at risk of becoming uncollectible or experiencing delayed collection. The matter remains in dispute, but we will continue to demand that the business partner fulfill its payment obligations.」
NESCO continues to disclose the litigation concerning the business partner's withholding of payment on the ¥381.755 million trade receivable and the recognition of a provision for doubtful accounts. - FY2024WorsenedAnnual report
「As no payment has been received on the trade receivable for a certain period, a specified amount of provision for doubtful accounts has been recorded in selling, general and administrative expenses in accordance with our internal rules.」
No payment has been received on NESCO's ¥381.755 million trade receivable from a business partner, and a provision for doubtful accounts has been recorded. In cash flows from operating activities, the provision for doubtful accounts also increased by ¥240.314 million, indicating that the cost impact of credit risk continues. - FY2024-Q3WorsenedAnnual report
「The matter remains in dispute, but we will continue to demand that the business partner fulfill its payment obligations. As no payment has been received on the trade receivable for a certain period, a specified amount of provision for doubtful accounts has been recorded in selling, general and administrative expenses in accordance with our internal rules.」
Litigation over NESCO's ¥381.755 million trade receivable from a business partner remains ongoing. As no payment has been received, a provision for doubtful accounts has been recorded in selling, general and administrative expenses. The cost impact of credit risk continues and is increasing. - FY2024-Q1RestatedAnnual report
「In December 2022, ネスコ filed a lawsuit against the customer to recover receivables of ¥381.755 million outstanding at the end of the first-quarter consolidated accounting period that were at risk of becoming uncollectible or being collected late, and intends to seek performance of the payment obligation.」
The company continues to disclose the withholding and nonpayment of accounts receivable by ネスコ's business partner, as well as the filing of a lawsuit concerning receivables of ¥381.755 million. - FY2023-Q3MaterialisedAnnual report
「At ネスコ, the Group's consolidated subsidiary, a notice was received that payment would be withheld because a defect had occurred in a customer's product manufactured using raw materials supplied by ネスコ, and the accounts receivable remained unpaid even after the due date had passed. … In December 2022, the company filed a lawsuit against the customer to recover the receivables of ¥381.755 million outstanding at the end of the third-quarter consolidated accounting period that were at risk of becoming uncollectible or being collected late.」
The customer credit risk disclosed previously actually materialized as the business partner of ネスコ withheld payment and left accounts receivable unpaid, and a lawsuit was filed in December 2022 concerning receivables of ¥381.755 million. - FY2023-Q2WorsenedAnnual report
「The main factor behind the decrease was a ¥479 million decline in the valuation difference on other securities.」
The valuation difference on other securities decreased by ¥479 million, following the decline in the first quarter of the previous fiscal year, indicating that market-price fluctuations were reflected in net assets. - FY2023-Q1The decline in the valuation difference widenedAnnual report
「The main factors behind the increase were quarterly net income attributable to owners of the parent of ¥251 million and foreign currency translation adjustment of ¥231 million. The main factor behind the decrease was a ¥394 million decline in the valuation difference on other securities.」
The valuation difference on other securities decreased by ¥394 million, indicating that fluctuations in stock-market prices were reflected in net assets. - FY2022Unrealized gains maintained despite lower market pricesAnnual report
「The stock market declined slightly at the end of the fiscal year ended March 2022 from the end of the previous fiscal year. However, the investment securities held by the company had a low acquisition cost to begin with, and their market value at the end of the fiscal year ended March 2022 was substantially higher than their acquisition cost. Viewed on an individual issue basis, very few securities were below their acquisition cost.」
While reporting a decline in stock-market prices, the company explains that the market value of its securities as a whole was substantially higher than their acquisition cost. - FY2022-Q3The increase in the valuation difference continuedAnnual report
「Valuation difference on other securities 2,795,763 2,821,282」
The valuation difference on other securities increased from ¥2,795.763 million at the end of the previous consolidated fiscal year to ¥2,821.282 million, indicating that market-price fluctuations were reflected in net assets. - FY2022-Q2The valuation difference reversed from a decrease to an increaseAnnual report
「Valuation difference on other securities 2,795,763 2,911,381」
The valuation difference on other securities increased by ¥115 million from the end of the previous consolidated fiscal year, reversing the decline in the previous quarter to an increase. - FY2022-Q1Unrealized valuation gains declinedAnnual report
「Valuation difference on other securities 458,105 △ 96,370」
The valuation difference on other securities shifted from an increase in the same quarter of the previous year to a decrease of ¥96.370 million in the current quarter, indicating that market-price fluctuations continued to be reflected in net assets. quantified=true, materialized=true. - FY2021-Q3The increase in the valuation difference widenedAnnual report
「The main factors behind the increase were cash and deposits of ¥831 million, merchandise and finished goods of ¥142 million, property, plant and equipment of ¥329 million, and investment securities of ¥1,604 million.」
Investment securities increased by ¥1,604 million from the end of the previous consolidated fiscal year, while the valuation difference on other securities also increased by ¥1,102.759 million. Market-price fluctuations continued to be reflected in net assets. - FY2021-Q2Changed from a valuation loss to an increase in the valuation differenceAnnual report
「Valuation difference on other securities 681,665」
While a loss on valuation of investment securities arose in the previous fiscal year, the valuation difference on other securities increased by ¥681.665 million in the cumulative second-quarter period, indicating that market-price fluctuations continued to be reflected in net assets. - FY2020MaterialisedAnnual report
「During the fiscal year, the company recognized impairment losses on listed shares classified as other securities and recorded a ¥11.133 million loss on valuation of investment securities.」
Market-price fluctuation risk relating to investment securities was reflected in full-year results as a ¥11.133 million loss on valuation and impairment loss. - FY2020-Q3RestatedAnnual report
「Loss on valuation of investment securities - 11,133」
The company recorded a ¥11.133 million loss on valuation of investment securities in the cumulative third-quarter period, continuing to confirm that market-price fluctuation risk had materialized. - FY2020-Q2RestatedAnnual report
「Loss on valuation of investment securities - 11,133」
The company recorded a ¥11.133 million loss on valuation of investment securities in the cumulative second-quarter period, continuing to confirm that market-price fluctuation risk had materialized. quantified=true, materialized=true. - FY2020-Q1MaterialisedAnnual report
「Loss on valuation of investment securities - 11,133」
Market-price fluctuation risk relating to investment securities actually materialized as a ¥11.133 million loss on valuation of investment securities in the quarter. - FY2019RestatedAnnual report
「The Group is exposed to customer credit risk relating to notes and accounts receivable, which are trade receivables, and electronically recorded monetary claims. Its investment securities consist primarily of shares in companies with which it has business relationships, and are exposed to the risk of fluctuations in market prices.」
The company continues to describe credit risk relating to trade receivables, market-price fluctuation risk relating to investment securities, and its risk-management methods. - FY2017First statedAnnual report
「The Group is exposed to customer credit risk relating to notes and accounts receivable, which are trade receivables, and electronically recorded monetary claims. Its investment securities consist primarily of shares in companies with which it has business relationships, and are exposed to the risk of fluctuations in market prices.」
The company describes credit risk relating to trade receivables, market-price fluctuation risk relating to investment securities, liquidity risk relating to financing, and its risk-management methods.