Risk of delayed collection of receivables and recognition of a provision for doubtful accounts
Techno Smart Corp. (filing company) and the business partner concerned (corporation, name not disclosed)
Coating and drying equipment
The business partner’s financial condition deteriorated rapidly in response to changes in its business environment, and collection of the contract assets has continued to be delayed.
¥1,026 million (provision for doubtful accounts, included in selling, general and administrative expenses; of this amount, ¥442 million relates to the fourth quarter of the fiscal year ending March 2026)
Fourth quarter of the fiscal year ended March 2025 (¥141 million), second quarter of the fiscal year ending March 2026 (¥442 million), and fourth quarter of the fiscal year ending March 2026 (¥442 million)
Contract assets of ¥2,052 million (business partner concerned, name not disclosed)
The company will continue to monitor the business partner’s financial condition and collection status and take appropriate action as necessary.
| Item | Details |
|---|---|
| Event name | Risk of delayed collection of receivables and recognition of a provision for doubtful accounts |
| Date of occurrence | 13 May 2026 (disclosed as “Today, collection of receivables from a business partner has been delayed.” The risk of delayed collection was determined at the end of the fiscal year ending March 2026.) |
| Date recognized / date notice received | End of the fiscal year ending March 2026 (when it was determined that the timing of collection was uncertain and that there was a risk of delayed collection) |
| Subject Entity | Techno Smart Corp. (filing company) and the business partner concerned (corporation, name not disclosed) |
| Target Locations / Products | Coating and drying equipment |
| Cause | The business partner’s financial condition deteriorated rapidly in response to changes in its business environment, and collection of the contract assets has continued to be delayed. |
| Amount of Impact on Business Performance | ¥1,026 million (provision for doubtful accounts, included in selling, general and administrative expenses; of this amount, ¥442 million relates to the fourth quarter of the fiscal year ending March 2026) |
| Accounting period in which recognized | Fourth quarter of the fiscal year ended March 2025 (¥141 million), second quarter of the fiscal year ending March 2026 (¥442 million), and fourth quarter of the fiscal year ending March 2026 (¥442 million) |
| Amount of receivables at risk of non-collection or delayed collection | Contract assets of ¥2,052 million (business partner concerned, name not disclosed) |
| Outlook | The company will continue to monitor the business partner’s financial condition and collection status and take appropriate action as necessary. |
Items this document does not state (15)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The business partner’s financial condition deteriorated rapidly due to changes in its business environment, and collection of the contract assets has continued to be delayed. The timing of collection was determined to be uncertain.