Credit Risk of Customers and Suppliers
First written in FY2016. 3 of 10 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2026: 19 of 65 companies on the "Worse" side.
- FY2026MitigatedAnnual report
「Provision for doubtful accounts △39」
As credit risk management continued, the provision for doubtful accounts was reversed from the ¥1,340 million recorded in the previous fiscal year. - FY2025MaterialisedAnnual report
「Provision for doubtful accounts 282 1,340」
The provision for doubtful accounts increased from ¥282 million in the previous fiscal year to ¥1,340 million in the current fiscal year, with credit risk materializing as a provision. - FY2025-H1MaterialisedAnnual report
「In addition to increased sales of food ingredients by the Prinova Group, the gross profit margin improved from the same period of the previous year, when market conditions were declining／Operating profit declined as selling, general and administrative expenses increased due to the Prinova Group’s recognition of an allowance for doubtful accounts and higher personnel expenses, despite an increase in gross profit.」
The Prinova Group recorded an allowance for doubtful accounts, and a provision of ¥1,323 million for doubtful accounts was also included among the main components of selling, general and administrative expenses. Credit risk has materialized as a provision. - FY2023AdvancedAnnual report
「For this risk, the Group sets a sales limit for each business partner based on its internal credit-rating system and manages payment due dates and outstanding balances. The Group reviews each business partner’s credit standing at least once a year and has a system for updating sales limits.」
The Group has specified its response to customer credit risk, including internal credit ratings, counterparty-specific limits, due-date and balance management, and annual reviews. - FY2022AdvancedAnnual report
「The Group sets a credit limit for each customer and, as necessary, takes measures such as obtaining collateral, guarantees and insurance.」
In addition to the existing use of collateral, guarantees and insurance, the Group explicitly described its control process of setting credit limits for each customer. - FY2021RestatedAnnual report
「The Group takes measures such as obtaining collateral, guarantees and insurance based on the credit standing of each customer. Although the Group endeavors to procure products on a stable and ongoing basis, deterioration in the credit standing or business failure of suppliers and other factors may make it difficult to maintain a continuous supply of the products it handles.」
The Group is reaffirming customers’ credit risk and the risk of supply disruptions resulting from deterioration in suppliers’ credit standing. - FY2019RestatedAnnual report
「Through a range of commercial transactions, the Group extends credit to customers in Japan and overseas and is exposed to credit risk. To mitigate this risk, the Group takes measures such as obtaining collateral, guarantees and insurance based on the credit standing of each customer. Although the Group endeavors to procure products on a stable and ongoing basis, deterioration in the credit standing or business failure of suppliers and other factors may make it difficult to maintain a continuous supply of the products it handles.」
In addition to customers’ credit risk, the Group is reaffirming the risk of supply disruptions resulting from deterioration in suppliers’ credit standing or their business failure. - FY2018Supplier credit and supply continuity risks explicitly identifiedAnnual report
「Although the Group endeavors to procure products on a stable and ongoing basis, deterioration in the credit standing or business failure of suppliers and other factors may make it difficult to maintain a continuous supply of the products it handles.」
In addition to extending credit to customers, the Group explicitly identifies the risk of supply disruptions resulting from deterioration in suppliers’ credit standing or their business failure. - FY2017RestatedAnnual report
「Through a range of commercial transactions, the Group extends credit to customers in Japan and overseas and is exposed to credit risk. To mitigate this risk, the Group takes measures such as obtaining collateral, guarantees and insurance based on the credit standing of each customer.」
The Group is reaffirming the credit risk associated with extending credit to customers and its response through collateral, guarantees and insurance. - FY2016First statedAnnual report
「Through a range of commercial transactions, the Group extends credit to customers in Japan and overseas and is exposed to credit risk. To mitigate this risk, the Group takes measures such as obtaining collateral, guarantees and insurance based on the credit standing of each customer.」
The Group addresses the credit risk of customers and suppliers by obtaining collateral, guarantees and insurance and managing credit quality.