Konica Minolta 2015 Annual Report Download - page 126

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(3)Financial risk management
1) Credit risk (risk that counterparties will fail to fulfill their contractual obligations)
Customer credit risk is an inherent part of trade and other receivables. For that reason, with regard to its trade receivables the Group
regularly monitors the condition of its key business partners to determine potential unrecoverability due to worsening financial
conditions at an early stage and to reduce this risk. The Group also has a policy of managing receivables for each of its transaction
partners by date and balance. For new customers, the Group employs third-party credit ratings, bank references and other available
information to analyze individual credit conditions. The Group’s policy is to set credit limits for each customer and monitor these on
an ongoing basis.
The Group uses derivative transactions to hedge foreign exchange fluctuation risk and interest rate fluctuation risk. The
financial institutions that are counterparties to such transactions present credit risks. However, the Group believes its credit risk
related to counterparties failing to fulfill their obligations is low, as the Group only conducts such transactions with financial
institutions of high credit ratings. Any major exposure to credit risk in financial assets is stated in the carrying amounts presented in
the consolidated statement of financial position.
(a) Past-due receivables
The allowance for doubtful accounts on past-due trade and other receivables is as follows:
As of March 31, 2014
As of April 1, 2013
As of March 31, 2015
As of March 31, 2015
Millions of yen
Amount past due
Less than 3 months More than 3 months,
less than 6 months
More than 6 months,
less than 12 months More than 12 months
Trade and other receivables (Gross) ······················ ¥20,113 ¥3,483 ¥1,892 ¥3,681
Allowance for doubtful accounts ································· (462) (690) (702) (1,798)
Trade and other receivables (Net) ······························ ¥19,650 ¥2,793 ¥1,190 ¥1,883
Millions of yen
Amount past due
Less than 3 months More than 3 months,
less than 6 months
More than 6 months,
less than 12 months More than 12 months
Trade and other receivables (Gross) ······················ ¥25,617 ¥3,797 ¥2,988 ¥4,633
Allowance for doubtful accounts ································· (816) (604) (929) (2,265)
Trade and other receivables (Net) ······························ ¥24,800 ¥3,193 ¥2,059 ¥2,367
Millions of yen
Amount past due
Less than 3 months More than 3 months,
less than 6 months
More than 6 months,
less than 12 months More than 12 months
Trade and other receivables (Gross) ······················ ¥26,958 ¥3,938 ¥3,022 ¥4,406
Allowance for doubtful accounts ································· (458) (453) (1,401) (2,758)
Trade and other receivables (Net) ······························ ¥26,500 ¥3,484 ¥1,621 ¥1,647
Thousands of U.S. dollars
Amount past due
Less than 3 months More than 3 months,
less than 6 months
More than 6 months,
less than 12 months More than 12 months
Trade and other receivables (Gross) ······················ $224,332 $32,770 $25,148 $36,665
Allowance for doubtful accounts ································· (3,811) (3,770) (11,658) (22,951)
Trade and other receivables (Net) ······························ $220,521 $28,992 $13,489 $13,706
125
KONICA MINOLTA, INC. Annual Report 2015
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