Constraints on Cash Management and Additional Financing
First written in FY2023. 3 of 4 entries say "Worsened", first in FY2025. Latest entry: FY2026.
Gurunavi moved to the "Worse" side of this theme in 2025, the same year as the typical company in this theme.
The whole theme swung hardest in 2025: 12 of 50 companies on the "Worse" side.
16 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Of the ¥243.996 million in long-term borrowings scheduled for repayment within 1 year during the consolidated fiscal year and ¥834.006 million of long-term borrowings, financial covenants have been attached under the agreements with each lender. If any of the following covenants is breached, the Company may lose the benefit of the term with respect to all obligations under the relevant agreements.」
In addition to the risks associated with additional financing and rising interest rates, specific financial covenants on long-term borrowings require the Company to maintain net assets at 75% or more and avoid operating losses for 2 consecutive fiscal years. No breach was reported. - FY2026-H1WorsenedAnnual report
「Of the ¥1,200 million in long-term borrowings during the interim consolidated accounting period, financial covenants have been attached under the agreements with each lender. If any of the following covenants is breached, the Company may lose the benefit of the term with respect to all obligations under the relevant agreements.」
The ¥1,200 million in long-term borrowings is subject to financial covenants requiring the Company to maintain net assets above a specified level and not record an operating loss for 2 consecutive fiscal years. The financing-related constraints have become specific, but no breach was reported. - FY2025WorsenedAnnual report
「The Group may need to raise additional funds to strengthen investment for future growth, but faces the risk that financing could become difficult due to financial market volatility, deterioration in credit conditions and future interest rate increases.」
The Company explicitly added rising interest rates to the existing risks of additional financing associated with market volatility and credit conditions. It has also actually raised ¥1.2 billion in short-term borrowings to fund the acquisition of Class A preferred shares. - FY2023First statedAnnual report
「The Group may need to raise additional funds for future growth and investment activities, but its ability to obtain the necessary financing may be constrained by factors such as financial market volatility and deterioration in credit conditions.」
Separately from its previous disclosures on financing policies and commitment lines, the Company for the first time independently identified constraints on additional financing arising from financial market and credit conditions, and the risk that cash management could affect financial planning and operations, as major risks.