Management of Liquidity Risk Related to Financing
First written in FY2018. 3 of 7 entries say "Mitigated", first in FY2021-Q2. Latest entry: FY2025.
Nozawa moved to the "Worse" side of this theme in 2025, the same year as the typical company in this theme.
0 other companies' latest entry also says "Softened".
- FY2025SoftenedAnnual report
「There were no borrowings outstanding at the end of the consolidated fiscal year. In addition, for the purpose of stabilizing funding, improving capital efficiency, and improving financial income and expenses, the company entered into a ¥2 billion commitment line (specified lending facility) agreement with its lending financial institutions, but had no outstanding borrowings drawn under the facility at the end of the consolidated fiscal year.」
Although the company maintained zero borrowings outstanding, the commitment line was stated as ¥2 billion, down from ¥6 billion in FY2023, indicating a reduction in the size of the secured liquidity facility. - FY2023MitigatedAnnual report
「There were no borrowings outstanding at the end of the consolidated fiscal year. In addition, for the purpose of stabilizing funding, improving capital efficiency, and improving financial income and expenses, the company entered into a ¥6 billion commitment line (specified lending facility) agreement with its lending financial institutions, but had no outstanding borrowings drawn under the facility at the end of the consolidated fiscal year.」
The company had no borrowings outstanding, and the full ¥6 billion commitment line was secured as an undrawn liquidity facility. - FY2022-Q2SoftenedAnnual report
「The Administrative Division renewed the ¥4 billion commitment line agreement entered into last year and took measures to secure stable funding even amid an uncertain management environment. It also worked to stabilize the management base through system development and improvement to enhance operational efficiency and revisions to various internal systems aimed at creating a more comfortable workplace.」
Although the commitment line agreement was renewed, this filing states the amount as ¥4 billion, indicating that the facility was reduced from the ¥6 billion stated previously. - FY2021MitigatedAnnual report
「The Group obtains, as necessary, from banks and other financial institutions the funds required for capital investment in facilities primarily used to manufacture and sell building materials, as well as short-term working capital. ... It has entered into a ¥6 billion commitment line (specified lending facility) agreement with its lending financial institutions, but had no outstanding borrowings drawn under the facility from financial institutions at the end of the consolidated fiscal year.」
The total commitment line was expanded from ¥2 billion to ¥6 billion, securing an undrawn liquidity facility. - FY2021-Q2MitigatedAnnual report
「In light of the recent uncertain conditions, the Administrative Division additionally entered into a commitment line agreement to stabilize management, while also working to improve operational efficiency through system development and improvement, implement measures to prevent the infectious disease, including the introduction of telework, and secure stable procurement of materials.」
The company additionally entered into a commitment line agreement in response to the uncertain business environment, thereby stabilizing liquidity and management. - FY2019RestatedAnnual report
「Based on reports from each department, the Finance Division prepares and updates funding plans in a timely manner and manages liquidity risk by securing cash on hand and through other measures.」
The company reconfirmed the preparation and updating of funding plans by the Finance Division and the securing of cash on hand as measures for managing liquidity risk. - FY2018First statedAnnual report
「③ Management of liquidity risk related to funding (the risk of being unable to make payments when due): Based on reports from each department, the Finance Division prepares and updates funding plans in a timely manner and manages liquidity risk by securing cash on hand and through other measures.」
The company specified for the first time the preparation and updating of funding plans by the Finance Division and the securing of cash on hand as measures for managing the risk of insolvency.