Stable liquidity and funding based primarily on internal funds
First written in FY2019. 3 of 7 entries say "Reframed", first in FY2021-Q3. Latest entry: FY2027-H1.
Zuiko moved to the "Worse" side of this theme in 2023, 1 year after the typical company in this theme (2022).
19 other companies' latest entry also says "Other".
- FY2027-H1Updated track record of financing through long-term borrowingsAnnual report
「Funds generated from financing activities during the current interim consolidated accounting period amounted to ¥629 million, compared with ¥370 million used in the same period of the previous year. This was mainly due to proceeds of ¥1,500 million from long-term borrowings, partially offset by ¥478 million in expenditures for the acquisition of treasury shares, ¥185 million in repayments of long-term borrowings and ¥158 million in dividend payments.」
In connection with the financing policy, proceeds of ¥1,500 million from long-term borrowings were recorded. Net cash provided by financing activities was ¥629 million, reversing from net cash used in the same period of the previous year. - FY2025ReframedAnnual report
「To secure the funds required for stable business operations and growth investments, the Group will make effective use of borrowings from financial institutions in addition to funds generated from operating activities.」
The funding policy centered on internal funds has been reorganized as a funding approach combining operating cash flow, advance payments, overdrafts, long-term borrowings and corporate bonds. The disclosure also states that interest-bearing debt was ¥7,572 million and cash and cash equivalents were ¥9,732 million. - FY2023ReframedAnnual report
「The Group's policy is to fund its required capital primarily with cash generated from operating activities. It is also working to secure stable working capital by accelerating and smoothing the timing of cash collections, including collecting part of the order price for manufacturing machinery as an advance payment before delivery of the products.」
The previous policy of relying primarily on internal funds has been defined more specifically as liquidity management combining operating cash flow, accelerated and smoothed collections through advance payments, overdrafts, and financing through long-term borrowings and corporate bonds. - FY2022-Q2Added drawdown of borrowings to finance construction of the new plantAnnual report
「The Company drew down the following financing for construction of the new plant. (1) Drawdown date: 31 August 2021 (2) Lender: Development Bank of Japan Inc. (3) Total borrowing: ¥3,000 million (4) Interest rate: 0.69% (5) Maturity date: 31 August 2033 (6) Collateral and guarantees: Unsecured and unguaranteed」
As a significant subsequent event, the Company disclosed that on 31 August 2021 it drew down an unsecured and unguaranteed loan from Development Bank of Japan Inc. totaling ¥3.0 billion, at an interest rate of 0.69%, with a maturity date of 31 August 2033, to finance construction of the new plant. Long-term borrowing has been added to the previous financing policy of relying primarily on internal funds. - FY2021-Q3ReframedAnnual report
「The funds required for the Group's working capital, capital investments and other purposes are financed through internal funds and short-term borrowings from financial institutions.」
The description of financing has been expanded from the previous policy of relying primarily on internal funds to include short-term borrowings from financial institutions. - FY2020RestatedAnnual report
「Regarding liquidity, in addition to making effective use of surplus funds within the Group, we have entered into overdraft agreements with financial institutions to prepare for sudden funding needs and unforeseen circumstances. Cash and cash equivalents at the end of the current consolidated fiscal year amounted to ¥9,364 million, and we believe that sufficient liquidity has been secured to support the Group's business activities.」
In addition to the policy of relying primarily on internal funds, the disclosure describes overdraft agreements as an emergency funding source and cash and cash equivalents of ¥9,364 million at the fiscal year-end. - FY2019First statedAnnual report
「Our basic policy is to secure stable liquidity and sources of funds necessary for operating the business. Working capital and capital expenditures are funded primarily with internal funds.」
The filing first states a basic policy of securing stable liquidity and funding sources and primarily using internal funds for working capital and capital expenditures.