Liquidity risk leading to inability to make payments
First written in FY2017. 1 of 4 entries say "Mitigated", first in FY2020. Latest entry: FY2021.
- FY2021RestatedAnnual report
「The company has entered into bilateral commitment line agreements with its lending financial institutions as a means of securing liquidity mainly in preparation for unforeseen circumstances, including the impact of COVID-19. In addition, as a precautionary cash-management measure in light of the impact of COVID-19, it has increased its level of cash and cash equivalents on hand to a certain extent above normal levels through borrowings from financial institutions and the issuance of corporate bonds.」
The company continues to manage liquidity through commitment lines, borrowings and corporate bond issuance, and increased cash and cash equivalents on hand. - FY2020MitigatedAnnual report
「The company has entered into bilateral commitment line agreements with its lending financial institutions as a means of securing liquidity mainly in preparation for unforeseen circumstances, including the impact of COVID-19. In addition, as a precautionary cash-management measure in light of the impact of COVID-19, it has increased its level of cash and cash equivalents on hand to a certain extent above normal levels through borrowings from financial institutions and the issuance of corporate bonds.」
As precautionary cash-management measures for liquidity risk, the company has secured commitment lines, raised borrowings, issued corporate bonds, and increased cash and cash equivalents on hand. - FY2019Liquidity management through weekly cash-flow plans and a commitment lineAnnual report
「Trade payables, borrowings, and corporate bonds are exposed to liquidity risk related to financing, namely the risk of being unable to make payments when they fall due. The company manages this risk by preparing and updating weekly cash-flow plans at the company and consolidated subsidiary levels.」
The company explicitly states that it manages liquidity risk by preparing and updating weekly cash-flow plans at the company and consolidated subsidiary levels. - FY2017First statedAnnual report
「Trade payables, borrowings, and corporate bonds are exposed to liquidity risk related to financing, namely the risk of being unable to make payments when they fall due.」
For trade payables, borrowings, and corporate bonds, the company independently disclosed for the first time the liquidity risk of being unable to make payments when they fall due.