Liquidity Risk Associated with Financing and Financial Covenants
First written in FY2016. 10 of 12 entries say "Mitigated", first in FY2017-Q1. Latest entry: FY2026.
The whole theme swung hardest in 2025: 23 of 77 companies on the "Worse" side.
29 other companies' latest entry also says "Mitigated".
- FY2026.Annual report
「Working capital and investment funds are financed primarily with internal funds. Interest-bearing debt at the end of the consolidated fiscal year consisted of ¥4 million in lease obligations.」
The company continued to finance itself primarily with internal funds, reducing interest-bearing debt to ¥4 million in lease obligations. - FY2025.Annual report
「Working capital and investment funds are financed primarily with internally generated funds. At the end of the current consolidated fiscal year, interest-bearing debt consisted of ¥6 million in lease liabilities. Cash and cash equivalents stood at ¥12,826 million.」
The company continued to finance itself primarily with internal funds, reducing interest-bearing debt to ¥6 million in lease obligations. - FY2024.Annual report
「Working capital and investment funds are financed primarily with internal funds. Interest-bearing debt at the end of the consolidated fiscal year consisted of ¥9 million in lease obligations. Cash and cash equivalents stood at ¥13,364 million.」
The company continued to finance itself primarily with internal funds, and disclosed interest-bearing debt of ¥9 million in lease obligations and cash and cash equivalents of ¥13,364 million. - FY2022.Annual report
「Working capital and investment funds are financed primarily with internal funds. Interest-bearing debt at the end of the consolidated fiscal year consisted of ¥8 million in lease obligations.」
The company disclosed that, following borrowings related to large-scale projects in the past, it primarily used internal funds and reduced interest-bearing debt to ¥8 million in lease obligations. - FY2020.Annual report
「Working capital and investment funds are financed primarily with internal funds. Interest-bearing debt at the end of the consolidated fiscal year consisted of ¥97 million in lease obligations.」
The company disclosed a financial position in which, after a period of borrowings associated with large-scale projects, it primarily used internal funds and reduced interest-bearing debt to ¥97 million in lease obligations. - FY2018.Annual report
「The main decrease factor was the payment of ¥7,300 million for repayment of short-term and long-term borrowings, among other factors.」
The company repaid its existing short-term and long-term borrowings, and as of the end of the consolidated fiscal year had no long-term borrowings or current maturities of long-term borrowings. The ¥4,500 million lending commitment had not been drawn. - FY2018-Q3.Annual report
「The main factors behind the decrease were a ¥4,900 million reduction in long-term borrowings and a ¥1,400 million reduction in the current portion of long-term borrowings, both due to the lump-sum repayment of a term loan with a commitment period, as well as a ¥850 million reduction in provisions for losses on contract cancellations, mainly due to payments of cancellation fees associated with the mutually agreed termination of a large-scale system development contract. The main factors behind the increase were a ¥1,000 million increase in short-term borrowings following the drawdown under a new committed credit line and a ¥679 million increase in current income taxes payable, among others.」
Long-term borrowings and other liabilities decreased as a result of the lump-sum repayment of the existing term loan, reducing the financial burden. At the same time, short-term borrowings under a new commitment line have arisen. - FY2018-Q2.Annual report
「The main decrease factors were the payment of ¥700 million for repayment of long-term borrowings and the payment of ¥323 million in dividends, among other factors.」
The company repaid ¥700 million in long-term borrowings, leaving cash and cash equivalents of ¥9,576 million. Borrowings nevertheless remain outstanding. - FY2017-Q3.Annual report
「The main decrease factors were the ¥6,646 million decrease in the provision for damages and the ¥1,177 million decrease in the provision for product warranties, both resulting from the payment of a settlement related to delays in the development of a large-scale systems development project, and the ¥1,618 million decrease in accrued liabilities for equipment due to repayments under sale-and-installment-back transactions, among other factors. The main increase factors were the ¥5,250 million increase in long-term borrowings and the ¥1,400 million increase in current maturities of long-term borrowings, both resulting from financing through a commitment-period term loan to fund the aforementioned settlement payment, among other factors.」
The company continues to describe its liquidity response based on payment of the settlement and financing through a term loan. - FY2017-Q2.Annual report
「The main increase factor was the receipt of ¥7,000 million from drawing long-term borrowings under a commitment-period term loan, among other factors. The main decrease factor was the payment of ¥6,646 million in damages relating to delays in the development of a large-scale systems development project, among other factors.」
The company completed financing through a ¥7,000 million term loan and applied the funds to payment of damages. While measures to secure liquidity have reached the implementation stage, the borrowings have been recognised. - FY2017-Q1.Annual report
「To prepare for the payment described in the above notes to the financial statements under “Material Subsequent Events” (“Receipt of a neutral evaluation under neutral evaluation procedures”), the Company entered into a syndicated term loan agreement with a commitment period, capped at ¥7,000 million, during the previous consolidated fiscal year and has drawn down the following borrowings under the agreement.」
The company drew ¥7,000,000 thousand in borrowings in preparation for settlement payments and secured the funds for payment. At the same time, a borrowing balance and repayment obligations have actually arisen. - FY2016.Annual report
「To secure funds for the payment of damages, the company has entered into commitment-period term loan agreements with 2 transaction banks, with a maximum amount of ¥7,000,000 thousand. However, there were no borrowings under these agreements during the consolidated fiscal year.」
The company disclosed an agreement with a limit of ¥7,000 million and financial covenants relating to net assets and ordinary profit or loss from the fiscal year ended March 2017.