Risk of Loss of the Benefit of Time Due to Breach of Financial Covenants
First written in FY2019. 3 of 6 entries say "Restated". Latest entry: FY2026.
22 other companies' latest entry also says "Other".
- FY2026Multiple loan agreements with financial covenants disclosedAnnual report
「Agreement date 28 May 2024 30 April 2025 Counterparty type City bank Regional bank Balance at fiscal year-end ¥1,320 million ¥986 million Repayment due date 29 May 2026 31 August 2027」
For loan agreements with financial covenants, the company discloses 2 agreements with a city bank and a regional bank, a combined fiscal year-end balance of ¥2,306 million, the repayment due dates, and the applicable conditions. - FY2025Specific terms of loan agreements with financial covenants disclosedAnnual report
「Debt balance at fiscal year-end: ¥1,820 million Repayment due date: 29 May 2026 Financial covenants ① From the fiscal year ending March 2025 onward, ordinary profit or loss as shown on the income statement at each fiscal year-end must not be a loss for 2 consecutive fiscal years. ② From the fiscal year ending March 2025 onward, consolidated? [sic] the amount of net assets in the non-consolidated balance sheet at each fiscal year-end must be maintained at 75% or more of the higher of the amount of net assets in the balance sheet for the fiscal year ended March 2024 or at the end of the fiscal year immediately preceding the relevant fiscal year-end.」
The company discloses the balance, repayment due date, and conditions prohibiting losses for 2 consecutive fiscal years and requiring net assets to be maintained at 75% or more for borrowings from a city bank subject to financial covenants. - FY2023RestatedAnnual report
「Although we believe that the possibility of breaching these covenants is low at present, if a covenant is breached, we may lose the benefit of time for repayment and may be required to repay the relevant borrowings in a lump sum, which could affect our financial condition.」
The company continues to disclose its view that the possibility of breaching financial covenants is low and the risk of lump-sum repayment in the event of a breach. - FY2022RestatedAnnual report
「Although we believe that the possibility of breaching these covenants is low at present, if a covenant is breached, we may lose the benefit of time for repayment and may be required to repay the relevant borrowings in a lump sum, which could affect our financial condition.」
While stating that the possibility of breaching financial covenants is low, the company continues to disclose the risk of lump-sum repayment in the event of a breach. - FY2020RestatedAnnual report
「Although we believe that the possibility of breaching these covenants is low at present, if a covenant is breached, we may lose the benefit of time for repayment and may be required to repay the relevant borrowings in a lump sum, which could affect our financial condition.」
The company continues to disclose the possibility of breaching financial covenants and the risk of lump-sum repayment. - FY2019First statedAnnual report
「Some of our loan agreements contain financial covenants. Although we believe that the possibility of breaching these covenants is low at present, if a covenant is breached, we may lose the benefit of time for repayment and may be required to repay the relevant borrowings in a lump sum, which could affect our financial condition.」
For the first time, the company explicitly states the possibility of breaching financial covenants under its loan agreements and being required to make lump-sum repayments as a result.