Guarantee Obligation Risk from a Decline in the Share Price under the E-Ship Trust
First written in FY2022. 3 of 4 entries say "Mitigated", first in FY2023. Latest entry: FY2025.
31 other companies' latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「The carrying amount of borrowings recognized through application of the gross method was ¥165.330 million at the end of the previous consolidated fiscal year and ¥123.590 million at the end of the current consolidated fiscal year.」
The possibility that the company may repay the E-Ship trust's outstanding borrowings if the share price declines continues to be disclosed, while the carrying amount of the trust's borrowings decreased from ¥165.330 million to ¥123.590 million. - FY2024MitigatedAnnual report
「The carrying amount of borrowings recognized through application of the gross method was ¥204.730 million at the end of the previous consolidated fiscal year and ¥165.330 million at the end of the current consolidated fiscal year.」
The possibility that the company may repay the E-Ship trust's outstanding borrowings if the share price declines continues to be disclosed, while the carrying amount of the trust's borrowings decreased from ¥204.730 million to ¥165.330 million. - FY2023MitigatedAnnual report
「The carrying amount of borrowings recognized through application of the gross method was ¥250.000 million at the end of the previous consolidated fiscal year and ¥204.730 million at the end of the current consolidated fiscal year.」
The possibility that the company may repay the E-Ship trust's outstanding borrowings if the share price declines continues to be disclosed, while the carrying amount of the trust's borrowings decreased from ¥250.000 million to ¥204.730 million. - FY2022First statedAnnual report
「Because we guarantee borrowings incurred by the E-Ship trust to acquire our shares, a decline in our share price may cause losses on the sale of shares to accumulate within the E-Ship trust. If, at the end of the trust, the E-Ship trust has outstanding borrowings equivalent to those losses on the sale of shares, we will repay the outstanding borrowings. The total acquisition cost of the shares scheduled to be acquired by employees is ¥250.000 million.」
The company has disclosed as a new risk the possibility that, under its guarantee of the E-Ship trust's borrowings, it may repay the trust's outstanding borrowings if the share price declines. The borrowing amount is ¥250.000 million, and the disclosure does not state that the risk had actually materialized as of the end of the fiscal year.