Higher Borrowing Interest Rates and Breach of Financial Covenants
First written in FY2021. 8 of 9 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2017: 8 of 54 companies on the "Worse" side.
40 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「Some of our borrowing agreements contain financial covenants requiring the maintenance of net assets, ordinary profit and net income, among other items, at specified levels. If our performance deteriorates and we breach these financial covenants, we could be required to repay the borrowings under the relevant agreements, which could affect our financial condition.」
The company continues to disclose the financial covenants and the risk of demands for repayment if performance deteriorates. - FY2026-H1RestatedAnnual report
「The company's commitment line and overdraft agreements contain financial covenants requiring the maintenance of net assets, ordinary profit and net income, among other items, at specified levels. In the agreement with the largest commitment amount, the company has agreed to maintain net assets at each fiscal year-end at an amount equivalent to at least 75% of net assets at the end of the preceding fiscal year, and not to report an ordinary loss for 2 consecutive fiscal years.」
The company continues to disclose the financial covenants attached to its commitment line and other facilities requiring net assets to be maintained at 75% or more and avoiding ordinary losses for 2 consecutive fiscal years. There is no disclosure indicating that a breach has occurred. - FY2025-H1RestatedAnnual report
「The company's commitment line and overdraft agreements contain financial covenants requiring the maintenance of net assets, ordinary profit and net income, among other items, at specified levels. In the agreement with the largest commitment amount, the company has agreed to maintain net assets at each fiscal year-end at an amount equivalent to at least 75% of net assets at the end of the preceding fiscal year, and not to report an ordinary loss for 2 consecutive fiscal years.」
The company continues to disclose the financial covenants attached to its commitment line and other facilities requiring net assets to be maintained at 75% or more and avoiding ordinary losses for 2 consecutive fiscal years. There is no disclosure indicating that a breach has occurred. - FY2024-Q2RestatedAnnual report
「This agreement contains the following financial covenants: (1) from the fiscal year ending May 2020 onward, the amount of net assets shown on the balance sheet at each fiscal year-end must be maintained at 75% or more of the amount at the same period of the preceding year; and (2) from the fiscal year ending May 2020 onward, ordinary profit or loss shown on the income statement must not be a loss for 2 consecutive fiscal years.」
The company continues to disclose the financial covenants attached to its commitment line relating to the maintenance of net assets and ordinary profit or loss. There is no disclosure indicating that a breach has occurred. - FY2024-Q1RestatedAnnual report
「This agreement contains the following financial covenants: (1) from the fiscal year ending May 2020 onward, the amount of net assets shown on the balance sheet at each fiscal year-end must be maintained at 75% or more of the amount at the same period of the preceding year; and (2) from the fiscal year ending May 2020 onward, ordinary profit or loss shown on the income statement must not be a loss for 2 consecutive fiscal years.」
The company continues to disclose the financial covenants attached to its commitment line relating to the maintenance of net assets and ordinary profit or loss. There is no indication that a breach has occurred. - FY2023-Q3RestatedAnnual report
「This agreement contains the following financial covenants: (1) from the fiscal year ending May 2020 onward, the amount of net assets shown on the balance sheet at each fiscal year-end must be maintained at 75% or more of the amount at the same period of the preceding year; and (2) from the fiscal year ending May 2020 onward, ordinary profit or loss shown on the income statement must not be a loss for 2 consecutive fiscal years.」
The company continues to disclose the financial covenants attached to its commitment line relating to the maintenance of net assets and ordinary profit or loss. There is no disclosure indicating that a breach has occurred. - FY2023-Q2RestatedAnnual report
「This agreement contains the following financial covenants: (1) from the fiscal year ending May 2020 onward, the amount of net assets shown on the balance sheet at each fiscal year-end must be maintained at 75% or more of the amount at the same period of the preceding year; and (2) from the fiscal year ending May 2020 onward, ordinary profit or loss shown on the income statement must not be a loss for 2 consecutive fiscal years.」
The company continues to disclose the financial covenants attached to its commitment line relating to the maintenance of net assets and ordinary profit or loss. - FY2023-Q1RestatedAnnual report
「This agreement contains the following financial covenants: (1) from the fiscal year ending May 2020 onward, the amount of net assets shown on the balance sheet at each fiscal year-end must be maintained at 75% or more of the amount at the same period of the preceding year; and (2) from the fiscal year ending May 2020 onward, ordinary profit or loss shown on the income statement must not be a loss for 2 consecutive fiscal years.」
The company continues to disclose the financial covenants attached to its commitment line relating to the maintenance of net assets and ordinary profit or loss. There is no disclosure indicating that a breach has occurred. - FY2021First statedAnnual report
「We recognise that interest-bearing debt is substantial relative to sales. If market interest rates rise in the future, our borrowing rates are also expected to increase, which could affect our operating results and financial condition.」
The risks identified are higher borrowing rates and demands for repayment resulting from breaches of financial covenants relating to a decline in net assets and the reporting of ordinary losses.