Risk of breaching financial covenants and uncertainty regarding the going-concern assumption
First written in FY2020-Q3. 2 of 6 entries say "Worsened", first in FY2021-Q3. Latest entry: FY2023-Q3.
The whole theme swung hardest in 2024: 2 of 8 companies on the "Worse" side.
3 other companies' latest entry also says "Restated".
- FY2023-Q3RestatedAnnual report
「During the cumulative consolidated third quarter under review, there was no occurrence of new business or other risks, and no material changes to the business or other risks described in the securities report for the previous fiscal year.」
The company states that there have been no new developments or material changes relating to financial covenants or risks regarding the going-concern assumption. - FY2023-Q1RestatedAnnual report
「During the cumulative first quarter of the current fiscal year, there were no new business or other risks, nor any significant changes to the business and other risks described in the annual securities report for the previous fiscal year.」
The company states that there have been no new developments or material changes relating to financial covenants or risks regarding the going-concern assumption. - FY2021WorsenedAnnual report
「The balance of borrowings subject to financial covenants at the end of the consolidated fiscal year was as follows: current portion of long-term borrowings, ¥460,000 thousand; long-term borrowings, ¥1,835,000 thousand; total, ¥2,295,000 thousand.」
The balance of borrowings subject to financial covenants totaled ¥2,295 million, up from ¥1,435 million at the end of the previous fiscal year. - FY2021-Q3WorsenedAnnual report
「The balance of borrowings subject to financial covenants at the end of the third-quarter consolidated accounting period was as follows: current portion of long-term borrowings, ¥500,000 thousand; long-term borrowings, ¥1,920,000 thousand; total, ¥2,420,000 thousand.」
The balance of borrowings subject to financial covenants increased from ¥1,435 million at the end of the previous consolidated fiscal year to ¥2,420 million. This filing does not explicitly mention the risk of breach or the significant doubt regarding the going-concern assumption stated in the previous period. - FY2020DroppedAnnual report
「Certain of the loan agreements entered into between the company and financial institutions contain financial covenants relating to net assets and ordinary income.」
The financial covenants themselves and the balance of borrowings subject to them, ¥1,435 million, are disclosed, but this filing does not explicitly mention the “risk of breach” or the significant doubt regarding the going-concern assumption stated in the previous quarter. - FY2020-Q3First statedAnnual report
「In addition, there are circumstances that could lead to a breach of financial covenants attached to certain of the loan agreements entered into between the company and financial institutions, giving rise to significant doubt about the going-concern assumption.」
The risk of breaching financial covenants and the circumstances giving rise to significant doubt about the going-concern assumption were disclosed explicitly for the first time. Borrowings subject to the financial covenants totaled ¥1.5 billion. Meanwhile, the company is consulting with financial institutions and has determined that no material uncertainty regarding the going-concern assumption exists.