Financing Constraints and Financial Covenant Breach Risk
First written in FY2020. 4 of 6 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2025: 23 of 75 companies on the "Worse" side.
32 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「Accordingly, if financial markets become unstable, the Group may face funding constraints and higher funding costs, which could affect its operating results and financial position.」
The risk of financing constraints and higher funding costs due to financial market instability continues to be disclosed. - FY2025RestatedAnnual report
「If financial markets become unstable, the Group may face funding constraints and higher funding costs, which could affect its operating results and financial position.」
The risks of funding constraints and higher funding costs continue to be described. The current description of key risks does not specifically mention financial covenants. - FY2024SoftenedAnnual report
「Not applicable.」
Although loan agreements containing financial covenants from previous periods are disclosed in the notes, it is stated that there are no applicable matters for the current consolidated fiscal year. - FY2022RestatedAnnual report
「The Company has entered into a loan agreement containing financial covenants with MUFG Bank, Ltd. If operating performance deteriorates significantly due to changes in the business environment, the Company may breach financial covenants under the agreement that constitute events resulting in the loss of the benefit of time (details are provided in “V. Accounting Information, 1. Consolidated Financial Statements, etc., (1) Consolidated Financial Statements, Notes, Matters Related to the Consolidated Balance Sheet”), potentially causing a significant deterioration in cash flow.」
The loan agreement containing financial covenants, together with the risks of covenant breaches and cash flow deterioration if operating performance deteriorates, continues to be described. - FY2021RestatedAnnual report
「If operating performance deteriorates significantly due to changes in the business environment, the Company may breach financial covenants under the agreement that constitute events resulting in the loss of the benefit of time, potentially causing a significant deterioration in cash flow.」
Funding constraints, financial covenants under the loan agreement, and the risk of cash flow deterioration if they are breached continue to be described. - FY2020First statedAnnual report
「If financial markets become unstable, the Group may face funding constraints and higher funding costs, which could affect its operating results and financial position. The Company has entered into a loan agreement containing financial covenants with MUFG Bank, Ltd. If operating performance deteriorates significantly due to changes in the business environment, the Company may breach financial covenants under the agreement that constitute events resulting in the loss of the benefit of time, potentially causing a significant deterioration in cash flow.」
Funding constraints caused by a deterioration in market conditions, together with the risks of loss of the benefit of time and cash flow deterioration if financial covenants are breached, are explicitly identified for the first time as risks associated with the loan agreement.