Reliance on Borrowings and Financial Covenants
First written in FY2022-Q2. 4 of 8 entries say "Restated". Latest entry: FY2026.
PHC Holdings moved to the "Worse" side of this theme in 2022, 1 year after the typical company in this theme (2021).
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
「The company's borrowings are subject to financial covenants, the principal terms of which are as follows: ① From the fiscal year ending March 2026 onward, total equity in the consolidated statement of financial position at the end of each fiscal year must be maintained at no less than 75% of total equity in the consolidated statement of financial position as of the end of March 2025. ② From the fiscal year ending March 2026 onward, the repayment period at each fiscal year-end must be maintained at or below the number of years applicable to each period.」
Following the refinancing, the financial covenants relating to the maintenance of equity and the repayment period remain in place. - 2026-06-03RestatedGeneral Meetings of Shareholders
「As the company carried out refinancing during the fiscal year, its borrowings of ¥231,207 million are subject to the following financial covenants.」
The company reconfirmed that its borrowings remain subject to financial covenants following the refinancing. - FY2025MitigatedAnnual report
「The Group has entered into borrowing agreements with financial institutions as lenders. Borrowings accounted for approximately 47.9% of total assets as of the end of the fiscal year ended March 2025. The agreements include financial covenants.」
While the borrowing-to-total-assets ratio declined from approximately 50.5% in the previous fiscal year to approximately 47.9%, financial covenants relating to consolidated equity, operating profit for 2 consecutive fiscal years, and long-term debt ratings remain in place. - FY2024RestatedAnnual report
「The Group has entered into borrowing agreements with financial institutions as lenders. Borrowings accounted for approximately 50.5% of total assets as of the end of the fiscal year ended March 2024. The agreements include financial covenants.」
Borrowings accounted for approximately 50.5% of total assets, and financial covenants relating to consolidated equity, operating profit for 2 consecutive fiscal years, and long-term debt ratings remain in place. - FY2023-Q3MaterialisedAnnual report
「Interest expense increased by ¥2,914 million year on year to ¥4,926 million due to accounting treatment reflecting a change in the contractual interest rate.」
The impact of the change in the contractual interest rate associated with the financial covenants became apparent in the form of higher interest expense during the nine-month period. - FY2023-Q2MaterialisedAnnual report
「Interest expense increased by ¥2,144 million year on year to ¥3,217 million due to accounting treatment reflecting a change in the contractual interest rate resulting from the financial covenants.」
The change in the contractual interest rate resulting from the financial covenants was reflected in the accounting treatment and the increase in interest expense, making the impact of the borrowings and financial covenants apparent. - FY2022-Q3RestatedAnnual report
「Other obligations (主要 ones)・Consolidated equity at the end of each fiscal year must not fall below the specified amount set out in the agreement・The company must not record a negative consolidated operating profit for 2 consecutive fiscal years・If a long-term debt rating is obtained, it must be maintained at or above the level specified in the agreement」
The company continues to disclose financial covenants in the refinancing agreement relating to consolidated equity, consolidated operating profit, and long-term debt ratings. - FY2022-Q2First statedAnnual report
「・Consolidated equity at the end of each fiscal year must not fall below the specified amount set out in the agreement ・The company must not record a negative consolidated operating profit for 2 consecutive fiscal years ・If a long-term debt rating is obtained, it must be maintained at or above the level specified in the agreement」
The refinancing agreement includes financial covenants relating to consolidated equity, consolidated operating profit, and long-term debt ratings.