Risk of Continued Borrowing Due to Financial Covenants
First written in FY2019. 1 of 3 entries say "Restated". Latest entry: FY2026.
Sanoh Industrial moved to the "Worse" side of this theme in 2026, 3 years after the typical company in this theme (2023).
5 other companies' latest entry also says "Reframed".
- FY2026ReframedAnnual report
「The Company has entered into a commitment line agreement with 3 transaction banks. The agreement includes a financial covenant requiring that consolidated operating profit must not be negative for 2 consecutive consolidated fiscal years.」
The disclosure subject changed from the net-asset maintenance and operating-loss restrictions attached to the previous ¥3.0 billion term loan to the requirement under the commitment line agreement to avoid operating losses for 2 consecutive fiscal years. - FY2021RestatedAnnual report
「The Company has entered into a syndicated term loan agreement with its financing institutions for a total amount of ¥3.000 billion. The agreement includes the financial covenants described below.」
The financial covenants attached to the ¥3.0 billion term loan, requiring consolidated net assets of at least 75% and avoiding operating losses for 2 consecutive consolidated fiscal years, continue to be disclosed. - FY2019First statedAnnual report
「The Company has entered into a syndicated term loan agreement with its financing institutions for a total amount of ¥3.000 billion. The agreement includes the following financial covenants: ① consolidated net assets at the end of each consolidated fiscal year must be at least 75% of the higher of consolidated net assets at the end of the immediately preceding consolidated fiscal year or at the end of the fiscal year ended March 2015; ② consolidated operating profit must not be negative for 2 consecutive consolidated fiscal years.」
The ¥3.000 billion term loan includes financial covenants requiring consolidated net assets of at least 75% and avoiding operating losses for 2 consecutive fiscal years.