Reliance on Interest-Bearing Debt, Interest Rate Trends, and Financial Covenants
First written in FY2016. 12 of 34 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2020: 64 of 142 companies on the "Worse" side.
- FY2026MitigatedAnnual report
「As of the end of the current consolidated fiscal year, the company was not in breach of the relevant financial covenants.」
The company stated that, as of the end of the fiscal year, there was no breach of the financial covenants under the commitment line executed in September 2025, including the requirement that operating income or loss not be a loss for 2 consecutive fiscal years. - 2026-05-13WorsenedResults
「国内及び海外子会社での設備資金や運転資金の調達等により、有利子負債が2,915百万円増加（為替影響除きでは1,694百万円増加）したことによるものです。」
設備資金・運転資金の調達により、有利子負債が増加した。 - FY2026-H1ReframedAnnual report
「Operating income or loss shown in the consolidated income statement and the income statement of the filing company for each fiscal year-end from the fiscal year ending March 2026 onward must not be a loss for 2 consecutive fiscal years. The first determination covers the fiscal year ending March 2026 and the preceding fiscal year.」
For the commitment line executed in September 2025, the financial covenant relating to operating income or loss was revised from “not be a loss in each fiscal year” to “not be a loss for 2 consecutive fiscal years,” and the periods subject to determination were specified. - FY2025-H1WorsenedAnnual report
「The ¥617 million increase in liabilities was mainly due to a ¥1,870 million increase in borrowings to fund capital investment and working capital at domestic and overseas subsidiaries, despite a ¥1,024 million decrease in other current liabilities resulting from a decrease in consumption taxes payable and other liabilities.」
Borrowings increased by ¥1,870 million to fund capital investment and working capital, increasing exposure to interest-bearing debt. In September, the company also disclosed new agreements for a ¥5,000 million commitment line and a ¥4,100 million term loan. - FY2024MaterialisedAnnual report
「Of the Group's borrowings, ¥8,050 million is subject to financial covenants. Of this amount, ¥6,550 million became subject to an actual breach because the company recorded an operating loss in the current consolidated fiscal year, violating the covenant in the syndicated loan agreement requiring that operating income or loss shown in the consolidated income statement for each fiscal year-end since the execution of the agreement not be a loss. Following discussions with the participating financial institutions, the company obtained their agreement not to apply the provisions relating to acceleration of repayment.」
The prospective breach identified in the previous quarter became an actual breach, with an operating loss triggering a breach of financial covenants covering ¥6,550 million. The financial institutions agreed not to apply the acceleration-of-repayment provision. - FY2024-Q3WorsenedAnnual report
「The Group, including its overseas subsidiaries, experienced declines in sales and production volumes due to lower housing demand in Japan and overseas, while costs also rose as a result of the weaker yen and advancing inflation. As a result, sales and profit were weak compared with the same period of the previous year, creating the prospect of a breach of the financial covenant in the syndicated loan agreement requiring that operating income or loss shown in the consolidated income statement for each fiscal year-end since the execution of the agreement not be a loss. If this financial covenant were applied, it could affect the Group's cash flow, but the participating financial institutions have agreed not to apply the provisions relating to acceleration of repayment.」
Weak performance created the prospect of a breach of the financial covenant relating to operating income or loss. However, the financial institutions agreed not to apply the acceleration-of-repayment provision. - FY2024-Q2WorsenedAnnual report
「The ¥2,400 million increase in liabilities was mainly due to a ¥1,983 million increase in borrowings to fund capital investment and working capital at domestic and overseas subsidiaries (a ¥915 million increase excluding the impact of foreign exchange).」
Borrowings increased by ¥1,983 million to fund capital investment and working capital at domestic and overseas subsidiaries, increasing exposure to interest-bearing debt. - FY2024-Q1WorsenedAnnual report
「The ¥2,094 million increase in liabilities was mainly due to a ¥1,722 million increase in borrowings to fund capital investment and working capital at the company and its New Zealand subsidiary (a ¥1,087 million increase excluding the impact of foreign exchange).」
Borrowings increased by ¥1,722 million to fund capital investment and working capital, increasing exposure to interest-bearing debt. - FY2023WorsenedAnnual report
「The Group's interest-bearing debt dependence ratio stood at 37.7% at the end of the fiscal year ended March 2023.」
The interest-bearing debt dependence ratio rose from 35.4% in the previous fiscal year to 37.7%, while interest-bearing debt outstanding reached ¥36,604 million. - FY2023-Q3WorsenedAnnual report
「The ¥1,648 million increase in liabilities was mainly due to a ¥2,957 million increase in borrowings to fund increased working capital at the company and its New Zealand subsidiary (a ¥2,383 million increase excluding the impact of foreign exchange), despite decreases of ¥668 million in notes and accounts payable and ¥525 million in accrued corporate taxes and other liabilities.」
Borrowings increased by ¥2,957 million to fund increased working capital at the company and its New Zealand subsidiary, increasing exposure to interest-bearing debt. - FY2023-Q2WorsenedAnnual report
「The ¥1,824 million increase in liabilities was mainly due to a ¥1,857 million increase in borrowings to fund increased working capital at the company and its New Zealand subsidiary.」
Borrowings increased by ¥1,857 million to fund working capital at the company and its New Zealand subsidiary, increasing exposure to interest-bearing debt. The company also disclosed financial covenants under the commitment line and other agreements executed on 28 September 2022. - FY2023-Q1WorsenedAnnual report
「The ¥1,890 million increase in liabilities was mainly due to a ¥1,821 million increase in borrowings to fund capital investment and working capital at the company and its New Zealand subsidiary.」
Borrowings increased by ¥1,821 million to fund capital investment and working capital, reversing the previous year's reduction in borrowings and decline in interest-bearing debt. - FY2022MitigatedAnnual report
「The Group's interest-bearing debt dependence ratio stood at 35.4% at the end of the fiscal year ended March 2022.」
The interest-bearing debt dependence ratio declined from 39.1% in the previous fiscal year to 35.4%, reducing financial exposure involving interest rates and financial covenants. - FY2022-Q3MitigatedAnnual report
「The ¥1,002 million decrease in liabilities was mainly due to a ¥2,680 million decrease in borrowings and bonds, resulting from repayments of COVID-19 support funds borrowed in 2020 and part of the Indonesian subsidiary's interest-bearing debt (a ¥3,045 million decrease excluding the impact of foreign exchange), despite increases of ¥1,584 million in other current liabilities, resulting in part from the application of the Accounting Standard for Revenue Recognition from the beginning of the first quarter of the current consolidated fiscal year, and ¥862 million in other non-current liabilities, including lease liabilities for New Zealand forestland.」
Borrowings and bonds decreased by ¥2,680 million, or ¥3,045 million excluding the impact of foreign exchange, reducing exposure to interest-bearing debt. - FY2022-Q2MitigatedAnnual report
「The ¥558 million decrease in liabilities was mainly due to a ¥2,302 million decrease in borrowings, despite increases of ¥1,066 million in other current liabilities, resulting in part from the application of the Accounting Standard for Revenue Recognition from the beginning of the first quarter of the current consolidated fiscal year, and ¥825 million in other non-current liabilities, including lease liabilities for New Zealand forestland.」
Borrowings decreased by ¥2,302 million, reducing exposure to interest-bearing debt from the end of the previous fiscal year. - FY2022-Q1MitigatedAnnual report
「The ¥511 million decrease in liabilities was mainly due to a ¥1,391 million decrease in borrowings, despite a ¥928 million increase in other current liabilities resulting in part from the application of the Accounting Standard for Revenue Recognition from the beginning of the first quarter of the current consolidated fiscal year.」
Borrowings decreased by ¥1,391 million from the end of the previous consolidated fiscal year, and exposure to interest-bearing debt shifted from increasing through the previous quarter to declining. - FY2021-Q3WorsenedAnnual report
「The ¥4,603 million increase in liabilities was mainly due to a ¥4,676 million increase in interest-bearing debt for measures addressing COVID-19 and new capital investment by the Indonesian subsidiary (a ¥3,818 million increase excluding the impact of foreign exchange, consisting of a ¥858 million increase attributable to foreign exchange).」
Interest-bearing debt increased by ¥4,676 million due to measures addressing COVID-19 and capital investment by the Indonesian subsidiary, further increasing financial exposure. - FY2021-Q2WorsenedAnnual report
「The ¥3,766 million increase in liabilities was mainly due to a ¥4,366 million increase in borrowings for measures addressing COVID-19 and new capital investment by the Indonesian subsidiary, despite a ¥154 million decrease in electronically recorded obligations and a ¥306 million decrease in accrued corporate taxes and other liabilities.」
Borrowings increased by ¥4,366 million due to measures addressing COVID-19 and capital investment by the Indonesian subsidiary, further increasing exposure to interest-bearing debt. - FY2021-Q1WorsenedAnnual report
「The ¥3,044 million increase in liabilities was mainly due to a ¥3,447 million increase in borrowings for measures addressing COVID-19 and new capital investment by the Indonesian subsidiary, despite a ¥405 million decrease in accrued corporate taxes and other liabilities.」
Borrowings increased by ¥3,447 million due to COVID-19 measures and capital investment by the Indonesian subsidiary, increasing exposure to interest-bearing debt. - FY2020-Q3RestatedAnnual report
「The syndicated-loan commitment line agreement executed on 26 September 2019, with a total commitment of ¥5,000 million and borrowings of ¥2,000 million outstanding as of 31 December 2019, contains financial covenants.」
The company continues to disclose that the commitment line and multiple term loans contain financial covenants. The text contains no indication of any covenant breach. - FY2020-Q2ReframedAnnual report
「The syndicated-loan commitment line agreement executed on 26 September 2019, with a total commitment of ¥5,000 million and borrowings of ¥2,000 million outstanding as of 30 September 2019, contains financial covenants. The syndicated-loan term loan agreement executed on 26 September 2019, with a total commitment of ¥4,500 million and borrowings of ¥4,500 million outstanding as of 30 September 2019, also contains financial covenants.」
The commitment line and term loan executed on 26 September 2019 were disclosed, updating the financing arrangements to include financial covenants regarding the commitment amount, borrowings outstanding, and maintenance of net assets and operating income. - FY2020-Q1RestatedAnnual report
「The syndicated-loan commitment line agreement executed on 28 September 2018, with a total commitment of ¥5,000 million and borrowings of ¥2,000 million outstanding as of 30 June 2019, contains financial covenants.」
The company continues to disclose the total commitment, borrowings outstanding and financial covenants requiring the maintenance of net assets and operating income under the commitment line. The text contains no indication of any covenant breach. - FY2019RestatedAnnual report
「The Group's interest-bearing debt dependence ratio stood at 38.6% at the end of the fiscal year ended March 2019. The Group's policy is to maintain interest-bearing debt at an appropriate level through measures such as improving the efficiency of management resources, but changes in financial conditions, including future interest-rate trends, could affect the Group's performance.」
The company continues to disclose an interest-bearing debt dependence ratio of 38.6% and the potential impact of changes in interest rates and financial conditions. The text contains no indication of any financial covenant breach. - FY2019-Q3RestatedAnnual report
「The syndicated-loan commitment line agreement executed on 28 September 2018, with a total commitment of ¥5,000 million and borrowings of ¥2,000 million outstanding as of 31 December 2018, contains financial covenants.」
The company continues to disclose that the commitment line and term loan contain financial covenants, and the text contains no indication of any covenant breach. - FY2019-Q2ReframedAnnual report
「The syndicated-loan commitment line agreement executed on 28 September 2018, with a total commitment of ¥5,000 million and borrowings of ¥2,000 million outstanding as of 30 September 2018, contains financial covenants.」
A new commitment line agreement was executed, with a total commitment of ¥5,000 million, borrowings of ¥2,000 million outstanding and financial covenants disclosed. The descriptions of the operating-income requirements under the existing and new agreements have also been reorganized. - FY2019-Q1RestatedAnnual report
「The syndicated-loan commitment line agreement executed on 26 September 2017, with a total commitment of ¥5,000 million and borrowings of ¥2,000 million outstanding as of 30 June 2018, contains financial covenants.」
The company continues to disclose that the commitment line and term loan contain financial covenants. The text contains no indication of any covenant breach. - FY2018RestatedAnnual report
「The Group's interest-bearing debt dependence ratio stood at 38.6% at the end of the fiscal year ended March 2018. The Group's policy is to maintain interest-bearing debt at an appropriate level through measures such as improving the efficiency of management resources, but changes in financial conditions, including future interest-rate trends, could affect the Group's performance.」
The company disclosed an interest-bearing debt dependence ratio of 38.6% and continues to recognize financial risks, including changes in interest rates and financial conditions and financial covenants. - FY2018-Q3RestatedAnnual report
「The commitment line agreement under a syndicated loan arrangement executed on 26 September 2017, with a total commitment of ¥5,000 million and borrowings of ¥3,000 million as of 31 December 2017, includes financial covenants.」
The Company continues to disclose the commitment amounts, borrowings and financial covenants for the commitment line and term loan. Total interest-bearing debt declined by ¥345 million from the end of the previous consolidated fiscal year, and the text contains no indication of a covenant breach. - FY2018-Q2RestatedAnnual report
「The commitment line agreement under a syndicated loan arrangement executed on 26 September 2017, with a total commitment of ¥5,000 million and no borrowings as of 30 September 2017, includes financial covenants.」
The Company continues to disclose financial covenants requiring the maintenance of net assets and non-loss operating income for the new commitment line and term loan. The text contains no indication of a covenant breach. - FY2018-Q1RestatedAnnual report
「① Maintenance of net assets From the end of the second quarter of the fiscal year ending March 2017, at the end of each fiscal year and at each second-quarter fiscal period-end, the Company must maintain net assets at 75% or more of the level for the fiscal year ended March 2016 on its balance sheet, and the net assets section of the consolidated balance sheet must not be negative. ② Maintenance of operating profit Operating income shown in the consolidated and non-consolidated income statements for each fiscal year from the fiscal year ending March 2017 onward must not be a loss.」
The Company continues to disclose syndicated loan covenants requiring net assets of at least 75% and non-loss operating income, with no indication of a breach. - FY2017-Q3RestatedAnnual report
「From the end of the second quarter of the fiscal year ending March 2017, at the end of each fiscal year and at each second-quarter fiscal period-end, the Company must maintain net assets at 75% or more of the level for the fiscal year ended March 2016 on its balance sheet, and the net assets section of the consolidated balance sheet must not be negative. ② Maintenance of operating profit: Operating income shown in the consolidated and non-consolidated income statements for each fiscal year from the fiscal year ending March 2017 onward must not be a loss.」
The Company continues to disclose syndicated loan covenants requiring net assets of at least 75% and non-loss operating income, with no indication of a breach. - FY2017-Q2RestatedAnnual report
「The term loan agreement under a syndicated loan arrangement executed on 27 September 2016, with a total commitment of ¥3,000 million and borrowings of ¥3,000 million as of 30 September 2016, includes financial covenants. If the Company breaches either of the covenants below and agreement cannot be reached among the majority lenders, it will lose the benefit of time for repayment. ① Maintenance of net assets: From the end of the second quarter of the fiscal year ending March 2017, at the end of each fiscal year and at each second-quarter fiscal period-end, the Company must maintain net assets at 75% or more of the level for the fiscal year ended March 2016 on its balance sheet, and the net assets section of the consolidated balance sheet must not be negative. ② Maintenance of operating profit: Operating income shown in the consolidated and non-consolidated income statements for each fiscal year from the fiscal year ending March 2017 onward must not be a loss.」
The new syndicated loan executed on 27 September 2016 also includes financial covenants requiring net assets of at least 75% and non-loss operating income. No breach is mentioned. - FY2017-Q1RestatedAnnual report
「① Maintenance of net assets From the end of the second quarter of the fiscal year ended March 2016, at the end of each fiscal year and at each second-quarter fiscal period-end, the Company must maintain net assets at 75% or more of the level for the fiscal year ended March 2015 on its balance sheet, and the net assets section of the consolidated balance sheet must not be negative. ② Maintenance of operating profit Operating income shown in the consolidated and non-consolidated income statements for each fiscal year from the fiscal year ending March 2016 onward must not be a loss.」
The Company continues to disclose financial covenants attached to syndicated loans and other facilities requiring net assets of at least 75% and non-loss operating income. The current text contains no indication of a covenant breach. - FY2016First statedAnnual report
「The Group’s dependence on interest-bearing debt stood at 39.6% at the end of the fiscal year ended March 2016. The Group plans to reduce borrowings through more efficient use of management resources and other measures, but changes in interest rates and financial conditions could affect its performance.」
The Company disclosed interest-bearing debt dependence of 39.6% and interest-bearing debt of ¥35,243 million, identifying changes in interest rates and financial conditions as risks.