Risk of Breaching Financial Covenants
First written in FY2018. 1 of 5 entries say "Materialised", first in FY2026. Latest entry: FY2026.
- FY2026MaterialisedAnnual report
「At the end of the current consolidated fiscal year, the Company was in breach of financial covenants attached to some borrowing agreements, and the related borrowings were classified as current liabilities.」
A breach of the financial covenants actually occurred. However, the Company subsequently obtained written waivers and other relief from financial institutions regarding application of the acceleration clause, and the borrowings remained available for use. - FY2024Base year for financial covenants and subsidiary conditions updatedAnnual report
「・Maintain consolidated net assets at or above 80% of the net assets reported in the financial statements for the fiscal year ended March 2023 ・Maintain consolidated operating profit or loss in the black Borrowing agreements of domestic consolidated subsidiaries contain the above covenants relating to the Company’s consolidated figures, as well as the following financial covenants relating to the figures of each subsidiary.」
The base year for the consolidated net-asset maintenance covenant was updated to the fiscal year ended March 2023, and covenants requiring domestic subsidiaries to maintain net assets and avoid consecutive losses were added. Various ratios and borrowing conditions for overseas subsidiaries were also updated. - FY2023Base year for financial covenants updatedAnnual report
「Some of the Company’s borrowing agreements contain the following financial covenants: ・Maintain consolidated net assets at or above 80% of the net assets reported in the financial statements for the fiscal year ended March 2022 ・Maintain consolidated operating profit or loss in the black」
The base year for the consolidated net-asset maintenance covenant was changed from the fiscal year ended March 2021 to the fiscal year ended March 2022. The covenant requiring consolidated operating profit or loss to remain in the black continues. - FY2022Financial covenant terms updatedAnnual report
「Some of the Company’s borrowing agreements contain the following financial covenants: ・Maintain consolidated net assets at or above 80% of the net assets reported in the financial statements for the fiscal year ended March 2021 ・Maintain consolidated operating profit or loss in the black」
The financial covenants were updated to include a net-asset maintenance covenant based on the fiscal year ended March 2021. Conditions for overseas subsidiaries, including the interest coverage ratio, borrowing limits and debt as a percentage of land value, were also updated. - FY2018First statedAnnual report
「If this provision is breached, the Group’s business, financial condition, cash flows and performance may be affected, including through the loss of the benefit of time for repayment.」
Restrictions on overseas subsidiaries’ borrowings and other financing included an interest coverage ratio of 1.5x, a 5% bad-debt loss limit and debt equal to 62% of land value.