Material Doubt Regarding Going Concern Due to COVID-19
First written in FY2021-Q1. 1 of 4 entries say "Mitigated", first in FY2021-Q2. Latest entry: FY2022.
The whole theme swung hardest in 2025: 2 of 10 companies on the "Worse" side.
6 other companies' latest entry also says "Dropped".
- FY2022DroppedAnnual reportThe securities report for the current fiscal year contains no reference to circumstances that could raise significant doubt about the going concern assumption.
- FY2021-Q3Cited as achievedAnnual report
「During the 3rd quarter cumulative consolidated period, the events and other circumstances that had arisen during the 1st quarter consolidated accounting period and could raise significant doubt about the going concern assumption had been resolved as of the end of the 2nd quarter consolidated accounting period.」
Reiterated that the events and other circumstances arising in the 1st quarter that could raise significant doubt about the going concern assumption had been resolved by the end of the 2nd quarter. - FY2021-Q2MitigatedAnnual report
「Based on these circumstances, the company assumed, in its outlook for net sales in the second half of the fiscal year ending March 2021, that domestic sales would be at the same level as the previous year and overseas sales would be slightly below the previous year, although the pace of recovery would vary by country. As of the end of the 2nd quarter consolidated accounting period, it determined that the events or circumstances that could raise significant doubt about the going concern assumption had been resolved.」
Regarding the circumstances identified in the 1st quarter as potentially raising significant doubt about the going concern assumption, determined that they had been resolved as of the end of the 2nd quarter in light of the recovery in net sales and the securing of working capital. - FY2021-Q1First statedAnnual report
「As a result of these effects, net sales decreased significantly during the 1st quarter cumulative consolidated period, and circumstances existed that could raise significant doubt about the going concern assumption. To address this situation, we reviewed the original business plan, borrowed funds from financial institutions, and entered into a syndicated commitment line agreement with multiple financial institutions. Although the possible occurrence of a second or third wave remains a concern, net sales have entered a recovery trend after bottoming out in April. In addition, because we have secured sufficient working capital assuming that the situation will be prolonged, we have determined that no material uncertainty exists regarding the going concern assumption.」
In response to a significant decline in net sales caused by COVID-19, the company explicitly stated for the first time that circumstances existed that could raise significant doubt about the going concern assumption. At the same time, it determined that no material uncertainty existed regarding the going concern assumption because net sales were recovering and sufficient working capital had been secured.