Risk of eroding profitability due to inaccurate estimates, specification changes, and delivery delays
First written in FY2020. 2 of 3 entries say "Restated". Latest entry: FY2025.
The whole theme swung hardest in 2024: 17 of 54 companies on the "Worse" side.
27 other companies' latest entry also says "Restated".
- FY2025RestatedAnnual report
「The Company forecasts the required work hours and costs and prepares estimates based on the project’s work processes and other factors. If actual work exceeds the estimate because specification changes or additional work increase the required work hours, the project may generate low profitability or a loss. In addition, if work cannot be completed and delivered to the customer by the predetermined deadline, delay damages may arise; if the work ultimately cannot be completed and delivered, damages may be payable. These matters may affect the business and performance of the Company Group.」
Continues to disclose the risks of excess work hours due to specification changes or additional work, delivery delays, and lower profitability or liability for damages associated with failure to deliver. - FY2022RestatedAnnual report
「If actual work exceeds the estimate because specification changes or additional work increase the required work hours, the project may generate low profitability or a loss. In addition, if work cannot be completed and delivered to the customer by the predetermined deadline, delay damages may arise; if the work ultimately cannot be completed and delivered, damages may be payable. These matters may affect the Company’s business and performance.」
Reiterates the risks of excess work hours due to specification changes or additional work, delivery delays, and lower profitability or liability for damages due to failure to deliver. - FY2020First statedAnnual report
「If actual work exceeds the estimate because specification changes or additional work increase the required work hours, the project may generate low profitability or a loss. In addition, if work cannot be completed and delivered to the customer by the predetermined deadline, delay damages may arise; if the work ultimately cannot be completed and delivered, damages may be payable. These matters may affect the Company’s business and performance.」
Identifies as major risks the deterioration in profitability and potential liability for damages arising from excess work hours due to specification changes or additional work, delivery delays and failure to deliver.