Quality Risk Arising from Recalls and Product Liability
First written in FY2016. 3 of 9 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2026: 11 of 57 companies on the "Worse" side.
- FY2026MitigatedAnnual report
「Decrease in provision for product warranties (¥2.184 billion)」
The product warranty provision recorded at a significant level in the previous fiscal year in connection with recalls decreased by ¥2.184 billion, leaving a balance of ¥213.837 million at the fiscal year-end. The impact of provisions related to quality risks has decreased from the previous fiscal year. - 2026-04-27MitigatedEarnings
「Decrease in provision for product warranties (¥2.184 billion)」
The provision for product warranties recorded in the previous fiscal year decreased, reducing quality-assurance-related liabilities. - FY2025MaterialisedAnnual report
「Net income for the period decreased because the company recognised a provision based on a reasonable estimate, using information available at present, for a recall involving an OEM customer.」
The company recognised a ¥2.3766 billion addition to the product warranty provision in connection with a recall by an OEM customer, and net income attributable to owners of the parent decreased 6.8% year on year. - FY2024MaterialisedAnnual report
「On 23 May 2024, a recall notification was submitted to the relevant authorities, including the Ministry of Land, Infrastructure, Transport and Tourism, concerning front stabilisers manufactured by the company in the past. This may result in repair costs, but the company has not recognised an expense because it is difficult to reasonably estimate the amount of the impact.」
A recall notification was submitted for front stabilisers manufactured in the past, and the company disclosed the possibility of repair costs. The amount of the impact cannot reasonably be estimated, so no expense was recognised in the fiscal year. - FY2020RestatedAnnual report
「The Group has adopted the further strengthening of its quality assurance system as a basic policy and manufactures various products. However, the external environment relating to safety is changing, and there is no guarantee that recalls will not occur in the future.」
While advancing efforts to strengthen its quality assurance system, the company reconfirms the possibility of a recall or product liability claim as a remaining risk. - FY2019RestatedAnnual report
「Actual claim costs may differ from estimates, potentially creating a need to increase the product warranty provision.」
The company reconfirms differences between estimated and actual product warranty costs and the possibility of increasing the provision as risks in significant accounting estimates. - FY2018Details added on the estimation risk for product warranty costsAnnual report
「Actual claim costs may differ from estimates, potentially creating a need to increase the product warranty provision.」
In addition to the existing recall and product liability risks, the company specifically describes the possibility that the product warranty provision, based on past results and other factors, may differ from actual claim costs and may need to be increased. - FY2017RestatedAnnual report
「The Group has adopted the further strengthening of its quality assurance system as a basic policy and manufactures various products. However, the external environment relating to safety is changing, and there is no guarantee that recalls will not occur in the future. A large-scale recall or product liability claim could result in substantial costs, significantly affect the reputation of the Group, and materially affect the Group's results and financial position.」
While advancing efforts to strengthen its quality assurance system, the company again identifies the possibility of a large-scale recall or product liability claim as a remaining risk. - FY2016First statedAnnual report
「However, the external environment relating to safety is changing, and there is no guarantee that recalls will not occur in the future. A large-scale recall or product liability claim could result in substantial costs, significantly affect the reputation of the Group, and materially affect the Group's results and financial position.」
While strengthening its quality assurance system as a basic policy, the company identifies the possibility of a large-scale recall or product liability claim as a remaining risk.