Transfer Price Adjustment Claim Relating to a South African Thermal Power Generation Project
First written in FY2017-Q1. 6 of 19 entries say "Mitigated", first in FY2020-Q3. Latest entry: FY2026.
The whole theme swung hardest in 2019: 3 of 7 companies on the "Worse" side.
4 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「In June 2026, the company received an arbitral award that substantially upheld the claims of the company and the other parties. The impact on the financial position and operating results is immaterial.」
In June 2026, the company received an arbitral award that substantially upheld the claims of the company and the other parties in the arbitration concerning the construction of an Algerian chemical fertilizer plant with AOA and other parties. - FY2023-Q3MitigatedAnnual report
「Under the settlement agreement above, all MHPS shares owned by Hitachi were transferred to the company on 1 September 2020. Accordingly, the ¥407.8 billion “compensation asset related to the South Africa Project” recognized in the previous consolidated fiscal year was fully recovered, and “bonds, borrowings and other financial liabilities” also decreased by the same amount.」
As there have been no material changes in the situation following the recovery of the compensation asset related to the South Africa Project and the conclusion of the arbitration, the existing risk-mitigation status was confirmed. - FY2021-Q2MitigatedAnnual report
「Under the settlement agreement above, all MHPS shares owned by Hitachi were transferred to the company on 1 September 2020. Accordingly, the ¥407.8 billion “compensation asset related to the South Africa Project” recognized in the previous consolidated fiscal year was fully recovered, and “bonds, borrowings and other financial liabilities” also decreased by the same amount.」
The ¥407.8 billion compensation asset related to the South Africa Project was fully recovered through the transfer of MHPS shares. The arbitration proceedings also ended on 14 September 2020. - FY2021-Q1MitigatedAnnual report
「The “compensation asset related to the South Africa Project” was scheduled to be recovered in full upon receipt of MHPS shares on 1 September 2020.」
The settlement with Hitachi concerning the South Africa Project specified that the ¥407.8 billion compensation asset would be recovered in full through the receipt of MHPS shares. - FY2020MitigatedAnnual report
「The ¥407.8 billion recognized as a “compensation asset related to the South Africa Project” at the end of the current consolidated fiscal year represents the amount corresponding to item (1) above less the ¥200.0 billion paid by Hitachi in March 2020.」
The company received ¥200.0 billion from Hitachi, and the arbitration concerning the South Africa Project moved to settlement-based procedures. The remaining compensation asset of ¥407.8 billion was scheduled to be recovered through the receipt of MHPS shares. - FY2020-Q3MitigatedAnnual report
「Although the company filed for arbitration with the Japan Commercial Arbitration Association (JCAA) on 31 July 2017 concerning Hitachi’s payment of the difference between the final transfer price and the provisional price under the agreement (transfer price adjustment payments and other amounts), the company and Hitachi ultimately reached a settlement on 18 December 2019.」
The arbitration concerning transfer price adjustment payments and other amounts related to the South Africa Project was suspended following the settlement with Hitachi. The receipt of ¥200.0 billion in cash and MHPS shares under the settlement, the acquisition of a ¥70.0 billion receivable from Hitachi and the withdrawal of the arbitration claims are subject to the completion of the necessary approvals, payments and other procedures. - FY2020-Q2Increase in compensation assetsAnnual report
「Compensation asset related to the South Africa Project 546,098 547,371」
The amount recognized as a compensation asset related to the South Africa Project increased from ¥546.098 billion at the end of the previous consolidated fiscal year to ¥547.371 billion at the end of the second quarter of the current fiscal year. The company continues to explain the filing of arbitration proceedings concerning transfer price adjustment payments and other amounts owed by Hitachi, as well as the recognition of the claim. - FY2020-Q1Increase in compensation assetsAnnual report
「Compensation asset related to the South Africa Project 546,098 546,669」
Of the claims against Hitachi, the amount recognized as a compensation asset related to the South Africa Project increased from ¥546.098 billion at the end of the previous consolidated fiscal year to ¥546.669 billion at the end of the first quarter of the current fiscal year. The company continues to explain that this represents part of the claims made in the arbitration proceedings. - FY2019Increase in compensation assetsAnnual report
「At the transition date, the end of the previous consolidated fiscal year and the end of the current consolidated fiscal year, the amount of the above-mentioned claim against Hitachi measured based on the project losses expected at each point in time was recognized as a “compensation asset related to the South Africa Project.”」
The compensation asset related to the South Africa Project increased from ¥445.920 billion at the end of the previous fiscal year to ¥546.098 billion at the end of the current fiscal year. Arbitration concerning claims for payment from Hitachi remains ongoing. - FY2019-Q3Increase in compensation assetsAnnual report
「At the transition date, the end of the previous consolidated fiscal year and the end of the current third quarter of the consolidated fiscal year, the amount of the above-mentioned claim against Hitachi measured based on the project losses expected at each point in time was recognized as a “compensation asset related to the South Africa Project.”」
The amount recognized as a compensation asset related to the South Africa Project increased from ¥445.920 billion at the end of the previous fiscal year to ¥497.954 billion at the end of the third quarter of the current fiscal year. Arbitration concerning claims for payment from Hitachi remains ongoing. - FY2019-Q2Increase in compensation assetsAnnual report
「At the transition date, the end of the previous consolidated fiscal year and the end of the current second quarter of the consolidated fiscal year, the amount of the above-mentioned claim against Hitachi measured based on the project losses expected at each point in time was recognized as a “compensation asset related to the South Africa Project.”」
The amount recognized as a compensation asset related to the South Africa Project increased from ¥445.920 billion at the end of the previous consolidated fiscal year to ¥497.541 billion at the end of the second quarter of the current fiscal year. Arbitration concerning transfer price adjustment payments and other amounts owed by Hitachi remains ongoing. - FY2019-Q1Increase in compensation assetsAnnual report
「At the transition date, the end of the previous consolidated fiscal year and the end of the current first quarter of the consolidated fiscal year, the amount of the above-mentioned claim against Hitachi measured based on the project losses expected at each point in time was recognized as a “compensation asset related to the South Africa Project.”」
The compensation asset related to the South Africa Project increased from ¥445.920 billion at the end of the previous fiscal year to ¥506.760 billion at the end of the first quarter of the current fiscal year. - FY2018Increase in the amount recorded for the claimAnnual report
「At the end of the current consolidated fiscal year, ¥400.9 billion of the above claim against Hitachi was recorded as "Assets related to the South African project."」
Following the filing of arbitration proceedings concerning claims against Hitachi for transfer price adjustment payments and other amounts, the amount recognized as an asset for the claim increased from ¥294.9 billion at the end of the previous fiscal year to ¥400.9 billion. - FY2018-Q3Increase in the amount recorded for the claimAnnual report
「At the end of the third quarter of the current consolidated fiscal year, ¥363.5 billion of the above claim against Hitachi was recorded as "Assets related to the South African project."」
The amount recorded as an asset for the claim against Hitachi relating to the South African project increased from ¥294.9 billion at the end of the previous consolidated fiscal year and ¥344.8 billion at the end of the previous quarter to ¥363.5 billion. The arbitration proceedings filed on 31 July 2017 seeking approximately ZAR 90,779 million remain ongoing. - FY2018-Q2Increase in the amount recorded for the claimAnnual report
「At the end of the second quarter of the current consolidated fiscal year, ¥344.8 billion of the above claim against Hitachi was recorded as "Assets related to the South African project."」
The amount recorded for the claim against Hitachi for transfer-price adjustment amounts and other amounts increased from ¥294.9 billion at the end of the previous consolidated fiscal year to ¥344.8 billion at the end of the second quarter of the current fiscal year. - FY2018-Q1AdvancedAnnual report
「As discussions between the two companies failed to produce a resolution, we determined that the dispute had reached the stage at which we had no choice but to refer it to arbitration proceedings at the Japan Commercial Arbitration Association, as stipulated in the above contract. On 31 July 2017, we filed an arbitration claim against Hitachi seeking payment of approximately ZAR 90,779 million, equivalent to approximately ¥774.3 billion at ¥8.53 per rand, in transfer-price adjustment amounts and other amounts.」
As discussions with Hitachi failed to produce a resolution, the matter progressed to the filing of an arbitration claim seeking payment of approximately ZAR 90,779 million in transfer-price adjustment amounts and other amounts. - FY2017Specification of the amount recorded for the claimAnnual report
「At the end of the current consolidated fiscal year, ¥294.9 billion of the above claim against Hitachi was recorded as "Assets related to the South African project."」
In addition to continuing to pursue the claim against Hitachi for transfer-price adjustment amounts and other amounts, the company specifically disclosed the ¥294.9 billion recorded for the claim at the end of the current fiscal year. - FY2017-Q3Increase in the amount claimedAnnual report
「Subsequently, on 31 January 2017, we demanded that Hitachi pay ZAR 89,700 million, equivalent to approximately ¥763.4 billion at ¥8.51 per rand, as transfer-price adjustment amounts and other amounts, including the partial claim described above (the "current claim").」
The claim against Hitachi for transfer-price adjustment amounts and other amounts relating to the South African thermal power project was increased from ZAR 48,200 million to ZAR 89,700 million. The company indicated its intention to continue discussions with Hitachi in exercising its contractual rights. - FY2017-Q1First statedAnnual report
「The South African project was already expected to incur losses as of the effective date of the demerger. Under the contract, MHPS Africa was entitled to receive transfer-price adjustment amounts and other amounts calculated in accordance with the contract from Hitachi or HPA. On 31 March 2016, we demanded that Hitachi pay MHPS Africa ZAR 48,200 million, equivalent to approximately ¥379 billion at ¥7.87 per rand, as part of the transfer-price adjustment amounts and other amounts. We also recorded part of the related claim against Hitachi as "Other" under current assets.」
For the South African thermal power project, which was expected to incur losses, the company has claimed approximately ¥379 billion equivalent from Hitachi in transfer-price adjustment amounts and other amounts, and the price adjustment remains unresolved.