Improper Application for a Manufacturing-Site Change and Labeling Practices at Citizen Electronics
First written in FY2018-Q2. 4 of 7 entries say "Materialised", first in FY2018-Q2. Latest entry: FY2020-Q3.
Citizen Watch moved to the "Worse" side of this theme in 2017, 6 years before the typical company in this theme (2023).
The whole theme swung hardest in 2017: 3 of 15 companies on the "Worse" side.
4 other companies' latest entry also says "Mitigated".
- FY2020-Q3MitigatedAnnual report
「Special compliance measures and related expenses 205 －」
The ¥205 million in special compliance measures and related expenses recorded in the same period of the previous year was not recorded during the cumulative third-quarter period under review. - FY2019-Q3MaterialisedAnnual report
「Depending on future developments in this matter, the Company’s consolidated results may be affected by losses and other factors. However, because it is currently difficult to reasonably estimate the amount of the impact, it has not been reflected in the quarterly consolidated financial statements.」
The Company remains unable to reasonably estimate the amount of the impact of the inappropriate conduct relating to applications to change manufacturing sites, product labeling and test result reports. Related special compliance measures and other expenses amounted to ¥205 million. - FY2019-Q2MaterialisedAnnual report
「Special compliance measures and related expenses 192」
The Company recorded ¥192 million in special compliance measures and related expenses as an extraordinary loss in connection with inappropriate conduct relating to applications to change manufacturing sites, product labeling and test result reports. - FY2019-Q1MaterialisedAnnual report
「Special compliance measures and related expenses 75」
¥75 million in special compliance measures and related expenses was recorded as an extraordinary loss in the quarterly consolidated income statement, quantifying expenses related to known compliance issues. - FY2018WorsenedAnnual report
「Depending on future developments in this matter, the Company’s consolidated results may be affected by losses and other factors. However, because it is currently difficult to reasonably estimate the amount of the impact, it has not been reflected in the consolidated financial statements.」
The Company disclosed that losses may arise depending on future developments relating to the inappropriate conduct involving applications to change manufacturing sites and product labeling, and that the amount of the impact cannot be reasonably estimated. - FY2018-Q3WorsenedAnnual report
「The Company has received the investigation report prepared by the independent committee (the “Report”), which determined that the Inappropriate Conduct continued for approximately 7 years and 2 months, from at least April 2010 through June 2017.」
The independent committee determined that the inappropriate conduct of affixing labels indicating the former manufacturing sites without applying to change the sites continued for approximately 7 years and 2 months. - FY2018-Q2MaterialisedAnnual report
「It was discovered that, under agreements with business partners, Citizen Electronics Co., Ltd. (the “Citizen Electronics”) was required to apply to its business partners when changing the manufacturing site for supplied products, but failed to submit such applications to some business partners and thereafter continued shipping products bearing labels printed with lot numbers indicating that they had been manufactured at the former manufacturing sites agreed with the business partners (the “Inappropriate Conduct”).」
A group risk management audit found that products had been shipped without applications to change the manufacturing sites, bearing labels indicating the former manufacturing sites. The products concerned were primarily switch components and LED components, and the period identified was generally from around 2011 through 2017.