Risks of remanufacturing, recalls and other measures arising from serious defective products
First written in FY2016. 1 of 3 entries say "Restated". Latest entry: FY2021-Q3.
Transaction moved to the "Worse" side of this theme in 2021, 2 years before the typical company in this theme (2023).
The whole theme swung hardest in 2025: 13 of 35 companies on the "Worse" side.
3 other companies' latest entry also says "Reframed".
- FY2021-Q3ReframedAnnual report
「Defective products may arise for various reasons in the products and services provided by the Group. If defective products occur, the Group may incur costs related to discounts, re-manufacturing, re-inspection and recalls. The Group maintains product liability insurance in preparation for any defective products. However, if a product liability claim arises under the Product Liability Act (the PL Act) due to a product defect and the insurance ultimately fails to provide sufficient coverage for the damages, this may affect the Group's results of operations.」
In addition to the risks of re-manufacturing and recalls when defective products occur, the disclosure explicitly identifies damages claims under the PL Act and insufficient insurance coverage. - FY2017RestatedAnnual report
「The company exercises due care in quality and production control to prevent defective products. However, if defective products occur in a project with a large order value, this may affect the Group's results of operations and financial position.」
The risk of discounts, re-manufacturing, re-inspection and recalls in the event of significant defective products continues to be disclosed. - FY2016First statedAnnual report
「If defective products occur, the company may incur costs related to discounts, re-manufacturing, re-inspection and recalls.」
While conducting quality and production control, the company identified the burden arising from defective products in large-scale projects as a risk.