Decision and Details
Submission of an improvement report to the Tokyo Stock Exchange
Because a provision for costs related to PST product defect responses was not recorded, and the timing of recognizing an impairment loss on inventory for a specific customer of TKR was inappropriate. The Company has analyzed the causes as including the concentration of authority and information, insufficient functionality of the Accounting and Finance Department, inadequate communication of information to the Board of Directors, and insufficient provision of information to the audit firm.
Prior-period financial results and other disclosures were corrected. Net income attributable to owners of the parent for the fiscal year ended March 2024 was corrected from ¥737,017 thousand to ▲¥130,557 thousand, an impact of ▲¥867,574 thousand. Net income attributable to owners of the parent for the full fiscal year ended March 2025 was corrected from ¥630,626 thousand to ¥779,350 thousand, an impact of ¥148,724 thousand.
| Item | Details |
|---|---|
| Matter Covered | Submission of an improvement report to the Tokyo Stock Exchange |
| Decision Date | 5 June 2026 (submission date) |
| Implementation Date | 5 June 2026 (already submitted) |
| Period Covered | Prior-period financial results (during the 39th, 40th and 41st fiscal periods), and the period of operation of recurrence prevention measures from 2026 onward |
| Amount | Unpaid amount as of December 2025 for costs borne by PST in connection with this matter: approximately ¥716 million; cumulative impact of corrections on prior-period profit: ▲¥704,623 thousand; cumulative impact of this matter: ▲¥688,668 thousand; cumulative impact of the inventory valuation for a specific customer: ▲¥15,955 thousand |
| Quantity / scale | Corrections covered 2 securities reports, 2 internal control reports, 2 semi-annual reports, and 7 earnings releases and quarterly earnings releases; 3 major subsidiaries; and 9 people in the Accounting and Finance Department |
| Impact on Business Performance | Prior-period financial results and other disclosures were corrected. Net income attributable to owners of the parent for the fiscal year ended March 2024 was corrected from ¥737,017 thousand to ▲¥130,557 thousand, an impact of ▲¥867,574 thousand. Net income attributable to owners of the parent for the full fiscal year ended March 2025 was corrected from ¥630,626 thousand to ¥779,350 thousand, an impact of ¥148,724 thousand. |
| Reason | Because a provision for costs related to PST product defect responses was not recorded, and the timing of recognizing an impairment loss on inventory for a specific customer of TKR was inappropriate. The Company has analyzed the causes as including the concentration of authority and information, insufficient functionality of the Accounting and Finance Department, inadequate communication of information to the Board of Directors, and insufficient provision of information to the audit firm. |
| Governing Rule | Article 504, paragraph 1, item 1 and paragraph 3 of the Securities Listing Regulations |
| Related previous disclosures | Notice Regarding the Submission of Correction Reports for Prior-Period Securities Reports and Other Matters, and Corrections to Prior-Period Earnings Releases and Other Disclosures, dated 28 April 2026; Notice Regarding the Submission of a Correction Report for the Semi-Annual Report and Corrections to the Quarterly Earnings Release, dated 11 May 2026; dated 13 May 2026 (the Tokyo Stock Exchange's request to submit an improvement report) |
| Future plans | From June 2026 onward, the Company will operate an accounting issues review committee, hold regular liaison meetings with major subsidiaries, review materials for important subsidiary meetings, revise the criteria for reporting to the Board of Directors, and share information with the audit firm. It will continue to publicize its internal whistleblowing system and conduct compliance training at least once a year, and will operate the recurrence prevention measures through December 2026. |
Items this document does not state (1)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The required provision for costs related to PST product defect responses was not recorded, and the matter was not reported in a timely manner to the Accounting and Finance Department, audit firm, or Board of Directors. In addition, the timing of recognizing an impairment loss on inventory for a specific customer of TKR was inappropriate.