Misconduct at a Consolidated Subsidiary
株式会社ビューティ花壇西日本 (the company's consolidated subsidiary)
Checks and balances in the management of cash and accounts receivable were not functioning adequately, as activities ranging from cash collection and receipt processing to reconciliation with book balances were concentrated in certain personnel.
Approximately ¥10 million (loss amount; accounting treatment required in the financial results for the fiscal year ending June 2026; recognition category: Not disclosed)
Financial results for the fiscal year ending June 2026
There will be no revision to the earnings forecast as a result of this matter. The impact on consolidated results is immaterial.
Company response
Report and discuss the matter with the audit firm, and conduct an internal investigation in cooperation with external counsel.
Review of cash-handling operations, strengthened verification procedures involving multiple people, and enhanced monitoring by the head office's administrative departments, among other measures
Related procedures
Legal action (to be considered depending on future developments)
The company will proceed with efforts to recover the full amount of the loss and consider any necessary legal action depending on future developments. It will work to prevent recurrence and strengthen its internal management systems.
| Item | Details |
|---|---|
| Event name | Misconduct at a Consolidated Subsidiary |
| Date of occurrence | From around January 2023 onward (when the employee began the misappropriation) |
| Subject Entity | 株式会社ビューティ花壇西日本 (the company's consolidated subsidiary) |
| Cause | Checks and balances in the management of cash and accounts receivable were not functioning adequately, as activities ranging from cash collection and receipt processing to reconciliation with book balances were concentrated in certain personnel. |
| Amount of Impact on Business Performance | Approximately ¥10 million (loss amount; accounting treatment required in the financial results for the fiscal year ending June 2026; recognition category: Not disclosed) |
| Accounting period in which recognized | Financial results for the fiscal year ending June 2026 |
| Impact on Earnings Forecast | There will be no revision to the earnings forecast as a result of this matter. The impact on consolidated results is immaterial. |
| Type of litigation or proceeding | Legal action (to be considered depending on future developments) |
| Investigation structure | Report and discuss the matter with the audit firm, and conduct an internal investigation in cooperation with external counsel. |
| Measures to prevent recurrence | Review of cash-handling operations, strengthened verification procedures involving multiple people, and enhanced monitoring by the head office's administrative departments, among other measures |
| Outlook | The company will proceed with efforts to recover the full amount of the loss and consider any necessary legal action depending on future developments. It will work to prevent recurrence and strengthen its internal management systems. |
Items this document does not state (14)
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 primary cause was that checks and balances in the management of cash and accounts receivable were not functioning adequately, as activities ranging from cash collection and receipt processing to reconciliation with book balances were concentrated in certain personnel.