Outflow of funds from Philippine subsidiary due to fraud by a financial institution employee
First written in FY2022-Q3. 1 of 3 entries say "Materialised", first in FY2022. Latest entry: FY2023.
1 other company's latest entry also says "Cited as achieved".
- FY2023Cited as achievedAnnual report
「(Previous consolidated fiscal year) Remittance fraud loss at an overseas subsidiary ¥201.905 million This relates to the fund outflow incident at the Philippine subsidiary during the previous consolidated fiscal year.」
The ¥201.905 million remittance fraud loss at the Philippine subsidiary incurred in the previous fiscal year has been presented again as comparative information. No new loss was recorded in the current fiscal year. - FY2022MaterialisedAnnual report
「Remittance fraud loss at an overseas subsidiary ¥201.905 million This relates to the fund outflow incident at the Philippine subsidiary.」
The company recorded a remittance fraud loss of ¥201.905 million as an extraordinary loss in connection with the fraud by a financial institution employee at the Philippine subsidiary that was discovered in the previous quarter. The risk has materialized as an actual accounting loss. - FY2022-Q3First statedAnnual report
「It has been discovered that funds of the consolidated group flowed out as a result of fraudulent acts by an employee of a financial institution that does business with SANNO PHILIPPINES MANUFACTURING CORPORATION, a consolidated subsidiary of the company. Although the act was committed independently by the financial institution employee, the financial institution itself also bears employer liability, and the company believes that the individual and the financial institution should provide full compensation. The group continues to negotiate with the financial institution with the aim of recovering all of the funds that flowed out, but has not yet recovered them as of the present date and will continue to take every possible measure and make every effort to recover them. As a result of this matter, ¥357.110 million previously recorded as “cash and deposits” has been reclassified to “other” under current assets as a non-trade receivable. Depending on future developments, this matter may affect the company's performance, but it is currently difficult to reasonably estimate the amount of the impact.」
A fund outflow of ¥357.110 million caused by fraud by an employee of a financial institution doing business with the Philippine subsidiary was discovered. An investigation team led by external lawyers has been established, and negotiations with the financial institution and others are under way. However, the full amount had not been recovered as of the filing date, and the impact on performance cannot be reasonably estimated.