Decision and Details
Publication of the public version of the investigation committee's investigation report
Partial non-disclosure measures were implemented to protect privacy, personal information and confidential information. The investigation committee determined that the transactions in question lacked economic substance and that the recognition of sales and other amounts constituted improper accounting treatment.
At present, the historical consolidated statements of income show a ¥200,000 overstatement of loss, resulting in the latest consolidated retained earnings being understated by the same amount. The appropriate consolidated profit or loss would be zero, and the Company believes there is no impact on profit or loss.
| Item | Details |
|---|---|
| Matter Covered | Publication of the public version of the investigation committee's investigation report |
| Decision Date | 3 July 2026 (publication date) |
| Implementation Date | 3 July 2026 (completed and published) |
| Period Covered | Investigation period: fiscal year ended June 2019 through the fiscal year ending March 2025 (1 July 2018 to 31 March 2025) |
| Amount | Understatement of consolidated retained earnings: ¥2 million (not ¥200,000; the report text states a total of ▲¥200 thousand = ¥200,000. The body of the report states that the ¥200,000 loss was overstated) / total sales from the transactions in question: ¥25 million (excluding tax) / total outsourcing expenses: ¥22.5 million (excluding tax) / payments from Mr. A: ¥24.3 million / bad debt loss: ¥2.7 million |
| Quantity / scale | Investigation period: 27 April 2026 to 29 June 2026 / confirmation letters sent to: 10 companies / sales existence confirmed: approximately 95.10% / outsourcing expense existence confirmed: approximately 81.49% |
| Impact on Business Performance | At present, the historical consolidated statements of income show a ¥200,000 overstatement of loss, resulting in the latest consolidated retained earnings being understated by the same amount. The appropriate consolidated profit or loss would be zero, and the Company believes there is no impact on profit or loss. |
| Reason | Partial non-disclosure measures were implemented to protect privacy, personal information and confidential information. The investigation committee determined that the transactions in question lacked economic substance and that the recognition of sales and other amounts constituted improper accounting treatment. |
| Governing Rule | Companies Act, Article 423, Paragraph 1 (mentioned in the investigation report in connection with consideration of liability for failure to perform duties) |
| Related previous disclosures | 30 June 2026, “Notice Regarding Receipt of the Investigation Committee's Investigation Report” / “Notice Regarding the Appointment of Members of the Third-Party Committee” dated 2 September 2025 |
| Future plans | The Company plans to incorporate measures to prevent recurrence into an improvement plan and status report to be disclosed in due course, and will work to improve internal controls across the Group. |
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.Certain information was withheld in part to protect privacy, personal information and confidential information. Based on the findings in the investigation report, the Company will incorporate measures to prevent recurrence into its improvement plan and status report and work to improve internal controls across the Group.