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Occurring Fact4667AISAN TECHNOLOGY CO.,LTD.Information and Communications, Services and Others

Notice Regarding Publication of the Investigation Committee’s Investigation Report (Public Version), Formulation of Measures to Prevent Recurrence, and Disciplinary Action Against Relevant Parties

The Special Investigation Committee determined that Director X of the marketing center of a consolidated subsidiary had independently engaged in the recording of fictitious sales, falsification of inventory and documents, and embezzlement of proceeds from asset sales. The company disclosed a cumulative ¥49 million adverse impact on consolidated operating profit and decided on measures to prevent recurrence, including suspension of the business, as well as disciplinary action against relevant parties.

Worth reading
68In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Deterioration
Direction inferred from the company’s description.
Scale
49
¥ million (cumulative adverse impact on consolidated operating profit)
Wording
Conditional
How definitive the wording is.

Publication of the Public Version of the Investigation Committee's Report, Formulation of Measures to Prevent Recurrence, and Disciplinary Action Against Relevant Parties

Subject Entity

有限会社秋測, a wholly owned subsidiary of AISAN TECHNOLOGY CO.,LTD., and its Director X

Target Locations / Products

有限会社秋測's marketing center (Ueda, Nagano Prefecture), surveying equipment, product number ❶, and others

Occurrence10 March 2026 (discovery at the marketing center in Ueda, Nagano Prefecture, that sales had been recorded for products different from those actually sold)
Same day
Awareness or receipt of noticeThe company became aware of suspected misconduct on 10 March 2026 and received the Special Investigation Committee's report on 12 June 2026
94 days later
Litigation / administrative actionDirector X of the subsidiary was dismissed effective 12 June 2026. Other filing and disciplinary dates: Not disclosed
This disclosure06/19/2026
Cause

Person-dependent business operations and the absence of internal controls, deficiencies in system controls, an excessive focus on performance, failure to take measures in response to events indicating misconduct, overly close and collusive relationships with customers, and industry characteristics

Company response

Suspended operations

The marketing center business involving the purchase and sale of used surveying equipment was suspended until internal controls have been established and put in place

Investigation structure

A Special Investigation Committee was established. The investigation was conducted from 2 April to 12 June 2026. The committee was chaired by Tatsuya Nakahira (中平達也), attorney-at-law, and comprised outside experts, outside directors, and outside corporate auditors

Measures to prevent recurrence

Consideration of a review of the company-wide strategy, including the business portfolio; reconstruction of governance; reinforcement of compliance awareness; consideration of business continuity; standardization with the parent company's procedures for segregation of duties and division of responsibilities; system and inventory controls using serial numbers; establishment of an organizational accounts receivable management framework; and consideration of personnel rotation

Directors' and officers' liability

The representative director and president of the company will voluntarily forgo 30% of monthly compensation for 3 months, and the representative director and president of the subsidiary will voluntarily forgo 20% of monthly compensation for 3 months. Director X of the subsidiary was dismissed effective 12 June 2026. The company is considering legal action against X

Amount of Impact on Business Performance

¥49 million (cumulative adverse impact on consolidated operating profit: ¥36 million from correction of inventory discrepancies, ¥2 million from correction of accounts receivable, and ¥11 million from other items)

Accounting period in which recognized

From the fiscal year ended March 2024 through the fiscal year ended March 2026. The impact represents the cumulative amount through the fiscal year ended March 2026

Amount of receivables at risk of non-collection or delayed collection

Accounts receivable discrepancies of ¥10,340,001 at the end of the fiscal year ended March 2025 and ¥2,225,000 at the end of the fiscal year ended March 2026

Related procedures

Type

Investigation by the Special Investigation Committee and disciplinary action against relevant parties

Outlook

The Group Management Monitoring Committee will monitor the implementation of the measures to prevent recurrence. The company will fundamentally examine and determine whether to continue the marketing center business, and will work to restore trust by implementing the measures to prevent recurrence. The measures to prevent recurrence may be changed or supplemented

Event that occurred
ItemDetails
Event namePublication of the Public Version of the Investigation Committee's Report, Formulation of Measures to Prevent Recurrence, and Disciplinary Action Against Relevant Parties
Date of occurrence10 March 2026 (discovery at the marketing center in Ueda, Nagano Prefecture, that sales had been recorded for products different from those actually sold)
Date recognized / date notice receivedThe company became aware of suspected misconduct on 10 March 2026 and received the Special Investigation Committee's report on 12 June 2026
Subject Entity有限会社秋測, a wholly owned subsidiary of AISAN TECHNOLOGY CO.,LTD., and its Director X
Target Locations / Products有限会社秋測's marketing center (Ueda, Nagano Prefecture), surveying equipment, product number ❶, and others
CausePerson-dependent business operations and the absence of internal controls, deficiencies in system controls, an excessive focus on performance, failure to take measures in response to events indicating misconduct, overly close and collusive relationships with customers, and industry characteristics
Amount of Impact on Business Performance¥49 million (cumulative adverse impact on consolidated operating profit: ¥36 million from correction of inventory discrepancies, ¥2 million from correction of accounts receivable, and ¥11 million from other items)
Accounting period in which recognizedFrom the fiscal year ended March 2024 through the fiscal year ended March 2026. The impact represents the cumulative amount through the fiscal year ended March 2026
Type of litigation or proceedingInvestigation by the Special Investigation Committee and disciplinary action against relevant parties
Date of filing / date of actionDirector X of the subsidiary was dismissed effective 12 June 2026. Other filing and disciplinary dates: Not disclosed
Amount of receivables at risk of non-collection or delayed collectionAccounts receivable discrepancies of ¥10,340,001 at the end of the fiscal year ended March 2025 and ¥2,225,000 at the end of the fiscal year ended March 2026
Suspended operationsThe marketing center business involving the purchase and sale of used surveying equipment was suspended until internal controls have been established and put in place
Investigation structureA Special Investigation Committee was established. The investigation was conducted from 2 April to 12 June 2026. The committee was chaired by Tatsuya Nakahira (中平達也), attorney-at-law, and comprised outside experts, outside directors, and outside corporate auditors
Measures to prevent recurrenceConsideration of a review of the company-wide strategy, including the business portfolio; reconstruction of governance; reinforcement of compliance awareness; consideration of business continuity; standardization with the parent company's procedures for segregation of duties and division of responsibilities; system and inventory controls using serial numbers; establishment of an organizational accounts receivable management framework; and consideration of personnel rotation
Directors' and officers' liabilityThe representative director and president of the company will voluntarily forgo 30% of monthly compensation for 3 months, and the representative director and president of the subsidiary will voluntarily forgo 20% of monthly compensation for 3 months. Director X of the subsidiary was dismissed effective 12 June 2026. The company is considering legal action against X
OutlookThe Group Management Monitoring Committee will monitor the implementation of the measures to prevent recurrence. The company will fundamentally examine and determine whether to continue the marketing center business, and will work to restore trust by implementing the measures to prevent recurrence. The measures to prevent recurrence may be changed or supplemented
Items this document does not state (9)
Impact on Earnings ForecastCourt or authorityPlaintiffDefendantClaim amount / surcharge amountScheduled resumption dateVoting rights ownership percentage before the changeVoting rights ownership percentage after the changePlanned follow-up disclosure

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 company identified the concentration of duties and authority in X, the absence of segregation of duties and internal controls, inadequate controls over the sales management system and invoice issuance, an excessive focus on achieving performance targets, an inadequate response to signs of misconduct, overly close and collusive relationships with business partners, and industry characteristics as causes.

How to read this page

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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Notice Regarding Publication of the Investigation Committee’s Investigation Report (Public Version), Formulation of Measures to Prevent Recurrence, and Disciplinary Action Against Relevant Parties | AISAN TECHNOLOGY CO.,LTD. (4667) timely disclosure | Komori