Arrest of a Former Employee of the Company's Consolidated Subsidiary
CKDグローバルサービス株式会社 (the Company's consolidated subsidiary)
CKDグローバルサービス株式会社's deposit account
The former employee in charge of accounting transferred funds multiple times from CKDグローバルサービス株式会社's deposit account to a personal account between December 2020 and April 2026, misappropriated the funds, and concealed the misconduct through improper accounting procedures.
¥178 million (loss amount; accounting classification: Not disclosed)
Financial results for the fiscal year ended March 2026
There is no impact on the consolidated earnings forecast for the fiscal year ending March 2027.
Company response
Further strengthening of internal control systems, including a review of the accounting operations framework and compliance training.
The former representative of CKDグローバルサービス株式会社 will receive a 30% reduction in monthly remuneration for 3 months, and the previous representative will receive a 20% reduction in monthly remuneration for 3 months. Each of the Company's 3 internal directors, excluding directors who are Audit and Supervisory Committee members, will voluntarily return an amount equivalent to 10% of monthly remuneration for 3 months.
Related procedures
Arrest on suspicion of occupational embezzlement (criminal proceedings)
To prevent a recurrence, we will further strengthen our internal control systems, including by reviewing the accounting operations framework and providing compliance training, and will work to restore the trust of our stakeholders.
| Item | Details |
|---|---|
| Event name | Arrest of a Former Employee of the Company's Consolidated Subsidiary |
| Date of occurrence | 9 July 2026 (date of the former employee's arrest) |
| Subject Entity | CKDグローバルサービス株式会社 (the Company's consolidated subsidiary) |
| Target Locations / Products | CKDグローバルサービス株式会社's deposit account |
| Cause | The former employee in charge of accounting transferred funds multiple times from CKDグローバルサービス株式会社's deposit account to a personal account between December 2020 and April 2026, misappropriated the funds, and concealed the misconduct through improper accounting procedures. |
| Amount of Impact on Business Performance | ¥178 million (loss amount; accounting classification: Not disclosed) |
| Accounting period in which recognized | Financial results for the fiscal year ended March 2026 |
| Impact on Earnings Forecast | There is no impact on the consolidated earnings forecast for the fiscal year ending March 2027. |
| Type of litigation or proceeding | Arrest on suspicion of occupational embezzlement (criminal proceedings) |
| Date of filing / date of action | 9 July 2026 (date of arrest) |
| Measures to prevent recurrence | Further strengthening of internal control systems, including a review of the accounting operations framework and compliance training. |
| Directors' and officers' liability | The former representative of CKDグローバルサービス株式会社 will receive a 30% reduction in monthly remuneration for 3 months, and the previous representative will receive a 20% reduction in monthly remuneration for 3 months. Each of the Company's 3 internal directors, excluding directors who are Audit and Supervisory Committee members, will voluntarily return an amount equivalent to 10% of monthly remuneration for 3 months. |
| Outlook | To prevent a recurrence, we will further strengthen our internal control systems, including by reviewing the accounting operations framework and providing compliance training, and will work to restore the trust of our stakeholders. |
Items this document does not state (12)
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.Between December 2020 and April 2026, the former employee transferred funds multiple times from CKDグローバルサービス株式会社's deposit account to a personal account and misappropriated them, concealing the misconduct through improper accounting procedures.