Misconduct by a former employee of the Company
NIHON DEMPA KOGYO CO.,LTD. (the Company)
Materials
1 former employee stole and resold materials
Approximately ¥280 million (loss from fiscal 2013 through fiscal 2025; accounting classification: Not disclosed)
Financial results for the fiscal year ending March 2026 (the loss relates to fiscal 2013 through fiscal 2025)
The adjustment has already been reflected in the financial results for the fiscal year ending March 2026
Company response
An internal investigation was conducted
The Company will review its materials management system and strengthen its internal control systems, and will thoroughly implement measures to prevent recurrence
The Company will take strict action against the former employee who committed the misconduct, review its materials management system and strengthen its internal control systems, and thoroughly implement measures to prevent recurrence in an effort to regain the trust of its stakeholders
| Item | Details |
|---|---|
| Event name | Misconduct by a former employee of the Company |
| Subject Entity | NIHON DEMPA KOGYO CO.,LTD. (the Company) |
| Target Locations / Products | Materials |
| Cause | 1 former employee stole and resold materials |
| Amount of Impact on Business Performance | Approximately ¥280 million (loss from fiscal 2013 through fiscal 2025; accounting classification: Not disclosed) |
| Accounting period in which recognized | Financial results for the fiscal year ending March 2026 (the loss relates to fiscal 2013 through fiscal 2025) |
| Impact on Earnings Forecast | The adjustment has already been reflected in the financial results for the fiscal year ending March 2026 |
| Investigation structure | An internal investigation was conducted |
| Measures to prevent recurrence | The Company will review its materials management system and strengthen its internal control systems, and will thoroughly implement measures to prevent recurrence |
| Outlook | The Company will take strict action against the former employee who committed the misconduct, review its materials management system and strengthen its internal control systems, and thoroughly implement measures to prevent recurrence in an effort to regain the trust of its stakeholders |
Items this document does not state (15)
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.1 former employee stole and resold materials. The misconduct was discovered during a process to review the materials management system, and the Company explains that an internal investigation confirmed the facts.