Komori
Governance7036eMnet Japan.co.ltd.Information and Communications, Services and Others

Notice Regarding a Material Weakness in Internal Control over Financial Reporting

The Company determined that its internal control over financial reporting was not effective after discovering the misappropriation of company funds and falsification of accounting records. Based on the investigation by the independent committee, the Company will amend its disclosure documents for prior fiscal years and implement measures to prevent recurrence.

Worth reading
89Important
Scored from 1 of 5 sections
Direction
Deterioration
Direction inferred from the company’s description.
Scale
—
Displayed only when the document provides numerical figures.
Wording
Definitive
How definitive the wording is.

Governance structure

Company with an Audit and Supervisory Committee
Committee1
Audit and Supervisory Committee
Changes this time

The Company will disclose the material weakness in its internal controls and implement measures to prevent recurrence based on the findings of the independent committee's investigation.

Governance structure
ItemDetails
Corporate Governance StructureCompany with an Audit and Supervisory Committee
CommitteeAudit and Supervisory Committee (percentage of outside members: not disclosed)
Changes this timeThe Company will disclose the material weakness in its internal controls and implement measures to prevent recurrence based on the findings of the independent committee's investigation.
Items this document does not state (5)
Number of directorsNumber of independent officersPolicy on cross-shareholdingsTakeover defensesControlling shareholder

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 misappropriation of company funds and falsification of accounting records by the managing director and CFO were discovered. The Company identified the direct causes as the individual's lack of compliance awareness, the institutionalization of a situation in which the person responsible personally handled cash management operations, and insufficient monitoring of privileged payment authorization. As a contributing factor, the Company recognizes weaknesses in its governance structure.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Notice Regarding a Material Weakness in Internal Control over Financial Reporting | eMnet Japan.co.ltd. (7036) timely disclosure | Komori