Publication of the Special Investigation Committee's Investigation Report
OTAKE CORPORATION (filing company)
Certain of the company’s transactions in which competitors were involved in the distribution flow, and certain transactions that the company had accounted for as principal transactions
The accounting auditor raised concerns about the appropriateness of revenue recognition for agent transactions and other matters after reports made through the Tokyo Stock Exchange and the Japanese Institute of Certified Public Accountants. Some transactions involving competitors were highly likely to constitute an unreasonable restraint of trade under the Antimonopoly Act, and some transactions were determined to require treatment as agent transactions rather than principal transactions.
¥477 million (aggregate amount offset against net sales for the fiscal year ending May 2026, representing a decrease in net sales). No impact on ordinary profit.
Fiscal year ending May 2026
Company response
A Special Investigation Committee composed of external experts and the company’s outside directors who are Audit & Supervisory Committee Members. Establishment date: Not disclosed.
The company will formulate and implement specific measures based on the recommendations for preventing recurrence. The recurrence-prevention measures will be announced promptly once decided.
Related procedures
Investigation by the Special Investigation Committee
The company will proceed with appropriate accounting treatment and closing procedures while consulting with the audit firm, and will formulate and implement recurrence-prevention measures.
The recurrence-prevention measures will be announced promptly once decided.
| Item | Details |
|---|---|
| Event name | Publication of the Special Investigation Committee's Investigation Report |
| Date recognized / date notice received | 4 September 2026 (date the Special Investigation Committee’s investigation report was received) |
| Subject Entity | OTAKE CORPORATION (filing company) |
| Target Locations / Products | Certain of the company’s transactions in which competitors were involved in the distribution flow, and certain transactions that the company had accounted for as principal transactions |
| Cause | The accounting auditor raised concerns about the appropriateness of revenue recognition for agent transactions and other matters after reports made through the Tokyo Stock Exchange and the Japanese Institute of Certified Public Accountants. Some transactions involving competitors were highly likely to constitute an unreasonable restraint of trade under the Antimonopoly Act, and some transactions were determined to require treatment as agent transactions rather than principal transactions. |
| Amount of Impact on Business Performance | ¥477 million (aggregate amount offset against net sales for the fiscal year ending May 2026, representing a decrease in net sales). No impact on ordinary profit. |
| Accounting period in which recognized | Fiscal year ending May 2026 |
| Type of litigation or proceeding | Investigation by the Special Investigation Committee |
| Investigation structure | A Special Investigation Committee composed of external experts and the company’s outside directors who are Audit & Supervisory Committee Members. Establishment date: Not disclosed. |
| Measures to prevent recurrence | The company will formulate and implement specific measures based on the recommendations for preventing recurrence. The recurrence-prevention measures will be announced promptly once decided. |
| Outlook | The company will proceed with appropriate accounting treatment and closing procedures while consulting with the audit firm, and will formulate and implement recurrence-prevention measures. |
| Planned follow-up disclosure | The recurrence-prevention measures will be announced promptly once decided. |
Items this document does not state (13)
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 investigation was initiated after reports made through the Tokyo Stock Exchange and the Japanese Institute of Certified Public Accountants led the accounting auditor to raise concerns about the appropriateness of revenue recognition for agent transactions and other matters. The investigation concluded that some transactions involving competitors were highly likely to constitute an unreasonable restraint of trade under the Antimonopoly Act, and that some transactions should be treated as agent transactions rather than principal transactions, with net sales and purchases offset.