Governance structure
The Internal Control Report states that the Company's internal control over financial reporting was not effective. Based on the findings of the Special Investigation Committee, the Company reversed prior-period net sales, cost of sales and other figures, and implemented measures to prevent recurrence and strengthen governance.
| Item | Details |
|---|---|
| Committee | A Special Investigation Committee was established. Percentage of outside members: Not disclosed |
| Changes this time | The Internal Control Report states that the Company's internal control over financial reporting was not effective. Based on the findings of the Special Investigation Committee, the Company reversed prior-period net sales, cost of sales and other figures, and implemented measures to prevent recurrence and strengthen governance. |
Items this document does not state (6)
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.Fictitious circular transactions with no underlying business substance were conducted over an extended period in the subsidiary's advertising agency business. The development and operation of company-wide internal controls concerning the segregation of duties, as well as controls that took into account the risk of fraud in the business process from ordering through acceptance inspection, were insufficient. The reason the deficiencies could not be remedied by the end of the fiscal year was that the Special Investigation Committee's recommendations for preventing recurrence were issued on 31 March 2026, leaving insufficient time.