Fraudulent Acts, Including the Misappropriation of Accounts Receivable, by a Former Representative Director of a Subsidiary

「It was also discovered that the former representative director of our consolidated subsidiary, ㈱協立道路サービス, had embezzled accounts receivable and engaged in other fraudulent acts. As a result, the impact on results was an increase of ¥15 million in operating profit due to a ¥15 million decrease in operating expenses; a decrease of ¥204 million in ordinary profit and profit before income taxes due to a ¥219 million increase in non-operating expenses, including additional provision for allowance for doubtful accounts; and a decrease of ¥211 million in net income attributable to owners of the parent due to a ¥7 million increase in corporate, inhabitant and enterprise taxes and a ¥1 million increase in deferred income taxes, credited.」