Update : Jun. 21, 2011
[Tokyo Stock Exchange, Inc.]
Designation as a Security on Alert has been cancelled as below.
|1. Issue Name||
I'rom Holdings Co., Ltd. stock
(Code: 2372, Market Division: 1st Section)
|2.Date of Cancellation of Designation as Securities on Alert||Jun. 22, 2011 (Wed.)|
Securities Listing Regulations, Rule 501, Paragraph 3
(Due to falling under cases where the Exchange deems that there is no problem in the internal management system, etc. on the basis of the substance, etc. of the Written Confirmation of Internal Management System)
On April 22, 2010, TSE deemed there was a high need for improvement regarding the internal management system, etc. of I'rom Holdings Co., Ltd. (hereinafter, "the Company") and the Company's stock was designated as a Security on Alert.
The board members/employees at such time, were not adequately conscious of compliance, resulting in the following while involving many board members at the Company and its Group affiliates:
(1) Under the conscious effort to record as many sales as possible, the Company was contracted to conduct multiple clinical tests, etc. Despite only conducting inadequate and imperfect tests, and not being recognized to provide the contractually planned service, the Company accepted the issue of formal inspection acceptance certificates and recorded sales.
(2) The Company submitted amendment reports pertaining to Securities Reports, etc. from the FY ended March 2005 until the 2nd Quarter of the FY ended March 2010 due to facts such as (i) financing business partners indirectly with funds for sales proceeds through an outside company and (ii) making business partners inflate claims when purchasing equipment and having them appropriate such inflated amount to payment, thus arranging a system which appeared to be collecting payment without problem.
Because one year has passed since the designation as a Security on Alert, the Company has submitted a written statement regarding the Company's internal management system to the Exchange. Based on the contents of such written statement, the Exchange deemed that, in addition to improvement of the management supervision framework and business flow, the internal management system, etc. had been strengthened via enrichment of internal auditing and auditor, auditing and that there is no problem with the Company's internal management system, etc., including improvement of the causes of the designation as a Security on Alert. In light of this, the Exchange has determined to cancel the designation of the Company's stock as a Security on Alert.
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