Update : Mar. 27, 2012
[Tokyo Stock Exchange, Inc.]
TSE has taken the Public Announcement Measure and requested an Improvement Report as follows.
|1. Company Name||
Stream Co., Ltd.
(Code: 3071, Market Division: Mothers)
|2.Date of Public Announcement Measure||
Mar. 19, 2012 (Mon.)
Securities Listing Regulations, Rule 508, Paragraph 1, Item 1
(Due to a public announcement being deemed necessary in cases where TSE has recognized a violation of the matters to be observed when conducting disclosure)
|3.Improvement Report Submission Deadline||Apr. 4, 2012 (Wed.)|
Securities Listing Regulations, Rule 502, Paragraph 1, Item 1
(Due to improvements being deemed highly necessary in cases where TSE has recognized a violation of the matters to be observed when conducting disclosure)
On March 19, 2012, Stream Co., Ltd. (hereinafter "the Company") disclosed amendments to the past earnings reports in response to the content of an inspection report received from the third-party committee.
The Company was found to disclose a settlement of accounts which requires material amendments from the fiscal year ending January 2008 to the fiscal year ending January 2011. The Company's senior managing director rigged the amount of purchase rebates to increase and decrease the amount of gross margins on sales and falsely explained to its auditing firm and other related parties that miscalculation on accounts payable was reasonable.
It was extremely inappropriate that such senior managing director falsely recorded such rebates, etc. In addition, it is deemed that check-and-balance functions substantially failed to work between the Company's merchandise department and middle office responsible for rebates, and the Company did not analyze the cause of said miscalculation without a system checking purchases and billing pertaining to the management of accounts payable.
Based on the above, this case is in violation of the matters to be observed for timely disclosure and has considerable impact on investment decisions, and is deemed to require public announcement. Therefore, the public announcement measure is implemented.
Moreover, this is a case of inappropriate disclosure attributable to deficiency in the rules and systems for appropriate timely disclosure at the Company, and a high necessity of improvements to timely disclosure rules and systems is required for the Company. Therefore TSE has requested the Company to submit a report including the background and improvement measures.
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