Update : Apr. 20, 2012
[Tokyo Stock Exchange, Inc.]
Designation as a Security on Alert has been cancelled as below.
|1. Issue Name||
ARDEPRO Co., Ltd. stock
(Code: 8925, Market Division: Mothers)
|2.Date of Cancellation of Designation as Securities on Alert||Apr. 19, 2012 (Thu.)|
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)
The Exchange designated the stock of ARDEPRO Co., Ltd. (hereinafter the "Company") as a Security on Alert on November 25, 2009 due to the Exchange deeming there to be a high necessity for improvement of the Company's internal management and other structures.
Motivated by a strong determination to achieve its business goals, the Company engaged in inappropriate accounting related to real estate by, among others, recording sales for transactions in which the receipt of sales proceeds, an accounting requirement for effecting transactions, was rarely acknowledged. This arose from a lack of awareness of compliance in relation to accounting and a failure to effectively verify and examine real estate transactions that involved organizational bodies from the business division to accounting division. Additionally, after reevaluating its inventories, the Company recorded a large loss on the re-evaluation of real estate for sales, which involved the revision of results for past fiscal years, resulting in the submission of amendment reports pertaining to securities reports, etc. for the interim period of the fiscal year ended July 2006 through those for the third quarter of the fiscal year ended July 2009 (excluding those for the fiscal year ended July 2006 and the interim period of the fiscal year ended July 2007).
After 1 year elapsed following the designation as a Security on Alert, TSE examined the Company's internal management and other structures based on details of documents submitted by the Company regarding the condition of such structures, but was unable to confirm that the Company's internal management and other structures had adequately improved. As such, TSE decided not to cancel the designation as a Security on Alert on November 25, 2010.
The Company then resubmitted documents regarding the condition of its internal management and other structures after 1 year elapsed following such decision. The Exchange was unable to deem there to be a problem with such structures, including improvement of the factors leading to the designation as a Security on Alert, after re-examination based on the contents of such documents. As such, the Exchange decided to cancel the designation of the Company's stock as a Security on Alert.
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