Update : Aug. 06, 2012
[Tokyo Stock Exchange, Inc.]
TSE has taken the Public Announcement Measure and requested an Improvement Report as follows.
|1. Company Name||
Tori Holdings CO.,LTD
(Code: 5856, Market Division: 2nd Section)
|2.Date of Public Announcement Measure||Jul. 31, 2012 (Tue.)|
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||Aug. 14, 2012 (Tue.)|
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)
Today, Tori Holdings CO., LTD. (hereinafter, the "Company") announced that it had disclosed earnings information requiring material corrections during the period from the fiscal year ended March 2007 to the fiscal year ended March 2012. This is due to the fact that the Company posted allowance for doubtful accounts related to loans to a former board member, etc. in incorrect accounting periods.
TSE deems it extremely inappropriate that (a) the Company did not sufficiently confirm the purpose of the loaned funds and the asset status of the borrower at the time of providing the loans and (b) lacked rules with regard to posting allowance for doubtful accounts in the credit management system. It is also deemed that the management lacked awareness of compliance and the governance of the board of directors and the board of auditors failed to function.
Due to this case being in violation of Rule 412, Paragraph 1 of the Securities Listing Regulations and having a considerable impact on investment decisions, it is deemed to require public announcement. As such, TSE has decided to implement the public announcement measure pursuant to Rule 508, Paragraph 1 of the Securities Listing Regulations.
Furthermore, this is a case of inappropriate disclosure caused by deficiencies in the timely disclosure system of the Company, and improvement of the Company's timely disclosure system has been deemed highly necessary. As such, TSE requested the submission of a report containing the background of the issue and improvement measures pursuant to the provisions of Rule 502, Paragraph 1 of the Securities Listing Regulations.
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