Update : May 15, 2013
[Tokyo Stock Exchange, Inc.]
TSE has taken the Public Announcement Measure and requested an Improvement Report as follows.
|1. Company Name||
FUSO DENTSU CO., LTD.
(Code: 7505, Market Division: 2nd Section)
|2.Date of Public Announcement Measure||May 14, 2013 (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||May 28, 2013 (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)
FUSO DENTSU CO., LTD. (hereafter “the Company”) disclosed, on December 12, 2012, the investigation report on round-trip transactions, etc. practiced at the Company’s regional branch prepared by the internal investigation committee, as well as corrections to past earnings reports, etc. On May 7, 2013, the Company disclosed the investigation report on round-trip transactions, etc. at sales offices of the Company prepared by the third-party committee. On May 14, 2013, the Company disclosed that it has submitted amendment reports for past securities reports, etc. and that it is scheduled to disclose corrected past earnings reports, etc. on May 15, 2013.
As a result, the Company was found to have disclosed earnings information requiring material amendments during the period from the fiscal year ended September 2006 to the 1st quarter of the fiscal year ending September 2013.
This case was caused by improper accounting processing due to round-trip transactions, etc. involving some employees at multiple business bases of the Company, and it is deemed that the internal control systems and monitoring, etc. at the Company related to order receipt and placement and recording of sales were not effective.
Based on the above, this case is deemed to (i) be in violation of matters to be observed related to timely disclosure, (ii) have considerable influence on investment decisions and (iii) require public announcement. Thus, TSE shall implement public announcement measures.
Furthermore, this is a case of inappropriate disclosure arising from deficiencies in the Company’s organizational structure for conducting timely disclosure, and improvements to the organizational structure are deemed highly necessary. As such, TSE shall require the Company to submit a report containing the background of the issue and improvement measures.
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