TSE News

Public Announcement Measure and Request for Improvement Report -KYCOM HOLDINGS CO., LTD.-

Update : Aug. 02, 2013

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[Tokyo Stock Exchange, Inc.]

TSE has taken the Public Announcement Measure and requested an Improvement Report as follows.

1. Company Name KYCOM HOLDINGS CO., LTD.
(Code: 9685, Market Division: JASDAQ Standard)
2.Date of Public Announcement Measure Aug 1, 2013 (Thu.)
Provision 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 15, 2013 (Thu.)
Provision 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)
4.Reason KYCOM HOLDINGS CO., LTD. (hereafter "the Company") disclosed on Aug. 1, 2013 that it has submitted amendments to securities reports, etc. of past fiscal years and will be amending earnings reports, etc. of past fiscal years.
In the disclosed documents, the Company was found to have disclosed earnings information which required material amendments from the fiscal year ended March 2008 to the third quarter of the fiscal year ended March 2013 due to errors related to the accounting of impairment losses of fixed assets, loss on valuation of investment securities, loss on valuation of affiliates' stocks, costs pertaining to software, and bad debt loss, etc.
This was deemed to be a case of amendments due to inadequate evaluation of the valuation of affiliates' stocks and software to be sold, leased, or otherwise marketed in relation to estimates for future plans. As a result, TSE has deemed this to be a case of deficiency in the internal system for conducting accounting estimates.
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.

DISCLAIMER: This translation may be used for reference purposes only. This English version is not an official translation of the original Japanese document. In cases where any differences occur between the English version and the original Japanese version, the Japanese version shall prevail. This translation is subject to change without notice. Tokyo Stock Exchange, Inc. and/or Tokyo Stock Exchange Regulation shall individually or jointly accept no responsibility or liability for damage or loss caused by any error, inaccuracy, misunderstanding, or changes with regard to this translation.

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