Update : Nov. 15, 2013
[Tokyo Stock Exchange, Inc.]
TSE has taken the Public Announcement Measure and requested an Improvement Report as follows.
|1. Company Name||
YUKIGUNI MAITAKE CO., LTD.
(Code: 1378, Market Division: 2nd Section)
|2.Date of Public Announcement Measure||Nov. 14, 2013 (Thu.)|
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||Nov. 28, 2013 (Thu.)|
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)
YUKIGUNI MAITAKE CO., LTD. (hereinafter "the Company") disclosed on November 5, 2013 that it received the investigation report submitted by the internal investigation committee (hereinafter "the Committee") regarding inappropriate accounting practices. The Company has on November 14, 2013 further disclosed revisions to its earnings reports, etc. pertaining to past fiscal years.
Based on these disclosures, the Company was found to have conducted inappropriate accounting processing where, from the fiscal year ended March 1999, items which should have been processed under costs were posted as land assets in balance sheets, and from the fiscal year ended March 2006, after the application of impairment accounting, such accounting for business assets was inappropriate and advertising expenses were not appropriately included under costs. As a result, the Company was deemed to have made disclosure containing falsehoods from the fiscal year ended March 2009 through to the first quarter of the fiscal year ending March 2014.
It has also been acknowledged that directors or employees conducted inappropriate accounting practices under excessive pressure, etc. from the founder president to maintain satisfactory business performance such as through setting excessively high targets, while other directors or employees of other sections or departments overlooked such malpractices. As such, the Company's internal control system was found to have not functioned properly.
Based on the above, this case is deemed to (i) be in violation of the matters to be observed related to timely disclosure, (ii) have considerable impact 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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