Update : Dec. 20, 2013
[Tokyo Stock Exchange, Inc.]
TSE has taken the Public Announcement Measure and requested an Improvement Report as follows.
|1. Company Name||
Zakkaya Bulldog Co., Ltd.
(Code: 3331, Market Division: JASDAQ Standard)
|2.Date of Public Announcement Measure||
Dec. 20, 2013 (Fri.)
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||Jan. 10, 2014 (Fri.)|
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)
Zakkaya Bulldog Co., Ltd. (hereinafter "the Company") disclosed an investigative report by a third party committee regarding improper accounting practices on November 11, 2013, and today disclosed a correction to past financial results, etc.
As a result, the Company was found to have made false disclosures from the fiscal year ended August 2009 to the third quarter of the fiscal year ended August 2013 due to overstatement or understatement of inventory assets arising from falsification of inventory data.
At that time, the Company, whose corporate culture prioritized earnings and profits with authority concentrated under a specific director, was deemed to have conducted inappropriate accounting practices in the financial affairs division's calculation of inventory balances under the orders of a director. It was also deemed that the Company does not possess a system to confirm and share information regarding such calculation process and results, and that the internal controls of other officers and departments did not function effectively.
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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