Hamai Industries Ltd.
Notice on Correction of Internal Control Report
A correction report has been submitted due to issues identified in the prior year's internal control report. The erroneous valuation of inventory led to adjustments in the financial summary and prior-year reports. Targets include reports for 2021–2025. Going forward, we will revise accounting regulations, strengthen personnel, and establish internal controls for inventory valuation.
Key Figures
- Period covered: 2021 fiscal year to 2025 fiscal year
- Number of corrected reports: 2021 fiscal year Q90 to 2025 fiscal year Q94
- Reason for inventory valuation deficiency: insufficient extraction of individual items due to evaluation based on turnover period by large inventory groups
AI要約
Background and contents of the correction
We have submitted correction reports for past年度 securities reports and have revised the financial summaries accordingly. This time, we have submitted a correction report for the internal control report related to financial reporting. The targets are internal control reports for 2021 to 2025, and corrections have been made to matters related to evaluation results. Before correction, we judged that internal control was effective; after correction, we determined that deficiencies have a material impact on the accuracy of financial reporting and thus are not effective. The cause lies in the misvaluation of inventory, specifically that individual items of slow-moving inventory were not extracted, leading to an unnecessary recognition of impairment.
Future actions and improvement policy
Going forward, we will improve the financial reporting process and revise accounting regulations and checklists related to inventory valuation, while continuously enhancing expertise to deepen the verification of closing processes. Specifically, we will reexamine statements considering complexity and specificity, strengthen appropriate personnel placement, and ensure thorough, unbiased, in-depth verification and confirmation.
Hamai Industries Ltd.
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