【Tokai Rika】 Disclosure of Internal Control Deficiencies in Financial Reporting ｜ June 2026

Overview of Business Performance

Tokai Rika disclosed deficiencies in internal control concerning its financial reports for the fiscal year ending March 2026. Specifically, deficiencies in internal control related to the application of tax effect accounting have led to necessary corrections in its consolidated financial statements. This raises potential concerns about the accuracy of the financial reporting.

Future Actions and Outlook

The company plans to review its tax effect accounting procedures and checklists, improve its expertise, and collaborate with its audit firm to address and rectify internal control issues. The corrected financial statements have already been reflected, and the audit opinion is an unqualified (clean) opinion.