TOKYO, Apr 03 (Pulse News Wire) – Air Water Inc. (4088.T) disclosed its final report on accounting irregularities identified through a special investigation committee's review.
The report covers issues discovered from July 2025 to March 2026 across multiple subsidiaries, including improper inventory handling and revenue recognition practices. The investigation found cumulative impacts of ¥4.483 billion in sales revenue and ¥2.773 billion in operating profit adjustments since fiscal 2020. Additionally, the company revealed ongoing investigations into further potential irregularities post-March 31, 2026.
Air Water also detailed instances of management pressure and internal resistance during the probe, noting several employees engaged in obstructive behaviors such as withholding information and falsifying documents. The firm introduced a leniency program in December 2025 to encourage staff cooperation, resulting in 875 applications by March 20, 2026. The report highlights significant discrepancies in performance targets set within the group, suggesting unrealistic goals contributed to the pressure leading to inappropriate accounting practices.
Specific examples include inflated sales growth expectations that failed to materialize, contributing to the overall misreporting environment.
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