AIR Water Discloses Material Weaknesses in Financial Reporting Internal Controls

TOKYO, Jul 31 (Pulse News Wire) – Air Water Inc. (4088.S) disclosed significant deficiencies in its financial reporting internal controls, necessitating corrections to previous fiscal year reports.

The company identified issues affecting its overall internal control environment and business process controls, impacting financial statements from fiscal years ending March 2021 through March 2025. In response, Air Water established a special investigation committee to address the weaknesses, implementing measures such as enhancing governance structures, strengthening audit functions, and improving accounting procedures. However, the effectiveness of these actions remains unverified due to their recent implementation.

The company committed to continuously evaluating and refining its internal controls moving forward. Air Water submitted corrected financial reports and internal control reports to the Kanto Finance Bureau, reflecting adjustments related to inventory misstatements, revenue inflation, and improper asset valuations across multiple subsidiaries. The revised reports cover fiscal years from March 2021 to March 2025, along with interim periods up to March 2026.