TOKYO, Jun 30 (Pulse News Wire) – Convano Inc. (6574.T) disclosed a material weakness in its internal controls related to financial reporting for the fiscal year ended March 31, 2026.
The issue was identified in the company’s internal control report submitted to the Kanto Finance Bureau. During the fiscal year, initial financial statements contained errors that necessitated two corrective disclosures. The weaknesses stemmed from inadequate controls over the financial statement preparation process, insufficiently developed accounting manuals, and incomplete check and approval procedures during the audit process. Additionally, resource constraints within the accounting department contributed to the issues.
Despite recognizing the importance of ensuring financial reliability, Convano stated that these deficiencies could not be fully addressed prior to the end of the fiscal year due to their discovery late in the reporting cycle. To rectify these shortcomings, the company plans to enhance management oversight, strengthen accounting resources, improve manual documentation, and establish clearer verification processes. The necessary adjustments resulting from these findings have been incorporated into the consolidated financial statements and standalone financial reports for the fiscal year ending March 31, 2026. However, the company received an unqualified opinion on its financial statements, indicating overall compliance despite the noted weaknesses.
Convano extends sincere apologies to shareholders and investors for any inconvenience caused by this disclosure.
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