TOKYO, May 15 (Pulse News Wire) – I-ne CO.,LTD. (4933.T) disclosed today that its internal control system related to financial reporting was deemed ineffective due to significant deficiencies identified in its 19th fiscal year (ending December 2025).
The company submitted a corrected internal control report to the Kinki Regional Finance Bureau Chief on February 12, 2026, following the establishment of an external expert-led special investigation committee. The investigation revealed that CEO Yohei Onishi had substantial influence over Right Here Corp., a company founded by a former employee. As a result, transactions involving trademark rights and product transfers with Right Here Corp. require retrospective correction in previously filed financial statements.
The company also noted weaknesses in overall internal controls, particularly in governance understanding among executives and accurate information provision to the board and audit committees regarding Right Here Corp. Despite recognizing the importance of financial reporting internal controls, I-ne could not correct these deficiencies by the end of the fiscal year due to their discovery post-year-end. To prevent recurrence, the company plans to implement reforms such as ensuring independent governance structures, integrating Governance Youso into director selection and compensation systems, and enhancing oversight functions of the board of directors. An unqualified opinion remains on the consolidated financial statements and financial statement audits, indicating no immediate impact on the financial reports themselves.
🟢 Confidence: High AI-translated content.