Kubota Pharmaceutical Holdings Co.,Ltd. [4596.T]
TOKYO, Mar 27 (Pulse News Wire) – Kubota Pharmaceutical Holdings CO.,LTD. (4596.T) disclosed on March 27 that its internal controls related to financial reporting had significant deficiencies, rendering them ineffective according to its fiscal year 2025 internal control report submitted to the Kanto Finance Bureau.
The identified weaknesses emerged during the fiscal year-end audit process, revealing errors in initially reported figures which necessitated subsequent corrections. These issues primarily stem from inadequacies in the accounting close process and inventory management procedures: - Insufficient staffing and expertise for closing activities, including inventory counts, leading to inadequate verification time. - Inadequate monitoring and review functions within the finance department, failing to ensure the accuracy of complex accounting treatments and disclosure documents. Due to the late identification of these deficiencies post-fiscal year-end, corrective measures could not be implemented within the same fiscal period.
In response, Kubota Pharmaceutical has outlined several remediation steps, including increasing specialized staff and improving the accounting and financial reporting processes through stricter schedule management and enhanced review controls. All necessary adjustments resulting from these deficiencies have been reflected in the consolidated financial statements. Despite these issues, the auditor's opinion on the consolidated financial statements remains unqualified. The company deeply apologizes for any inconvenience and concern caused to shareholders and investors.
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