Nepon Identifies Material Weakness in Financial Reporting Controls, Amends Previous Internal Control Reports

TOKYO, Jun 30 (Pulse News Wire) – NEPON Inc. (7985.T) identified a material weakness in its financial reporting controls related to inventory valuation processes.

The issue stemmed from incorrect data updates in Access databases used for calculating average inventory prices since fiscal year 2019. As a result, inventory assets were understated in recent accounting periods. The company amended internal control reports for fiscal years ending from April 1, 2021, through March 31, 2025.

It implemented corrective measures, including enhanced verification procedures and risk assessments across all business processes to prevent future occurrences. NEPON's revised internal control reports cover periods from April 1, 2021, to March 31, 2025, reflecting necessary adjustments to ensure accurate financial reporting. The company’s audit opinion remains unqualified.