nms Holdings Corporation [2162.T]
TOKYO, Jun 26 (Pulse News Wire) – nms Holdings Corporation (2162.T) disclosed significant deficiencies in its internal controls over financial reporting for fiscal year 2026, ending March 31. The company submitted a revised internal control report to the Kanto Regional Finance Bureau on April 28, identifying issues related to inadequate accounting treatment for product warranty costs incurred by its subsidiary, PaWaasapuraitekunorojii Kabushiki Kaisha.
Key findings included: 1. Insufficient oversight due to concentrated authority and lack of cross-functional review. 2. Inadequate communication leading to missed opportunities for board supervision. 3.
Ineffective processes within the finance department for timely and appropriate accounting decisions. While some corrective actions were implemented post-fiscal year-end, the company deemed these deficiencies unresolved as of the end of the fiscal year. As a result, the overall effectiveness of the company's financial reporting controls was found lacking. To address these issues, nms Holdings has amended its affiliate management regulations and established regular liaison meetings between its finance team and key subsidiaries’ financial officers. Additionally, the company plans to hold Accounting Discussion Forums to ensure proper accounting treatments and thorough information sharing with auditors.
Despite these weaknesses, the consolidated financial statements for the affected periods reflect necessary adjustments, maintaining an unqualified audit opinion.
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