Showa Holdings Co.,Ltd. [5103.T]
TOKYO, Jun 24 (Pulse News Wire) – Showa Holdings CO.,LTD. (5103.T) disclosed a significant weakness in internal controls related to issues involving its Thai subsidiary Group Lease Holdings PTE.
LTD. (GLH). According to the company’s financial statements for the fiscal year ending March 31, 2026, the auditor was unable to obtain sufficient and appropriate audit evidence concerning GLH's loan transactions, which remain under investigation by Thailand's Ministry of Justice Special Investigation Division since March 31, 2018. As a result, the auditor issued a qualified opinion on the consolidated financial statements due to ongoing legal disputes and investigations. The company stated that GLH faced allegations of improper conduct by former executives and overstated interest income from loan transactions, leading to a court ruling requiring GLH’s liquidation in March 2024.
Additionally, GL Finance PLC., another subsidiary, received notice of license revocation and company dissolution from Cambodia National Bank on September 12, 2024. These unresolved matters could potentially impact the valuation of Showa Holdings’ equity investment in Group Lease, currently valued at ¥400 million. However, the extent of this impact remains undetermined. In response to these issues, Showa Holdings plans to enhance oversight and information gathering mechanisms within its overseas subsidiaries. These measures aim to improve internal auditing and ensure timely information flow, facilitating resolution of the identified weaknesses.
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