VALUE CREATION CO.,LTD. [9238.T]
TOKYO, May 29 (Pulse News Wire) – Value Creation CO.,LTD. (9238.T) disclosed today that it submitted corrected reports for its previous fiscal years’ securities reports and quarterly briefings to the Kanto Finance Bureau.
The corrections stem from identified material weaknesses in internal controls related to marketing DX business intermediary transactions. Specifically, the company acknowledged deficiencies in its process for verifying the existence of transactions within intermediary dealings, leading to inaccuracies in revenue and subcontracting expense reporting. As a result, the effectiveness of internal controls over financial reporting was deemed insufficient for the fiscal years ending February 28, 2024, and February 28, 2025.
Value Creation established a special investigation committee comprising external experts—lawyers and certified public accountants—to review the findings. While the company confirmed that its employees did not collude in creating fictitious transactions, the lack of robust verification procedures led to significant discrepancies in reported figures. In light of these issues, the firm has implemented several corrective measures aimed at preventing future occurrences, including stricter documentation requirements, systematic reviews of downstream clients' capacity, enhanced organizational sharing of transactional data, and reinforced internal audits and oversight functions.
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