VALUE CREATION CO.,LTD. [9238.T]
TOKYO, May 29 (Pulse News Wire) – Value Creation CO.,LTD. (9238.T) disclosed today that its internal controls related to financial reporting for the fiscal year ending February 2026 contained a significant deficiency, rendering those controls ineffective.
The company submitted the 18th term internal control report to the Kanto Finance Bureau Chief on the same day. The identified weakness stems from a fictitious circular transaction involving G-Plan Corporation, a subsidiary of KDDI. An external special investigation committee confirmed that while Value Creation was involved as an intermediary in the transaction, there was no collusion among employees regarding the nature of the transactions.
However, the company's controls failed to adequately verify the existence of the transactions, leading to adjustments in past financial statements and filings. Value Creation acknowledged that the failure to correct this issue by the end of the fiscal year was due to the discovery occurring post-fiscal year-end. To prevent recurrence, the company plans to implement stricter documentation requirements, formalize downstream vendor capability reviews, enhance organizational information sharing and oversight functions, and strengthen internal audits and compliance programs.
Despite the reported deficiencies, the company’s financial statements received an unqualified opinion from auditors, indicating that the necessary corrections have been appropriately reflected in the financial reports.
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