Japan Securities and Exchange Surveillance Commission recommends a JPY 27 million surcharge order against Wilco Holdings for false securities and quarterly reports

The Japan Securities and Exchange Surveillance Commission (SESC) has recommended that the Prime Minister and the Commissioner of the Financial Services Agency issue a surcharge payment order against Wilco Holdings Co., Ltd. after finding violations of disclosure regulations under the Financial Instruments and Exchange Act tied to false statements in securities reports and quarterly reports. The inspection identified improper accounting, including understated impairment losses on fixed assets and, across the company and its consolidated subsidiaries, understated cost of goods sold and selling, general and administrative expenses. The affected filings include securities reports for fiscal years ended October Reiwa 2 through October Reiwa 5 and multiple quarterly reports from Reiwa 3 through the first quarter of Reiwa 6. The total surcharge calculated for the misconduct is JPY 27 million, comprising JPY 6 million for the fiscal year ended October Reiwa 2, JPY 6 million for each of the fiscal years ended October Reiwa 3, Reiwa 4 and Reiwa 5 (allocated across the relevant annual and quarterly reports for each year), and JPY 3 million for the first-quarter report in Reiwa 6.