[FAQ] Frequently Asked Questions on the Investigation Report
- What kind of investigation report was published?
- Recently, our company established an external investigation committee led by outside experts. The purpose of this investigation was to determine the facts and investigate any issues, as well as to identify the causes and propose measures to prevent recurrence in case of any issues regarding employment adjustment subsidies at our subsidiary, OUTSOURCING TECHNOLOGY Inc., as well as for the transaction processes with certain business partners. This report pertains to the investigations conducted by this committee.
- What kind of organization is the external investigation committee?
- The external investigation committee is an organization composed of independent outside experts, including lawyers and certified public accountants, with the purpose of investigating the facts.
- What happened (what is mainly written in the investigation report)?
- - It has been determined that there is a need to voluntarily refund a portion of the employment adjustment subsidies received by our company and our group companies. The process for refunding the applicable employment adjustment subsidies to the relative labor authorities has been initiated.
- Issues related to transactions with external parties at OUTSOURCING TECHNOLOGY Inc. have revealed governance, internal control, and compliance issues within our group.
- Based on these investigation results, we have accepted the committee's recommendations for analysis on the causes and measures to prevent recurrence. - What is the total amount of voluntary refund of the employment adjustment subsidies?
- - Our group is reporting to the labor authorities in charge of each company and region regarding the voluntary refund of the employment adjustment subsidies, and the amounts will be determined by each labor authority.
- The final determination of the amount of improper receipt and the refund amount will be made after discussions with the labor authorities that have made decisions on the employment adjustment subsidies. - - Will this have an impact on the OUTSOURCING group's performance?
- How much is the expected amount of impact? - For the delay penalty related to the repayment of employment adjustment subsidies, we have calculated a JPY -35 million adjustment in operating profit for the cumulative period of the first quarter. Similar impact amounts are expected for the second quarter and beyond, resulting in an estimated JPY -140 million impact on operating profit for the full year. If there are any significant developments, we will announce them on our website and other channels.
- When is the financial results for the second quarter for OUTSOURCING Inc. expected to be released?
- It will be released by November 14, 2023.
- When is the financial results for the third quarter for OUTSOURCING Inc. expected to be released?
- It will be released as scheduled (by November 14, 2023).
- - What are the measures to prevent recurrence recommended by the external investigation committee?
- What actions will OUTSOURCING Inc. take in the future? - - The main recommendations from the external investigation committee are as follows:
1.) Thorough commitment to the measures to prevent recurrence*
2.) Thorough understanding and implementation of the measures to prevent recurrence
3.) Effective check function in approval procedures, etc.
4.) Reiteration of compliance awareness
* Note: Referring to the measures to prevent recurrence recommended in the announcement made on January 14, 2022, regarding inappropriate accounting practices within our group companies (In Japanese only)
- Our group will formulate and implement measures to prevent recurrence, focusing on compliance, taking into account the recommendations received from the external investigation committee, and reflecting on past cases. - - I am trying to call OUTSOURCING Inc., but I cannot reach the company. What should I do?
- I am waiting for a call back, but I have not received a call yet. What should I do? - We sincerely apologize that we have not been able to promptly respond to all inquiries. We will respond in the order the call is received. Thank you for your understanding and cooperation.
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