Fukoku discloses material internal control deficiencies at Shanghai subsidiary

Fukoku Co., Ltd. (TSE:5185) announced that it has identified material deficiencies in its internal controls systems related to financial reporting at its consolidated subsidiary, Shanghai Fukoku Rubber & Plastics Industry Co., Ltd. The disclosure, made in an Internal Controls Report submitted to the Kanto Local Finance Bureau, stems from the embezzlement of company funds by a Shanghai Fukoku employee in charge of receipts and disbursements. The employee falsified ledgers to misappropriate funds for personal use over several fiscal years.