| ３．Reason |
Global Asia Holdings Inc. (hereinafter "the Company") corrected its earnings reports, etc. of past fiscal years and submitted amendment reports pertaining to securities reports, etc. on Mar. 14 and Jun. 8, 2012.
Investigations and inquiries on this case revealed that the Company conducted inappropriate accounting processing, and that the main causes were negligence in credit maintenance by board members of the Company and inadequacies in the internal management systems of the Company and a subsidiary at the time.
Based on the above findings, Osaka Securities Exchange Co. Ltd deemed improvements to the internal management system, etc. of the Company to be highly necessary and designated the stock of the Company as Securities on Alert on Jun. 20, 2012. After one year elapsed following the designation, TSE reviewed the situation, including the content of the "Written Confirmation of Internal Management System" submitted by the Company, and deemed that the internal management system, etc. of the Company had not sufficiently improved. As such, TSE decided to maintain the stock's designation as Securities on Alert on Sep. 24, 2013.
After two years elapsed following the designation, TSE reviewed the situation, including the content of the "Written Confirmation of Internal Management System" submitted by the Company, and found that, while measures were being enacted toward improvement, the inadequacies in subsidiary management had not been corrected. These included the fact that one subsidiary was substantially controlled by a former employee, the management status of the subsidiary was not clear from Jul. 2014 onward, and no measure was taken to promptly resolve the situation.
Furthermore, in Jun. 2014, TSE found a serious inadequacy in fund management by the Company, where funds raised from subscription warrant exercise, etc. were inappropriately withdrawn and could not be located, and inadequacies in credit management due to it falling into formality, which led to a large amount of deposits becoming unrecoverable. While the Company had formulated measures to prevent similar inadequacies, implementation remained partial, and TSE deems that it is, at present, unable to check the results or effects of the measures.
Also, TSE found that internal audits and statutory auditor duties were not properly conducted and the Company has not established an appropriate system for timely disclosure.
Based on this, because it cannot be confirmed that the internal management system, etc. of the Company has sufficiently improved, TSE has decided to continue the stock's designation as Securities on Alert.
In the case where three (3) years elapse since the date of designation as Securities on Alert (June 20, 2012) and TSE deems that problems continue to exist in its internal management system, etc., the stock of the Company shall be delisted. |
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