Air Water Overstates Operating Profit by 21.2 B. Yen over 6 Years

Osaka, April 3 (Jiji Press)--Major Japanese industrial gases supplier Air Water Inc. said Friday that it had overstated its operating profit by a total of 21.2 billion yen over six years from fiscal 2019.

Over the scandal, the company also said that its president, Ryosuke Matsubayashi, will return all of his pay for three months and 12 other executives will return 20 to 50 pct of their pay for three months.

At a press conference in the western Japan city of Osaka on Friday, Matsubayashi apologized for the matter, saying, "We have severely undermined trust."

The company confirmed accounting irregularities, including overstating inventories and deferring appraisal losses. Sales were inflated by a total of 66.9 billion yen.

In its report, a special investigation panel of outside experts pointed to excessive pressure from then company chairman Kikuo Toyoda and others, as well as their tolerance of improper accounting practices.

[Copyright The Jiji Press, Ltd.]