Establishing a strict asset management system

NEXCO EAST (Chiyoda-ku, Tokyo, Chairman of the Board: Shigejiro Yagi) issued a note and correction document on September 20, 2006 from the Director General of the Road Bureau of the Ministry of Land, Infrastructure, Transport and Tourism regarding the establishment of a strict asset management system. We will take this fact seriously and, based on the lessons learned this time, we will revise the asset amount and establish a strict asset management system as described below so that we can more accurately evaluate the asset and calculate the value. did.

In addition, about these, we report today to Ministry of Land, Infrastructure, Transport and Tourism Road Director.

1 Adjustment of asset amount

We have properly handled the error in the amount of assets in the 2006 interim financial statements.

As a specific treatment method, based on the views of the accounting auditor, 3,754 million yen was recorded in "Other capital surplus" as a capital transaction. In addition, for the correction of depreciation expenses in FY 2005 due to the revision of the asset amount, 67 million yen was added to "Extraordinary income", and the depreciation expenses for FY 2006 was changed to "Depreciation expenses" -67 million yen. Is accounted for.

2 Establishment of asset management system

The cause of the error in the amount of assets is that the vast amount of assets held by the Japan Highway Public Corporation is divided into an independent administrative agency, Japan Expressway Ownership and Debt Repayment Organization (hereinafter referred to as “Mechanism”), and further divided into three companies. I think that because the unprecedented work of revising the accounting process of the public corporation era and converting the road business etc. into a corporate account in a short time with the new system, an employee who was not sufficiently familiar with this was involved. I will.

Therefore, we have implemented the following items that can be addressed immediately, and have tried to prevent the recurrence of similar errors.

In the future, we will also work on the following matters.

3 Clarification of division of roles between the organization and the company and strengthening of collaboration

In the future, when handing over completed road assets and their corresponding debts to JHF and management of borrowed road assets, we will improve and strengthen the asset management system, clarify the division of roles, and establish assets through cooperation so that similar errors will not occur. Regarding the accuracy of grasping value and quantity, we have exchanged “Confirmation regarding establishment of strict asset management system for assets owned by PMDA” with PMDA.

By steadily implementing the above efforts, we will improve the proficiency level of employees and establish a strict asset management system that does not cause mistakes in asset evaluation and price calculation. In the future, in order to establish a more rigorous asset management system, we will always strive to understand the problems and make improvements.

In addition to this measure, President and Chief Executive Officer Keiichi Inoue decided to repatriate 10% of the monthly remuneration for one month. In addition, the officers and departments in charge are working to prevent recurrence and thoroughly implement this initiative.