Staffing and Internal Control Risks Associated with a Small Organization
First written in FY2016. 16 of 27 entries say "Restated". Latest entry: FY2026.
Sds Holdings moved to the "Worse" side of this theme in 2019, 6 years before the typical company in this theme (2025).
12 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「As of 31 March 2026, the group was a small organization with 7 officers, comprising 4 directors who are not audit and supervisory committee members and 3 outside directors who are audit and supervisory committee members, and 21 employees. Its internal control structure is also tailored to its current organizational scale.」
The company continues to disclose staffing and internal control risks associated with its small-scale organization. The number of employees decreased from 22 in the previous fiscal year to 21. - FY2025MitigatedAnnual report
「As of 31 March 2025, the group was a small organization with 7 officers, comprising 4 directors who are not audit and supervisory committee members and 3 outside directors who are audit and supervisory committee members, and 22 employees. Its internal control structure is also tailored to its current organizational scale.」
Risks associated with a small-scale organisation and its internal control structure continue to be disclosed. The number of employees increased from 18 in the previous fiscal year to 22, but the company still regards itself as a small-scale organisation and identifies securing personnel and enhancing its internal control structure as challenges. - FY2024WorsenedAnnual report
「As of 31 March 2024, our group was a small-scale organization with 7 officers, consisting of 4 directors who are not Audit and Supervisory Committee members and 3 outside directors who are Audit and Supervisory Committee members, and 18 employees. Its internal control framework is also aligned with its current organizational scale.」
The Company continues to disclose risks associated with its small organisational scale and internal control system. The number of employees declined from 25 in the previous fiscal year to 18, and the disclosure continues to identify strengthening the workforce and enhancing the internal control system in line with business expansion as challenges. - FY2024-Q2Decrease of 4 employeesAnnual report
「During the cumulative second quarter of the current fiscal year, the number of employees in the Group decreased by 4.」
In connection with personnel and internal control risks associated with a small-scale organization, the report states that the number of employees decreased by 4 during the cumulative period under review. The number of employees after the decrease is not stated in the main text. - FY2023Increase in employees and update to number of officersAnnual report
「As of 31 March 2023, the Group was a small organisation with 7 directors and officers, comprising 4 directors who are not Audit and Supervisory Committee members and 3 outside directors who are Audit and Supervisory Committee members, and 25 employees. Its internal control system is also structured in line with its current organisational scale.」
The company continues to disclose risks related to personnel and internal controls arising from its small organizational structure. The number of employees increased from 24 in the previous fiscal year to 25, while the number of officers decreased from the 8 disclosed for the previous fiscal year to 7. - FY2022RestatedAnnual report
「As of 31 March 2022, the Group was a small organization consisting of 8 officers (5 directors who were not Audit and Supervisory Committee members and 3 outside directors who were Audit and Supervisory Committee members) and 24 employees. Its internal control system was also aligned with its current organizational scale.」
The company continues to disclose the personnel and administrative structure risks associated with its small organization of 8 officers and 24 employees and its internal control system aligned with its organizational scale. - FY2022-Q3RestatedAnnual report
「During the cumulative third quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that could materially affect investors’ decisions, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」
The Company explains that there have been no significant changes regarding personnel and internal control system risks associated with its small organisational scale. - FY2021RestatedAnnual report
「As of 31 March 2021, the Group was a small organization comprising 7 officers (4 directors who were not Audit and Supervisory Committee members and 3 outside directors who were Audit and Supervisory Committee members) and 27 employees, with an internal control system corresponding to its current organizational size.」
The company continues to disclose risks related to staffing and management controls associated with its small-scale organization of 7 officers and 27 employees and its internal control framework, which is scaled to the organization. - FY2021-Q3RestatedAnnual report
「During the cumulative third quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that could materially affect investors’ decisions, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」
The Company explains that there have been no significant changes regarding personnel and internal control system risks associated with its small organisational scale. - FY2021-Q2RestatedAnnual report
「During the cumulative second quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that could materially affect investors’ decisions, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」
The Company explains that there have been no significant changes regarding personnel and internal control system risks associated with its small organisational scale. - FY2020RestatedAnnual report
「As of 31 March 2020, the Group was a small organisation with 7 officers, comprising 4 directors who were not Audit and Supervisory Committee members and 3 outside directors who were Audit and Supervisory Committee members, and 26 employees. Its internal control system was also structured in accordance with its current organisational scale.」
The company continues to disclose risks related to staffing and management controls associated with its small-scale organization of 7 officers and 26 employees and its internal control framework, which is scaled to the organization. Selling, general and administrative expenses, including costs related to strengthening internal controls, remained high at ¥591 million. - FY2020-Q3WorsenedAnnual report
「Regarding profit and loss, selling, general and administrative expenses were ¥458 million, up ¥19 million year on year, due to higher costs related to strengthening internal controls, including officer compensation and fees paid, resulting in an operating loss of ¥176 million」
Costs related to strengthening the internal control system continued to weigh on results, and selling, general and administrative expenses increased by ¥19 million year on year to ¥458 million. The continued cost burden was a factor behind the operating loss. - FY2020-Q2WorsenedAnnual report
「With selling, general and administrative expenses rising to ¥323 million, up ¥35 million year on year, due to higher expenses related to strengthening the internal control system, including directors’ remuneration and fees paid, we recorded an operating loss of ¥130 million, compared with an operating loss of ¥116 million in the same period of the previous year, and an ordinary loss of ¥133 million, compared with an ordinary loss of ¥113 million.」
Selling, general and administrative expenses increased by ¥35 million year on year to ¥323 million due to higher costs related to strengthening internal controls, contributing to the widening of operating and ordinary losses. The burden of management control costs associated with the small-scale organization has become more pronounced. - FY2020-Q1RestatedAnnual report
「Selling, general and administrative expenses remained elevated at ¥161 million, down ¥2 million year on year, due to higher expenses related to strengthening the internal control system, including directors’ remuneration and fees paid.」
Costs related to strengthening the internal control system continued to be incurred, keeping selling, general and administrative expenses high at ¥161 million. However, this was a ¥2 million decrease year on year. - FY2020-Q1RestatedAnnual report
「Selling, general and administrative expenses remained elevated at ¥161 million, down ¥2 million year on year, due to higher expenses related to strengthening the internal control system, including directors’ remuneration and fees paid.」
Costs related to strengthening the internal control system continued to be incurred, keeping selling, general and administrative expenses high at ¥161 million. However, this was a ¥2 million decrease year on year. - FY2019WorsenedAnnual report
「Segment profit remained negative, as in the previous year, due to higher costs resulting from the increase in the cost ratio, strengthening the management system, and hiring qualified personnel.」
Increased costs associated with strengthening the management structure and hiring qualified personnel are described as factors behind the actual segment loss, making the burden of expanding internal management systems concrete. - FY2019-Q3WorsenedAnnual report
「The company recorded an operating loss because revenue and earnings tend to be concentrated in the fourth quarter and costs incurred to strengthen its internal control system were higher than expected.」
Costs to strengthen the internal control system exceeded expectations and became a factor behind the operating loss. The burden has taken the specific form of costs exceeding expectations, rather than simply additional costs as previously described. - FY2019-Q2MaterialisedAnnual report
「As additional costs, including those required to strengthen the internal control system, arise, the company will require more funds and needs to continue borrowing.」
Additional costs associated with strengthening the internal control system have been incurred and are cited as reasons for funding needs and continued borrowing. Concerns over the cost of internal controls associated with the small organisational scale have materialised. - FY2019-Q1RestatedAnnual report
「During the first quarter of the current consolidated cumulative period, there were no occurrences of matters that could materially affect investors’ investment decisions among the matters relating to the business and financial position described in this quarterly report, nor were there any material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」
The Company explains that there have been no significant changes regarding personnel and internal control system risks associated with its small organisational scale. - FY2018-Q3RestatedAnnual report
「During the cumulative third quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that could materially affect investors’ decisions, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」
The Company explains that there have been no significant changes regarding personnel and internal control system risks associated with its small organisational scale. - FY2018-Q2RestatedAnnual report
「During the cumulative second quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that could materially affect investors’ decisions, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」
The Company explains that there have been no significant changes regarding personnel and internal control system risks associated with its small organisational scale. - FY2018-Q1RestatedAnnual report
「During the first quarter of the current consolidated cumulative period, there were no occurrences of matters that could materially affect investors’ investment decisions among the matters relating to the business and financial position described in this quarterly report, nor were there any material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」
The Company explains that there have been no significant changes regarding personnel and internal control system risks associated with its small organisational scale. - FY2017RestatedAnnual report
「As of 31 March 2017, the Group was a small organization consisting of 7 officers of the Company (4 directors, 1 audit & supervisory board member and 2 outside audit & supervisory board members), 8 officers of subsidiaries, and 24 employees, with an internal control system commensurate with its current organizational scale.」
The company continues to disclose personnel and management-system risks associated with its small organization of 24 officers and employees and the corresponding internal control system. It explains that reinforcing personnel and strengthening the internal control system as the business expands will also lead to higher fixed costs. - FY2017-Q3RestatedAnnual report
「During the cumulative third quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that could materially affect investors’ decisions, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」
The Company explains that there have been no significant changes regarding personnel and internal control system risks associated with its small organisational scale. - FY2017-Q2RestatedAnnual report
「There have been no material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」
The Company explains that there have been no significant changes regarding personnel and internal control system risks associated with its small organisational scale. - FY2017-Q1RestatedAnnual report
「There have been no material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」
The Company explains that there have been no significant changes regarding personnel and internal control system risks associated with its small organisational scale. - FY2016First statedAnnual report
「As of 31 March 2016, the Group was a small organization consisting of 6 officers of the Company (3 directors, 1 corporate auditor and 2 outside corporate auditors), 4 officers of subsidiaries and 26 employees. Its internal control system was also designed for its current organizational scale.」
The Company states that a failure to secure the necessary personnel or sufficiently expand its internal control system could affect operations and business expansion.