Internal Control and Consolidated Financial Reporting Risks Associated with Group Expansion
First written in FY2024. 1 of 2 entries say "Worsened", first in FY2025. Latest entry: FY2025.
Next Generation Technology Group moved to the "Worse" side of this theme in 2026, the same year as the typical company in this theme.
6 other companies' latest entry also says "Worsened".
- FY2025WorsenedAnnual report
「If, because of a further increase in acquired companies and other factors, the development of an internal management framework suited to the group's overall business scale, and the securing and training of management personnel, fail to keep pace, appropriate business operations may become difficult, potentially affecting the group's business operations, operating results, and financial position.」
The number of consolidated subsidiaries increased from 15 in the previous fiscal year to 34, and consolidated employees from 558 to 1,208, expanding the scale subject to the risk that internal management, management personnel, and consolidated reporting systems may fail to keep pace. - FY2024First statedAnnual report
「If, because of a further increase in acquired companies and other factors, the development of an internal management framework suited to the group's overall business scale, and the securing and training of management personnel, fail to keep pace」
The company recognizes the possibility that the expansion of acquired companies may outpace the development of internal controls, management personnel, and consolidated financial reporting systems.