Dependence on Management and Internal Control Constraints of a Small Organization
First written in FY2020. 2 of 6 entries say "Restated". Latest entry: FY2025.
Magmag moved to the "Worse" side of this theme in 2025, the same year as the typical company in this theme.
The whole theme swung hardest in 2020: 5 of 13 companies on the "Worse" side.
3 other companies' latest entry also says "Reframed".
- FY2025ReframedAnnual report
「The company's management has extensive experience, knowledge and expertise in the business, and its representative director and executive directors play extremely important roles across all of its business activities, including the formulation of management policies and business strategies. Accordingly, the company is developing an organizational management structure and training personnel to avoid excessive reliance on these officers. However, if these officers resign for reasons including their career plans, health or family circumstances and the company is unable to secure replacements, this may affect its business activities, financial position and operating results.」
In addition to the existing risks associated with a small organization, the disclosure separately identifies the importance of management and the risk of being unable to secure replacements when management members leave. - FY2024Update of Employee NumbersAnnual report
「As of the end of the fiscal year, the company was a relatively small organization with 19 employees, and its business execution structure was designed accordingly.」
The company updated the number of employees from 22 at the end of the previous fiscal year to 19, while continuing to identify the small organization and constraints on its internal control structure as risks. - FY2023RestatedAnnual report
「As of the end of the fiscal year, the company was a relatively small organization with 22 employees, and its business execution structure was designed accordingly.」
The disclosure reiterates the risks associated with the small organization of 22 employees and the possibility that its internal control structure may fail to keep pace during rapid expansion. - FY2022Update of Employee NumbersAnnual report
「As of the end of the fiscal year, the company was a relatively small organization with 22 employees, and its business execution structure was designed accordingly.」
The company updated the number of employees from 29 at the end of the previous fiscal year to 22, while continuing to identify the small organization and constraints on its internal control structure as risks. - FY2021RestatedAnnual report
「As of the end of the fiscal year, the company was a relatively small organization with 29 employees, and its business execution structure was designed accordingly.」
The company reiterates the risk that, as a small organization with 29 employees, its internal control structure may fail to keep pace during rapid expansion. - FY2020First statedAnnual report
「As of the end of the fiscal year, the company was a relatively small organization with 32 employees, and its business execution structure was designed accordingly. If its internal control structure fails to keep pace with rapid business expansion or other developments, appropriate business operations may become difficult.」
The disclosure indicates that the company is a small organization with 32 employees and that its internal control structure may fail to keep pace during rapid expansion.