Small Organizations and Delays in Strengthening Internal Control Systems
First written in FY2019. 4 of 12 entries say "Worsened", first in FY2022. Latest entry: FY2026.
Minkabu The Infonoid moved to the "Worse" side of this theme in 2022, 4 years before the typical company in this theme (2026).
11 other companies' latest entry also says "Other".
- FY2026Further decline in the number of consolidated subsidiariesAnnual report
「As of the end of the fiscal year, the Company had 1 subsidiary, a decrease of 3 from the end of the previous fiscal year due to Group organizational restructuring.」
The number of consolidated subsidiaries declined from 4 to 1 due to the merger by absorption of MSS, the sale of Web3 Wallet, and the completion of the liquidation of Content Monster. - FY2026-H1Decrease in the number of consolidated subsidiariesAnnual report
「As a result, as of 30 September 2025, the Group consisted of the Company and 3 consolidated subsidiaries.」
The number of consolidated subsidiaries declined from 4 at the end of the previous fiscal year to 3 due to the sale of Minkabu Web3 Wallet and other factors. - FY2025Decline in subsidiaries alongside an increase in personnelAnnual report
「As of the end of the fiscal year, the Company had 4 subsidiaries, a decrease of 2 from the end of the previous fiscal year due to Group organizational restructuring, and total Group employees numbered 443, including an average of 202 temporary employees, an increase of 7 from the previous fiscal year.」
While the number of subsidiaries declined following the organizational restructuring, personnel, including temporary employees, increased to 443, changing the scope of the internal control system. - FY2024WorsenedAnnual report
「As of the end of the fiscal year, the Company had 5 subsidiaries, a decrease of 1 from the end of the previous fiscal year due to Group organizational restructuring, and total Group employees numbered 436, including an average of 197 temporary employees, an increase of 229 from the previous fiscal year, including an increase of 178 temporary employees.」
While the number of subsidiaries declined following the restructuring, Group personnel, including average temporary employees, increased substantially to 436, expanding the scope of the internal control system as the organization grew. - FY2024-Q3Decline in the number of consolidated subsidiaries following organizational restructuringAnnual report
「As a result, as of 31 December 2023, the Group consisted of the Company and 5 consolidated subsidiaries.」
Through mergers by absorption and the consolidation of operations under operating companies, the number of consolidated subsidiaries declined to 5 from 6 at the end of the previous fiscal year and 7 in the previous quarter. - FY2024-Q1WorsenedAnnual report
「As a result, as of 30 June 2023, the Group consisted of the Company and 7 consolidated subsidiaries.」
The number of consolidated subsidiaries increased from 6 at the end of the previous fiscal year to 7, further expanding the scope of the internal control system as the Group grew. - FY2023RestatedAnnual report
「As of the end of the fiscal year, the Company had 6 subsidiaries, an increase of 3 from the end of the previous fiscal year, and total Group employees numbered 188, an increase of 4.」
The recognition continues that, given the Group's scale of 6 subsidiaries and 188 employees, its internal control system needs to be further enhanced in line with business expansion. - FY2023-Q3WorsenedAnnual report
「As a result, as of 31 December 2022, the Group consisted of the Company and 6 consolidated subsidiaries.」
The number of consolidated subsidiaries increased to 6, expanding the Group's structure from the previous 3 subsidiaries. The scope of the risk associated with strengthening internal controls for a small organization also expanded. - FY2022WorsenedAnnual report
「As of the end of the fiscal year, the Company had 3 subsidiaries, an increase of 1 from the end of the previous fiscal year, and total Group employees numbered 184, an increase of 21.」
As the number of subsidiaries and employees increases, the risk that the internal control system needs to be further enhanced in line with business expansion is increasing. - FY2021RestatedAnnual report
「As of the end of the fiscal year, the Company was a small organization with 3 directors who were not Audit and Supervisory Committee members, 3 directors who were Audit and Supervisory Committee members, and 163 Group employees, and its internal control system was structured accordingly.」
The Group had 163 employees, and the recognition of the need to further enhance the internal control system in line with business expansion continues. - FY2020RestatedAnnual report
「As of the end of the fiscal year, the Company was a small organization with 3 directors who were not Audit and Supervisory Committee members, 3 directors who were Audit and Supervisory Committee members, and approximately 150 Group employees, and its internal control system was structured accordingly.」
The recognition of the risk that the internal control system needs to be further enhanced in line with business expansion, given the organization's approximately 150 Group employees, continues. - FY2019First statedAnnual report
「As of the end of the fiscal year, the Company was a small organization with 3 directors who were not Audit and Supervisory Committee members, 3 directors who were Audit and Supervisory Committee members, and fewer than 100 employees, and its internal control system was structured accordingly.」
The impact of failure to enhance the internal control system in a timely and appropriate manner in line with business expansion is identified as a risk.