Risks of Inadequate Subsidiary Management and Governance After M&A

「The Group has expanded its business through the operations of subsidiaries, including 株式会社スタッグ, 株式会社建設ドットウェブ, アサクラソフト株式会社 and 株式会社レッツ, which became consolidated subsidiaries during the consolidated fiscal year under review. Differences in the businesses, locations and organizational sizes of these subsidiaries, among other factors, may prevent Group-wide governance and internal controls from functioning adequately.」

「Our group is expanding its business through the operations of subsidiaries, including 株式会社スタッグ, 株式会社建設ドットウェブ and アサクラソフト株式会社, which became consolidated subsidiaries during the current interim consolidated accounting period. Differences in the subsidiaries' business characteristics, locations and organizational sizes may prevent group governance and internal controls from being adequately established and operated. For example, inadequate decision-making, segregation of duties or approval procedures, deficiencies in accounting and tax treatment or transaction management, compliance violations, fraud or inadequate information management could have a material impact on our group's financial position, operating results and cash flows, as well as its reputation.」