Concerns Regarding Deficiencies in Seal Management, Improper Use, Internal Controls and Information Transmission
First written in FY2024-Q3. 1 of 3 entries say "Mitigated", first in FY2025. Latest entry: FY2025.
The whole theme swung hardest in 2022: 1 of 10 companies on the "Worse" side.
0 other companies' latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「To remedy the material deficiencies in internal control requiring disclosure that existed at the end of the previous fiscal year, we established and are implementing 10 measures to prevent recurrence. The Audit and Supervisory Committee is monitoring progress on the measures being implemented through communication with the Board of Directors, the Compliance Promotion Committee, the Business Audit function, and the Internal Audit Office, and assesses that these measures have been effectively established and are being operated.」
In connection with the concerns regarding seal management, internal controls, and information communication, the company is implementing 10 measures to prevent recurrence, which the Audit and Supervisory Committee assesses as having been effectively established and operated. - FY2024Finalization of investigation findings and measures to prevent recurrenceAnnual report
「We conducted an investigation by the Special Investigation Committee to clarify the full scope of concerns that the Company's seals were inadequately managed, including concerns regarding their unauthorized use and deficiencies in the internal controls relating to such unauthorized use, concerns regarding deficiencies in the communication of information to the Board of Directors and Directors who are Audit and Supervisory Committee Members after the unauthorized use came to light, and concerns that at least some of the costs of out-of-scope work (additional work) were not added to total construction costs in a timely manner and that the timing of such additions was delayed until the following fiscal year or later without any particular basis. On the same day, we received the investigation report from the Special Investigation Committee.」
With respect to the concerns regarding seal management, internal controls, information communication, and additional construction costs disclosed in the previous quarter, the annual report provides more details on the events leading up to receipt of the investigation report. The company describes these as concerns and does not assert here that fraud or other misconduct has been established. - FY2024-Q3First statedAnnual report
「We identified concerns that the Company's seals were inadequately managed, including concerns regarding their unauthorized use and deficiencies in the internal controls relating to such unauthorized use, as well as concerns regarding deficiencies in the communication of information to the Board of Directors and Directors who are Audit and Supervisory Committee Members after the unauthorized use came to light. Collectively referred to below as the "initial concerns," these matters led us to establish a Special Investigation Committee and conduct an investigation to clarify the full scope of the situation.」
The company has disclosed for the first time that concerns regarding seal management, internal controls, and the communication of information to the Board of Directors and Audit and Supervisory Committee Members were identified, leading to the establishment of a Special Investigation Committee.