Risk of Internal Control Deficiencies Associated with Overseas Transactions and Subsidiary Management
First written in FY2020. 3 of 7 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2020: 4 of 13 companies on the "Worse" side.
1 other company's latest entry also says "Other".
- FY2026Overseas subsidiaries included in consolidation expanded to 4Annual report
「The group prepares consolidated financial statements for the company and 4 overseas subsidiaries, and conducts overseas transactions, primarily transactions with subsidiaries.」
The group continues to identify internal-control risks associated with overseas transactions and subsidiary management. The number of overseas subsidiaries included in consolidation increased from 3 to 4 due to the increased significance of 開陸連接器（珠海）有限公司. - FY2026-H1Zhuhai subsidiary added to the scope of consolidationAnnual report
「There were no significant changes during the interim consolidated accounting period in the nature of the business conducted by the group, comprising the company and 6 subsidiaries, including 2 non-consolidated subsidiaries. Changes in major affiliated companies are as follows. 開陸連接器（珠海）有限公司, which was a non-consolidated subsidiary in the previous consolidated fiscal year, has been included in the scope of consolidation from the current interim consolidated accounting period because its significance has increased.」
The increased significance of the Zhuhai subsidiary resulted in its inclusion in the scope of consolidation, affecting the structure of internal-control risks associated with overseas subsidiaries and overseas transactions. The company states that it has 6 subsidiaries, of which 2 are non-consolidated subsidiaries. - FY2025Overseas subsidiaries included in consolidation expanded to 3Annual report
「The group prepares consolidated financial statements for the company and 3 overseas subsidiaries, and conducts overseas transactions, primarily transactions with subsidiaries.」
The group continues to identify the risk of deficiencies in internal controls associated with overseas transactions and subsidiary management. The number of overseas subsidiaries included in consolidation increased to 3 following the consolidation of KEL Europe GmbH. - FY2022RestatedAnnual report
「The group prepares consolidated financial statements for the company and 2 overseas subsidiaries, and conducts overseas transactions, primarily transactions with subsidiaries.」
The group continues to identify the risk to the accuracy of its financial statements arising from deficiencies in internal controls associated with overseas transactions and subsidiary management. Measures include strengthening group governance and reviewing significant transactions. - FY2021RestatedAnnual report
「The group prepares consolidated financial statements for KEL CORPORATION and 2 overseas subsidiaries, and conducts overseas transactions, primarily transactions with subsidiaries. If these overseas transactions increase and the group is unable to maintain an internal management system equivalent to that in Japan, the accuracy of its financial statements may be affected.」
The group continues to identify the risk to the accuracy of its financial statements arising from deficiencies in internal controls associated with overseas transactions and subsidiary management. Measures include strengthening group governance and reviewing significant transactions. - FY2021-Q3RestatedAnnual report
「During the cumulative third quarter of the fiscal year, there were no newly arising business or other risks. In addition, there were no material changes to the business or other risks described in the securities report for the previous fiscal year.」
The company states that there have been no significant changes to the business and other risks disclosed in the previous fiscal year, including the risk of deficiencies in internal controls associated with overseas transactions and subsidiary management. - FY2020First statedAnnual report
「The group prepares consolidated financial statements for KEL CORPORATION and 2 overseas subsidiaries, and conducts overseas transactions, primarily transactions with subsidiaries. If these overseas transactions increase and the group is unable to maintain an internal management system equivalent to that in Japan, the accuracy of its financial statements may be affected. Similar issues may arise if management circumvents internal controls or otherwise renders them ineffective.」
Separately from its general internal-control operating policy, the company has for the first time identified the increase in overseas transactions, the possibility that it may be unable to maintain a management system equivalent to that in Japan, and management's circumvention of internal controls as independent risks to the accuracy of its financial statements. Measures include strengthening group governance and rigorously reviewing significant transactions.