Delayed development of internal controls in a small organization undergoing rapid business expansion
First written in FY2021. 2 of 4 entries say "Restated". Latest entry: FY2024.
- FY2024ReframedAnnual report
「The Group currently operates with a relatively small management and business execution structure suited to the current scale of its operations. Going forward, it plans to strengthen these structures in line with business expansion while working to secure and develop talented personnel with specialist knowledge and skills. However, if the recruitment and development of talented personnel do not progress as planned, or if officers or employees leave unexpectedly, this could affect the Group's financial position and operating results.」
In addition to the existing risk that internal controls may fail to keep pace with rapid business expansion, the relatively small management and business execution structure, securing and developing personnel, and unexpected departures of officers and employees are now described separately, clarifying the risks related to the organizational structure. - FY2023RestatedAnnual report
「However, if the rapid expansion of the business outpaces the development of the internal control system and corporate governance fails to function effectively, appropriate business operations may become difficult, which could affect the Group's financial position and operating results.」
The risk that the internal control structure will fail to keep pace with rapid business expansion remains. - FY2022RestatedAnnual report
「However, if the rapid expansion of the business outpaces the development of the internal control system and corporate governance fails to function effectively, appropriate business operations may become difficult, which could affect the Group's financial position and operating results.」
The risk that the internal control structure will fail to keep pace with rapid business expansion remains. - FY2021First statedAnnual report
「However, if the rapid expansion of the business outpaces the development of the internal control system and corporate governance fails to function effectively, appropriate business operations may become difficult, which could affect the Company's financial position and operating results.」
The Company states that, as the business expands from a relatively small organizational base, internal controls and governance may fail to keep pace.