Delay in internal controls in response to business expansion
First written in FY2016. 3 of 6 entries say "Materialised", first in 2026-05-14. Latest entry: FY2026.
- FY2026MaterialisedAnnual report
「During the fiscal year under review, an incident was identified at DG Takashima Co., Ltd., an equity-method affiliate of the company, in which loans from the company were improperly diverted to an affiliated company of the counterparty. We take this matter extremely seriously and are currently investigating the detailed facts while working to review our internal management systems and formulate effective measures to prevent recurrence.」
The previously identified risk that internal management systems would fail to keep pace with business expansion and diversification materialized as the improper diversion of loans at DG Takashima. The company is proceeding with an investigation, a review of its internal management systems and the formulation of measures to prevent recurrence. - FY2020MitigatedAnnual report
「We are building, establishing and operating a system in which the internal controls relating to these matters function effectively, in order to ensure the propriety of operations and the reliability of financial reporting.」
The company describes the construction, establishment and operation of internal controls to ensure the propriety of operations and the reliability of financial reporting, addressing the risk that internal management systems may fail to keep pace with business expansion and diversification. - FY2018RestatedAnnual report
「To maximize group corporate value, our group regards enhancing corporate governance as a key management priority and implements various measures. However, if business expansion, diversification or other factors cause the establishment, development and operation of an adequate internal control framework to fall behind, appropriate business operations may become difficult, which may affect our group’s operating results and financial condition.」
The company reiterates, alongside its governance initiatives, the risk that the internal control framework may fail to keep pace with business expansion and diversification. - FY2016First statedAnnual report
「If rapid business expansion or other factors cause the establishment, development and operation of an adequate internal control framework to fall behind, appropriate business operations may become difficult, which may affect our group’s operating results and financial condition.」
The company identifies the risk that the development and operation of its internal control framework may fall behind business expansion.