Organizational Governance

Based on the Corporation Law, the "Basic Policy on Establishment of the Systems for Ensuring Proper Operations" was adopted at the meeting of the Board of Directors in May 2006.

We are working to develop specific measures for these seven items in order to create a more appropriate and efficient internal control system.

• Basic Policy on Establishment of the Systems for Ensuring Proper Operations (PDF：15KB)

Implementation of internal controls over financial reporting based on the Financial Products Trading Law, which was enacted in June 2006, is one of the most important issues facing the company. We have taken measures to enhance our company's internal control system in order to prevent false statements about important items in the financial reports we release to the public. More specifically, we have created documents to record the processes of formulation, review, development, and implementation of company rules, conducted pre-tests to check how internal controls are developed and implemented, and corrected deficiencies in the system, thereby establishing a basic framework for internal controls.

After fiscal 2008, which is the first year of the implementation of internal controls, the Auditing Department will perform tests and make evaluations to correct deficiencies, along with audits conducted by KPMG AZSA & Co. The results of the evaluations concerning the efficiency of internal controls will be disclosed in the "Internal Control Report," and the results of the audits in the "Internal Control Audit Report". We intend to fulfill our corporate social responsibility by ensuring the validity of internal controls and by improving the reliability of our financial reports.

Process of Evaluation and Audit of Internal Controls over Financial Reporting