At SII, the status of operating the internal control system is reported to the SII Board of Directors for supervision once in a half year. This is based on the "Basic Internal Control System Policy" resolved by the Board of Directors.
In 2008, the "Internal Control Promotion Office" was established as an across-the-board promotion organization for the internal control system. Together with the conventional "Corporate Audit Office," they are playing the central role in consolidating the internal control system.
For our internal control system with regard to financial reporting in compliance with the Financial Instruments and Exchange Act, our senior management evaluates the SII Group's internal control system and we report the results to a publicly listed parent company, Seiko Holdings Corporation (SHD), as one of their subsidiary companies. This is to evaluate and report the internal control system relating to SHD's financial reporting.
The "Internal Control Promotion Office" has been playing a function in controlling the across-the-board risk management in addition to the internal control function over the financial reporting. It is also streamlining and enhancing the internal control system in cooperation with the divisions in charge of related elements including compliance.