Basic Concept and Status of Implementation and Operation of Internal Control System
Sojitz endeavors to implement internal control systems in accordance with the Sojitz Group’s “Basic Policy Regarding the Establishment of Systems for Ensuring Appropriate Execution of Business Operations”, which the Board of Directors adopted on April 24, 2015.
For overall internal control systems, the Internal Control Committee oversees the implementation and enforcement of the overall internal control systems of the Company and conducts periodic monitoring. At the same time, the committee identifies and studies issues related to internal systems and frameworks throughout the Company, points these issues out to the relevant departments, and makes improvements.
In addition, The Internal Control Committee leads the implementation, maintenance and improvement of internal control systems in cooperation with committees and organizational bodies involved with internal control activities. Inspections of and improvements to systems for compliance with laws, regulations and internal rules are led by the Compliance Committee; inspections of and improvements to risk management methods are led by the Risk Management Planning Department; and inspections of and improvements to management of Sojitz Group companies are led by the Corporate Planning Department.
Furthermore, Sojitz has enacted a basic policy to ensure appropriate financial reporting in accordance with the“Internal Control Reporting System” as prescribed in the Financial Instruments and Exchange Act, which the Board of Directors adopted on April 2008, and promotes and implements initiatives for assessing internal controls over financial reporting through the Group and ensuring reliability of financial reporting.