Basic Policy for Financial Reporting

Basic Policy for Financial Reporting

NIPPO LTD. and its affiliated companies (hereafter referred to collectively as “the Company”) shall continue to carry out transparent and sound business activities by ensuring the accuracy and reliability of financial reports and by reporting them appropriately within and outside the company.

1. The Company shall create financial reports which are consistent with generally accepted corporate accounting standards, and shall appropriately report the financial status, business results, cash flows, and other information about the conditions of the Company.
2. The Company shall carry out an efficient and effective internal control system by identifying, classifying, analyzing, and assessing risks that may interfere with achieving organizational targets, as well as risks in operating processes, and by taking complete action to address these risks.
3. The Company shall continually maintain and improve its efficient and effective internal control activities through regular monitoring and independent evaluations.
4. The Company shall create a system for timely and appropriate communication of important information related to internal controls within and beyond the organization and between persons who are involved.
5. The Company shall endeavor to develop human resources who have a high sense of ethics and of responsibility, as well as the specialized knowledge required in order to create reliable financial statements.