Arrangement of internal control system and risk management system

The Company is striving to strengthen its internal control system to comprehensively figure out and assess factors that would hinder its growth and achievement of its business targets (business risks) and control them on a company-wide basis.

Under the laws or ordinances, the Company obtained the board’s resolution on establishing the structure to ensure the appropriateness of business activities. Based on the board’s approval, we have built the internal control system to develop and operate the Group's effective structure. The operation status and other information about the internal control system are reported to the board annually, and the summary is included in the Business Report, the Securities Report, and other disclosure materials. The currently adopted “Basic Policy for Establishing Internal Control System” is as follows:

• Basic Policy for Establishing Internal Control System (Amended: June 24, 2021) (PDF:65.7KB)

To lead the internal control system’s establishment to increase corporate value, the Internal Control Committee and the Global Audit Dept. play the central roles in activities focusing on raising a group-wide awareness and cultivating corporate culture. Under the firmly established internal control system, each Group company’s internal audit department and dedicated internal audit staff take principal roles in the assessment and audit activity.

Suppose any inadequacy or insufficiency is found in the assessment or audit process regarding the Company Philosophy, ethics, the unification of accounting principles and procedures, IT infrastructures, and business process relating to financial reports. In that case, the Company will remedy the problem by taking appropriate measures.

As of March 31, 2021, the Company confirmed that the Group’s internal control system was functioning effectively, with respect to the control of company-wide management philosophy and ethics, accounting policies and procedures, IT infrastructure and business process in connection with the financial reporting operations.

Given the necessity to further cultivate the self-sustaining corporate culture, we will continue to deepen communication on a group-wide basis to raise awareness at all levels.

The status of operations of the internal control system is reported each year to the Board of Directors.

Recognizing that it is critical for a corporation's healthy growth to take a resolute attitude against any antisocial forces, the Company expresses its fundamental stance in the basic policy for establishing its internal control system. The “Anritsu Group Code of Conduct” also declares its stance against anti-social forces: “We will take firm stance and actions against any anti-social forces or organization jeopardizing civil society’s safety, block any contacts with them, and never act for helping their activities.”

Further, to shut off any involvement in anti-social forces, a general affairs department shall take charge of addressing any unreasonable claim or demand in close cooperation with external specialists, such as legal counsels and police.