In accordance with the new law for financial instruments and stock exchanges (Financial Instruments and Exchange Law), that came into force in Japan in 2006, companies are obliged, from the business year beginning April 2008, to control and document internal control systems. This system relates to the Japanese version of the US federal law Sarbanes-Oxley, otherwise known as “J-SOX”.
This law obliges stock exchange-quoted companies to set up systems that ensure the correctness of their financial refund reporting and that evaluate the functionality of control systems. To this end, business leaders are requested to prepare and declare yearly internal control reports.
NSK works at a global level on the development of control systems for financial refund reporting as well as on the implementation of these systems and the development of judgment mechanisms. To this end, an internal controls project team was originated in our Japanese mother concern in April 2006. Its job is to co-ordinate all activities within the entire NSK Group that are connected with J-SOX. Further work groups were formed in the respective regional offices.
NSK sees the enactment of measures for internal control system reporting as an opportunity to improve the quality of our corporate leadership. Therefore, in addition to the measures to guarantee the correctness of our annual and business reports, we will improve and standardize the efficiency of our corporate leadership as well as the entire process cycle throughout the NSK Group globally.
We see the fulfillment of these assignments as an important step towards our target of becoming "Number 1 in Total Quality".