Sumitomo Light Metal is striving towards higher business efficiency
and transparency as well as enhanced internal control systems.
Being true to our mnagement policies that "we strive to provide products and service that can gain our customersf satisfaction and trust, and contribute to society as a whole through sound business " and keeping in mind a business entity's social responsibility, we shall build systematic measures to cope quickly with changes in the business environment and enhance the fairness and the transparency of our corporate governance systems.
Basis of Policies
Understanding that continued existence of a business entity depends on public trust, particularly in its financial information, Sumitomo Light Metal Group requires that all its employees' conduct be highly ethical.
- Enhance the internal control system and its operation by arranging organizations and deploying necessary business resources for efficient internal control of financial reports.
- Comply with laws, standards, rules and regulations related to internal control.
- Define internal control targets to be followed by implementation and review of actual steps.
- Carry out internal auditing and other self-assessment programs to appraise the efficiency of internal control system. The assessment result helps the system review and enables continuous improvement.
- Propagate the internal control policies among employees through the Group's in-house PR activities to promote their understanding and awareness.
We have in place a board of auditors. We also have executive officers in order to facilitate timely decision making and efficient business execution.
Our board of directors consisting of ten members holds regular monthly meetings and may have extra meetings whenever necessary. The board of auditors participates in the board of directors' meetings, where important decisions are made in relation with legal and business issues and status of business execution is supervised.
In addition to this, directors and executive officers hold monthly management meetings, where status of business execution by executive officers are supervised.
To ensure lawful and fair management, we implement inspection and internal auditing programs by the board of auditors as well as financial audit by an auditing firm.
The board of auditors consists of five auditors - three external and two internal - who are appointed at the general shareholders' meeting. Independent of directors, auditors attend directors' meetings and management meetings in order to oversee directors' duty performance.
The three external auditors are registered as independent officers who meet the "criteria for independence" defined by securities exchanges, that is, they have no interest in the company whether personal, capital or otherwise, and there will be no conflict of interest between them and any ordinary shareholder.
Internal Auditing Department assists the board of auditors in the internal auditing. Another duty of the Internal Auditing Department, which consists of six members, is to implement operational auditing of the company and affiliates. In the operational audit, the audit department may work with the board of auditors and/or auditing firm if necessary, and audit results are reported to the board of auditors and the representative directors. The audit reports have an important role in management because they are reflected in enhanced compliance and improvement of business operation through the Internal Control System Development Department, the Treasury Department, the General Affairs Department and other internal control Department.
Our audit firm under contract is Deloitte Touche Tohmatsu LLC.