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Improvement and use of our internal control system
Our group is obliged to have sound internal control systems under the U.S. SOX Act because the parent company, Hitachi, Ltd. is listed on the New York Stock Exchange. To fulfill this obligation, we set up Internal Control Committee in May 2006, and seventy group companies improved their internal control systems in fiscal 2006. In fiscal 2007, we have the use of internal control systems assessed by an incorporated accounting firm, and we confirmed that the control was effective. We will also assess the use of internal control in fiscal 2008, and report the results of this assessment to Hitachi, Ltd. in May 2009.
In Japan, the Company Law and Financial Products Trading Law mandate the establishment of internal control systems and creation of internal control reports from fiscal 2008. Our group improved internal control systems for general control, IT control and business process level control, making the most of the base established to comply with the U.S. SOX Act, and assessed the system in September 2008. We conducted an interim assessment of internal control in December, and confirmed the effectiveness of the internal control. A report about the results of the final internal control assessment is being prepared for the president, Mr. Kikawa, to make an oath in June 2009.
