Basic Policy on Financial Reporting

Human Holdings Co., Ltd. and its group companies (hereinafter referred to collectively as “Human Group”) conduct businesses with a strong awareness of social responsibilities, strive to ensure the reliability of financial reporting and achieve sustainable and sound growth by establishing the appropriate and efficient business practices.

  1. We perform reasonable accounting processing by complying Generally Accepted Accounting Principles, applicable laws and regulations, and by establishing and complying with accounting regulations and related policies.
  2. In order to utilize management resources more effectively, we design and implement organizational system in which internal and external information of Human Group is communicated promptly and appropriately.
  3. We are committed to a thorough risk management practice of Human Group’s business process and also aim to establish an effective and transparent internal control system.
  4. Following standards that are generally recognized to be fair and appropriate, we periodically evaluate the development and operation of the internal control system, and continuously implement improvement.
  5. We establish an Internal Control Committee to promote improvement and an appropriate operation of internal controls over financial reporting in order to submit an accurate and proper Internal Control Report.

May 1, 2008

Tomonari Sato
Representative Director, President and CEO
Human Holdings Co., Ltd.