TBK continually strives to improve internal control based on our recognition that achieving accuracy in our financial reports is an essential condition for earning the trust of our stockholders and those affiliated with us, and for expanding and developing our business.
We are engaged in the following matters to implement this precept into tangible form.

1.	We are conducting internal control to increase the trust of our stakeholders in the TBK Group's financial reports.
2.	We are effectively utilizing our management system for internal control to continuously make improvements and prevent financial improprieties and errors.
3.	We are complying with laws, ordinances, and in-house regulations related to internal control.
4.	We have formulated an action plan based on the internal control policies, developing this plan in specific ways, and reevaluating it periodically.
5.	The current range of application is the company-wide internal controls, IT-related controls extends and the following work processes.
	(1) The range of application of the company-wide internal controls apply to the TBK Co. Ltd., Tokyo Seiko Co., Ltd., TBR Co., Ltd., TBKK (Thailand) Co., Ltd. and TBK Sales Co., Ltd. (2) The range of application of business process and all IT-related controls extends to three companies in Japan: TBK and two consolidated subsidiaries. (TBK Co., Ltd., Tokyo Seiko Co., Ltd. and TBR Co., Ltd.) (3) The following are the processes subject to the controls:   * Sales process * Purchasing process * Manufacturing cost management process * Inventory management process * Account settlement and financial report processes * IT-related application controls