Shigematsu Works has signed off on the effectiveness of its financial-reporting controls as of March 31, after a year that brought higher sales but weaker profit. In its internal control report, the manufacturer said the evaluation found the controls effective at the end of the period.
What management tested
The company said it first evaluated companywide controls, then selected business processes for closer review, identified the control points most important to reporting reliability, and assessed both how those controls were designed and how they were operating. Because its business locations work as one interdependent enterprise, the scope covered all sites. It also singled out the processes leading to sales, accounts receivable and inventory, saying those accounts are closely tied to its manufacturing and sales activities.
Mixed numbers in the annual report
The supporting annual securities report shows why that sign-off matters. Net sales rose to ¥15.59bn in the year to March 2026 from ¥14.11bn a year earlier. Ordinary income fell to ¥933.0mn from ¥1.10bn, and net income dropped to ¥702.2mn from ¥780.6mn.
| Metric | Year to Mar 2026 | Year to Mar 2025 |
|---|---|---|
| Net sales | ¥15.59bn | ¥14.11bn |
| Ordinary income | ¥933.0mn | ¥1.10bn |
| Net income | ¥702.2mn | ¥780.6mn |
The dividend stayed at ¥15 a share. Operating cash flow improved to ¥1.21bn, total assets ended the year at ¥21.59bn, and the equity ratio stood at 43.7%.
Why this is worth noting
The point of the internal control report is different from the annual numbers. It sits beside them as a governance check. Shigematsu Works is saying the controls it evaluated around sales, receivables and inventory were effective at year-end, even as the income lines weakened. The filing also repeats the standard warning that internal controls provide reasonable, not absolute, assurance and may not completely prevent or detect misstatements.