Code Of Conduct

We sincerely comply with rules, including the related laws and regulations and internal rules by being conscious of an employee of Rank Additives Pvt. Ltd and its affiliated companies while acting as follows with a sense of social responsibility :

Offering safe and high quality products
We offer products and technologies “relieving, satisfying, and trusted by customers” based on the technology and creativity we have developed for many years.

Fair Competition
We engage in fair, transparent, and free competition and do not perform actions violating the Antitrust Act, such as seeking profits by unfair and undue methods.

Moderate entertainment and gifts
We do not offer nor receive extravagant entertainment and gifts. We also do not attempt to bribe public servants.

Information management
We adequately manage the confidential and personal information of companies and customers obtained during the course of business in the office, as well as after retirement, and do not use the information for unfair purposes at all. We also do not disclose and leak the information to persons except the persons concerned without permission.

Disclosure of company information
We timely perform an adequate information disclosure to shareholders, investors, and customers to have them accurately understand our business conditions.

Prevention of insider trading
We do not make illicit transactions in shares using nonpublic information about our company and trading partners obtained during the course of business. We also do not provide third parties with nonpublic information.

Efforts for environmental problems
We understand that environmental protection is an important task. Complying with laws and regulations on environmental conservation and ISO9001:2008, we actively tackle effective utilization of resources, energy-saving, constraint of wastes, recycling, and adequate disposal.

Safety of workplaces
We try to prevent industrial accidents by being continuously aware of building a workplace where we can work with appropriate security. We make a report immediately and take the best safety measures when a defect or disorder is identified in the manufacturing equipment and facilities.

Respect for the human rights
We try to build an environment of easy-to-work-in workplaces with mutual trust and good sense where there is no discrimination, sexual or power harassment, or annoyances.

Exhibition of personality, ability, and willingness
We are conscious of building workplaces where characteristics are developed for each employee and his or her ability is exhibited to the maximum.

Communication with the local community
We understand that companies cannot evolve without living together with the local community, and we seek to evolve together through communication with the local community.

Fighting anti-social forces
We take a firm attitude toward anti-social forces threatening the social order and sound activities of companies and never accede to fraudulent demands.

Management at overseas countries and territories where we operate a business
We try to comply with local laws and regulations and understand local customs and culture. We also seek to realize coexistence with local companies in mutual prosperity by promoting personnel exchanges.

In preparing such a code of conduct, the manager, as well as officers and executives, become well aware of their roles, realizing the spirit of the code of conduct and actively set the pace and make all persons concerned aware of the code. If a case violating the code occurred, the manager would internally and externally solve the problem, try to investigate the causes, and prevent a recurrence. Additionally, we internally and externally disclose the information immediately and appropriately as part of corporate accountability while inflicting impartial punishments on the persons concerned, including the manager.

Basic policy for building an internal control system

1. System to ensure that the execution of duties by directors and employee meets the laws and regulations and the articles of incorporation.
• According to the management philosophy and the code of conduct, we attempt to create a good corporate culture through repeated communication about the spirit of the management philosophy and the code of conduct by the president and representative director to the directors and all employees of our group.
• We establish the compliance and risk management committee chaired by the president and representative director and try to construct the internal control including the system for evaluating the internal control related with financial reports from our group companies (hereinafter called “internal control”) and the compliance system and identify issues.
• In accordance with the code of conduct and the compliance manual setting out the promotion of internal control and compliance, we educate and train directors and all employees of our group so that they perform their business operations by deeming internal control and compliance as their own issue from each standpoint.
• The internal audit office audits our internal control and compliance and reports its results to the compliance risk management committee periodically or to the board of directors as necessary. We operate the compliance helpline as a reporting and consultation system for employees finding defects of internal control and actions violating compliance, etc.
• The board of directors attempts to identify and improve issues by periodically reviewing the internal control and compliance system.
2. System for storing and managing information on the execution of duties by directors
• We adequately store and manage important information on the execution of duties by directors, including the minutes of the board of directors and the approval documents, etc., according to the basic policy for information and the document management rules, etc.
• We attempt to timely review and improve the system for storing and managing such information as necessary.
3. Provisions and other system on management of the risk of loss
• The compliance and risk management committee makes decisions on important items including construction and operation of the system for managing the risk of loss (risk management system) in accordance with the risk management rules.
• Each department constructs and operates its own risk management system, based on items to be determined by the compliance and risk management committee.
• The internal audit office audits our risk management and reports its results to the compliance and risk management committee or to the board of directors as necessary.
4. System for ensuring efficient execution of duties by directors
• We hold the board of directors’ meeting once a month to make decisions on important items and supervise the execution of duties by the directors.
• We make the medium-term management plan and single-fiscal year plan and set company-wide targets, given the future business environment.
• Each director attempts the efficient execution of duties by setting targets and preparing concrete measures for each department consistent with the company-wide targets according to the duties of the director in the departments allocated to the director.
• We try to build a management system with high transparency by making it easy to identify issues in each department and share the information between directors through promotion of the smooth flow of information within our company and our group.
• We attempt to share the information by semiannually holding a company-wide conference (general conference) attended by our heads of departments and offices and our group companies’ presidents and by offering opportunities to report the current status and plans of the group companies, as well as by holding a conference for each business area (area conference).
5. Items on employees helping the auditors with their duties when they request that we allocate employees and on the independence of the employees from directors
• The internal audit office and the general affairs department help auditors with their duties as required.
• Including the appointment and changes of employees engaged in assisting the duties of the auditors, decisions on items related to the authority to manage personnel affairs require us to obtain consent from the board of auditors in advance in order to ensure independence from directors.
6. Systems on reporting of directors and employees to the auditors, on other reporting to the auditors, and for ensuring effective audits by the auditors
• Representative director and executive directors report the execution of operations in businesses they engaged in at important meetings at any time, including the board of directors’ meetings. Directors report the facts to the auditors that may remarkably damage the company according to the laws and regulations immediately when identifying them.
• The auditor attends the board of directors’ meetings, as well as the general conference, the area conference, and other important conferences, to understand the process of significant decision-making and the execution of business operations.
• The auditors read the main approval documents and other significant documents on the execution of business operations and require the directors or employees to explain them as necessary. The board of auditors provides an opportunity for periodically exchanging opinions with the representative director, the internal audit office, and an audit firm, respectively.
7. System for ensuring the credibility of financial reporting
• We construct an internal control system on financial reporting of our company and the consolidated group companies to ensure the credibility of financial reporting according to the provisions of the Financial Instructions and Exchange Act and other laws and regulations.
• The compliance and risk management committee attempts adequate construction and operation of internal control on the financial reporting of our company and our consolidated group companies by controlling the departments and sections engaging in internal control according to the risk management rules. The internal audit office evaluates the construction and operation of internal control on the financial reporting of our company and our consolidated group companies and reports its results to the compliance and risk management committee or the board of directors as necessary.