Japan's Nidec misses its target to file amended accounts with auditor's opinion
FILE PHOTO: NIDEC CORPORATION’s logo at its office in Tokyo, Japan, September 9, 2026. REUTERS/Manami Yamada/File Photo
TOKYO, Oct 28 : Nidec, a Japanese manufacturer and distributor of electric motors, said on Wednesday it was not able to file amended financial reports with an auditor's opinion by its October 28 target, as checks that its auditor requested on staff involved in improper accounting were still underway.
Nidec said it would submit a report on its internal controls to the Tokyo Stock Exchange on Friday.
The exchange put the firm on "special alert" in October 2025 after it disclosed concerns about inappropriate accounting at some companies in the group. It gave Nidec a year to improve its internal controls or risk delisting.
Nidec had planned to file its amended annual report for the year that ended in March - along with corrected reports for earlier years - by the one-year mark, after filing the original without an auditor's opinion in September.
Auditor PwC Japan has declined to give an opinion on Nidec's accounts for the fiscal years that ended in March 2025 and March 2026, saying it could not obtain sufficient evidence.
Nidec said its auditor had found additional matters that needed checks since late September. The company expects to finish its part of the additional checks in November, but said this does not indicate when the audit would be completed or when it would file the amended reports.
Nidec shares ended 3.6 per cent higher on Wednesday, rebounding from a fall of as much as 7.7 per cent after the Nikkei newspaper reported about an hour before the company's announcement that it was unlikely to obtain an audit opinion by the end of the month.
The announcement came a day after Nidec said it had decided to sue founder Shigenobu Nagamori, 82, along with eight former executives, for damages related to suspected accounting irregularities that have put its stock-market listing at risk.
A report this month by a Nidec-appointed committee of outside lawyers accused Nagamori of breaching his supervisory duties by failing to report the suspected irregularities to the board and auditors, or to seek the necessary investigations.
Reuters has not been able to reach Nagamori for comment on the matter.
