Japan's Nidec misses its target to file amended accounts with auditor's opinion (updated)

NIDEC

28/10/2026 06:04

Adds CEO comments in paragraphs 7-8, comments from Japan Exchange Group official in paragraphs 10-11
TOKYO, Oct 28 (Reuters) - Japanese electric motor maker Nidec 6594.T 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 for review.
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. It filed 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 did not indicate when the audit would be completed or when it would file the amended reports.
"We have been working to improve our internal control systems and resolve audit-related issues," CEO Michio Kaida told a news conference in Tokyo.
He said Nidec had pushed ahead with putting systems and mechanisms in place, but issues raised by its auditor about how they work in practice had yet to be addressed, and the company was doing everything it could to resolve them.
Nidec shares ended 3.6% higher, rebounding from a fall of as much as 7.7% after the Nikkei newspaper reported about an hour before the company's announcement that it was unlikely to obtain an audit opinion by month-end.

LISTING AT RISK
The exchange's review could lead to the designation being lifted or kept in place, or to Nidec's shares being delisted, a Japan Exchange Group official told Reuters.
There is no fixed deadline for the review, but in past cases results have generally been announced within two to three months, the official said.
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 the suspected accounting irregularities.
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. 


 (Reporting by Daniel Leussink, Satoshi Sugiyama and Mariko Katsumura; Editing by Tom Hogue, Clarence Fernandez, Thomas Derpinghaus and Tomasz Janowski)
 ((Satoshi.Sugiyama@thomsonreuters.com;))