Nidec did not deliver corrected, audited annual and quarterly reports by October 28, the date it had targeted, and says it cannot yet give a date for finishing the audit work. In a disclosure dated October 28, the company said it will instead file an internal control confirmation report with the Tokyo Stock Exchange on October 30.
Why the target slipped
Nidec filed its annual securities report for the year to March 2026 on September 30 with an audit report in which the auditor expressed no opinion on the consolidated and non-consolidated statements. It had aimed to file the 2026 report and corrections to earlier annual and quarterly reports by October 28, one year after the exchange put its shares on special-attention status.
The items open on September 30 are now done, the company said. What blocks the filings is work on identifying and evaluating staff involved in improper accounting, the personnel measures that follow, and the auditor's procedures, none of which are complete.
New requests from the auditor
Several demands arrived after September 30. Nidec said the auditor's email screening turned up items needing more checking, and the company widened its procedures.
- On October 8 the auditor asked for digital forensics on eight executives, including executive officers, covering emails from their appointment onward. Work began October 15 under the audit and supervisory committee, with outside forensic and legal experts, and results for all eight went to the auditor on October 27.
- Nidec re-checked the financial reporting work of 20 people. That was finished and reported on October 27.
- On October 19 the auditor requested email and other screening of 252 candidates to sign management representation letters. Nidec and the auditor settled on 132 people for matching against emails and follow-up. The other 120 were already under investigation, and each will get an eligibility assessment.
Nidec said its own additional procedures could finish in November 2026 if no new issues arise and the auditor's assessment requires no further steps. It added that this is not a date for the audit's completion or for filing the corrected report for the year to March 2026. The auditor's evaluation, which includes overseas PwC network firms, will take further time, and the company said the end conditions and a specific audit completion date are not fixed.
Numbers still being audited
Nidec plans to move part of the impairment losses in its March 2026 consolidated statements into the year to March 2025 or earlier. It also corrected the timing and amounts of write-downs and provisions on affiliate shares and investments for the year to March 2026. Both are under audit, and the company said it is still discussing figures for earlier years with the auditor.
What happens next
Under Article 503(2) of the exchange's listing rules, Nidec must submit the confirmation report promptly after the designation's first anniversary. It plans to publish the improvement-measures section of that report on October 30, and afterward it will face an exchange review for lifting the designation. The company said ongoing additional procedures do not by themselves show a deficiency in its internal controls.
Nidec signed the auditor's engagement for the restatement audit for the year to March 2026 on October 23 and for the year to March 2027 on October 24. It is preparing first- and second-quarter results for the year to March 2027 alongside the restatement and has not set disclosure dates. It has also decided to sue former executives; its October 27 notice has the details, and Earlier Tokyo Brief coverage is available.