Nidec Forms Independent Committee To Investigate Improper Accounting; Stock Down

(RTTNews) - Nidec Corp. (NJDCY, 6594.T), a Japanese manufacturer of electric motors, announced that it has set up a third-party committee to investigate improper accounting across its group companies. The decision follows internal findings related to a 200 million yen lump-sum discount recorded by Nidec Techno Motor (Zhejiang) Co., Ltd., a Chinese subsidiary, in late September 2024. The issue—flagged by Nidec Techno Motor Corporation—raised concerns about broader accounting irregularities, including the timing of asset write-downs.

Initial investigations, led by the Audit and Supervisory Committee with external experts, revealed potential involvement or awareness by management across multiple entities.

Nidec noted that it has formed a third-party committee in line with the Japan Federation of Bar Associations' guidelines. The committee is tasked with verifying facts, assessing financial impact, identifying root causes, and recommending preventive measures. While the Techno Issue will be transferred to the committee's scope, trade and customs matters involving NIDEC FIR INTERNATIONAL S.R.L. will remain outside its purview.

Nidec has pledged full cooperation and will disclose any material findings as they arise.

In Japan, Nidec shares were trading at 2,567.50 yen, down 552.50 yen or 17.71%.