Nidec establishes independent committee to probe accounting irregularities

Nidec Corporation's board of directors has established an independent third-party committee to investigate alleged accounting irregularities, following concerns initially raised regarding a subsidiary. This decision comes after Nidec announced an extension to its 52nd fiscal year securities report submission deadline to September 26, 2025, to allow further investigation into trade and customs issues involving NIDEC FIR INTERNATIONAL S.R.L. (FIR).

Separately, on July 22, 2025, Nidec’s audit and supervisory committee was notified by Nidec Techno Motor Corporation (Techno) of suspected improper accounting at its Chinese subsidiary, Nidec Techno Motor (Zhejiang) Co., Ltd. This involved a JPY 200 million lump-sum payment in late September 2024. Subsequent internal investigations uncovered multiple documents suggesting potential improper accounting across Nidec and its group companies, including arbitrary timing of asset write-downs.

The newly formed committee, comprising Kaku Hirao, Toraki Inoue, and Makoto Shirai, will investigate these suspected irregularities and recommend recurrence prevention measures. The committee will be assisted by external experts, including Nishimura & Asahi, Accounting Advisory Co., Ltd., Ernst & Young ShinNihon LLC, and Kohwa Sohgoh Law Offices. Investigations into the FIR issues remain outside this committee's scope.