Japan's Nidec likely to miss audit opinion by month-end, Nikkei says

What happened

Nidec will likely not obtain an auditor's opinion on its securities report by month-end after its auditor said the audit would not be completed in time, the Nikkei reported. Nidec will submit internal control documents to the Tokyo Stock Exchange without the PwC Japan opinion.

Confirmed

Global impact / market context

A missing auditor opinion can raise investor doubt about Nidec's financial reporting, which means the reliability of its stated numbers. Nidec also plans to sue its founder and eight former executives over suspected accounting irregularities, adding legal costs and management distraction.

Analyst inference

Nidec's stock listing is at risk because the exchange can review whether reporting failures threaten continued listing. Submitting internal control documents without the auditor opinion seeks an early review, which means a faster decision on listing maintenance and less time for uncertainty to weigh on the shares.

Analyst inference

What to watch

1. Whether Nidec submits its internal control documents to the Tokyo Stock Exchange by the deadline without the PwC Japan auditor opinion, as the Nikkei reported. Confirmed
2. Watch whether the Tokyo Stock Exchange begins an early review of listing maintenance, which means checking whether Nidec can keep its shares trading despite the missing opinion. Proposed
3. Watch the lawsuit against founder Shigenobu Nagamori and eight former executives, because legal costs and any findings on accounting irregularities could affect Nidec's cash available and investor confidence. Analyst inference

Evidence

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