Auditor PwC Japan withheld an opinion on Nidec Corporation’s overdue financial statements, as the motor manufacturer reported a consolidated net loss of JPY 564,624m for the fiscal year ended March 2026.
PwC Japan Withholds Audit Opinion
The world’s largest maker of precision motors submitted its Annual Securities Report for the fiscal year ended March 2026 on September 30, missing the original deadline by three months. Nidec Corporation received disclaimers of opinion on both its financial statements and internal controls from auditing firm PwC Japan.
Masataka Kubota, Representative Executive Officer of PwC Japan, explained during an October 1 press conference that audit evidence obtained from officers and employees who had made false representations simply cannot be trusted
. He cited uncertainty surrounding governance and asset valuations while noting that individuals connected to the fraud still hold positions of responsibility within the financial reporting process.
Nidec Books JPY 564,624m Net Loss
The scandal-hit company booked ¥632 billion in writedowns for the fiscal year that ended in March alongside charges of ¥482.5 billion related to accounting irregularities leading up to the prior period.
Detailed figures from the company filings show a non-financial asset impairment loss of JPY 632,135m, accompanied by contract loss provisions and compensation liabilities stemming from third-party investigations. Nidec also disclosed special losses totaling JPY 330,900m driven by investment valuation losses and investigation expenses. These combined factors pushed the company to a consolidated net loss of JPY 564,624m for the fiscal year, marking a sharp decline from the profit recorded in the previous period.
Shares Plunge 20 Percent in Tokyo
Nidec shares plummeted as much as 20% in Tokyo trading, marking the worst intraday drop for the stock since September 2025. Nidec shares have lost more than 31% over the week following reports regarding the losses. The company also announced the resignation of Mitsuya Kishida as CEO on Tuesday.
Amir Anvarzadeh, Japan equity strategist at Asymmetric Advisors in Singapore, described the results in a note to clients as disastrous and far from definitive
, adding that the auditor’s refusal to sign off indicates further balance sheet losses remain plausible. Ryosuke Katsura, analyst at SMBC Nikko, noted that Nidec is required to submit a securities report carrying an auditor’s opinion by October 28.
Accountants Call Disclaimer Regrettable
The Japanese Institute of Certified Public Accountants issued a public statement on October 2 addressing the audit outcome.
The professional body added that it will continue taking necessary actions regarding the status of audit execution to signal its commitment to ensuring audit quality among members. With the Annual Securities Report carrying no audit opinion, investors are forced to independently assess financial reliability while the company faces an urgent need to rebuild governance structures and internal controls, following the Tokyo Stock Exchange’s decision to place the stock on special alert in October 2025.