Nidec Discloses Internal Control Weakness Regarding Financial Reporting

Nidec Corporation, a leading global manufacturer of electric motors, has recently disclosed a material weakness in its internal control report for the fiscal year ended March 31, 2023. The company identified an error in the financial reporting process at its subsidiary, Nidec Drive Technology, which resulted in inflated sales figures.

The error occurred due to a lack of communication among various departments, leading to the misidentification of data during the account closing procedure. As a result, sales were recorded inaccurately, prompting the need for corrections in the financial results for the fiscal year.

Nidec Corporation has taken immediate steps to address this material weakness by implementing recurrence prevention measures. These measures include a thorough review of past closing entries, updating policies related to account closing procedures, and enhancing monitoring functions to prevent similar errors in the future.

Despite the impact of the material weakness on the company’s consolidated financial statements, all necessary corrections have been made and reflected in the financial reports. The audit opinions in the consolidated financial statements remain unqualified, indicating that the financial statements are accurate and reliable.

Moving forward, Nidec Corporation is committed to strengthening its internal control processes to ensure the accuracy and transparency of its financial reporting. Investors and stakeholders can rest assured that the company is taking proactive measures to prevent similar errors in the future.