25 Dec, 2007
Tokyo (dpa) - Sanyo Electric Co faces delisting from the Tokyo Stock Exchange after it announced Tuesday that it had understated its losses for the past six years by tens of millions of dollars.
The Japanese electronics maker and the world's largest maker of rechargeable batteries said it had suffered losses of 484.5 billion yen (4.24 billion dollars) from April 2000 to March 2006 although it had reported losses of only 478.6 billion yen during the period."The revisions to the securities statements are significant," the Tokyo Stock Exchange said. "Depending on further examination, the revisions may be of a nature that warrants the delisting of the shares."
Sanyo said it would cut the salaries of seven top managers and strike pension payments for board members for failing to prevent the miscalculations, adding that they had led to the mistaken payment of dividends.
The Osaka-based company said the reason for the understated losses was insufficient internal controls.
Japan's Securities and Exchange Surveillance Commission recommended that Sanyo be fined 8.3 million yen.
Sanyo revealed the misstated earnings as it was seeking to achieve its first profit in four years after creditors bailed it out last year in return for stock.
