Sanyo Electric admits to accounting faults

Sanyo Electric is facing delisting from the Tokyo Stock Exchange after admitting to underestimated losses over seven years because it failed to understand accountancy rules and had weak management processes.

Japan’s Securities and Exchange Surveillance Commission yesterday accused the electronics manufacturer of deliberately faking earnings figures and urged its more senior regulator, the Financial Services Agency, to fine the company, The Times reports.

Sanyo acknowledged yesterday it had understated losses since 2000. The company said it had recorded Y6bn (£26.5m) in additional losses over the past seven years in addition to accumulated lossed of Y372.6bn, reported earlier for the same period.

The company said that it had paid too much in dividends compared with the performance of the group between 2002 and 2004.

Read story in The Times