Sanyo Electric was threatened with delisting from the Tokyo Stock Exchange after it corrected six years of earnings reports. Sanyo, which has just started to recover after a major restructuring drive, revised earnings reports for six years from the 2000 fiscal year as it admitted it underestimated its losses.
Sanyo said its net loss at the parent level totaled 484.5 billion yen (approx. US$4.42 billion) between the year to March 2001 and year to March 2006, instead of the 478.6 billion yen loss ($4.3 billion) it submitted earlier to authorities.
Sanyo said it had undervalued losses at its semi-conductor and LCD businesses on the grounds that it had expected earnings would eventually recover. The company said the wider losses at the parent level would not affect its consolidated results during the years in question.
Sanyo said it had decided not to make retirement payments to 16 former board members who were involved in the accounting errors as well as to 13 incumbent board members. The company will also reduce monthly salaries for the president and executive vice-president by 60% for six months and cut remunerations for other high-ranking officials by 33-50% as punishment.