NYK expects an $18m hit from suspected misconduct in Shanghai
Japanese shipping company Nippon Yusen Kabushiki Kaisha has set up an investigation into suspected embezzlement, or unlawful expenditures, by former managers at its Shanghai-based subsidiary NYK Car Carrier (China).
NYK estimates that the final loss and profit figures for its consolidated financial results will show a ¥2bn ($18.6m) charge related to the Shanghai unit, which is in the finished-car logistics business.
The company is to apply for the financial authorities’ approval to extend the filing deadline for its quarterly securities report.
NYK says it established an investigation committee on February 5. It will continue to investigate this matter with external experts to estimate its influence on the company’s financial results for the fiscal year 2017 and over other past fiscal years.
It adds: “As it is estimated that the investigation with respect to influence on the financial results for the nine months ended December 31, 2017, requires 30 days and the audit process by the independent auditor requires seven days, the company decided to apply for the extension of the filing deadline for quarterly securities report.”
The company says it will make a prompt announcement once the application for extension of the filing deadline has been approved.