Japanese shipping major Nippon Yusen Kabushiki Kaisha (NYK) revealed that it has discovered a potential embezzlement case in one its subsidiaries based in Shanghai, China.
Namely, the company said that there is a possibility that former locally-hired management personnel in NYK Car Carrier (China) Co., which is engaged in the finished-car logistics business, had committed unlawful expenditure.
The case is being investigated by a purposely established committee as of February 5, 2018.
“It is currently estimated that the overall influence of this matter to the final loss and profit of the consolidated financial results of the company will be approximately a loss of JPY 2 billion (USD 18.6 million),” the company said.
NYK added that it would announce more details once the influence of this matter to the consolidated financial results for the fiscal year 2017 and highlights for the nine months ended December 31, 2017, is determined.
The company has received approval from the stock exchange to push its quarterly securities report until March 23, 2018 due to the ongoing investigation.