Sanyo to book larger loss in 2000 earnings-paper

TOKYO, Nov 24 (Reuters) - Japan's Sanyo Electric Co Ltd (6764.T: Quote, Profile, Research, Stock Buzz) will book a much higher loss of more than 100 billion yen ($924 million) for the year ended March 2001 after reviewing its past results, the Nikkei business daily said on Saturday.

Sanyo booked a 6 billion yen loss in struggling subsidiaries, such as microchip and liquid crystal display operations, that year on the grounds that those businesses were expected to recover eventually, the Nikkei said.

But after reassessing its past earnings with more stringent accounting standards, the consumer electronics maker now realises that it needs to book an additional loss in excess of 100 billion yen for the year, the newspaper said.

The additional losses mean Sanyo's annual dividend of 6 yen per share in the year ended March 2003 was underfunded by 10 billion yen, infringing on accounting rules that dividends are paid out within funds available for such purposes, including retained earnings, the Nikkei said.

Sanyo is expected to submit the revised earnings next month to Japan's securities watchdog, the Securities and Exchange Surveillance Commission, and it may face penalties such as fines, the paper said.

The Osaka-based company said in a statement the Nikkei report was based on speculation and it is still in the process of reviewing its past earnings.

Sanyo said in February it was considering restating its past unconsolidated earnings, following a report by the Asahi newspaper that it may have failed to account for more than $1 billion in losses.

Sanyo also has said it planned to report revised financial statements by the end of the year, and any revision would have no impact on its consolidated earnings.

Sanyo, restructuring with the help of shareholder Goldman Sachs (GS.N: Quote, Profile, Research, Stock Buzz), is set to announce its half-year earnings results and mid-term business plan on Tuesday. ($1=108.27 Yen) (Reporting by Kiyoshi Takenaka; editing by Louise Heavens)