Japan's struggling electronics company Sanyo is under investigation by the country's financial watchdog following allegations that it underestimated its losses.
'We are fully co-operating with the authorities over its investigation of the issue reported,' Sanyo said in a statement.
A Japanese news agency reported that Sanyo may have underestimated 190 billion yen ($1.56 billion) in losses on its shareholdings in subsidiaries for the year to March 2004, postponing the write-down of most of the losses.
The group's main semiconductor plant was seriously damaged in Japan's worst earthquake in a decade in October 2004 and the company has struggled to win over consumers faced with a vast array of hi-tech new products on the shelves.
Sanyo has been accelerating its restructuring and said last year it had managed to complete 14,000 planned job cuts two years ahead of schedule as part of efforts to revive its flagging fortunes.
