TOSHIBA has been hit with a record ¥91.2m (£486,000) fine by the Tokyo Stock Exchange (TSE) as the fallout from its ¥151.8bn accounting scandal. continues to take its toll.
The electronics to nuclear giant was slapped with the financial penalty following publication of an independent report which revealed the Japanese firm had massively overstated its profits almost threefold, over a six-year period.
Toshiba was hit with the penalties as it released its long-delayed first-quarter results where it swung to a net loss on a decline in sales to their lowest level in two and a half years, the FT reported.
The TSE has also placed Toshiba’s stock on alert, compelling it to file a report outlining the ways it intends to improve its internal controls and wider corporate governance. Failure to do could see its shares de-listed.
The accounting scandal began when securities regulators unearthed problems as they probed the state of the company’s balance sheet earlier this year. Toshiba announced a ¥37.8bn net loss for the year of 2014 ending in March.
Last month, Toshiba announced is was set to book a combined loss of more than ¥100bn (£550m) for the last fiscal year as it writes down the assets of its struggling segments, including its semiconductor, white goods and U.S. atomic energy operations
In July, Toshiba’s ¥151.8bn accounting scandal claimed its first top-level scalp with the resignation of chief executive Hisao Tanaka.
A number of other senior staff – including vice-chairman Norio Sasaki – fell on their corporate swords following the publication of an independent report which revealed the electronics to nuclear giant had massively overstated its profits almost threefold, over a six-year period.
Investigators found that the firm had “systematically” ramped up its profits in numerous parts of the business which were financially stressed. Reports suggest that auditors Ernst & Young were given false explanations of the company’s position.
The scandal follows the $1.7bn (£1bn) accounting fraud uncovered at Japanese camera maker Olympus.
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