Personal Finance/Wealth Management

The Turn Of A Millenium For Japanese Toshiba

Toshiba used to be a pride of Japanese Electronics

Have you heard the news that Toshiba, a once a pride of Japanese electronics has delisted from the Tokyo Stock Exchange? The delisting is significant in that in Toshiba’s case, it indicates, that the company ceases operation.

Toshiba’s delisting is ending 74 years association with Tokyo’s Stock Market

This Is What Accounting Malpractices Can Destroy

The yearly audited account of an organisation should represent the financial state of the organisation. The management would have certified it as a true and fair report, about the state of the organisation.

So many external interests rely on the end of Financial reports and base their dealings on the reports.

But what happens when the reports are distorted to deliberately cover what exactly is going on in an organisation?

This is what Toshiba has been doing for years before being found out in 2015. It went further to involve the Japanese Trade Ministry, which sees TOSHIBA, as a basis to keep foreign interest in the Japanese Stock Market.

For seven years, Toshiba had overstated its profit by £1.25bn.

It was a grandiose deceit. But as in all lies, the truth will surface one day. And this truth has ended Toshiba’s operation.

What Is Next For Toshiba Now?

Toshiba has no cash to invest in its future, so it offers itself for a buyout. It receives offers from a group of investors led by Japanese Investment Corp for $14bn.

There is ongoing discussion about whether to split the company into many operations and treat each as a profit centre. However, its future operation is not decided.

‘’It’s not clear how the new owners plan to turn around Toshiba but its outgoing chairman has said high-margin digital services will be a focus.’’ bbc.co.uk/business

The Takeaways

• Investors in a delisted company can only sell their shares or other securities over the counter (OTC).
• The future of Toshiba's 106.000 employees worldwide is still undetermined.
• ‘I hope that through divestitures, Toshiba’s assets and human talent can find new homes where their full potential can be unleashed.’ Damian Thong, Head of Research at Macquarie Capital Securities

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DISCLAIMER

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