Toshiba has completely denied the comments made by PwC about some Westinghouse related losses which company suffered in last financial year to be recorded in the previous year instead of this year. if this would have happened then the situation would have become critical for the company's existence because it would have led to the disclosure of negative net worth for the company consecutively for two years.
A major sticking point has been an inquiry from PwC over whether Toshiba should have recognized multi-billion dollar losses at US nuclear arm Westinghouse earlier than last December, sources familiar with the matter have said. Toshiba has a history of being in existence for more than 140 years and this delisting would have worsened the condition for the company to raise cash for their memory chip business which is now suffering a huge cash crunch.
However, the auditor, PricewaterhouseCoopers Aarata, issued a qualified opinion on Toshiba's statements Thursday, saying they were "mostly appropriate". Overall the dissolved Westinghouse division incurred a total loss of 1.394 trillion yen, or $12.76 billion, during the fiscal year due to the discontinued operation of the branch.
Today was the deadline for the auditors' approval.
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For instance, Facebook has added around 100 million new daily users on its Instagram Stories features between January and June. Some analysts praised the company's progress in user growth and revenue , even though it failed to meet market expectations.
Toshiba has been trying to sell off its flash memory unit to escape its negative net worth trap, but progress has been stalled for weeks now. This could put Toshiba back in jeopardy.
The legal dispute between Toshiba and Western Digital is scheduled to be examined by an worldwide court of arbitration between September and October with the process likely to take a year or more. "But I am confident we can conclude a deal before the end of March 2018, and will do whatever necessary toward that goal". That would have reduced its ability to raise money for its cash-hungry memory chip business, risking its competitiveness.
"The demand for [memory chips] is high at the moment", Tsunakawa said, "but it is a volatile market and we do not know if this will continue". Toshiba shares have been on an upward trajectory, rising 9.4% between August 1, when the listing was dropped to the TSE's second section, and Wednesday. The U.S. company filed for bankruptcy protection in March. The leading shareholder is Singapore-based Effissimo Capital Management, with a 9.84% stake.