Toshiba has warned that its business may be at the risk of quitting the market after it filed twice-delayed results which revealed mounting financial losses.
The Japanese giant made $4.8 billion losses and that made significantly affect its ability to continue operating.
“There are events and circumstances that may bring about significant questions about the idea of (carrying on) as a going concern,” read a statement from the firm.
Toshiba was forced to unveil the figures contrary to its auditor’s approval, in a bid to meet the market regulators deadline after two years of delay.
The figures are yet to be approved by the auditors but the firm had no option than to publish them after facing the possibility of being delisted from the Tokyo stock exchange had it missed the deadline.
The electronics come construction firm has published financial records for the period April to December.
There are expectations that Toshiba will hold a news conference later on.
Troublesome Times
Famous to its customers for the electronics products, Toshiba has had to contend with a number of difficulties.
The problems began earlier this year when it became apparent that its US nuclear unit was faced with financial problems.
The nuclear unit, referred to as Westinghouse, was placed in the Chapter 11 bankruptcy in March. This way, it has been kept safe from creditors as it gets restructured.
It was reported this week that Taiwanese electronics, which manufacturers Foxconn, is ready to pay as much as $27bn for Toshiba’s computer chip business. This is a move that will shore the losses if the troubled firm says yes to it.
But that is just a simple step in resolving Toshiba’s woes.
Toshiba itself has cast a doubt on its ability to continue operating. “At the present time, substantial doubt about the company’s ability to continue as a going concern exists as of the filing date of the quarterly report,” read a statement.
Toshiba has in the past warned that it could make losses exceeding one trillion yen, which would make it the biggest loss in Japanese corporate history.
