INTRODUCTION OF TOSHIBA

Hisashige Tanaka was a founder of Toshiba. He invented revolutionary

chronometers, gas lamps and steam engines. In 1873 Japanese government hire
Hisashige Tanaka to work for country on expanding telegraph system. After 2
years he opened a shop and named that shop TOSHIBA. His Company went on
to become the Shibaura Engineering Works a manufactures of telegraph and
electrical devices.
After his death second half of Toshiba origin by Ichisuke Fujika. He is known as
father of electricity in Japan. And later he started a Hakunetsusha company in
1890 and manufactured durable light bulb. His company was renamed by Tokyo
electric.
Toshiba corp. was born in 1939.Shibaura Electric Company and Tokyo electric
they both merge and form electric equipment. In 1984 they name the company as
TOSHIBA Toshiba introduced Revolutionary like incandescent lamps(1890), X-
Ray tubes(1915), Radio Transmission tubes(1919), coil light bulb(1921), cathode
ray tubes (1924),radar(1942),transistor television(1959) and notebook(1989).1

Native name
Romanized
Kabushiki-gaisha Tshiba
name
Type Public (K.K.)
TYO: 6502
Traded as NAG: 6502
OTC Pink: TOSYY
Industry Conglomerate
1875 (Tanaka Seizo-sho)
Founded
1890 (Hakunetsu-sha & Co)

1
Toshiba.co.jp,. 'Toshiba : History'. N.p., 2015. Web. 28 Oct. 2015.
 1939 (merger of Shibaura
Seisaku-sho and Tokyo Denki)
Headquarters Minato, Tokyo, Japan

Area served Worldwide

Masashi Muromachi
Key people
(Chairman, President & CEO)

Electronics
Semiconductors
Social infrastructure
Computer hardware
Products
Home appliances
Medical equipment
Electrical equipment
Elevators and escalators
Office equipment
Lighting

Services IT services
Logistics
Revenue 6.502 trillion (2014)[1]
Operating
290.76 billion (2014)[1]
income
Net income 50.82 billion (2014)[1]
Total assets 6.241 trillion (2014)[1]
Total equity 1.229 trillion (2014)[1]

Number of
employees
200,260 (2014)[1]

Toshiba America, Inc.

Subsidiaries
Toshiba Asia Pacific Pte., Ltd.
Toshiba China Co., Ltd.2

2
Wikipedia,. 'Toshiba'. N.p., 2015. Web. 28 Oct. 2015.
Company Financial Performance Till 2008
Net sales is increase from year 2004 till 2008.Selling expense is
also increase from year 2004 till 2008.
Operating income is increase from year 2004 to 2007 but after
that in 2008 it falls down.Net income is increase from 2004 t

Net Income: This increased by 25.1% (US$62,733

thousand) in fiscal year of 2008.

Selling expense: Selling expenses increased to 10,057

million (US$100371 thousands).The ratio of Selling expense to
net sale was 5.7%.This improve by 0.2%.

Total assets and Net assets: Total consolidated

assets at the end of the fiscal year of 2008 is 2829 million this
has declined from the previous year.
Total assets, cash and cash equivalents decrease 3582 million
to 29132 million.
Notes and account receivables increased 2693 million to 81521
million. Equity ratio was 44.1%
ETHICAL ISSUES INVOLVED IN
THIS CASE ARE
They manipulated their Profits: They overstated their Operating profit
up to 3 times of the actual level.

They altered their losses

They abused the percentage of completion method for recording the

revenue for the long term projects of the company :

Non-disclosure of information independent auditor of the company

Toshiba cheated their investors by providing them with false

information.

They didnt showed their employees the true financial condition of the
company.

They violated laws of accounting like, reliability, prudence, faithful

representation, etc.
Seriousness of the issue:

The fraud case was a very serious issue for the company as well as for
Japan. The company faced following problems because of the fraud case:
The market price of the shares went down.

Fraud was of $1.2 billion.

Led to distrust among the investors.

Affected the goodwill and image of the company.

CEO and other top managers had to resign.

Books of accounts was affected badly.

Fraud caused following problem in Japans economy:

Imposed bad image of Japan on foreign investors.

Led to decrease in investments by global market.

It lost the market trust of investors.