Multinational chip maker Toshiba Corp said on Wednesday that will not be submitting its 178th fiscal year audited results ended March at the shareholders’ general meeting on June 28.

The Tokyo-based group explained that it cannot inform shareholders on the accounts or business report as it has not yet been given a clean bill of health from the auditor on the subject of this year’s financial results.  

The company was not able to present its report to regulators due to a certain issue with auditor PricewaterhouseCoopers Aarata (PwC) ever since the write-down with its Westinghouse nuclear unit.

Toshiba said that it would continue working with its independent auditor so as to present its annual report on the official given deadline of June 30.

However, the Japanese company advised that the completion of the auditing may take some more time.

Failure to meet the June deadline without an extension would put the already struggling chip maker’s stock exchange listing in even greater risk and will be questioned further if the accounts to be submitted are not approved by its auditor.

The Tokyo stock exchange have been keeping a close eye on the group since mid-March as it has failed to settle concerns about its internal controls following the $1.3 billion accounting scandal in 2015.

The company said that it will be discussing about its earnings outlook, the status of the auditing process and third-party investment in its memory business at the June 28 meeting.

It will also request for shareholder approval of reappointment of sitting directors, for the period until the shareholders’ meeting later when Toshiba is set to present audited results.

Back in April, Toshiba released its delayed quarterly results without an auditor endorsement which was an unexpected move that resulted to risking getting delisted from the stock.

It was then followed by the company’s decision of replacing its auditor PwC Aarata after less than a year as the struggling chip making conglomerate faces difficulty to win its approval on full-year financial statement.

PwC was hired last year after Japanese regulators imposed a fine against Ernst & Young ShinNihon who was charged of failing to identify signs Toshiba’s accounting irregularities in 2015.

PwC will continue working for the Electronics Company and see to its 2016 earnings for the time being just until the chip maker is able to find a different auditor for fiscal 2017 up to March 2018.  

The company also said that the auction for its chip unit business has to be done by the end of March 2018 so as to guarantee that its equity recovers to a positive level.

Without the sale, its equity is expected to stay at a negative ¥540 billion for two consecutive years which will lead the Tokyo Stock Exchange to drop Toshiba’s shares.

Analysts said that in order to meet the deadline, the company will have to choose a bidder within the next few months to ensure enough time for regulatory inspection from global competition watchdogs.

Meanwhile, Toshiba closed the day as one of the weakest performer on the Nikkei 225 losing as much as 3.4 percent to ¥251.5 triggered by the announcement regarding the submission of its audited results.


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