Toshiba TEC: TABS is Independent Operating Company, Not Involved with Toshiba Corp. Accounting Troubles
A contact of ours over at Toshiba America Business Solutions (TABS) recently sent us the following letter from Takayuki Ikeda, president and CEO of Toshiba Tec Corporation, reassuring customers that since TABS is an independent operating company of Toshiba Tec Corporation (TTEC), it is not involved with the accounting troubles being experienced by Toshiba Corporation (see our story here). Toshiba Tec also operated independently from Toshiba Corporaton.
The letter is as follows:
“Dear Valued Business Partner,
You may have seen recent news accounts related to Toshiba Corporation accounting practices and the assignment of a Special Investigation Committee responsible for investigating those issues. The press release can be viewed at http://www.toshiba.co.jp/about/ir/en/news/20150720_1.pdf
I want to assure you that the investigation has nothing to do with the business operations of Toshiba America Business Solutions. As you may know, Toshiba America Business Solutions is an independent operating company of Toshiba Tec Corporation (TTEC) which is listed separately on the Tokyo Stock Exchange (6588.T). Toshiba Tec Corporation operates its business independently from its parent company Toshiba Corporation. Toshiba Tec Corporation is conducting business operations as usual and has already announced its Financial Results for FY2014 on June 16, 2015 upon the receipt of an official Auditors Report.
Our subsidiary, Toshiba America Business Solutions, has an independent structure of corporate governance that includes a comprehensive audit performed annually by Ernst & Young that seeks to ensure the company’s accounting practices meet or exceed the industry standard of Generally Accepted Accounting Principles (GAAP). Toshiba Tec Corporation, the parent company, also ensures strict compliance with J-SOX, Japan’s version of the Sarbanes-Oxley Act in the United States, to further ensure that the accounting practices are credible.
We sincerely apologize for any concern or inconvenience caused by the inappropriate accounting procedures by Toshiba Corporation. Be assured that Toshiba is fully committed to best efforts to ensure the continuous observance of corporate compliance at all times.
In closing, I would like to express once again, on behalf of all of us at Toshiba Tec Corporation and Toshiba America Business Solutions, our appreciation of your kind understanding of the above matters as well as your valued ongoing support. We sincerely look forward to our continued business relationship with you and we deeply regret any confusion, inconvenience or concern this may have caused.
Takayuki Ikeda President and CEO
Toshiba Tec Corporation”