Japan’s stock exchange has ordered Toshiba to pay a record fine of 91.2 million yen ($750,000) in the wake of its $2 billion accounting scandal, according to the Financial Times.
Toshiba is also expected to face another fine from Japan’s financial regulators. It has been reported that the Tokyo Stock Exchange has placed the stock “on alert”, which requires the company to file a report in 2016 on its internal controls improvements. If the company fails to do so, shares will be delisted.
The company has reportedly set aside 8.4 billion yen ($98.66 million) in reserves in expectation of the penalty from Japan’s financial regulators.
The penalties come as Toshiba releases its first-quarter results with a decline in sales to the lowest level in two and a half years due to slow growth in the Southeast Asian economy and declining growth rate in China, despite accelerating growth in the US and UK.
Net sales decreased by 64.1 billion yen ($755 million) to 1,349.9 billion yen ($15.86 million) attributed to weak sales of PCs and televisions, which plummeted by 27%, due to a shift in focus to redefined sales territories and other factors, according to the company statement.
The company did not release its annual forecast for the current fiscal year through March 2016.
This article first appeared in Appliance Retailer.