Toshiba Corp. overstated its profits by ¥40 billion (S$441 million) in its two new infrastructure projects after it failed to reflect cost increase in its financial report, it has been learned.
The ¥40 billion in question accounts for about 80 per cent of the total dubious operating profit the manufacturer estimated to have overstated in relation to the recent accounting irregularities, sources close to Toshiba said Tuesday.
The two projects are those of smart meter, dubbed the next-generation power meter, and of electronic toll collection (ETC) system, the sources said.
Toshiba has been focusing on the new projects to cover the loss in its main nuclear power business, of which outlook became uncertain following the Great East Japan Earthquake in 2011.