Business Context and Reporting Period
This Form 6-K filing by Hexindai Inc. (NASDAQ: HX) covers the month of December 2019. The company operates as a consumer lending marketplace in China. The filing specifically addresses the cessation of the company's relationship with its independent registered public accounting firm, Deloitte Touche Tohmatsu.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity for the period ending December 31, 2019. The document focuses exclusively on corporate governance regarding the audit firm.
Material Changes
- Accounting Firm Departure: On December 6, 2019, Deloitte notified Hexindai that it would not stand for re-appointment for the fiscal year ending March 31, 2020.
- Board Approval: The Audit Committee and Board of Directors approved the cessation of the relationship on December 13, 2019.
- Audit History: Deloitte's audit reports for the fiscal year ended March 31, 2019, contained no adverse opinions, disclaimers, or qualifications regarding uncertainty, scope, or accounting principles.
- Reason for Change: The company stated the separation was not due to any disagreement on accounting principles, financial statement disclosure, or auditing scope.
Outlook and Management Commentary
Management indicated that the company is in the final stages of talks to engage a new independent registered public accounting firm. An announcement regarding the appointment of the new firm is expected in the near future. No specific financial guidance or risk factors beyond the audit transition were detailed in this text.
Investor Verification Checklist
- Verify the identity and qualifications of the newly appointed independent registered public accounting firm once announced.
- Review the upcoming fiscal year 2020 audit report for any changes in accounting treatment or scope.
- Confirm that no undisclosed disagreements existed between Hexindai and Deloitte prior to the separation.
- Monitor subsequent filings for the release of audited financial statements for the fiscal year ending March 31, 2020.