Business Context and Reporting Period
Company: Addentax Group Corp.
Filing Type: Form 8-K (Current Report)
Date of Report: February 20, 2017
Reporting Period: The filing reports on events occurring on February 20, 2017, regarding a change in the company's independent registered public accounting firm.
Key Financial Metrics
This filing does not contain financial statements, revenue, profit, cash flow, margin, debt, or liquidity data. The document focuses exclusively on corporate governance regarding the audit firm.
Material Changes
- Dismissal of Previous Auditor: On February 20, 2017, the company dismissed Pritchett Siler & Hardy, PC ("PSH") as its independent registered public accounting firm.
- Engagement of New Auditor: On February 20, 2017, the Board of Directors approved the engagement of Anthony Kam & Associates Ltd. ("AKAM") as the new independent registered public accounting firm.
- Audit History: PSH's reports for fiscal years ended March 31, 2016, and 2015 included a "going concern" qualification. No other adverse opinions, disclaimers, or qualifications regarding uncertainty, audit scope, or accounting principles were noted.
- Disagreements: The company reported no disagreements with PSH on accounting principles, practices, or auditing scope during the most recent fiscal year or subsequent interim periods.
Guidance, Outlook, and Risks
Management Commentary: The decision to change auditors was recommended and approved by the Board of Directors. The company confirmed no consultations with the new auditor (AKAM) regarding accounting principles or reportable events prior to engagement.
Contingencies: The company has requested a letter from PSH confirming agreement with the statements in this report. As of the filing date, this letter had not been received. The company intends to file an amendment to this Form 8-K upon receipt of the letter.
Risks: The prior "going concern" qualification noted by the previous auditor indicates historical financial instability, though this filing does not provide updated risk assessments.
Investor Verification Checklist
- Verify the receipt and content of the letter from Pritchett Siler & Hardy, PC regarding the dismissal.
- Review the upcoming financial statements audited by Anthony Kam & Associates Ltd. for any changes in audit opinion.
- Investigate the reasons behind the "going concern" qualification issued for fiscal years 2015 and 2016.
- Monitor for any amendments to this Form 8-K filed by the company.