Business Context and Reporting Period
This Form 6-K filing by Naked Brand Group Limited (not Cenntro Inc.) covers the month of October 2019, with the report dated October 16, 2019. The filing primarily addresses a change in the registrant's certifying accountant.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on auditor transition details and internal control disclosures.
Material Changes
- Accountant Change: On October 10, 2019, the Company engaged BDO Audit Pty Ltd as its new principal accountant, subject to shareholder approval.
- Resignation: PricewaterhouseCoopers (PwC) resigned as the principal accountant for the fiscal year ending January 31, 2020.
- Audit Opinions: PwC's reports for the past two fiscal years did not contain adverse opinions but included explanatory paragraphs regarding the Company's ability to continue as a going concern.
Guidance, Risks, and Contingencies
The filing highlights significant risks related to internal controls and financial reporting:
- Material Weaknesses: Management identified material weaknesses for the fiscal years ended January 31, 2019, and January 31, 2018. These weaknesses relate to the audit committee, financial personnel, internal control implementation, documentation, and financial information review processes.
- Going Concern: Previous audit reports contained explanatory paragraphs concerning the Company's ability to continue as a going concern.
- Disagreements: The Company reported no disagreements with PwC regarding accounting principles, practices, or audit scope during the relevant periods.
Investor Verification Checklist
- Verify the status of shareholder approval for the engagement of BDO Audit Pty Ltd.
- Review the specific details of the "going concern" explanatory paragraphs in the most recent audited financial statements.
- Assess the remediation plans for the identified material weaknesses in internal controls over financial reporting.
- Confirm the content of the letter from PwC (Exhibit 15) regarding their agreement with the disclosures in this filing.