Business Context and Reporting Period
Company: Jerash Holdings (US), Inc. (JRSH)
Filing Type: Form 8-K (Current Report)
Date of Report: March 24, 2025
Principal Event: Change in the registrant's certifying accountant.
Key Financial Metrics
This filing does not contain financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity. The report focuses exclusively on the transition of the independent registered public accounting firm.
Material Changes
- Resignation of Prior Auditor: Marcum LLP resigned as the Company's independent registered public accounting firm on March 24, 2025.
- Engagement of New Auditor: CBIZ CPAs P.C. was engaged as the new independent registered public accounting firm on March 25, 2025, following Audit Committee approval.
- Reason for Change: The change resulted from CBIZ acquiring the attest business of Marcum on November 1, 2024, with substantially all partners and staff joining CBIZ.
Management Commentary, Risks, and Contingencies
Audit Opinions: Marcum's reports for fiscal years ended March 31, 2024, and 2023 were unqualified and did not contain adverse opinions, disclaimers, or modifications regarding uncertainty, scope, or accounting principles.
Disagreements and Reportable Events: There were no disagreements with Marcum regarding accounting principles, practices, or auditing scope. However, the filing discloses previously identified material weaknesses in internal control over financial reporting, specifically:
- Failure to maintain effective controls over period-end financial reporting related to income taxes and reconciliation of account-level balances.
- Ineffective information technology general controls regarding privileged user access and review of user access for systems supporting financial reporting.
Consultation: The Company did not consult with CBIZ regarding accounting principles or audit opinions prior to engagement.
Investor Verification Checklist
- Verify the status of remediation efforts for the disclosed material weaknesses in internal controls over financial reporting.
- Review the letter from Marcum LLP (Exhibit 16.1) to confirm their agreement with the statements regarding the resignation.
- Monitor future filings for the first audit opinion issued by CBIZ CPAs P.C. to ensure continuity in financial reporting quality.
- Confirm that the transition of staff from Marcum to CBIZ has not disrupted the audit timeline for the upcoming fiscal period.