Business Context and Reporting Period
This Form 8-K is filed by India Globalization Capital, Inc. (IGC Pharma, Inc.) on June 25, 2013. The report addresses a change in the company's certifying accountant for the financial year ending March 31, 2013.
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 the administrative change of the independent registered public accounting firm.
Material Changes
- Termination of Previous Accountant: The company terminated its relationship with ASA & Associates Chartered Accountants (ASA) on or about June 23, 2013.
- Reason for Change: ASA requested that Indian subsidiaries undergo an Indian GAAP (IGAAP) audit contemporaneously with the Form 10-K filing. The Audit Committee determined this was not feasible without missing the U.S. filing deadline. The company's policy is to complete the USGAAP audit first (deadline June 30 or July 16) and conduct IGAAP audits in August.
- Appointment of New Accountant: The Audit Committee engaged AJSH & Company as the new independent registered public accounting firm for the year ended March 31, 2013. This appointment is subject to stockholder ratification at the 2013 Annual Meeting.
- No Disagreements: There were no disagreements with ASA regarding accounting principles, practices, disclosures, or audit scope. No reportable events occurred during the tenure of ASA.
Guidance, Outlook, and Risks
The filing does not contain financial guidance, outlook, or management commentary on business performance. The primary risk disclosed relates to the potential delay in filing the Form 10-K if the previous auditor's request for a contemporaneous Indian GAAP audit had been followed. The company mitigated this by changing auditors to ensure timely compliance with U.S. Federal Securities Law.
Investor Verification Checklist
- Verify the ratification of AJSH & Company by stockholders at the 2013 Annual Meeting.
- Confirm the timely filing of the Form 10-K for the year ended March 31, 2013, following the auditor change.
- Review the attached letter from ASA (Exhibit 16.1) to confirm their agreement with the disclosures regarding the change.
- Check for any subsequent filings regarding the status of the Indian GAAP (IGAAP) audit for the Indian subsidiaries.