Business Context and Reporting Period
This Form 8-K Current Report was filed by Addentax Group Corp. on December 6, 2017. The report addresses a material change in the company's independent registered public accounting firm, effective December 3, 2017.
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 change of auditor and does not contain financial statement data for the reporting period.
Material Changes
- Dismissal of Previous Auditor: The company dismissed Anthony Kam & Associates Ltd. ("AKAM") effective December 3, 2017. This action followed a notification from the SEC that the Public Company Accounting Oversight Board (PCAOB) had revoked AKAM's registration on December 1, 2017.
- Engagement of New Auditor: On December 6, 2017, the Board of Directors approved the engagement of PAN-CHINA SINGAPORE PAC ("PCCPA") as the new independent registered public accounting firm.
- Audit History: AKAM was engaged on February 20, 2017. The company reported no disagreements with AKAM regarding accounting principles, financial statement disclosure, or auditing scope during the engagement period.
- Prior Audit Opinion: AKAM's report for the fiscal year ended March 31, 2017, included a going concern qualification but did not contain an adverse opinion, disclaimer, or other qualifications regarding uncertainty or scope.
Guidance, Outlook, and Risks
The filing does not contain management guidance, financial outlook, or specific risk factors beyond the immediate operational risk associated with the change in auditors. The company noted that it had requested a letter from AKAM confirming the statements in the report but had not yet received it as of the filing date.
Investor Verification Checklist
- Verify the status of the letter from the former auditor (AKAM) regarding the change, as the company stated it would file an amendment upon receipt.
- Confirm the qualifications and registration status of the new auditor, PAN-CHINA SINGAPORE PAC (PCCPA).
- Review the most recent audited financial statements to understand the context of the "going concern" qualification issued by the previous auditor for the fiscal year ended March 31, 2017.
- Monitor future filings for the first audit report issued by PCCPA to assess any changes in accounting treatment or audit scope.