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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT: OCTOBER 5, 1998
(DATE OF EARLIEST EVENT REPORTED)
GOLDEN SYSTEMS, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER
CALIFORNIA
(State of Other Jurisdiction of Incorporation)
0-22698 95-4021568
(Commission File Number) (I.R.S. Employer
Identification No.)
2125-C MADERA ROAD
SIMI VALLEY, CA 93065
(Address of principal executive offices)
(805) 582-4400
(Registrant's telephone number, including area code)
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ITEM 4.CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT.
On October 5, 1998, Registrant received the written resignation of Arthur
Andersen LLP, as auditors of Registrant, effective immediately.
For each of the fiscal years ended March 31, 1996 and March 31, 1997, the
accountant's report on the financial statements was qualified as to the
uncertainty of the Registrant to continue as a going concern. This
uncertainty was based on (1) the Registrant's default on payments due lenders
in the amount of $8,306,000, (2) Indian Customs and Department of Revenue
Intelligence allegations and investigations that could lead to additional
duty and penalties against the Registrant's Indian subsidiary in the amount
of $8.4 million and possible penal action, (3) continuing significant losses
from operations, which resulted in a shareholder deficit of $14.2 million at
March 31, 1997 and (4) a lack of a viable source of financing, other than
from a related party.
Because of the resignation of the Registrant's former auditors, the Registrant
engaged Farber & Hass LLP, as its new independent accountants. This
engagement for the audit of the financial statements for the fiscal year
ended March 31, 1998, was effective October 8, 1998.
The Audit Committee of the Board of Directors of the Registrant has been
advised of the former accountant resignation and has approved the engagement
of the new independent accountant, Farber & Hass LLP, on October 8, 1998.
During the Company's two most recent audited fiscal years ended March 31,
1997, and through October 5, 1998, there were no disagreements with Arthur
Andersen LLP on any matter of accounting principles or practices, financial
statement disclosure, or auditing scope or procedure, which disagreements, if
not resolved to the satisfaction of Arthur Andersen LLP, would have caused it
to make reference to the subject matter of the disagreements in connection
with its report.
ITEM 7.FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial statements of business acquired.
Not applicable.
(b) Pro forma financial information.
Not applicable.
(c) Exhibits.
(16)Letter from Arthur Andersen LLP to the Securities and
Exchange Commission dated October 8, 1998.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Golden Systems, Inc.
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(Registrant)
Date October 9, 1998 By /s/ Jawahar L. Tandon
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Jawahar L. Tandon
Chief Executive Officer
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October 8, 1998
Office of the Chief Accountant
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Dear Sir/Madam:
We have read Item 4 included in the Form 8-K, dated October 5, 1998 of Golden
Systems, Inc. to be filed on October 9, 1998 with the Securities and Exchange
Commission and are in agreement with the statements contained therein.
Very truly yours,
/s/ Arthur Andersen LLP
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Arthur Andersen LLP
cc: Jawahar L. Tandon, Chief Executive Officer
Golden Systems
