REDtone Asia (RTAS) 10-Q 23 Sep 16 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	3 Months Ended
	Jul. 31, 2016shares
Document and Entity Information:
Entity Registrant Name	REDtone Asia Inc
Document Type	10-Q
Document Period End Date	Jul. 31, 2016
Amendment Flag	false
Entity Central Index Key	1,341,319
Current Fiscal Year End Date	--04-30
Entity Common Stock, Shares Outstanding	282,315,356
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Trading Symbol	rtas

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Jul. 31, 2016	Apr. 30, 2016
Current assets
Cash and cash equivalents	$ 301,907	$ 345,315
Fixed deposits pledged with bank	3,013,608	3,081,486
Accounts receivable	634,182	644,246
Other receivables and deposits	203,968	264,982
Other investment	720,252	941,649
Total current assets	4,873,917	5,277,678
Property, plant and equipment, net	1,033,913	1,014,560
Intangible assets, net	1,565,114	1,609,841
Total assets	7,472,944	7,902,079
Current liabilities
Deferred income	972,825	1,145,770
Accounts payable	568,694	776,356
Accrued expenses and other payables	936,771	829,495
Amount due to a related company	1,982,791	2,000,813
Taxes payable	1,008,347	972,227
Total liabilities	5,469,428	5,724,661
Equity
Common stock, US$0.0001 par value , 300,000,000 shares authorized; 282,315,356 shares issued and outstanding, respectively	28,232	28,232
Additional paid in capital	7,726,893	7,726,893
Less: Amount due from a related company	(3,202,689)	(3,235,344)
Retained earnings	(533,774)	(446,139)
Accumulated other comprehensive income	403,193	532,302
Total stockholders' equity	4,421,855	4,605,944
Non-controlling interests	(2,418,339)	(2,428,526)
Total equity	2,003,516	2,177,418
Total liabilities and stockholders' equity	$ 7,472,944	$ 7,902,079

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jul. 31, 2016	May 31, 2015
Statement of Financial Position
Common Stock, par or stated value	$ 0.0001	$ 0.0001
Common Stock, shares authorized	300,000,000	300,000,000
Common Stock, shares issued	282,315,356	282,315,356
Common Stock, shares outstanding	282,315,356	282,315,356

Condensed Consolidated Statemen

Condensed Consolidated Statements Of Income And Comprehensive Income (Unaudited) - USD ($)	3 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Income Statement
Revenue	$ 790,053	$ 2,506,918
Other income and gains	1,277	14,488
Service costs	(459,505)	(1,950,230)
Personnel cost	(127,139)	(159,863)
Depreciation expense	(44,268)	(156,424)
Amortization expense	(39,148)	(40,126)
Administrative and other expenses	(203,052)	(199,393)
(Loss)/ Profit before provision for income taxes	(81,782)	15,370
Income tax expense	(49,440)	(21,662)
Net loss before non-controlling interest	(131,222)	(6,292)
Share of results by non-controlling interest	43,587	(47,223)
Net loss for the period	(87,635)	(53,515)
Other comprehensive loss
Loss on foreign currency translation	(129,109)	(102,024)
Share of other comprehensive income/ (loss) by non-controlling interest	53,845	(1,206)
Other comprehensive loss attributable to shareholders of the Company	(75,264)	(103,230)
Total comprehensive loss	$ (162,899)	$ (156,745)
Loss per share, basic and diluted
Weighted average number of shares	282,315,356	282,315,356

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Cash flows from operating activities
Net loss before non-controlling interest	$ (131,222)	$ (6,292)
Adjustments to reconcile net income to net cash (used in)/provided by operating activities:
Amortization expense	39,148	40,126
Depreciation expense	44,268	156,424
Changes in operating assets and liabilities:
Decrease/ (Increase) in accounts receivable	10,064	(51,502)
Decrease in inventories		38,527
Decrease in other receivables and deposits	61,014	184,837
(Decrease)/ Increase in deferred income	(172,945)	84,641
Decrease in accounts payable	(207,662)	(314,819)
Increase in tax payables	36,120	15,606
Increase in accrued liabilities and other payables	107,276	22,720
Net cash (used in)/ provided by operating activities	(213,939)	170,268
Cash flows from investing activities
Purchase of property, plant and equipment	(85,689)	(147,074)
Decrease in amount due from a related company	32,655	31,667
Decrease in trust fund	221,397	167,763
Decrease in fixed deposits pledged with bank	67,878	60,705
Net cash provided by investing activities	236,241	113,061
Cash flows from financing activities
Decrease in amount due to related companies	(18,022)	(33,967)
Net cash used in financing activities	(18,022)	(33,967)
Net increase in cash and cash equivalent	4,280	249,362
Effect of exchange rate changes	(47,688)	(18,337)
Cash and cash equivalents at beginning of period	345,315	603,100
Cash and cash equivalents at end of period	301,907	834,125
Supplementary information - continuing operations
Cash paid for income taxes
Cash paid for interest

Note 1 - Organization and Princ

Note 1 - Organization and Principal Activities	3 Months Ended
	Jul. 31, 2016
Notes
Note 1 - Organization and Principal Activities	NOTE 1 - ORGANIZATION AND PRINCIPAL ACTIVITIES REDtone Asia, Inc. and subsidiaries (the "Company") are a group of companies in The People's Republic of China ("PRC"). The principal activities of the Company are that of a telecommunications provider for mobile, fixed and international gateway services. REDtone provides a wide range of telecommunication services, including prepaid and postpaid discounted call services to corporate customers and consumers as well as prepaid mobile air-time top-up. The Company's major subsidiaries during the period under review are illustrated as follows: Name Domicile and date of incorporation Effective ownership Principal activities REDtone Telecommunication (China) Limited ("REDtone China") Hong Kong May 26, 2005 100% Investment holding REDtone Telecommunications (Shanghai) Limited ("REDtone Shanghai") The PRC July, 26, 2005 100% Provides technical support services to group companies Shanghai Huitong Telecommunication Company Limited ("Huitong") 1 The PRC March, 26, 2007 100% Marketing and distribution of IP call and discounted call services in the PRC Shanghai Jiamao E-Commerce Company Limited ("Jiamao") 1 The PRC March 21, 2008 100% Marketing and distribution of IP call and discounted call services in the PRC Shanghai Xin Chang Information Technology Company Limited ("Xin Chang") 1 The PRC January 13, 2006 56% Marketing and distribution of IP call and discounted call services in the PRC VMS Technology Limited Hong Kong September 14, 1998 100% Trading of discounted call related equipment and provision of related services RT Communications Ltd BVI February 24, 2010 100% Investment holding Shanghai YuZhong Financial Information Service Co., Ltd ("YuZhong") 1 The PRC July 16, 2014 49.8% Investment holding Shanghai YuGuang Automobile Inspection Technology Co., Ltd ("YuGuang") 1 The PRC July 17, 2014 59.8% Investment holding Taizhou Haitai Motor Vehicle Inspection Co, Ltd. ("Haitai") 1 The PRC October 31, 2013 30.5% Investment holding Feng Cheng Motor Vehicle Inspection Co., Ltd. ("FengCheng") 1 The PRC November 30, 2012 30.5% Dormant 1

Note 2 - Principles of Consolid

Note 2 - Principles of Consolidation	3 Months Ended
	Jul. 31, 2016
Notes
Note 2 - Principles of Consolidation	NOTE 2 – PRINCIPLES OF CONSOLIDATION The unaudited interim financial statements of the Company and the Company's subsidiaries (see Note 1) for the three months ended July 31, 2016 and 2015 have been prepared pursuant to the rules & regulations of the SEC. Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations; however the Company believes that the following disclosures are adequate to make the information presented not misleading. All significant intercompany balances and transactions have been eliminated. The functional currency for the majority of the Company's operations is in Chinese Renminbi ("RMB"), while the reporting currency is U.S. Dollar. In the opinion of management, the accompanying condensed consolidated financial statements contain all adjustments, consisting only of normal recurring accruals, necessary for a fair presentation of the Company's financial position as of July 31, 2016, the results of its operations and cash flows for the three months ended July 31, 2016 and 2015. The results of operations for the three months ended July 31, 2016 are not necessarily indicative of the results for a full year period.

Note 3 - Summary of Significant

Note 3 - Summary of Significant Accounting Policies	3 Months Ended
	Jul. 31, 2016
Notes
Note 3 - Summary of Significant Accounting Policies	NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Economic and political risk The Company's major operations are conducted in the PRC. Accordingly, the political, economic, and legal environments in PRC may influence the Company's business, financial condition, and results of operations. The Company's major operations in the PRC are subject to considerations and significant risks typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic, and legal environment. The Company's results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, and rates and methods of taxation, among other things. (b) Cash and cash equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. (c) Accounts receivable and other receivables Trade receivables are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An estimate for doubtful accounts is made when collection of the full amount is no longer probable. (d) Property, plant and equipment Property, plant and equipment are carried at cost less accumulated depreciation. The cost of maintenance and repairs is charged to the statement of operations as incurred, whereas significant renewals and improvements are capitalized. The cost and the related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the statement of operations. The Company provides for depreciation of property, plant and equipment principally by use of the straight-line method for financial reporting purposes. Plant and equipment are depreciated over the following estimated useful lives: Computer and software 5 years Furniture, fixtures and equipment 5 years Motor vehicles 5 years Leasehold improvements 5 years Telecommunication equipment 10 years Depreciation expense attributable to the operations for the three month period ended July 31, 2016 and 2015 amounted to $44,268 and $156,424, respectively. (e) Intangible assets IT license and software operating license are generally amortized on a straight-line basis over the expected periods of benefit, in 20 years. Customer base are amortized on a straight-line basis over 3 years. The Company performs regular review of identified intangible assets to determine if facts and circumstances indicate that the useful life is shorter than the original Company policies. If such facts and circumstances exist, the Company regularly assesses the recoverability of identified intangible assets by comparing the projected undiscounted net cash flows associated with the related asset or group of assets over their remaining lives against their respective carrying amounts. Impairments, if any, are based on the excess of the carrying amount over the fair value of those assets. If the useful life is shorter than originally estimated, we accelerate the rate of amortization and amortize the remaining carrying value over the new shorter useful life. Amortization expense attributable to the operations for the three month period ended July 31, 2016 and 2015 amounted to $39,148 and $40,126, respectively. (f) Available-for-sale investments Investments in equity securities that do not have a quoted market price in an active market and whose fair value cannot be reliably measured are recognized in the balance sheet at cost less impairment losses. (g) Accounting for the impairment of long-lived assets The long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. It is reasonably possible that these assets could become impaired as a result of technology or other industry changes. Determination of recoverability of assets to be held and used is by comparing the carrying amount of an asset to future net undiscounted cash flows to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. There is no impairment loss recognized during the three months ended July 31, 2016 and 2015. (h) Income tax Income taxes are based on pre-tax financial accounting income. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. The Company periodically assesses the need to establish valuation allowances against its deferred tax assets to the extent the Company no longer believes it is more likely than not that the tax assets will be fully utilized. The Company evaluates a tax position to determine whether it is more likely than not that the tax position will be sustained upon examination, based upon the technical merits of the position. A tax position that meets the more-likely-than-not recognition threshold is subject to a measurement assessment to determine the amount of benefit to recognize and the appropriate reserve to establish, if any. If a tax position does not meet the more-likely-than-not recognition threshold, no benefit is recognized. (i) Fair value of financial instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value: Level 1—Valuations based on quoted prices for identical assets and liabilities in active markets. Level 2—Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3—Valuations based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. We measure the fair value of money market funds and equity securities based on quoted prices in active markets for identical assets or liabilities. All other financial instruments were valued based on quoted market prices of similar instruments and other significant inputs derived from or corroborated by observable market data. (j) Revenue recognition The Company assesses appropriate revenue recognition policy for each type of operation according to ASC 605-45 Revenue represents the invoiced value of services rendered and receivable during the year. Revenue is recognized when all of the following criteria are met: • Persuasive evidence of an arrangement exists, • Delivery has occurred or services have been rendered, • The seller's price to the buyer is fixed or determinable, and • Collectability is reasonably assured Revenue recognition policy for each of the major products and services: 1. Discounted call services for consumer (EMS) as follow: • Collaboration with CTT – REDtone China is appointed as the sole distributor for EMS and will recognize revenue when airtime is utilized by the consumer and the revenue recognized is on net basis which is computed based on a fixed sharing ratio of the total airtime utilized by consumers after netting of direct traffic termination cost and incidental expenses. REDtone China's role for Business Collaboration with China TieTong Telecommunications (CTT) would be as "Agent" as REDtone China is the sole distributor for EMS brand owned and controlled by CTT; and • Collaboration with other telecommunication providers – REDtone China will act as a discounted consumer call Reseller whereby REDtone China will determine the service and package specification and pricing policies whereas China Unicom acts as a passive termination partner for call traffic. REDtone China will pay China Unicom solely based on call traffic termination by China Unicom at a prescribed rate (defined as traffic termination costs on the books of REDtone China). In this regard, REDtone China will recognize the revenue when airtime is utilized by the consumer and the value recognized as revenue is the call charges gross value. REDtone China's role for Business Collaboration with China Unicom would be as "Principal" as China Unicom is playing a passive role as traffic termination partner while REDtone China is fully responsible for the entire management of discounted call services As this is a prepaid product, there is an expiration date for the product sold. If the airtime is not utilized by the expiration date, which is currently one year from the activation date, it will be deemed expired and revenue will be recognized based on the remaining gross value of the expired prepaid product. 2. Discounted call services for corporate as follow: • Collaboration with CTT – the revenue recognize is the commission earned from distributing the discounted call services to corporate customer; and • Collaboration with other telecommunication providers –the revenue recognized is the commission earned from distributing the discounted call services to corporate customer. 3. Reload services for prepaid mobile – revenue recognized is the commission earned. 4. Collaboration with Shanghai Huili Telecommunications Co., Ltd ("Huili") – Huili will act as "intermediary agent" to resell the call traffic termination by REDtone China. Huili will pay REDtone China the termination costs on the books of REDtone China. (k) Earnings per share Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding during the year. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. As of July 31, 2016 and 2015, there were no dilutive securities outstanding. (l) Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates. (m) Retirement benefits PRC mandates companies to contribute funds into the national retirement system, which benefits qualified employees based on where they were born within the country. The Company pays the required payment for qualified employees of the Company. (n) Foreign currency translation The accompanying consolidated financial statements are presented in United States dollars (US$). The functional currencies of the Company are the Hong Kong dollar (HK$) and the Renminbi (RMB), respectively. Capital accounts of the financial statements are translated into United States dollars from HK$ or RMB at their historical exchange rates when the capital transactions occurred. Assets and liabilities are translated at the exchange rates as of balance sheet date. Income and expenditures are translated at the average exchange rate of the year. The translation rates are as follows: July 31, 2016 April 30, 2016 July 31, 2015 Period end RMB : US$ exchange rate 0.1507 0.1541 0.1613 Average period RMB : US$ exchange rate 0.1517 0.1570 0.1643 Period end HK$ : US$ exchange rate 0.1289 0.1286 0.1290 Average period HK$ : US$ exchange rate 0.1289 0.1289 0.1290 On July 21, 2005, the PRC changed its foreign currency exchange policy from a fixed RMB/US$ exchange rate into a flexible rate under the control of the PRC's government. The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US$ at the rates used in translation. (o) Recent Accounting Pronouncements The Financial Accounting Standards Board and other entities issued new or modifications to, or interpretations of, existing accounting guidance during the period. Management has carefully considered the new pronouncements that altered generally accepted accounting principles and does not believe that any other new or modified principles will have a material impact on the Company's reported financial position or operations in the near term. The Company reviews new accounting standards as issued. No new standards had any material effect on these financial statements. The accounting pronouncements issued subsequent to the date of these financial statements that were considered significant by management were evaluated for the potential effect on these consolidated financial statements. Management does not believe any of the subsequent pronouncements will have a material effect on these consolidated financial statements as presented and does not anticipate the need for any future restatement of these consolidated financial statements because of the retro-active application of any accounting pronouncements issued subsequent to July 31, 2016 through the date these financial statements were issued.

Note 4 - Cash & Cash Equivalent

Note 4 - Cash & Cash Equivalents	3 Months Ended
	Jul. 31, 2016
Notes
Note 4 - Cash & Cash Equivalents	NOTE 4 - CASH AND CASH EQUIVALENTS As of the balance sheet dates, cash and cash equivalents are summarized as follows: July 31, 2016 April 30, 2016 Cash and bank $301,907 $345,315

Note 5 - Other Receivables and

Note 5 - Other Receivables and Deposits	3 Months Ended
	Jul. 31, 2016
Notes
Note 5 - Other Receivables and Deposits	NOTE 5 – OTHER RECEIVABLES AND DEPOSITS Other receivables and deposits as of the dates were summarized as follows: July 31, 2016 April 30, 2016 Deposits $203,968 $264,982

Note 6 - Property, Plant and Eq

Note 6 - Property, Plant and Equipment	3 Months Ended
	Jul. 31, 2016
Notes
Note 6 - Property, Plant and Equipment	NOTE 6 – PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment as of the balance sheet dates are summarized as follows: July 31, 2016 April 30, 2016 At cost: Computer and software $258,333 $165,435 Telecommunication equipment 5,168,125 5,303,150 Furniture, fixtures and equipment 53,516 54,628 Motor vehicles 117,229 119,870 Leasehold improvement 120,724 115,657 5,717,927 5,758,740 Less: Accumulated depreciation (4,684,014) (4,744,180) Property, plant and equipment, net $1,033,913 $1,014,560 Depreciation expense attributable to the operations for the three months ended July 31, 2016 and 2015 amounted to $44,268 and $156,424, respectively.

Note 7 - Intangible Assets

Note 7 - Intangible Assets	3 Months Ended
	Jul. 31, 2016
Notes
Note 7 - Intangible Assets	NOTE 7 – INTANGIBLE ASSETS Intangible assets as of the balance sheet dates are summarized as follows: July 31, 2016 April 30, 2016 At cost: Operating concession $554,289 $566,773 Customer base 75,340 77,037 IT license and software 2,280,548 2,275,419 2,910,177 2,919,229 Less: Accumulated depreciation (1,345,063) (1,309,388) Intangible assets, net $1,565,114 $1,609,841 Amortization expense attributable to the operations for the three months ended July 31, 2016 and 2015 amounted to $39,148 and $40,126, respectively.

Note 8 - Amount Due From_(to) R

Note 8 - Amount Due From/(to) Related Parties	3 Months Ended
	Jul. 31, 2016
Notes
Note 8 - Amount Due From/(to) Related Parties	NOTE 8 – AMOUNT DUE FROM/(TO) RELATED COMPANIES As of the balance sheet dates, amount due from a related company that included in the Company's equity accounts were analyzed as follows: July 31, 2016 April 30, 2016 Fellow subsidiary: REDtone Technology Sdn. Bhd. $3,202,689 $3,235,344 The amount represents advances to the related company. As of the balance sheet dates, the amount is unsecured, non-interest bearing and is expected to be repaid within 2016. Amount due to a related company as of the balance sheet dates were summarized as follows: July 31, 2016 April 30, 2016 Fellow subsidiary: REDtone Telecommunications Sdn Bhd $223,778 $173,409 Related party: Shanghai Huili Telecommunications Co., Ltd - 28,771 Non-controlling interests 1,759,013 1,798,633 1,982,791 2,000,813 The amount due to the related company is unsecured, non-interest bearing and has no fixed repayment date.

Note 9 - Accrued Expenses and O

Note 9 - Accrued Expenses and Other Payables	3 Months Ended
	Jul. 31, 2016
Notes
Note 9 - Accrued Expenses and Other Payables	NOTE 9 – ACCRUED EXPENSES AND OTHER PAYABLES Accrued expenses and other payables as of the balance sheet dates were summarized as follows: July 31, 2016 April 30, 2016 Accrued expenses $425,497 $379,165 Other payables 511,274 450,330 Total $936,771 $829,495

Note 10 - Deferred Income

Note 10 - Deferred Income	3 Months Ended
	Jul. 31, 2016
Notes
Note 10 - Deferred Income	NOTE 10 – DEFERRED INCOME Deferred income consists of prepaid air-time sold which is yet to be utilized. The basis of revenue recognition for discounted call services is based on actual call charges made by end users. When calls are being made, the amount will be deducted from deferred income to the statement of income, net of call costs and expenses.

Note 11 - Taxes Payable

Note 11 - Taxes Payable	3 Months Ended
	Jul. 31, 2016
Notes
Note 11 - Taxes Payable	NOTE 11 – TAXES PAYABLE Taxes payable at the balance sheet dates are summarized as follows: July 31, 2016 April 30, 2016 Income tax payable $1,019,950 $992,222 Business tax and other tax payables (11,603) (19,995) Total $1,008,347 $972,227 Business tax represents PRC sales tax imposed upon the Company's services provided in the PRC. Tax rates range from 3% to 6% depending on the nature of the taxable activities. Income tax represents PRC income tax. The provision for PRC income tax is based on a statutory rate of 25% of the assessable income of the PRC subsidiaries as determined in accordance with the relevant income tax rules and regulations of the PRC.

Note 12 - Income Tax Expense

Note 12 - Income Tax Expense	3 Months Ended
	Jul. 31, 2016
Notes
Note 12 - Income Tax Expense	NOTE 12 – INCOME TAX EXPENSE Three months ended July 31, 2016 Three months ended July 31, 2015 Current income tax in PRC and Hong Kong $49,440 $21,662 Deferred tax income - - Total $49,440 $21,662 On April 29, 2014, RTSH obtained a tax benefit for which the income tax for 2013 and 2014 calendar year is exempt and the income tax for 2015, 2016 and 2017 calendar year will be subject to half-rate deduction. A reconciliation of the expected tax with the actual tax expense is as follows: Three months ended July 31, 2016 Three months ended July 31, 2015 (Loss)/ Profit before provision for income taxes $(81,782) $15,370 Expected PRC income tax expense at statutory tax rate of 25% (20,445) 3,843 Different tax rate for PRC/Hong Kong local authority 20,476 6,657 Utilisation of tax losses brought forward - (47,434) Tax loss not provided for deferred tax 49,409 58,596 Total $49,440 $21,662 (i) All PRC subsidiaries are subject to PRC tax. The provision for PRC income tax is based on a statutory rate of 25% of the assessable income of the PRC subsidiaries as determined in accordance with the relevant income tax rules and regulations of the PRC. (ii) Hong Kong subsidiaries are subject to Hong Kong profits tax. The provision for Hong Kong profits tax is based on a statutory rate of 16.5% of assessable profits in Hong Kong. (iii) BVI subsidiaries are not subject to profits tax.

Note 13 - Variable Interest Ent

Note 13 - Variable Interest Entities ("vies")	3 Months Ended
	Jul. 31, 2016
Notes
Note 13 - Variable Interest Entities ("vies")	NOTE 13 – VARIABLE INTEREST ENTITIES ("VIEs") On April 30, 2007, the Company entered into loan agreements with Mao Junbao ("MJ") and Mao Hong ("MH") for the establishment of Huitong. On April 30, 2007 the Company entered into an equity pledge agreement that provides that MJ and MH would pledge all their equities in Huitong to REDtone Shanghai. Huitong acquired YuZhong, YuGuang, Haitai and FengCheng, as subsidiaries of the Company during financial year 2015. Although the Company is not the shareholder of the above VIE subsidiaries, the Company has determined that it is the primary beneficiary of these entities, as the Company has controlling voting powers and entitled to receive the benefit from operations of these entities. Hence, these companies are identified as VIEs and are consolidated as if subsidiaries of the Company. We did not identify any additional VIEs in which we hold a significant interest. The total consolidated VIE assets and liabilities reflected on the Company's balance sheet are as follows: July 31, 2016 April 30, 2016 Assets Cash and cash equivalents $22,571 $161,340 Accounts receivable 634,182 640,656 Other receivables and deposits 46,086 185,144 Property, plant and equipment, net 479,920 413,072 Intangible assets, net 361,940 381,670 Total assets (not include amount due from intra-group companies and related parties) 1,544,699 1,781,882 Liabilities Deferred income 972,557 1,145,770 Accounts payable 547,752 755,461 Accrued expenses and other payables 2,095,722 2,081,052 Taxes payable 73,443 18,332 Total liabilities (not include amount due to intra-group companies and related parties) 3,689,474 4,000,615 The results of VIEs are as follows, and are included in the consolidated statements of income of the Company: Three months ended July 31, 2016 Three months ended July 31, 2015 Revenue $755,007 $1,683,697 Other income and gains 151 (12,028 Service costs (Not including service costs payable to intra-group companies) (459,397) (1,950,100) Personnel cost (58,570) (93,417) Depreciation expense (9,801) (73,168) Amortization expense (11,397) (12,343) Administrative and other expenses (123,744) (109,646) Income/ (Loss) before provision for income taxes (Not including service costs payable to intra-group companies) 92,249 (567,005) Provision for income taxes (48,167) (19,931) Net income/ (loss) 44,082 (586,936) Under the contractual arrangements with the VIEs, the Company has the power to direct activities of the VIEs and can have assets transferred freely out of the VIEs without restrictions. Therefore, the Company considers that there is no asset of VIEs that can only be used to settle obligations of the respective VIEs, except for registered capital and PRC statutory reserves of VIEs as of July 31, 2016. Since the VIEs are incorporated as limited liability companies under the PRC Company Law, creditors of the VIEs do not have recourse to the general credit of the Company. There is currently no contractual arrangement that would require the Company to provide additional financial support to the VIEs. As the Company is conducting certain businesses mainly through its VIEs, the Company may provide such support on a discretionary basis in the future, which could expose the Company to a loss.

Note 14 - Related Party Transac

Note 14 - Related Party Transaction	3 Months Ended
	Jul. 31, 2016
Notes
Note 14 - Related Party Transaction	NOTE 14 – RELATED PARTY TRANSACTION Three months ended July 31, 2016 Three months ended July 31, 2015 Revenue- Shanghai Huili Telecommunications Co., Ltd $21,449 $586,719 Cost of Sales - Shanghai Huili Telecommunications Co., Ltd (23,314) (142,362) Total $(1,865) $444,357

Note 3 - Summary of Significa20

Note 3 - Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Jul. 31, 2016
Policies
(b) Cash and Cash Equivalents	(b) Cash and cash equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents.
(c) Accounts receivable and other receivables	(c) Accounts receivable and other receivables Trade receivables are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An estimate for doubtful accounts is made when collection of the full amount is no longer probable.
(d) Property, Plant and Equipment	(d) Property, plant and equipment Property, plant and equipment are carried at cost less accumulated depreciation. The cost of maintenance and repairs is charged to the statement of operations as incurred, whereas significant renewals and improvements are capitalized. The cost and the related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the statement of operations. The Company provides for depreciation of property, plant and equipment principally by use of the straight-line method for financial reporting purposes. Plant and equipment are depreciated over the following estimated useful lives: Computer and software 5 years Furniture, fixtures and equipment 5 years Motor vehicles 5 years Leasehold improvements 5 years Telecommunication equipment 10 years Depreciation expense attributable to the operations for the three month period ended July 31, 2016 and 2015 amounted to $44,268 and $156,424, respectively.
(e) Intangible assets	(e) Intangible assets IT license and software operating license are generally amortized on a straight-line basis over the expected periods of benefit, in 20 years. Customer base are amortized on a straight-line basis over 3 years. The Company performs regular review of identified intangible assets to determine if facts and circumstances indicate that the useful life is shorter than the original Company policies. If such facts and circumstances exist, the Company regularly assesses the recoverability of identified intangible assets by comparing the projected undiscounted net cash flows associated with the related asset or group of assets over their remaining lives against their respective carrying amounts. Impairments, if any, are based on the excess of the carrying amount over the fair value of those assets. If the useful life is shorter than originally estimated, we accelerate the rate of amortization and amortize the remaining carrying value over the new shorter useful life. Amortization expense attributable to the operations for the three month period ended July 31, 2016 and 2015 amounted to $39,148 and $40,126, respectively.
(f) Available-for-sale investments	(f) Available-for-sale investments Investments in equity securities that do not have a quoted market price in an active market and whose fair value cannot be reliably measured are recognized in the balance sheet at cost less impairment losses.
(g) Accounting for the impairment of long-lived assets	(g) Accounting for the impairment of long-lived assets The long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. It is reasonably possible that these assets could become impaired as a result of technology or other industry changes. Determination of recoverability of assets to be held and used is by comparing the carrying amount of an asset to future net undiscounted cash flows to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. There is no impairment loss recognized during the three months ended July 31, 2016 and 2015.
(h) Income tax	(h) Income tax Income taxes are based on pre-tax financial accounting income. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. The Company periodically assesses the need to establish valuation allowances against its deferred tax assets to the extent the Company no longer believes it is more likely than not that the tax assets will be fully utilized. The Company evaluates a tax position to determine whether it is more likely than not that the tax position will be sustained upon examination, based upon the technical merits of the position. A tax position that meets the more-likely-than-not recognition threshold is subject to a measurement assessment to determine the amount of benefit to recognize and the appropriate reserve to establish, if any. If a tax position does not meet the more-likely-than-not recognition threshold, no benefit is recognized.
(i) Fair value of financial instruments	(i) Fair value of financial instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value: Level 1—Valuations based on quoted prices for identical assets and liabilities in active markets. Level 2—Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3—Valuations based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. We measure the fair value of money market funds and equity securities based on quoted prices in active markets for identical assets or liabilities. All other financial instruments were valued based on quoted market prices of similar instruments and other significant inputs derived from or corroborated by observable market data.
(j) Revenue Recognition	(j) Revenue recognition The Company assesses appropriate revenue recognition policy for each type of operation according to ASC 605-45 Revenue represents the invoiced value of services rendered and receivable during the year. Revenue is recognized when all of the following criteria are met: • Persuasive evidence of an arrangement exists, • Delivery has occurred or services have been rendered, • The seller's price to the buyer is fixed or determinable, and • Collectability is reasonably assured Revenue recognition policy for each of the major products and services: 1. Discounted call services for consumer (EMS) as follow: • Collaboration with CTT – REDtone China is appointed as the sole distributor for EMS and will recognize revenue when airtime is utilized by the consumer and the revenue recognized is on net basis which is computed based on a fixed sharing ratio of the total airtime utilized by consumers after netting of direct traffic termination cost and incidental expenses. REDtone China's role for Business Collaboration with China TieTong Telecommunications (CTT) would be as "Agent" as REDtone China is the sole distributor for EMS brand owned and controlled by CTT; and • Collaboration with other telecommunication providers – REDtone China will act as a discounted consumer call Reseller whereby REDtone China will determine the service and package specification and pricing policies whereas China Unicom acts as a passive termination partner for call traffic. REDtone China will pay China Unicom solely based on call traffic termination by China Unicom at a prescribed rate (defined as traffic termination costs on the books of REDtone China). In this regard, REDtone China will recognize the revenue when airtime is utilized by the consumer and the value recognized as revenue is the call charges gross value. REDtone China's role for Business Collaboration with China Unicom would be as "Principal" as China Unicom is playing a passive role as traffic termination partner while REDtone China is fully responsible for the entire management of discounted call services As this is a prepaid product, there is an expiration date for the product sold. If the airtime is not utilized by the expiration date, which is currently one year from the activation date, it will be deemed expired and revenue will be recognized based on the remaining gross value of the expired prepaid product. 2. Discounted call services for corporate as follow: • Collaboration with CTT – the revenue recognize is the commission earned from distributing the discounted call services to corporate customer; and • Collaboration with other telecommunication providers –the revenue recognized is the commission earned from distributing the discounted call services to corporate customer. 3. Reload services for prepaid mobile – revenue recognized is the commission earned. 4. Collaboration with Shanghai Huili Telecommunications Co., Ltd ("Huili") – Huili will act as "intermediary agent" to resell the call traffic termination by REDtone China. Huili will pay REDtone China the termination costs on the books of REDtone China.
(k) Earnings Per Share	(k) Earnings per share Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding during the year. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. As of July 31, 2016 and 2015, there were no dilutive securities outstanding. (l) Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates.
(m) Retirement benefits	(m) Retirement benefits PRC mandates companies to contribute funds into the national retirement system, which benefits qualified employees based on where they were born within the country. The Company pays the required payment for qualified employees of the Company.
(n) Foreign Currency Translation	(n) Foreign currency translation The accompanying consolidated financial statements are presented in United States dollars (US$). The functional currencies of the Company are the Hong Kong dollar (HK$) and the Renminbi (RMB), respectively. Capital accounts of the financial statements are translated into United States dollars from HK$ or RMB at their historical exchange rates when the capital transactions occurred. Assets and liabilities are translated at the exchange rates as of balance sheet date. Income and expenditures are translated at the average exchange rate of the year. The translation rates are as follows: July 31, 2016 April 30, 2016 July 31, 2015 Period end RMB : US$ exchange rate 0.1507 0.1541 0.1613 Average period RMB : US$ exchange rate 0.1517 0.1570 0.1643 Period end HK$ : US$ exchange rate 0.1289 0.1286 0.1290 Average period HK$ : US$ exchange rate 0.1289 0.1289 0.1290 On July 21, 2005, the PRC changed its foreign currency exchange policy from a fixed RMB/US$ exchange rate into a flexible rate under the control of the PRC's government. The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US$ at the rates used in translation.
(o) Recent Accounting Pronouncements	(o) Recent Accounting Pronouncements The Financial Accounting Standards Board and other entities issued new or modifications to, or interpretations of, existing accounting guidance during the period. Management has carefully considered the new pronouncements that altered generally accepted accounting principles and does not believe that any other new or modified principles will have a material impact on the Company's reported financial position or operations in the near term. The Company reviews new accounting standards as issued. No new standards had any material effect on these financial statements. The accounting pronouncements issued subsequent to the date of these financial statements that were considered significant by management were evaluated for the potential effect on these consolidated financial statements. Management does not believe any of the subsequent pronouncements will have a material effect on these consolidated financial statements as presented and does not anticipate the need for any future restatement of these consolidated financial statements because of the retro-active application of any accounting pronouncements issued subsequent to July 31, 2016 through the date these financial statements were issued.

Note 3 - Summary of Significa21

Note 3 - Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Jul. 31, 2016
Tables/Schedules
Property, Plant and Equipment, Estimated Useful Lives	Plant and equipment are depreciated over the following estimated useful lives: Computer and software 5 years Furniture, fixtures and equipment 5 years Motor vehicles 5 years Leasehold improvements 5 years Telecommunication equipment 10 years
Foreign Currency Transactions, Description	The translation rates are as follows: July 31, 2016 April 30, 2016 July 31, 2015 Period end RMB : US$ exchange rate 0.1507 0.1541 0.1613 Average period RMB : US$ exchange rate 0.1517 0.1570 0.1643 Period end HK$ : US$ exchange rate 0.1289 0.1286 0.1290 Average period HK$ : US$ exchange rate 0.1289 0.1289 0.1290

Note 4 - Cash & Cash Equivale22

Note 4 - Cash & Cash Equivalents (Tables)	3 Months Ended
	Jul. 31, 2016
Tables/Schedules
Schedule of Cash and Cash Equivalents	As of the balance sheet dates, cash and cash equivalents are summarized as follows: July 31, 2016 April 30, 2016 Cash and bank $301,907 $345,315

Note 5 - Other Receivables an23

Note 5 - Other Receivables and Deposits (Tables)	3 Months Ended
	Jul. 31, 2016
Tables/Schedules
Schedule of Other Receivables and Deposits	Other receivables and deposits as of the dates were summarized as follows: July 31, 2016 April 30, 2016 Deposits $203,968 $264,982

Note 6 - Property, Plant and 24

Note 6 - Property, Plant and Equipment (Tables)	3 Months Ended
	Jul. 31, 2016
Tables/Schedules
Property, Plant and Equipment	Property, plant and equipment as of the balance sheet dates are summarized as follows: July 31, 2016 April 30, 2016 At cost: Computer and software $258,333 $165,435 Telecommunication equipment 5,168,125 5,303,150 Furniture, fixtures and equipment 53,516 54,628 Motor vehicles 117,229 119,870 Leasehold improvement 120,724 115,657 5,717,927 5,758,740 Less: Accumulated depreciation (4,684,014) (4,744,180) Property, plant and equipment, net $1,033,913 $1,014,560

Note 7 - Intangible Assets (Tab

Note 7 - Intangible Assets (Tables)	3 Months Ended
	Jul. 31, 2016
Tables/Schedules
Schedule of Intangible Assets	Intangible assets as of the balance sheet dates are summarized as follows: July 31, 2016 April 30, 2016 At cost: Operating concession $554,289 $566,773 Customer base 75,340 77,037 IT license and software 2,280,548 2,275,419 2,910,177 2,919,229 Less: Accumulated depreciation (1,345,063) (1,309,388) Intangible assets, net $1,565,114 $1,609,841

Note 8 - Amount Due From_(to)26

Note 8 - Amount Due From/(to) Related Parties (Tables)	3 Months Ended
	Jul. 31, 2016
Tables/Schedules
Due From Related Party	As of the balance sheet dates, amount due from a related company that included in the Company's equity accounts were analyzed as follows: July 31, 2016 April 30, 2016 Fellow subsidiary: REDtone Technology Sdn. Bhd. $3,202,689 $3,235,344 The amount represents advances to the related company. As of the balance sheet dates, the amount is unsecured, non-interest bearing and is expected to be repaid within 2016. Amount due to a related company as of the balance sheet dates were summarized as follows: July 31, 2016 April 30, 2016 Fellow subsidiary: REDtone Telecommunications Sdn Bhd $223,778 $173,409 Related party: Shanghai Huili Telecommunications Co., Ltd - 28,771 Non-controlling interests 1,759,013 1,798,633 1,982,791 2,000,813

Note 9 - Accrued Expenses and27

Note 9 - Accrued Expenses and Other Payables (Tables)	3 Months Ended
	Jul. 31, 2016
Tables/Schedules
Schedule of Accrued Expenses and Other Payables	Accrued expenses and other payables as of the balance sheet dates were summarized as follows: July 31, 2016 April 30, 2016 Accrued expenses $425,497 $379,165 Other payables 511,274 450,330 Total $936,771 $829,495

Note 11 - Taxes Payable (Tables

Note 11 - Taxes Payable (Tables)	3 Months Ended
	Jul. 31, 2016
Tables/Schedules
Schedule of Taxes Payable	Taxes payable at the balance sheet dates are summarized as follows: July 31, 2016 April 30, 2016 Income tax payable $1,019,950 $992,222 Business tax and other tax payables (11,603) (19,995) Total $1,008,347 $972,227

Note 12 - Income Tax Expense (T

Note 12 - Income Tax Expense (Tables)	3 Months Ended
	Jul. 31, 2016
Tables/Schedules
Schedule of Components of Income Tax Expense (Benefit)	Three months ended July 31, 2016 Three months ended July 31, 2015 Current income tax in PRC and Hong Kong $49,440 $21,662 Deferred tax income - - Total $49,440 $21,662
Schedule of Effective Income Tax Rate Reconciliation	A reconciliation of the expected tax with the actual tax expense is as follows: Three months ended July 31, 2016 Three months ended July 31, 2015 (Loss)/ Profit before provision for income taxes $(81,782) $15,370 Expected PRC income tax expense at statutory tax rate of 25% (20,445) 3,843 Different tax rate for PRC/Hong Kong local authority 20,476 6,657 Utilisation of tax losses brought forward - (47,434) Tax loss not provided for deferred tax 49,409 58,596 Total $49,440 $21,662

Note 13 - Variable Interest E30

Note 13 - Variable Interest Entities ("vies") (Tables)	3 Months Ended
	Jul. 31, 2016
Tables/Schedules
Schedule of Consolidated VIEs	The total consolidated VIE assets and liabilities reflected on the Company's balance sheet are as follows: July 31, 2016 April 30, 2016 Assets Cash and cash equivalents $22,571 $161,340 Accounts receivable 634,182 640,656 Other receivables and deposits 46,086 185,144 Property, plant and equipment, net 479,920 413,072 Intangible assets, net 361,940 381,670 Total assets (not include amount due from intra-group companies and related parties) 1,544,699 1,781,882 Liabilities Deferred income 972,557 1,145,770 Accounts payable 547,752 755,461 Accrued expenses and other payables 2,095,722 2,081,052 Taxes payable 73,443 18,332 Total liabilities (not include amount due to intra-group companies and related parties) 3,689,474 4,000,615 The results of VIEs are as follows, and are included in the consolidated statements of income of the Company: Three months ended July 31, 2016 Three months ended July 31, 2015 Revenue $755,007 $1,683,697 Other income and gains 151 (12,028 Service costs (Not including service costs payable to intra-group companies) (459,397) (1,950,100) Personnel cost (58,570) (93,417) Depreciation expense (9,801) (73,168) Amortization expense (11,397) (12,343) Administrative and other expenses (123,744) (109,646) Income/ (Loss) before provision for income taxes (Not including service costs payable to intra-group companies) 92,249 (567,005) Provision for income taxes (48,167) (19,931) Net income/ (loss) 44,082 (586,936)

Note 14 - Related Party Trans31

Note 14 - Related Party Transaction (Tables)	3 Months Ended
	Jul. 31, 2016
Tables/Schedules
Schedule of Related Party Transactions	Three months ended July 31, 2016 Three months ended July 31, 2015 Revenue- Shanghai Huili Telecommunications Co., Ltd $21,449 $586,719 Cost of Sales - Shanghai Huili Telecommunications Co., Ltd (23,314) (142,362) Total $(1,865) $444,357

Note 1 - Organization and Pri32

Note 1 - Organization and Principal Activities (Details)	3 Months Ended
	Jul. 31, 2016
Shanghai Yuzhong Financial Information Service Co Ltd
Domicile and Date of Incorporation	The PRC July 16, 2014
Effective Ownership	49.80%
Principal Activities	Investment holding
Shanghai Yuguang Automobile Inspection Technology Co Ltd
Domicile and Date of Incorporation	The PRC July 17, 2014
Effective Ownership	59.80%
Principal Activities	Investment holding
Redtone Telecommunication China Limited
Domicile and Date of Incorporation	Hong Kong May 26, 2005
Effective Ownership	100.00%
Principal Activities	Investment holding
Redtone Telecommunication Shanghai Limited
Domicile and Date of Incorporation	The PRC July, 26, 2005
Effective Ownership	100.00%
Principal Activities	Provides technical support services to group companies
Shanghai Huitong Telecommunication Company Limited
Domicile and Date of Incorporation	The PRC March, 26, 2007
Effective Ownership	100.00%
Principal Activities	Marketing and distribution of IP call and discounted call services in the PRC
Shanghai Jiamao E Commerce Company Limited
Domicile and Date of Incorporation	The PRC March 21, 2008
Effective Ownership	100.00%
Principal Activities	Marketing and distribution of IP call and discounted call services in the PRC
Shanghai Xin Chang Information Technology Company Limited
Domicile and Date of Incorporation	The PRC January 13, 2006
Effective Ownership	56.00%
Principal Activities	Marketing and distribution of IP call and discounted call services in the PRC
VMS Technology Limited
Domicile and Date of Incorporation	Hong Kong September 14, 1998
Effective Ownership	100.00%
Principal Activities	Trading of discounted call related equipment and provision of related services
RT Communications Ltd
Domicile and Date of Incorporation	BVI February 24, 2010
Effective Ownership	100.00%
Principal Activities	Investment holding
Taizhou Haitai Motor Vehicle Inspection Co, Ltd.
Domicile and Date of Incorporation	The PRC October 31, 2013
Effective Ownership	30.50%
Principal Activities	Investment holding
Feng Cheng Motor Vehicle Inspection Co., Ltd.
Domicile and Date of Incorporation	The PRC November 30, 2012
Effective Ownership	30.50%
Principal Activities	Dormant

Note 3 - Summary of Significa33

Note 3 - Summary of Significant Accounting Policies: (d) Property, Plant and Equipment: Property, Plant and Equipment, Estimated Useful Lives (Details)	3 Months Ended
	Jul. 31, 2016
Computer and Software
Property, Plant and Equipment, Useful Life	5 years
Furniture, Fixtures and Equipment
Property, Plant and Equipment, Useful Life	5 years
Motor Vehicles
Property, Plant and Equipment, Useful Life	5 years
Leasehold Improvements
Property, Plant and Equipment, Useful Life	5 years
Telecommunication Equipment
Property, Plant and Equipment, Useful Life	10 years

Note 3 - Summary of Significa34

Note 3 - Summary of Significant Accounting Policies: (d) Property, Plant and Equipment (Details) - USD ($)	3 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Details
Depreciation expense	$ 44,268	$ 156,424

Note 3 - Summary of Significa35

Note 3 - Summary of Significant Accounting Policies: (e) Intangible assets (Details) - USD ($)	3 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Amortization expense	$ 39,148	$ 40,126
IT license and software and operating license
Intangible Asset, useful life	20 years
Customer base
Intangible Asset, useful life	3 years

Note 3 - Summary of Significa36

Note 3 - Summary of Significant Accounting Policies: (n) Foreign Currency Translation: Foreign Currency Transactions, Description (Details)	Jul. 31, 2016	Apr. 30, 2016	Jul. 31, 2015
China, Yuan Renminbi
Foreign Currency Exchange Rate, Translation	0.1507	0.1541	0.1613
China, Yuan Renminbi | Average Yearly
Foreign Currency Exchange Rate, Translation	0.1517	0.1570	0.1643
Hong Kong, Dollars
Foreign Currency Exchange Rate, Translation	0.1289	0.1286	0.1290
Hong Kong, Dollars | Average Yearly
Foreign Currency Exchange Rate, Translation	0.1289	0.1289	0.1290

Note 4 - Cash & Cash Equivale37

Note 4 - Cash & Cash Equivalents: Schedule of Cash and Cash Equivalents (Details) - USD ($)	Jul. 31, 2016	Apr. 30, 2016	Jul. 31, 2015	Apr. 30, 2015
Details
Cash and cash equivalents	$ 301,907	$ 345,315	$ 834,125	$ 603,100

Note 5 - Other Receivables an38

Note 5 - Other Receivables and Deposits: Schedule of Other Receivables and Deposits (Details) - USD ($)	Jul. 31, 2016	Apr. 30, 2016
Details
Deposits	$ 203,968	$ 264,982

Note 6 - Property, Plant and 39

Note 6 - Property, Plant and Equipment: Property, Plant and Equipment (Details) - USD ($)	Jul. 31, 2016	Apr. 30, 2016
At cost:
Less: Accumulated depreciation	$ (4,684,014)	$ (4,744,180)
Property, plant and equipment, net	1,033,913	1,014,560
Computer and Software
At cost:
Property, Plant and Equipment, Gross	258,333	165,435
Telecommunication Equipment
At cost:
Property, Plant and Equipment, Gross	5,168,125	5,303,150
Furniture, Fixtures and Equipment
At cost:
Property, Plant and Equipment, Gross	53,516	54,628
Motor Vehicles
At cost:
Property, Plant and Equipment, Gross	117,229	119,870
Leasehold Improvements
At cost:
Property, Plant and Equipment, Gross	$ 120,724	$ 115,657

Note 6 - Property, Plant and 40

Note 6 - Property, Plant and Equipment (Details) - USD ($)	3 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Details
Depreciation expense	$ 44,268	$ 156,424

Note 7 - Intangible Assets_ Sch

Note 7 - Intangible Assets: Schedule of Intangible Assets (Details) - USD ($)	Jul. 31, 2016	Apr. 30, 2016
At cost:
Operating concession	$ 554,289	$ 566,773
Customer Base	75,340	77,037
IT Licenses and Software	2,280,548	2,275,419
Less: Accumulated amortization	(1,345,063)	(1,309,388)
Intangible Assets, Net (Excluding Goodwill), Total	$ 1,565,114	$ 1,609,841

Note 7 - Intangible Assets (Det

Note 7 - Intangible Assets (Details) - USD ($)	3 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Details
Amortization expense	$ 39,148	$ 40,126

Note 8 - Amount Due From_(to)43

Note 8 - Amount Due From/(to) Related Parties: Due From Related Party (Details) - USD ($)	Jul. 31, 2016	Apr. 30, 2016
Amount due from a related company	$ 3,202,689	$ 3,235,344
Amount due to a related company	1,982,791	2,000,813
Shanghai Huili Telecommunications Co., Ltd
Amount due to a related company	0	28,771
REDtone Technology Sdn. Bhd.
Amount due from a related company	3,202,689	3,235,344
Redtone Telecommunications Sdn Bhd
Amount due to a related company	223,778	173,409
Non-controlling interests
Amount due to a related company	$ 1,759,013	$ 1,798,633

Note 9 - Accrued Expenses and44

Note 9 - Accrued Expenses and Other Payables: Schedule of Accrued Expenses and Other Payables (Details) - USD ($)	Jul. 31, 2016	Apr. 30, 2016
Details
Accrued expenses	$ 425,497	$ 379,165
Other payables	511,274	450,330
Accrued expenses and other payables	$ 936,771	$ 829,495

Note 11 - Taxes Payable_ Schedu

Note 11 - Taxes Payable: Schedule of Taxes Payable (Details) - USD ($)	Jul. 31, 2016	Apr. 30, 2016
Details
Income tax payable	$ 1,019,950	$ 992,222
Business tax and other tax payable	(11,603)	(19,995)
Total	$ 1,008,347	$ 972,227

Note 11 - Taxes Payable (Detail

Note 11 - Taxes Payable (Details) - CHINA	3 Months Ended
	Jul. 31, 2016
Statutory tax rate	25.00%
Minimum
Business sales tax rate	3.00%
Maximum
Business sales tax rate	6.00%

Note 12 - Income Tax Expense_ S

Note 12 - Income Tax Expense: Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($)	3 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Details
Current - PRC income tax and Hong Kong	$ 49,440	$ 21,662
Deferred income tax income	0	0
Total	$ 49,440	$ 21,662

Note 12 - Income Tax Expense_48

Note 12 - Income Tax Expense: Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($)	3 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Details
Income before provision for income taxes - continuing operations	$ (81,782)	$ 15,370
Expected PRC income tax expense at statutory tax rate of 25%	(20,445)	3,843
Different tax rate for PRC/Hong Kong local authority	20,476	6,657
Utilization of tax loss brought forward	0	(47,434)
Tax loss not provided for deferred tax	49,409	58,596
Total	$ 49,440	$ 21,662

Note 13 - Variable Interest E49

Note 13 - Variable Interest Entities ("vies"): Schedule of Consolidated VIEs (Details) - USD ($)	3 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Apr. 30, 2016	Apr. 30, 2015
Assets
Cash and cash equivalents	$ 301,907	$ 834,125	$ 345,315	$ 603,100
Other receivables and deposits	203,968		264,982
Property, plant and equipment, net	1,033,913		1,014,560
Intangible asset, net	1,565,114		1,609,841
Liabilities
Accounts payable	568,694		776,356
Total liabilities	5,469,428		5,724,661
Revenue	790,053	2,506,918
Other income and gains	1,277	14,488
Service costs	(459,505)	(1,950,230)
Personnel cost	(127,139)	(159,863)
Depreciation expense	(44,268)	(156,424)
Amortization expense	(39,148)	(40,126)
Administrative and other expenses	(203,052)	(199,393)
Provision for income taxes	49,440	21,662
Variable Interest Entity, Primary Beneficiary, Aggregated Disclosure
Assets
Cash and cash equivalents	22,571		161,340
Accounts receivable	634,182		640,656
Other receivables and deposits	46,086		185,144
Property, plant and equipment, net	479,920		413,072
Intangible asset, net	361,940		381,670
Total assets assets (not include amount due from intra-group companies)	1,544,699		1,781,882
Liabilities
Deferred income	972,557		1,145,770
Accounts payable	547,752		755,461
Accrued Liabilities and Other Liabilities	2,095,722		2,081,052
Taxes payables	73,443		18,332
Total liabilities	3,689,474		$ 4,000,615
Revenue	755,007	1,683,697
Other income and gains	151	(12,028)
Service costs	(459,397)	(1,950,100)
Personnel cost	(58,570)	(93,417)
Depreciation expense	(9,801)	(73,168)
Amortization expense	(11,397)	(12,343)
Administrative and other expenses	(123,744)	(109,646)
Income before provision for income taxes (Not including service costs payable to other intra-group companies)	92,249	(567,005)
Provision for income taxes	(48,167)	(19,931)
Net Income/(loss)	$ 44,082	$ (586,936)

Note 14 - Related Party Trans50

Note 14 - Related Party Transaction: Schedule of Related Party Transactions (Details) - Shanghai Huili Telecommunications Co., Ltd - USD ($)	3 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Revenue from Shanghai Huili Tel.	$ 21,449	$ 586,719
Cost of Sales from Shanghai Huili Tel.	(23,314)	(142,362)
Total	$ (1,865)	$ 444,357