| NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Basis
of Presentation The
accompanying unaudited financial statements of the Company have been prepared in accordance with generally accepted accounting
principles in the United States for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly,
the financial statements do not include all of the information and footnotes required by generally accepted accounting principles
for complete financial statements. In
the opinion of management, all adjustments consisting of normal recurring entries necessary for a fair statement of the periods
presented for (a) the financial position, (b) the result of operations, and (c) cash flows have been made in order to make the
financial statements presented not misleading. The results of operations for such interim periods are not necessarily indicative
of operations for a full year. Principles
of Consolidation For
September 30, 2017, the consolidated financial statements of the Company include the accounts of the Company and its wholly owned
subsidiaries: (1) Element Resources International Limited (Element Resources), a company incorporated in Hong Kong,
(2) Yinfu Group International Holdings Limited (Yinfu Group International), a company incorporated in Hong Kong,
(3) Yinfu International Holdings Limited (Yinfu International), a company incorporated in the Peoples Republic
of China (PRC) and (4) CEI. All significant intercompany balances and transactions have been eliminated in consolidation.
Prior to January 28, 2015, the financial statements presented are those of CEI only.
Entity
Name Incorporated/ Acquisition
Date Ownership Jurisdiction Investment Held
By Nature
Of Operation Fiscal Year
CEI
Jan
28, 2015 100 % BVI
Yinfu
Gold Investment
Holding Dec
31
Element
Resources June 29, 2012 100 % Hong Kong, PRC Yinfu Gold Dormant June 30
Yinfu
Group International April 1, 2017 100 % Hong Kong, PRC CEI Investment Holding Dec 31
Yinfu
International April 1, 2017 100 % PRC Yinfu Group International Investment Holding Dec 31 Use
of Estimates The
preparation of the financial statements was made in conformity with the accounting principles generally accepted in the United
States which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities
as well as disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and judgments
will also affect the reported amounts for certain revenues and expenses during the reporting period. Actual results could differ
from these good faith estimates and judgments. Discontinued
Operations The
Company follows ASC 205-20, Discontinued Operations, Cash
and Cash Equivalents Cash
and cash equivalents include cash in banks, money market funds, and certificates of term deposits with maturities of less than
three months from inception, which are readily convertible to known amounts of cash and which, in the opinion of management, are
subject to an insignificant risk of loss in value. Foreign
Currency Translation and Re-measurement In
accordance with ASC 830, Foreign Currency Matters, the Companys foreign operations whose functional currency
is not the U.S. dollar, the assets and liabilities are translated into U.S. dollars at current exchange rates. Resulting translation
adjustments are reflected as other comprehensive income (loss) in stockholders equity. Revenue and expenses are translated
at average exchange rates for the period. Transaction gains and losses that arise from exchange rate fluctuations on transactions
denominated in a currency other than the functional currency are charged to operations as incurred. The Company had foreign currency
translations loss of $2,185 and $Nil for the six months ended September 30, 2017 and 2016 respectively. Concentrations
of Credit Risk The
Companys financial instruments that are exposed to concentrations of credit risk primarily consist of its cash and cash
equivalents as well as related party payables that it will likely incur in the near future. The Company places its cash and cash
equivalents with financial institutions of high credit worthiness. At times, its cash and cash equivalents with a particular financial
institution may exceed any applicable government insurance limits. The Companys management plans to assess the financial
strength and credit worthiness of any parties to which it extends funds, and as such, it believes that any associated credit risk
exposure is limited. Financial
Instruments The
Company follows ASC 820, Fair Value Measurements and Disclosures, which defines fair value as the exchange price
that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market
for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes
a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from
independent sources (observable inputs) and (2) an entitys own assumptions about market participant assumptions developed
based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three
broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities
(Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described
below: Level
1 Level
1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level
2 Level
2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability
such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in
markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant
inputs are observable or can be derived principally from, or corroborated by, observable market data. Level
3 Level
3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to
the measurement of the fair value of the assets or liabilities. Fair
value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as
of September 30, 2017. The carrying values of our financial instruments, including, cash and cash equivalents; accounts payable
and accrued expenses; and loans and notes payable approximate their fair values due to the short-term maturities of these financial
instruments. Business
Combinations In
accordance with ASC 805-10, Business Combinations, the Company accounts for all business combinations using the
acquisition method of accounting. Under this method, assets and liabilities, including any remaining noncontrolling interests,
are recognized at fair value at the date of acquisition. The excess of the purchase price over the fair value of assets acquired,
net of liabilities assumed, and noncontrolling interests is recognized as goodwill. Certain adjustments to the assessed fair values
of the assets, liabilities, or noncontrolling interests made subsequent to the acquisition date, but within the measurement period,
which is up to one year, are recorded as adjustments to goodwill. Any adjustments subsequent to the measurement period are recorded
in income. Any cost or equity method interest that the Company holds in the acquired company prior to the acquisition is re-measured
to fair value at acquisition with a resulting gain or loss recognized in income for the difference between fair value and the
existing book value. Results of operations of the acquired entity are included in the Companys results from the date of
the acquisition onward and include amortization expense arising from acquired tangible and intangible assets. Deferred
Income Taxes and Valuation Allowance The
Company accounts for income taxes under ASC 740, Income Taxes. Under the asset and liability method of ASC 740,
where deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the
financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and
liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences
are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized
in income in the period the enactment occurs. A valuation allowance is provided for certain deferred tax assets if it is more
likely than not that the Company will not realize tax assets through future operations. No deferred tax assets or liabilities
were recognized as at September 30, 2017 and March 31, 2017. Net
Income (Loss) Per Share of Common Stock The
Company has adopted ASC Topic 260, Earnings per Share, The
following table sets forth the computation of basic earnings (loss) per share, for the six months ended September 30, 2017 and
2016:
Six
Months Ended September
30,
2017 2016
Net
income (loss) $ (166,698 ) $ (44,340 )
Weighted
average common shares outstanding (basic and diluted) 9,917,635 9,917,703
Net
income (loss) per common share, basic and diluted $ (0.02 ) $ (0.00 ) Commitments
and Contingencies The
Company follows ASC 450-20, Loss Contingencies, to report accounting for contingencies. Liabilities for loss contingencies
arising from claims, assessments, litigation, fines and penalties, as well as other sources are recorded when it is probable that
a liability has been incurred and the amount of the assessment can be reasonably estimated. There were no commitments or contingencies
as of September 30, 2017 and March 31, 2017. Recent
Accounting Pronouncements In
January 2017, the FASB has issued Accounting Standards Update (ASU) No. 2017-04, Intangibles - Goodwill and Other (Topic
350): Simplifying the Test for Goodwill Impairment. These amendments eliminate Step 2 from the goodwill impairment test.
The annual, or interim, goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying
amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting units
fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In addition,
income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit should be considered when measuring
the goodwill impairment loss, if applicable. The amendments also eliminate the requirements for any reporting unit with a zero
or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the
goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine
if the quantitative impairment test is necessary. Effective for public business entities that are a SEC filers for annual or any
interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or
annual goodwill impairment tests performed on testing dates after January 1, 2017. ASU 2017-04 should be adopted on a prospective
basis. The Company is currently evaluating the potential impact that the adoption of this ASU may have on its financial statements. In
December 2016, the FASB has issued Accounting Standards Update (ASU) No. 2016-20, Technical Corrections and Improvements
to Topic 606, Revenue from Contracts with Customers. The amendments affect narrow aspects of the guidance issued in ASU
2014-09 including Loan Guarantee Fees, Contract Costs, Provisions for Losses on Construction-Type and Production-Type Contracts,
Disclosure of Remaining Performance Obligations, Disclosure of Prior Period Performance Obligations, Contract Modifications, Contract
Asset vs. Receivable, Refund Liability, Advertising Costs, Fixed Odds Wagering Contracts in the Casino Industry, and Costs Capitalized
for Advisors to Private Funds and Public Funds. The effective date and transition requirements for the amendments are the same
as the effective date and transition requirements for FASB Accounting Standards Codification Topic 606. Public entities should
apply Topic 606 (and related amendments) for annual reporting periods beginning after December 15, 2017, including interim reporting
periods therein. The Company is currently evaluating the potential impact that the adoption of this ASU may have on its financial
statements. Management
has considered all other recent accounting pronouncements issued since the last audit of our financial statements. The Companys
management believes that these recent pronouncements will not have a material effect on the Companys financial statements. Related
Parties The
Company follows ASC 850, Related Party Disclosures, Revenue
Recognition The
Company will recognize revenue from the sale of products and services in accordance with ASC 605, Revenue Recognition.
i) Persuasive evidence
for an agreement exists;
ii) Service has been
provided;
iii) The fee is fixed
or determinable; and,
iv) Collection is reasonably
assured. |
