Cover
Cover | 9 Months Ended |
Dec. 31, 2021 | |
Cover [Abstract] | |
Document Type | S-1/A |
Amendment Flag | true |
Amendment Description | Amendment No. 19 |
Entity Registrant Name | ADDENTAX GROUP CORP. |
Entity Central Index Key | 0001650101 |
Entity Tax Identification Number | 35-2521028 |
Entity Incorporation, State or Country Code | NV |
Entity Address, Address Line One | Kingkey 100 |
Entity Address, Address Line Two | Block A, Room 4805 |
Entity Address, Address Line Three | Luohu District |
Entity Address, City or Town | Shenzhen City |
Entity Address, Postal Zip Code | 518000 |
Country Region | China |
City Area Code | (86) |
Local Phone Number | 755 8233 0336 |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | true |
Entity Emerging Growth Company | true |
Elected Not To Use the Extended Transition Period | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Dec. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 |
CURRENT ASSETS | |||
Cash and cash equivalents | $ 506,342 | $ 1,845,077 | $ 531,681 |
Accounts receivables | 1,718,991 | 4,757,518 | 4,500,116 |
Inventories | 298,196 | 270,434 | 347,531 |
Prepayments and other receivables | 610,621 | 684,161 | 231,974 |
Advances to suppliers | 1,522,370 | 355,454 | 389,940 |
Amount due from related party | 171,364 | 84,838 | |
Total current assets | 4,827,884 | 7,997,482 | 6,001,242 |
NON-CURRENT ASSETS | |||
Plant and equipment, net | 869,603 | 793,977 | 585,019 |
Long-term prepayments | 9,348 | ||
Operating lease right of use asset | 7,307,883 | 9,632,625 | 1,835,717 |
Total non-current assets | 8,186,834 | 10,426,602 | 2,420,736 |
TOTAL ASSETS | 13,014,718 | 18,424,084 | 8,421,978 |
CURRENT LIABILITIES | |||
Short-term loan | 157,354 | 152,607 | 353,114 |
Accounts payable | 1,221,731 | 3,121,373 | 3,620,583 |
Related party borrowings | 3,536,615 | 4,913,964 | 5,429,440 |
Advances from customers | 34,683 | 3,029 | 18,931 |
Accrued expenses and other payables | 778,260 | 681,984 | 230,917 |
Lease liabilities, current portion | 3,701,925 | 3,555,458 | 443,543 |
Total current liabilities | 9,430,568 | 12,428,415 | 10,096,528 |
NON-CURRENT LIABILITIES | |||
Lease liability, net of current portion | 3,605,958 | 6,077,167 | 1,392,174 |
TOTAL LIABILITIES | 13,036,526 | 18,505,582 | 11,488,702 |
EQUITY | |||
Common stock ($0.001 par value, 50,000,000 shares authorized, 26,693,004 and 25,346,004 shares issued and outstanding as of March 31, 2021 and 2020 respectively) | 26,693 | 26,693 | 25,346 |
Additional paid-in capital | 6,815,333 | 6,815,333 | 61,050 |
Accumulated deficits | (6,711,641) | (6,834,228) | (3,233,122) |
Statutory reserve | 13,821 | 13,821 | 23,514 |
Accumulated other comprehensive income (loss) | (166,014) | (103,117) | 56,488 |
Total deficit | (21,808) | (81,498) | (3,066,724) |
TOTAL LIABILITIES AND EQUITY | $ 13,014,718 | $ 18,424,084 | $ 8,421,978 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 |
Statement of Financial Position [Abstract] | |||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 |
Common stock, shares issued | 26,693,004 | 26,693,004 | 25,346,004 |
Common stock, shares outstanding | 26,693,004 | 26,693,004 | 25,346,004 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||||||
REVENUES | $ 2,791,470 | $ 3,411,552 | $ 9,835,733 | $ 21,014,064 | $ 24,734,759 | $ 10,172,379 |
COST OF REVENUES | (2,323,716) | (2,950,124) | (8,314,149) | (22,776,087) | (25,921,936) | (8,787,018) |
GROSS PROFIT (LOSS) | 467,754 | 461,428 | 1,521,584 | (1,762,023) | (1,187,177) | 1,385,361 |
OPERATING EXPENSES | ||||||
Selling and marketing | (43,118) | (217,942) | (135,310) | (376,975) | (413,654) | (13,406) |
General and administrative | (452,312) | (532,012) | (1,375,513) | (1,454,017) | (2,007,343) | (2,236,273) |
Total operating expenses | (495,430) | (749,954) | (1,510,823) | (1,830,992) | (2,420,997) | (2,249,679) |
(LOSS) INCOME FROM OPERATIONS | (27,676) | (288,526) | 10,761 | (3,593,015) | (3,608,174) | (864,318) |
Interest income | 72 | 102 | 2,135 | 102 | 230 | 130 |
Interest expenses | (2,526) | (646) | (5,375) | (6,586) | (19,142) | (20,799) |
Other income (expenses), net | 43,958 | 1,273 | 132,959 | 62,489 | 62,784 | (79,560) |
INCOME (LOSS) BEFORE INCOME TAX EXPENSE | 13,828 | (287,797) | 140,480 | (3,537,010) | (3,564,302) | (964,547) |
INCOME TAX EXPENSE | (2,209) | (15,784) | (17,893) | (23,196) | (25,867) | (16,070) |
NET INCOME (LOSS) | 11,619 | (303,581) | 122,587 | (3,560,206) | (3,590,169) | (980,617) |
Foreign currency translation loss | (28,755) | (85,728) | (62,897) | (173,879) | (159,605) | 91,443 |
TOTAL COMPREHENSIVE INCOME (LOSS) | $ (17,136) | $ (389,309) | $ 59,690 | $ (3,734,085) | $ (3,749,774) | $ (889,174) |
EARNINGS (LOSS) PER SHARE | ||||||
Basic and diluted | $ 0 | $ (0.01) | $ 0 | $ (0.14) | $ (0.14) | $ (0.04) |
Weighted average number of shares outstanding – Basic and diluted | 26,556,566 | 25,712,713 | 26,556,566 | 25,712,713 | 25,817,990 | 25,346,004 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings Unrestricted [Member] | Retained Earnings Statutor Reserve [Member] | AOCI Attributable to Parent [Member] | Total |
Beginning balance, value at Mar. 31, 2019 | $ 25,346 | $ 61,050 | $ (2,250,770) | $ 21,779 | $ (34,955) | $ (2,177,550) |
Beginning balance, shares at Mar. 31, 2019 | 25,346,004 | |||||
Foreign currency translation | 91,443 | 91,443 | ||||
Net income (loss) | (980,617) | (980,617) | ||||
Transfer to Statutory reserve | (1,735) | 1,735 | ||||
Ending balance, value at Mar. 31, 2020 | $ 25,346 | 61,050 | (3,233,122) | 23,514 | 56,488 | (3,066,724) |
Ending balance, shares at Mar. 31, 2020 | 25,346,004 | |||||
Paid in capital | $ 747 | 3,734,253 | 3,735,000 | |||
Paid in capital, shares | 747,000 | |||||
Movement of Statutory reserve | 20,630 | (10,779) | (9,851) | |||
Foreign currency translation | (173,879) | (173,879) | ||||
Net income (loss) | (3,560,206) | (3,560,206) | ||||
Ending balance, value at Dec. 31, 2020 | $ 26,093 | 3,815,933 | (6,804,107) | 13,663 | (117,391) | (3,065,809) |
Ending balance, shares at Dec. 31, 2020 | 26,093,004 | |||||
Beginning balance, value at Mar. 31, 2020 | $ 25,346 | 61,050 | (3,233,122) | 23,514 | 56,488 | (3,066,724) |
Beginning balance, shares at Mar. 31, 2020 | 25,346,004 | |||||
Foreign currency translation | (159,605) | (159,605) | ||||
Net income (loss) | (3,590,169) | (3,590,169) | ||||
Issuance of common stocks for cash | $ 1,347 | 6,733,653 | 6,735,000 | |||
Issuance of common stocks for cash, shares | 1,347,000 | |||||
Appropriation of Statutory reserve and release of Statutory Reserve with disposition of subsidiaries | 20,630 | (10,937) | (9,693) | |||
Ending balance, value at Mar. 31, 2021 | $ 26,693 | 6,815,333 | (6,834,228) | 13,821 | (103,117) | (81,498) |
Ending balance, shares at Mar. 31, 2021 | 26,693,004 | |||||
Beginning balance, value at Sep. 30, 2020 | $ 26,093 | 3,795,303 | (6,489,747) | 23,514 | (31,663) | (2,676,500) |
Beginning balance, shares at Sep. 30, 2020 | 25,346,004 | |||||
Movement of Statutory reserve | 20,630 | (10,779) | (9,851) | |||
Foreign currency translation | (85,728) | (85,728) | ||||
Net income (loss) | (303,581) | (303,581) | ||||
Ending balance, value at Dec. 31, 2020 | $ 26,093 | 3,815,933 | (6,804,107) | 13,663 | (117,391) | (3,065,809) |
Ending balance, shares at Dec. 31, 2020 | 26,093,004 | |||||
Beginning balance, value at Mar. 31, 2021 | $ 26,693 | 6,815,333 | (6,834,228) | 13,821 | (103,117) | (81,498) |
Beginning balance, shares at Mar. 31, 2021 | 26,693,004 | |||||
Foreign currency translation | (62,897) | (62,897) | ||||
Net income (loss) | 122,587 | 122,587 | ||||
Ending balance, value at Dec. 31, 2021 | $ 26,693 | 6,815,333 | (6,711,641) | 13,821 | (166,014) | (21,808) |
Ending balance, shares at Dec. 31, 2021 | 26,693,004 | |||||
Beginning balance, value at Sep. 30, 2021 | $ 26,093 | 6,815,333 | (6,723,260) | 13,821 | (137,259) | (4,672) |
Beginning balance, shares at Sep. 30, 2021 | 26,693,004 | |||||
Foreign currency translation | (28,755) | (28,755) | ||||
Net income (loss) | 11,619 | 11,619 | ||||
Ending balance, value at Dec. 31, 2021 | $ 26,693 | $ 6,815,333 | $ (6,711,641) | $ 13,821 | $ (166,014) | $ (21,808) |
Ending balance, shares at Dec. 31, 2021 | 26,693,004 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net income (loss) | $ 122,587 | $ (3,560,206) | $ (3,590,169) | $ (980,617) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||
Depreciation | 115,561 | 83,210 | 101,014 | 114,391 |
Loss on disposal of plant and equipment | 1,472 | 46,769 | 87,305 | |
Changes in operating assets and liabilities: | ||||
Accounts receivable | 3,038,527 | 1,367,371 | (365,122) | (2,701,627) |
Inventories | (27,762) | 174,487 | 67,322 | (29,484) |
Advances to suppliers | (1,166,916) | (320,771) | (466,049) | (159,456) |
Other receivables | 73,540 | (65,150) | (186,571) | (53,846) |
Accounts payables | (1,899,642) | (1,688,272) | (268,181) | 2,736,332 |
Accrued expenses and other payables | 96,276 | 173,582 | 409,146 | (80,109) |
Advances from customers | 31,654 | 52,161 | 28,833 | (83,742) |
Net cash used in operating activities | 383,825 | (3,782,116) | (4,223,008) | (1,150,853) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Purchase of plant and equipment | (176,268) | (392,108) | (405,851) | (136,001) |
Proceeds from sale of property and equipment | 2,243 | 2,439 | ||
Proceeds from disposal of subsidiaries | 542,242 | |||
Cash decreased in disposal of subsidiaries | (704,479) | (701,882) | ||
Net cash used in investing activities | (176,268) | (1,094,344) | (563,052) | (136,001) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Proceeds from issue of common stocks | 3,735,000 | 6,735,000 | ||
Proceeds from related party borrowings | 3,797,473 | 7,697,827 | 9,200,975 | 2,475,728 |
Repayment of related party borrowings | (5,341,046) | (6,605,044) | (9,702,083) | (1,063,323) |
Proceeds from bank borrowings | 86,886 | 87,032 | 515,447 | |
Repayment of bank borrowings | (196,456) | (221,268) | (371,868) | |
Net cash provided by financing activities | (1,543,573) | 4,718,213 | 6,099,656 | 1,555,984 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | (1,336,016) | (158,247) | 1,313,596 | 269,130 |
Effect of exchange rate changes on cash and cash equivalents | (2,719) | (16,706) | (200) | (14,713) |
Cash and cash equivalents, beginning of year | 1,845,077 | 531,681 | 531,681 | 277,264 |
CASH AND CASH EQUIVALENTS, END OF YEAR | 506,342 | 356,728 | 1,845,077 | 531,681 |
Supplemental disclosure of cash flow information: | ||||
Cash paid during the year for interest | 4,523 | 4,588 | 15,143 | |
Cash paid during the year for income tax | 17,893 | 23,196 | 25,867 | 16,070 |
Supplemental disclosure of non-cash investing and financing activities: | ||||
Right-of-use assets obtained in exchange for operating lease obligations | 342,457 | 10,404,962 | $ 9,380,402 | $ 1,982,393 |
Net assets of subsidiaries disposed of recorded as Other Receivables | $ 118,454 |
ORGANIZATION AND BUSINESS ACQUI
ORGANIZATION AND BUSINESS ACQUISITIONS | 9 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Mar. 31, 2021 | |
Accounting Policies [Abstract] | ||
ORGANIZATION AND BUSINESS ACQUISITIONS | 1. ORGANIZATION AND BUSINESS ACQUISITIONS ATXG and its subsidiaries (the “Company”) are engaged in the business of garments manufacturing, providing logistic services, property leasing and management service in the People’s Republic of China (“PRC” or “China”) and epidemic prevention supplies manufacturing and distribution both in China and overseas markets. | 1. ORGANIZATION AND BUSINESS ACQUISITIONS ATXG and its subsidiaries (the “Company”) are engaged in the business of garments manufacturing, providing logistic services, property leasing and management service in the People’s Republic of China (“PRC” or “China”) and epidemic prevention supplies manufacturing and distribution both in China and overseas markets. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
BASIS OF PRESENTATION | 2. BASIS OF PRESENTATION In the opinion of management, the unaudited condensed consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the interim periods presented. All significant intercompany transactions and balances are eliminated in consolidation. However, the results of operations included in such financial statements may not necessary be indicative of annual results. The Company uses the same accounting policies in preparing quarterly and annual financial statements. Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended March 31, 2021 filed with the Securities and Exchange Commission (“SEC”) on June 29, 2021 (“2020 Form 10-K.”). GOING CONCERN UNCERTAINTY The accompanying unaudited condensed consolidated financial statements are presented on the basis that the Company is a going concern. The going concern assumption contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company incurred net income of $ 11,619 and net loss of $ 303,581 for the three months ended December 31, 2021 and 2020, respectively, and net income of $ 122,587 and net loss of $ 3,560,206 for the nine months ended December 31, 2021 and 2020, respectively. As of December 31, 2021 and March 31, 2021, the Company had net current liability of $ 4,602,684 and $ 4,430,933 , respectively, and a deficit on total equity of $ 21,808 and $ 81,498 , respectively. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The ability to continue as a going concern is dependent upon the Company’s profit generating operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company expects to finance operations primarily through cash flow from revenue and capital contributions from the CEO. During the year, the CEO has provided financial support for the operations of the Company. In the event that the Company requires additional funding to finance the growth of the Company’s current and expected future operations as well as to achieve our strategic objectives, the CEO has indicated the intent and ability to provide additional equity financing. | 2. BASIS OF PRESENTATION The accompanying consolidated financial statements of the Company and its subsidiaries are prepared pursuant to the rules and regulations of the U.S. Securities and Exchanges Commission (“SEC”) and in conformity with generally accepted accounting principles in the U.S. (“US GAAP”). All material inter-company accounts and transactions have been eliminated in consolidation. GOING CONCERN UNCERTAINTY The accompanying consolidated financial statements are presented on the basis that the Company is a going concern. The going concern assumption contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company incurred net loss of $ 3,590,169 980,617 4,430,933 4,095,286 81,498 3,066,724 The ability to continue as a going concern is dependent upon the Company’s profit generating operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company expects to finance operations primarily through cash flow from revenue and capital contributions from the CEO. During the year, the CEO has provided financial support for the operations of the Company. In the event that the Company requires additional funding to finance the growth of the Company’s current and expected future operations as well as to achieve its strategic objectives, the CEO has indicated the intent and ability to provide additional equity financing. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Mar. 31, 2021 | |
Accounting Policies [Abstract] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of the consolidated financial statements in conformity with US GAAP 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however actual results could differ materially from those estimates. There is no change on the accounting policies for the three months ended December 31, 2021. Recently issued accounting pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. This standard requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. This standard will be effective for the Company on April 1, 2023. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements. The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s consolidated financial statements. | 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Use of Estimates The preparation of the consolidated financial statements in conformity with US GAAP 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however actual results could differ materially from those estimates. (b) Fair Value Measurement Accounting Standards Codification (“ASC”) 820 “ Fair Value Measurements and Disclosures “, which defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. The statement clarifies that the exchange price is the price in an orderly transaction between market participants to sell the asset or transfer the liability in the market in which the reporting entity would transact for the asset or liability, that is, the principal or most advantageous market for the asset or liability. It also emphasizes that fair value is a market-based measurement, not an entity-specific measurement, and that market participant assumptions include assumptions about risk and effect of a restriction on the sale or use of an asset. This ASC establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no At March 31, 2021, the Company has no The Company’s financial instruments include cash, accounts receivable, advances to suppliers, other receivables, accounts payable, other payables, taxes payables and related party receivables or payables. Management estimates that the carrying amounts of financial instruments approximate their fair values due to their short-term nature. The fair value of amounts with related parties is not practicable to estimate due to the related party nature of the underlying transactions. (c) Cash and Cash Equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. All cash and cash equivalents relate to cash on hand and cash at bank at March 31, 2021 and 2020. The Renminbi is not freely convertible into foreign currencies. Under the PRC Foreign Exchange Control Regulations and Administration of Settlement, Sales and Payment of Foreign Exchange Regulations, the Company is permitted to exchange Renminbi for foreign currencies through banks that are authorized to conduct foreign exchange business. (d) Accounts Receivable Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of accounts receivable. The Company extends credit to its customers in the normal course of business and generally does not require collateral. The Company’s credit terms are dependent upon the segment, and the customer. The Company assesses the probability of collection from each customer at the outset of the arrangement based on a number of factors, including the customer’s payment history and its current creditworthiness. If in management’s judgment collection is not probable, the Company does not record revenue until the uncertainty is removed. Management performs ongoing credit evaluations, and the Company maintains an allowance for potential credit losses based upon its loss history and its aging analysis. The allowance for doubtful accounts is the Company’s best estimate of the amount of credit losses in existing accounts receivable. Management reviews the allowance for doubtful accounts each reporting period based on a detailed analysis of trade receivables. In the analysis, management primarily considers the age of the customer’s receivable, and also considers the creditworthiness of the customer, the economic conditions of the customer’s industry, general economic conditions and trends, and the business relationship and history with its customers, among other factors. If any of these factors change, the Company may also change its original estimates, which could impact the level of the Company’s future allowance for doubtful accounts. If judgments regarding the collectability of receivables were incorrect, adjustments to the allowance may be required, which would reduce profitability. Accounts receivable are recognized and carried at the original invoice amount less an allowance for any uncollectible amounts. An estimate for doubtful accounts receivable is made when collection of the full amount is no longer probable. Bad debts are written off as incurred. No (e) Inventories Manufacturing segment inventories consist of raw materials, work in progress and finished goods and are stated at the lower of cost, determined on a weighted average basis, or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business less the estimated cost of completion and the estimated costs necessary to make the sale. When inventories are sold, their carrying amount is charged to expense in the period in which the revenue is recognized. Write-downs for declines in net realizable value or for losses of inventories are recognized as an expense in the period the impairment or loss occurs. No (f) Plant and Equipment Plant and equipment are carried at cost less accumulated depreciation. Depreciation is provided over the assets’ estimated useful lives, using the straight-line method. Estimated useful lives of the plant and equipment are as follows: SCHEDULE OF PLANT AND EQUIPMENT USEFUL LIVES Production plant 5 10 Motor vehicles 10 15 Office equipment 5 10 The cost and 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 loss and comprehensive loss. The cost of maintenance and repairs is charged to the statement of income as incurred, whereas significant renewals and betterments are capitalized. (g) Accounting for the Impairment of Long-Lived Assets and Goodwill In previous, the Company early adopted ASU 2017-04. Under the new accounting guidance, the Company should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. In previous financial statements for the year ended March 31, 2020, the Company impaired goodwill of $ 475,003 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 was no (h) Revenue Recognition Revenue is generated through sale of goods and delivery services. Revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods and services. The Company applies the following five-step model in order to determine this amount: (i) identification of the promised goods and services in the contract; (ii) determination of whether the promised goods and services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers at a point in time, typically upon delivery of the good or service. For all reporting periods, the Company has not disclosed the value of unsatisfied performance obligations for all product and service revenue contracts with an original expected length of one year or less, which is an optional exemption that is permitted under the adopted rules as of March 31, 2021 and 2020. Cost of revenues for garment manufacturing segment includes the direct raw material cost, direct labor cost, manufacturing overheads including depreciation of production equipment and rent. Cost of revenue for logistics services segment includes gasoline and diesel fuel, toll charges and subcontracting fees. Cost of revenue of property management and subleasing business was mainly the amortization of right-of-used assets for the subleasing business. Cost of revenue for epidemic prevention supplies business includes cost of merchandise and cost of direct raw materials, direct labor, and manufacturing overheads of our own products. (i) Earnings Per Share The Company reports earnings (loss) per share in accordance with ASC 260 “Earnings Per Share”, which requires presentation of basic and diluted earnings per share in conjunction with the disclosure of the methodology used in computing such earnings per share. Basic earnings per share excludes dilution and is computed by dividing income available to common stockholders by the weighted average common shares outstanding during the reporting period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. Further, if the number of common shares outstanding increases as a result of a stock dividend or stock split or decreases as a result of a reverse stock split, the computations of a basic and diluted earnings per share shall be adjusted retroactively for all periods presented to reflect that change in capital structure. The Company had no (j) Income Taxes The Company accounts for income taxes using the asset and liability method prescribed by ASC 740 “Income Taxes”. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the years in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized as income or loss in the period that includes the enactment date. The Company has a history of tax losses and there is no convincing evidence that sufficient taxable income will be available against which the deferred tax asset can be utilized, therefore, the Company does not recognize any tax benefits for the year ended March 31, 2021 and 2020. The Company’s Chinese subsidiaries are governed by the Income Tax Laws of the PRC. The PRC federal statutory tax rate is 25 The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. The Company does not have any accrued interest or penalties associated with any unrecognized tax benefits, nor was any interest expense recognized during the years ended March 31, 2021 and 2020. The Company’s effective tax rate differs from the PRC federal statutory rate primarily due to non-deductible expenses, temporary differences and preferential tax treatments. The U.S. federal tax legislation, commonly referred to as the Tax Cuts and Jobs Act (the “U.S. Tax Reform”), was signed into law on December 22, 2017. The U.S. Tax Reform modified the U.S. Internal Revenue Code by, among other things, reducing the statutory U.S. federal corporate income tax rate from 35% to 21 no (k) Leases Lessee The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities, and operating lease liabilities in our consolidated balance sheets. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the leases do not provide an implicit rate, The Company generally use the incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Lessor As a lessor, the Company’s leases are classified as operating leases under ASC 842. Leases, in which the Company is the lessor, are substantially all accounted for as operating leases and the lease components and non-lease components are accounted for separately. Rental income from operating leases is recognized on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognized on a straight-line basis over the lease term. (l) Recently issued and adopted accounting pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. This standard requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. This standard will be effective for the Company on April 1, 2023. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements. The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s consolidated financial statements. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Mar. 31, 2021 | |
Related Party Transactions [Abstract] | ||
RELATED PARTY TRANSACTIONS | 4. RELATED PARTY TRANSACTIONS SCHEDULE OF RELATED PARTIES RELATIONSHIP WITH THE COMPANY Name of Related Parties Relationship with the Company Zhida Hong President, CEO, and a director of the Company Zhongpeng Chen A legal representative of HPF, became not a related party when HPF was disposed of in November, 2020 Bihua Yang A legal representative of XKJ Zhiyong Zhou General Manager of XKJ Dewu Huang A legal representative of YBY Jinlong Huang A spouse of legal representative of HSW The Company leases Shenzhen XKJ office rent-free from Bihua Yang. The Company had the following related party balances as of December 31, 2021 and March 31, 2021: SCHEDULE OF RELATED PARTY TRANSACTION Amount due from related party December 31, 2021 March 31, 2021 Hongye Financial Consulting (Shenzhen) Co., Ltd. $ 154,210 $ 84,838 Zhiyong Zhou (1) 17,154 - $ 171,364 $ 84,838 Related party borrowings December 31, 2021 March 31, 2021 Zhida Hong (2) $ 3,208,463 $ 3,727,371 Bihua Yang (3) - 370,523 Dewu Huang (4) 177,755 712,064 Jinlong Huang 150,397 104,006 $ 3,536,615 $ 4,913,964 (1) Being cash advance to Zhiyong Zhou to pay for daily operating expenditures of XKJ. (2) The decrease was due to net repayment of debt due to Zhida Hong. During the three and nine months ended December 31, 2021, the Company received financial support of $ 0.03 million and 0.27 million from Zhida Hong and repaid $ 0.3 million and $ 0.9 million of debts due to him. (3) Being financial support from Bihua Yang for XKJ’s daily operation. (4) The decrease was due to net repayment of debt due to Dewu Huang. During the nine months ended December 31, 2021, the company received interest free advanced loan as financial support of approximately $ 1.5 million from Dewu Huang and repaid approximately $ 2.0 million of debts due to him. The related party debt was additional financial support provided by Dewu Huang for YBY’s daily operation. The borrowing balances with related parties are unsecured, non-interest bearing and repayable on demand. | 5. RELATED PARTY TRANSACTIONS SCHEDULE OF RELATED PARTIES RELATIONSHIP WITH THE COMPANY Name of Related Parties Relationship with the Company Zhida Hong President, CEO, and a director of the Company Hongye Financial Consulting (Shenzhen) Co., Ltd. A company controlled by CEO, Mr. Zhida Hong Zhongpeng Chen A legal representative of HPF, became not a related party when HPF was disposed of in November, 2020 Bihua Yang A legal representative of XKJ Dewu Huang A legal representative of YBY Jinlong Huang A spouse of legal representative of HSW The Company leases Shenzhen XKJ office rent-free from Bihua Yang. In September, the Company disposed of $ 114,229 The Company had the following related party balances at the end of the years: SCHEDULE OF RELATED PARTY TRANSACTION Amount due from related party 2021 2020 Hongye Financial Consulting (Shenzhen) Co., Ltd. 84,838 Nil $ 84,838 $ Nil Being lease of the quarter ended March 31, 2021 paid on behalf of Hongye Financial Consulting (Shenzhen) Co., Ltd. for the shared office in Shenzhen. Related party debt 2021 2020 Zhida Hong (1) $ 3,727,371 $ 5,043,489 Bihua Yang (2) 370,523 - Dewu Huang (3) 712,064 81,287 Zhongpeng Chen - 160,427 Jinlong Huang 104,006 144,237 $ 4,913,964 $ 5,429,440 (1) The decrease was due to net repayment of debt due to Zhida Hong. During years ended March 31, 2021, the Company received financial support of $ 2.2 3.6 (2) Being financial support from Bihua Yang for XKJ’s daily operation. (3) The increase of related party debt was additional financial support provided by Dewu Huang for YBY’s daily operation. The borrowing balances of related party are unsecured, non-interest bearing and repayable on demand. |
INVENTORIES
INVENTORIES | 9 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | ||
INVENTORIES | 5. INVENTORIES Inventories consist of the following as of December 31, 2021 and March 31, 2021: SCHEDULE OF INVENTORIES December 31, 2021 March 31, 2021 Raw materials $ 242,644 $ 234,870 Work in progress 3,916 - Finished goods 51,636 35,564 Total inventories $ 298,196 $ 270,434 There is no inventory write-off for the three and nine months ended December 31, 2021 and 2020. | 6. INVENTORIES Inventories consist of the following as of March 31, 2021 and 2020: SCHEDULE OF INVENTORIES 2021 2020 Raw materials $ 234,871 $ 230,742 Work in progress - 62,150 Finished goods 35,564 54,639 Total inventories $ 270,434 $ 347,531 There is no |
ADVANCES TO SUPPLIERS
ADVANCES TO SUPPLIERS | 9 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Mar. 31, 2021 | |
Advances To Suppliers | ||
ADVANCES TO SUPPLIERS | 6. ADVANCES TO SUPPLIERS The Company has made advances to third-party suppliers in advance of receiving inventory parts. These advances are generally made to expedite the delivery of required inventory when needed and to help to ensure priority and preferential pricing on such inventory. The amounts advanced to suppliers are fully refundable on demand. The Company reviews a supplier’s credit history and background information before advancing a payment. If the financial condition of its suppliers were to deteriorate, resulting in an impairment of their ability to deliver goods or provide services, the Company would recognize bad debt expense in the period they are considered unlikely to be collected. | 7. ADVANCES TO SUPPLIERS The Company has made advances to third-party suppliers in advance of receiving inventory parts. These advances are generally made to expedite the delivery of required inventory when needed and to help to ensure priority and preferential pricing on such inventory. The amounts advanced to suppliers are fully refundable on demand. The Company reviews a supplier’s credit history and background information before advancing a payment. If the financial condition of its suppliers were to deteriorate, resulting in an impairment of their ability to deliver goods or provide services, the Company would recognize bad debt expense in the period they are considered unlikely to be collected. |
PREPAYMENTS AND OTHER RECEIVABL
PREPAYMENTS AND OTHER RECEIVABLES | 9 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Mar. 31, 2021 | |
Receivables [Abstract] | ||
PREPAYMENTS AND OTHER RECEIVABLES | 7. PREPAYMENTS AND OTHER RECEIVABLES Prepayments and other receivables consist of the following as of December 31, 2021 and March 31, 2021: SCHEDULE OF PREPAYMENTS AND OTHER RECEIVABLES December 31, 2021 March 31, 2021 Prepayment 34,248 - Deposit 79,447 155,830 Receivable of consideration on disposal of subsidiaries 269,057 258,929 Other receivables 227,869 269,402 Total Prepayment $ 610,621 $ 684,161 | 8. PREPAYMENTS AND OTHER RECEIVABLES Prepayments and other receivables consists of the following as of March 31, 2021 and 2020: SCHEDULE OF PREPAYMENTS AND OTHER RECEIVABLES 2021 2020 Deposit 155,830 123,965 Receivable of consideration on disposal of subsidiaries 258,929 - Other receivables 269,402 108,009 Total Prepayment $ 684,161 $ 231,974 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 9 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||
PROPERTY, PLANT AND EQUIPMENT | 8. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consists of the following as of December 31, 2021 and March 31, 2021: SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT December 31, 2021 March 31, 2021 Production plant $ 73,871 $ 71,642 Motor vehicles 1,189,673 1,020,893 Office equipment 28,129 14,073 1,291,673 1,106,608 Less: accumulated depreciation (422,070 ) (312,631 ) Plant and equipment, net $ 869,603 $ 793,977 Depreciation expense for the three and nine months ended December 31, 2021 and 2020 was $ 44,164 and $ 32,051 , $ 115,561 and $ 83,210 , respectively. | 9. PLANT AND EQUIPMENT PROPERTY, PLANT AND EQUIPMENT Plant and equipment consists of the following as of March 31, 2021 and 2020: SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT 2021 2020 Production plant $ 71,642 $ 67,247 Motor vehicles 1,020,893 868,743 Office equipment 14,073 19,471 1,106,608 955,461 Less: accumulated depreciation (312,631 ) (370,442 ) Plant and equipment, net $ 793,977 $ 585,019 Depreciation expense for the years ended March 31, 2021 and 2020 was $ 101,014 114,391 |
SHORT-TERM BANK LOAN
SHORT-TERM BANK LOAN | 9 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Mar. 31, 2021 | |
Debt Disclosure [Abstract] | ||
SHORT-TERM BANK LOAN | 9. SHORT-TERM BANK LOAN In August 2019, HSW entered into a facility agreement with Agricultural Bank of China and obtained a line of credit, which allows the Company to borrow up to approximately $ 153,172 (RMB 1,000,000 ) for daily operations. The loans are guaranteed at no cost by the legal representative of HSW. As of December 31, 2021, the Company has borrowed $ 157,354 (RMB 1,000,000 ) (March 31, 2021: $ 152,607 ) under this line of credit with various annual interest rates from 4.84% to 4.9% . The outstanding loan balance was due on September 30, 2021. The Company was not able to renew the loan facility with the bank. The Company is negotiating with the bank on repayment schedule of the loan balance and interest payable. In January 2022, Ding Yinping, underwriter of the loan, partly repaid $ 6,596 (RMB 41,921 ) on behalf of the Company. | 10. SHORT-TERM BANK LOAN In September 2018, HSW, a subsidiary of the Company entered into a facility agreement with Dongguan Agricultural Commercial Bank and obtained a line of credit, which allows the Company to borrow up to approximately $ 212,334 1,500,000 6.96 211,868 1,500,000 September 2020 In August 2019, HSW entered into a facility agreement with Agricultural Bank of China and obtained a line of credit, which allows the Company to borrow up to approximately $ 147,264 1,000,000 152,607 1,000,000 4.34 4.9 July 31, 2021 In August 2020, DT entered into a new facility agreement with Webank and obtained a credit facility of $ 88,358 600,000 16.2 16.29 |
INCOME TAXES
INCOME TAXES | 9 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
INCOME TAXES | 10. INCOME TAXES (a) Enterprise Income Tax (“EIT”) The Company operates in the PRC and files tax returns in the PRC jurisdictions. Yingxi Industrial Chain Group Co., Ltd was incorporated in the Republic of Seychelles and, under the current laws of the British Virgin Islands, is not subject to income taxes. Yingxi HK was incorporated in Hong Kong and is subject to Hong Kong income tax at a progressive rate of 16.5% . No provision for income taxes in Hong Kong has been made as Yingxi HK had no taxable income for the three and nine months ended December 31, 2021 and 2020. YX were incorporated in the PRC and is subject to the EIT tax rate of 25% . No provision for income taxes in the PRC has been made as YX had no taxable income for the three and nine months ended December 31, 2021 and 2020. The Company is governed by the Income Tax Laws of the PRC. All Yingxi’s operating companies were subject to progressive EIT rates from 5% to 15% in 2021 and 2020. The preferential tax rate will be expired at end of year 2022 and the EIT rate will be 25% from year 2023 . The Company’s parent entity, Addentax Group Corp. is a U.S entity and is subject to the United States federal income tax. No provision for income taxes in the United States has been made as Addentax Group Corp. had no United States taxable income for the three and nine months ended December 31, 2021 and 2020. The reconciliation of income taxes computed at the PRC statutory tax rate applicable to the PRC, to income tax expenses are as follows: SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION Three months ended Nine months ended December 31, December 31, 2021 2020 2021 2020 PRC statutory tax rate 25 % 25 % 25 % 25 % Computed expected benefits (expense) 3,457 (71,949 ) 35,120 (884,253 ) Temporary differences (30,951 ) 29,440 (87,797 ) 629,954 Permanent difference 1,444 6,640 1,691 131,595 Changes in valuation allowance 28,259 51,654 68,879 145,900 Income tax expense $ 2,209 $ (15,784 ) 17,893 23,196 (b) Value Added Tax (“VAT”) In accordance with the relevant taxation laws in the PRC, the normal VAT rate for domestic sales is 13% , which is levied on the invoiced value of sales and is payable by the purchaser. The subsidiaries HSW, DT and YS enjoyed preferential VAT rate of 13% . The Companies are required to remit the VAT they collect to the tax authority. A credit is available whereby VAT paid on purchases can be used to offset the VAT due on sales. For services, the applicable VAT rate is 9% under the relevant tax category for logistic company, except the branch of HPF enjoyed the preferential VAT rate of 3% in 2021 and 2020. The Company is required to pay the full amount of VAT calculated at the applicable VAT rate of the invoiced value of sales as required. A credit is available whereby VAT paid on gasoline and toll charges can be used to offset the VAT due on service income. | 11. INCOME TAXES (a) Enterprise Income Tax (“EIT”) The Company operates in the PRC and files tax returns in the PRC jurisdictions. Yingxi Industrial Chain Group Co., Ltd was incorporated in the Republic of Seychelles and, under the current laws of the British Virgin Islands, is not subject to income taxes. Yingxi HK was incorporated in Hong Kong and is subject to Hong Kong income tax at a progressive rate of 16.5 YX were incorporated in the PRC and is subject to the EIT tax rate of 25 The Company is governed by the Income Tax Laws of the PRC. All Yingxi’s operating companies were subject to progressive EIT rates from 5 15 The preferential tax rate will be expired at end of year 2022 and the EIT rate will be 25% from year 2023. The Company’s parent entity, Addentax Group Corp. is a U.S. entity and is subject to the United States federal income tax. No provision for income taxes in the United States has been made as Addentax Group Corp. had no United States taxable income for the years ended March 31, 2021 and 2020. The reconciliation of income taxes computed at the PRC federal statutory tax rate applicable to the PRC, to income tax expenses are as follows: SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION 2021 2020 PRC statutory tax rate 25 % 25 % Computed expected benefits $ (891,076 ) $ (241,137 ) Temporary differences (50,911 ) (15,205 ) Permanent difference 56,227 3,732 Changes in valuation allowance 911,627 268,680 Reported income tax expense $ 25,867 $ 16,070 Reported income tax expense $ 25,867 $ 16,070 As of March 31, 2021, the accumulated tax losses in China amounting to $ 1.5 0.8 4.7 1.2 (b) Value Added Tax (“VAT”) In accordance with the relevant taxation laws in the PRC, the normal VAT rate for domestic sales is 13 13 For services, the applicable VAT rate is 9 3 |
CONSOLIDATED SEGMENT DATA
CONSOLIDATED SEGMENT DATA | 9 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Mar. 31, 2021 | |
Segment Reporting [Abstract] | ||
CONSOLIDATED SEGMENT DATA | 11. CONSOLIDATED SEGMENT DATA Segment information is consistent with how chief operating decision maker reviews the businesses, makes investing and resource allocation decisions and assesses operating performance. The segment data presented reflects this segment structure. The Company reports financial and operating information in the following four segments: (a) Garment manufacturing (b) Logistics services (c) Epidemic prevention supplies (d) Property management and subleasing. The Company also provides general corporate services to its segments and these costs are reported as “Corporate and others”. Selected information for period ended December 31, 2021 in the segment structure is presented in the following tables: SCHEDULE OF SEGMENT REPORTING Garment Logistics Services Property management and leasing Epidemic prevention supplies Corporate and other Totals Revenue from external customers 2,488,173 4,144,604 3,202,956 - - 9,835,733 Intersegment revenue - - - - - - Interest income 1,925 63 140 - 6 2,135 Interest expense 4,181 506 456 - 232 5,375 Depreciation and amortization 1,981 90,655 18,443 4,482 - 115,561 Operating income (loss) 96,275 210,878 47,935 - (344,327 ) 10,761 Segment assets 1,833,807 2,433,062 7,770,529 87,597 947,253 13,072,248 Expenditures for segment assets - 148,604 27,664 - - 176,268 Geographical Information The Company operates predominantly in China. In presenting information on the basis of geographical location, revenue is based on the geographical location of customers and long-lived assets are based on the geographical location of the assets. SCHEDULE OF GEOGRAPHICAL INFORMATION Geographic Information Three months ended Nine months ended 2021 2020 2021 2020 Revenues United States - 4,787 - 11,868,854 China 2,791,470 3,406,766 9,835,733 9,145,210 Total 2,791,470 3,411,552 9,835,733 21,014,064 December 31, 2021 March 31, 2020 Long-Lived Assets China 8,186,834 10,426,602 | 12. SEGMENT DATA CONSOLIDATED SEGMENT DATA Segment information is consistent with how management reviews the businesses, makes investing and resource allocation decisions and assesses operating performance. The segment data presented reflects this segment structure. The Company reports financial and operating information in the following four (a) Garment manufacturing (b) Logistics services (c) Epidemic prevention supplies (d) Property management and subleasing. The Company also provides general corporate services to its segments and these costs are reported as “Corporate and other”. Selected information in the segment structure is presented in the following tables: SCHEDULE OF SEGMENT REPORTING Garment Logistics Services Property management and leasing Epidemic prevention supplies Corporate and other Totals Revenue from external customers 6,896,410 4,580,733 1,278,517 11,979,099 - 24,734,759 Intersegment revenue 2,304 - - - - 2,304 Interest income 23 0 8 - 199 230 Interest expense 16,787 795 7 - 1,553 19,142 Depreciation and amortization 5,036 90,549 - 5,429 - 101,014 Operating income (loss) 327,161 191,730 4,220 (3,280,313 ) (850,972 ) (3,608,174 ) Segment assets 4,410,466 2,236,574 9,316,090 33,737 2,342,379 18,424,084 Expenditures for segment assets 79,460 326,391 - - - 405,851 Geographical Information The Company operates predominantly in China. In presenting information on the basis of geographical location, revenue is based on the geographical location of customers and long-lived assets are based on the geographical location of the assets. Geographic Information SCHEDULE OF GEOGRAPHICAL INFORMATION Revenues Long-Lived Assets China 13,131,787 10,426,602 United States 11,602,972 - Total 24,734,759 10,426,602 |
LEASE RIGHT-OF-USE ASSET AND LE
LEASE RIGHT-OF-USE ASSET AND LEASE LIABILITIES | 9 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Mar. 31, 2021 | |
Lease Right-of-use Asset And Lease Liabilities | ||
LEASE RIGHT-OF-USE ASSET AND LEASE LIABILITIES | 12. LEASE RIGHT-OF-USE ASSET AND LEASE LIABILITIES The Company recognized right-of-use asset as well as lease liability according to the ASC 842, Leases (with the exception of short-term leases). Lease liabilities are measured at present value of the sum of remaining rental payments as of December 31, 2021, with discounted rate of 4.75% . A single lease cost is recognized over the lease term on a generally straight-line basis. All cash payments of operating lease cost are classified within operating activities in the statement of cash flows. The Company leases its head office. The lease period is 5 years with an option to extend the lease. The Company leases its plant and dormitory for 4.5 years with an option to extend the lease. The Company leased several floors in a commercial building for its sublease business for 3 years with an option to extend the lease. The Following table summarizes the components of lease expense: SCHEDULE OF LEASE COST 2021 2020 2021 2020 Three months ended Nine months ended 2021 2020 2021 2020 Operating lease cost 968,170 444,162 2,878,730 668,883 Short-term lease cost 20,955 - 62,799 - Lease cost $ 989,125 $ 444,162 2,941,529 668,883 The following table summarizes supplemental information related to leases: SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO LEASES 2021 2020 2021 2020 Three months ended Nine months ended 2021 2020 2021 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flow from operating leases $ 989,170 $ 444,162 2,941,529 668,883 Right-of-use assets obtained in exchange for new operating leases liabilities (3,390 ) 10,378,042 3,42,457 10,404,962 Weighted average remaining lease term - Operating leases (years) 2.0 3.1 2.0 3.1 Weighted average discount rate - Operating leases 4.75 % 4.35 % 4.75 % 4.35 % The following table summarizes the maturity of operating lease liabilities: SCHEDULE OF OPERATING LEASE LIABILITY Years ending December 31 Lease cost 2022 $ 3,877,767 2023 3,857,516 2024 103,853 2025 Total lease payments 7,839,136 Less: Interest (531,253 ) Total $ 7,307,883 | 14. LEASE RIGHT-OF-USE ASSET AND LEASE LIABILITIES The Company implemented new accounting policy according to the ASC 842, Leases, on April 1, 2019 on a modified retrospective basis and did not restate comparative periods. Under the new policy, the Company recognized approximately $ 0.06 4.35 The Company leases its head office. The lease period is 5 4.5 The Company leased three floors of a commercial building for 3 The Following table summarizes the components of lease expense: SCHEDULE OF LEASE COST 2021 2020 Operating lease cost 1,021,267 451,685 Short-term lease cost 35,727 63,785 Lease cost 1,056,994 515,470 The following table summarizes supplemental information related to leases: SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO LEASES 2021 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flow used in operating leases $ 1,650,847 $ 515,470 Right-of-use assets obtained in exchange for new operating leases liabilities 9,380,402 1,982,393 Weighted average remaining lease term - Operating leases (years) 2.8 4.2 Weighted average discount rate - Operating leases 4.35 % 4.35 % The following table summarizes the maturity of operating lease liabilities: SCHEDULE OF OPERATING LEASE LIABILITY Years ending March 31 Lease cost 2022 $ 3,710,121 2023 3,792,954 2024 2,891,377 2025 58,344 Total lease payments 10,452,795 Less: Interest (820,170 ) Total $ 9,632,625 |
RISKS AND UNCERTAINTIES
RISKS AND UNCERTAINTIES | 9 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Mar. 31, 2021 | |
Risks and Uncertainties [Abstract] | ||
RISKS AND UNCERTAINTIES | 13. RISKS AND UNCERTAINTIES (a) Economic and Political Risks The Company’s operations are conducted in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC economy. The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation. (b) Foreign Currency Translation The Company’s reporting currency is the U.S. dollar. The functional currency of the parent company is the U.S. dollar and the functional currency of the Company’s operating subsidiaries is the Chinese Renminbi (“RMB”). For the subsidiaries whose functional currencies are the RMB, all assets and liabilities are translated at exchange rates at the balance sheet date, which was 6.355 and 6.553 as of December 31, 2021 and March 31, 2021, respectively. Revenue and expenses are translated at the average yearly exchange rates, which was 6.442 and 6.779 for the nine months ended December 31, 2021 and 2020, respectively. Equity is translated at historical exchange rates. Any translation adjustments resulting are not included in determining net income but are included in foreign exchange adjustments to other comprehensive loss, a component of equity. (c) Concentration Risks The followings are the percentages of accounts receivable balance of the top customers over accounts receivable for each segment as of December 31, 2021 and March 31, 2021. SCHEDULE OF CONCENTRATION RISKS Garment manufacturing segment December 31, 2021 March 31, 2021 Customer A 87.0 % 98.4 % Customer B 13.0 % 1.6 % The high concentration as of December 31, 2021 was mainly due to business development of a large distributor of garments. Logistics services segment December 31, 2021 March 31, 2021 Customer A 12.2 % 16.6 % Customer B 11.0 % Nil % Customer C 10.0 % 30.2 % Customer D 7.3 % Nil % Customer E 6.5 % 12.7 % Property management and subleasing No accounts receivables in this segment. Epidemic prevention supplies segment No accounts receivables in this segment. For the three months ended December 31, 2021, there was no single customer provided more than 10% of total revenue of the Company. For nine months ended December 31, 2021, one customer from garment segment provided more than 10 % of total revenue of the Company, represented 24.8 % for the nine months. For the three months ended December 31, 2020, there was no customer provided more than 10 % of total revenue of the Company. For nine months ended December 31, 2020, one customer from garment segment and one customer from epidemic prevention supplies segment provided more than 10% of total revenue of the Company. The high concentration in nine months ended December 31, 2021 was mainly due to concentration of distributors in garment segment. Management believes that should the Company lose any one of its major customers, it was able to sell similar products to other customers. The following tables summarized the purchases from five largest suppliers of each of the reportable segment for the three and nine months ended December 31, 2021 and 2020. SCHEDULE OF PURCHASES FROM SUPPLIERS Three months ended Nine months ended December 31, December 31, 2021 2020 2021 2020 Garment manufacturing segment 100.0 % 100.0 % 99.8 % 97.7 % Logistics services segment 100.0 % 79.1 % 92.2 % 99.7 % Property management and subleasing 100.0 % 100.0 % 100.0 % 100.0 % Epidemic prevention supplies Nil % 100.0 % Nil % 100 % (d) Interest Rate Risk The Company’s exposure to interest rate risk primarily relates to the interest expenses on our outstanding bank borrowings and the interest income generated by cash invested in cash deposits and liquid investments. As of December 31, 2021, the total outstanding borrowings amounted to $ 157,354 (RMB 1,000,000 ) with various interest rate from 4.84% to 6.96% p.a. (Note 10) (e) COVID-19 The Coronavirus Disease (COVID-19) outbreak and the measures taken to contain the spread of the pandemic have created a high level of uncertainty to global economic prospects and this has impacted the Company’s operations and its financial performance in the last three quarters of the financial year and subsequent to the financial year end. As the situation continues to evolve with significant level of uncertainty, the Company is unable to reasonably estimate the full financial impact of the COVID-19 outbreak. The Company is monitoring the situation closely and to mitigate the financial impact, it is conscientiously managing its cost by adopting an operating cost reduction strategy and conserving liquidity by working with major creditors to align repayment obligations with receivable collections. | 16. RISKS AND UNCERTAINTIES (a) Economic and Political Risks The Company’s operations are conducted in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC economy. The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation. (b) Foreign Currency Translation The Company’s reporting currency is the U.S. dollar. The functional currency of the parent company is the U.S. dollar and the functional currency of the Company’s operating subsidiaries is the Chinese Renminbi (“RMB”). For the subsidiaries whose functional currencies are the RMB, all assets and liabilities are translated at exchange rates at the balance sheet date, which are 6.55 and 7.08 6.78 6.94 (c) Concentration Risks The followings are the percentage of accounts receivable balance of the top five customers over accounts receivable for each segment as at March 31, 2021 and 2020. Garment manufacturing segment SCHEDULE OF CONCENTRATION RISKS March 31, 2021 March 31, 2020 Customer A 98.4 % 85.5 % Customer B 1.6 % Nil % The high concentration as at March 31, 2021 was mainly due to business development of a large distributor of garments. Management believes that should the Company lose any one of its major customers, it was able to sell similar products to other customers. Logistics services segment March 31, 2021 March 31, 2020 Customer A 30.2 % 22.4 % Customer B 16.6 % 18.3 % Customer C 12.7 % 3.8 % Customer D 5.5 % 2.7 % Customer E 5.5 % Nil % Property management and subleasing The accounts receivable of Property management and subleasing segment as at March 31, 2021 was from one customer only. Epidemic prevention supplies segment No accounts receivables in this segment. For the year ended March 31, 2021, two customers, one from garment segment and the other from Epidemic prevention supplies segment, provided more than 10 57.4 The high concentration in year ended March 31, 2021 was mainly due to concentration of distributors in garment manufacturing business and epidemic prevention supplies business. Management believes that should the Company lose any one of its major customers, it was able to sell similar products to other customers. The following tables summarized the percentage of purchases from five largest suppliers of each of the reportable segment purchase for the years ended March 31, 2021 and 2020. SCHEDULE OF PURCHASES FROM SUPPLIERS Year ended March 31, 2021 2020 Garment manufacturing segment 98.7 % 92.7 % Logistics services segment 49.9 % 25.6 % Property management and subleasing 100.0 % Nil % Epidemic prevention supplies 90.8 % Nil % Management believes that should the Company lose any one of its major suppliers, other suppliers are available that could provide similar products to the Company. (d) Interest Rate Risk The Company’s exposure to interest rate risk primarily relates to the interest expenses on our outstanding bank borrowings and the interest income generated by cash invested in cash deposits and liquid investments. As of March 31, 2021, the total outstanding borrowings amounted to $ 152,607 1,000,000 4.84 6.96 (e) COVID-19 The Coronavirus Disease (COVID-19) outbreak and the measures taken to contain the spread of the pandemic have created a high level of uncertainty to global economic prospects and this has impacted the Company’s operations and its financial performance of the financial year and subsequent to the financial year end. As the situation continues to evolve with significant level of uncertainty, the Company is unable to reasonably estimate the full financial impact of the COVID-19 outbreak. The Company is monitoring the situation closely and to mitigate the financial impact, it is conscientiously managing its cost by adopting an operating cost reduction strategy and conserving liquidity by working with major creditors to align repayment obligations with receivable collections. |
DISPOSITION OF SUBSIDIARIES
DISPOSITION OF SUBSIDIARIES | 12 Months Ended |
Mar. 31, 2021 | |
Disposition Of Subsidiaries | |
DISPOSITION OF SUBSIDIARIES | 4. DISPOSITION OF SUBSIDIARIES The Company sold its subsidiary DT, a manufacturing company in garment manufacturing segment on October 1, 2020 to a third party and sold HPF, a subsidiary in logistics services segment in November 2020 to another third party. After disposition, the two subsidiaries became third parties to the Company. The Company will not have any businesses with the two subsidiaries nor the buyers. The business operations, customers and suppliers of DT and HPF were retained by the Company; therefore, the disposition of the two subsidiaries did not qualify as discontinued operations. Financial position of the entities at disposal date and gain or loss on disposal: Garment Manufacturing Segment SUMMARY OF FINANCIAL POSITION OF ENTITIES AND GAIN OR LOSS ON DISPOSAL Financial position of DT September 30, 2020, date of disposal Current assets $ 673,025 Noncurrent assets - Current liabilities (70,481 ) Net assets $ 602,544 The consideration was at the fair value as of date of disposal, which was also the carrying value of DT, resulting no Logistics Services Segment Financial position of HPF November 16, 2020, date of disposal Current assets $ 740,060 Noncurrent assets 42,658 Current liabilities (565,362 ) Net assets $ 217,356 The consideration was at the fair value as of date of disposal, which was also the carrying value of DT, resulting no |
ACCRUED EXPENSES AND OTHER PAYA
ACCRUED EXPENSES AND OTHER PAYABLES | 12 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER PAYABLES | 13. ACCRUED EXPENSES AND OTHER PAYABLES Accrued expenses and other payables consist of the following as of March 31, 2021 and 2020: SCHEDULE OF ACCRUED EXPENSES AND OTHER PAYABLES 2021 2020 Accrued wages and welfare 82,548 61,776 Accrued expenses 55,000 5,753 Other tax payable 28,242 25,206 Rental payable 29,741 24,972 Customers’ deposits 150,993 - Other payables 335,460 113,210 Accrued expenses and other payables $ 681,984 $ 230,917 |
SHARE CAPITAL AND RESERVES
SHARE CAPITAL AND RESERVES | 12 Months Ended |
Mar. 31, 2021 | |
Share Capital And Reserves | |
SHARE CAPITAL AND RESERVES | 15. SHARE CAPITAL AND RESERVES Share capital In August 2020, the Company offered 747,000 5.00 On December 31, 2020, the Company offered 600,000 5.00 Statutory reserve In accordance with the relevant laws and regulations of the PRC, the subsidiary of the Company established in the PRC is required to transfer 10% of its profit after taxation prepared in accordance with the accounting regulations of the PRC to the statutory reserve until the reserve balance reaches 50% of the subsidiary’s paid-up capital. Such reserve may be used to offset accumulated losses or increase the registered capital of the subsidiary, subject to the approval from the PRC authorities, and are not available for dividend distribution to the shareholders 10,937 1,735 20,630 13,821 23,514 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 17. SUBSEQUENT EVENTS There is no other subsequent events have occurred that would require recognition or disclosure in the financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Mar. 31, 2021 | |
Accounting Policies [Abstract] | ||
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with US GAAP 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however actual results could differ materially from those estimates. There is no change on the accounting policies for the three months ended December 31, 2021. | (a) Use of Estimates The preparation of the consolidated financial statements in conformity with US GAAP 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however actual results could differ materially from those estimates. |
Recently issued and adopted accounting pronouncements | Recently issued accounting pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. This standard requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. This standard will be effective for the Company on April 1, 2023. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements. The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s consolidated financial statements. | (l) Recently issued and adopted accounting pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. This standard requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. This standard will be effective for the Company on April 1, 2023. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements. The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s consolidated financial statements. |
Fair Value Measurement | (b) Fair Value Measurement Accounting Standards Codification (“ASC”) 820 “ Fair Value Measurements and Disclosures “, which defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. The statement clarifies that the exchange price is the price in an orderly transaction between market participants to sell the asset or transfer the liability in the market in which the reporting entity would transact for the asset or liability, that is, the principal or most advantageous market for the asset or liability. It also emphasizes that fair value is a market-based measurement, not an entity-specific measurement, and that market participant assumptions include assumptions about risk and effect of a restriction on the sale or use of an asset. This ASC establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no At March 31, 2021, the Company has no The Company’s financial instruments include cash, accounts receivable, advances to suppliers, other receivables, accounts payable, other payables, taxes payables and related party receivables or payables. Management estimates that the carrying amounts of financial instruments approximate their fair values due to their short-term nature. The fair value of amounts with related parties is not practicable to estimate due to the related party nature of the underlying transactions. | |
Cash and Cash Equivalents | (c) Cash and Cash Equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. All cash and cash equivalents relate to cash on hand and cash at bank at March 31, 2021 and 2020. The Renminbi is not freely convertible into foreign currencies. Under the PRC Foreign Exchange Control Regulations and Administration of Settlement, Sales and Payment of Foreign Exchange Regulations, the Company is permitted to exchange Renminbi for foreign currencies through banks that are authorized to conduct foreign exchange business. | |
Accounts Receivable | (d) Accounts Receivable Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of accounts receivable. The Company extends credit to its customers in the normal course of business and generally does not require collateral. The Company’s credit terms are dependent upon the segment, and the customer. The Company assesses the probability of collection from each customer at the outset of the arrangement based on a number of factors, including the customer’s payment history and its current creditworthiness. If in management’s judgment collection is not probable, the Company does not record revenue until the uncertainty is removed. Management performs ongoing credit evaluations, and the Company maintains an allowance for potential credit losses based upon its loss history and its aging analysis. The allowance for doubtful accounts is the Company’s best estimate of the amount of credit losses in existing accounts receivable. Management reviews the allowance for doubtful accounts each reporting period based on a detailed analysis of trade receivables. In the analysis, management primarily considers the age of the customer’s receivable, and also considers the creditworthiness of the customer, the economic conditions of the customer’s industry, general economic conditions and trends, and the business relationship and history with its customers, among other factors. If any of these factors change, the Company may also change its original estimates, which could impact the level of the Company’s future allowance for doubtful accounts. If judgments regarding the collectability of receivables were incorrect, adjustments to the allowance may be required, which would reduce profitability. Accounts receivable are recognized and carried at the original invoice amount less an allowance for any uncollectible amounts. An estimate for doubtful accounts receivable is made when collection of the full amount is no longer probable. Bad debts are written off as incurred. No | |
Inventories | (e) Inventories Manufacturing segment inventories consist of raw materials, work in progress and finished goods and are stated at the lower of cost, determined on a weighted average basis, or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business less the estimated cost of completion and the estimated costs necessary to make the sale. When inventories are sold, their carrying amount is charged to expense in the period in which the revenue is recognized. Write-downs for declines in net realizable value or for losses of inventories are recognized as an expense in the period the impairment or loss occurs. No | |
Plant and Equipment | (f) Plant and Equipment Plant and equipment are carried at cost less accumulated depreciation. Depreciation is provided over the assets’ estimated useful lives, using the straight-line method. Estimated useful lives of the plant and equipment are as follows: SCHEDULE OF PLANT AND EQUIPMENT USEFUL LIVES Production plant 5 10 Motor vehicles 10 15 Office equipment 5 10 The cost and 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 loss and comprehensive loss. The cost of maintenance and repairs is charged to the statement of income as incurred, whereas significant renewals and betterments are capitalized. | |
Accounting for the Impairment of Long-Lived Assets and Goodwill | (g) Accounting for the Impairment of Long-Lived Assets and Goodwill In previous, the Company early adopted ASU 2017-04. Under the new accounting guidance, the Company should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. In previous financial statements for the year ended March 31, 2020, the Company impaired goodwill of $ 475,003 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 was no | |
Revenue Recognition | (h) Revenue Recognition Revenue is generated through sale of goods and delivery services. Revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods and services. The Company applies the following five-step model in order to determine this amount: (i) identification of the promised goods and services in the contract; (ii) determination of whether the promised goods and services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers at a point in time, typically upon delivery of the good or service. For all reporting periods, the Company has not disclosed the value of unsatisfied performance obligations for all product and service revenue contracts with an original expected length of one year or less, which is an optional exemption that is permitted under the adopted rules as of March 31, 2021 and 2020. Cost of revenues for garment manufacturing segment includes the direct raw material cost, direct labor cost, manufacturing overheads including depreciation of production equipment and rent. Cost of revenue for logistics services segment includes gasoline and diesel fuel, toll charges and subcontracting fees. Cost of revenue of property management and subleasing business was mainly the amortization of right-of-used assets for the subleasing business. Cost of revenue for epidemic prevention supplies business includes cost of merchandise and cost of direct raw materials, direct labor, and manufacturing overheads of our own products. | |
Earnings Per Share | (i) Earnings Per Share The Company reports earnings (loss) per share in accordance with ASC 260 “Earnings Per Share”, which requires presentation of basic and diluted earnings per share in conjunction with the disclosure of the methodology used in computing such earnings per share. Basic earnings per share excludes dilution and is computed by dividing income available to common stockholders by the weighted average common shares outstanding during the reporting period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. Further, if the number of common shares outstanding increases as a result of a stock dividend or stock split or decreases as a result of a reverse stock split, the computations of a basic and diluted earnings per share shall be adjusted retroactively for all periods presented to reflect that change in capital structure. The Company had no | |
Income Taxes | (j) Income Taxes The Company accounts for income taxes using the asset and liability method prescribed by ASC 740 “Income Taxes”. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the years in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized as income or loss in the period that includes the enactment date. The Company has a history of tax losses and there is no convincing evidence that sufficient taxable income will be available against which the deferred tax asset can be utilized, therefore, the Company does not recognize any tax benefits for the year ended March 31, 2021 and 2020. The Company’s Chinese subsidiaries are governed by the Income Tax Laws of the PRC. The PRC federal statutory tax rate is 25 The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. The Company does not have any accrued interest or penalties associated with any unrecognized tax benefits, nor was any interest expense recognized during the years ended March 31, 2021 and 2020. The Company’s effective tax rate differs from the PRC federal statutory rate primarily due to non-deductible expenses, temporary differences and preferential tax treatments. The U.S. federal tax legislation, commonly referred to as the Tax Cuts and Jobs Act (the “U.S. Tax Reform”), was signed into law on December 22, 2017. The U.S. Tax Reform modified the U.S. Internal Revenue Code by, among other things, reducing the statutory U.S. federal corporate income tax rate from 35% to 21 no | |
Leases | (k) Leases Lessee The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities, and operating lease liabilities in our consolidated balance sheets. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the leases do not provide an implicit rate, The Company generally use the incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Lessor As a lessor, the Company’s leases are classified as operating leases under ASC 842. Leases, in which the Company is the lessor, are substantially all accounted for as operating leases and the lease components and non-lease components are accounted for separately. Rental income from operating leases is recognized on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognized on a straight-line basis over the lease term. |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Mar. 31, 2021 | |
Related Party Transactions [Abstract] | ||
SCHEDULE OF RELATED PARTIES RELATIONSHIP WITH THE COMPANY | SCHEDULE OF RELATED PARTIES RELATIONSHIP WITH THE COMPANY Name of Related Parties Relationship with the Company Zhida Hong President, CEO, and a director of the Company Zhongpeng Chen A legal representative of HPF, became not a related party when HPF was disposed of in November, 2020 Bihua Yang A legal representative of XKJ Zhiyong Zhou General Manager of XKJ Dewu Huang A legal representative of YBY Jinlong Huang A spouse of legal representative of HSW | SCHEDULE OF RELATED PARTIES RELATIONSHIP WITH THE COMPANY Name of Related Parties Relationship with the Company Zhida Hong President, CEO, and a director of the Company Hongye Financial Consulting (Shenzhen) Co., Ltd. A company controlled by CEO, Mr. Zhida Hong Zhongpeng Chen A legal representative of HPF, became not a related party when HPF was disposed of in November, 2020 Bihua Yang A legal representative of XKJ Dewu Huang A legal representative of YBY Jinlong Huang A spouse of legal representative of HSW |
SCHEDULE OF RELATED PARTY TRANSACTION | The Company had the following related party balances as of December 31, 2021 and March 31, 2021: SCHEDULE OF RELATED PARTY TRANSACTION Amount due from related party December 31, 2021 March 31, 2021 Hongye Financial Consulting (Shenzhen) Co., Ltd. $ 154,210 $ 84,838 Zhiyong Zhou (1) 17,154 - $ 171,364 $ 84,838 Related party borrowings December 31, 2021 March 31, 2021 Zhida Hong (2) $ 3,208,463 $ 3,727,371 Bihua Yang (3) - 370,523 Dewu Huang (4) 177,755 712,064 Jinlong Huang 150,397 104,006 $ 3,536,615 $ 4,913,964 (1) Being cash advance to Zhiyong Zhou to pay for daily operating expenditures of XKJ. (2) The decrease was due to net repayment of debt due to Zhida Hong. During the three and nine months ended December 31, 2021, the Company received financial support of $ 0.03 million and 0.27 million from Zhida Hong and repaid $ 0.3 million and $ 0.9 million of debts due to him. (3) Being financial support from Bihua Yang for XKJ’s daily operation. (4) The decrease was due to net repayment of debt due to Dewu Huang. During the nine months ended December 31, 2021, the company received interest free advanced loan as financial support of approximately $ 1.5 million from Dewu Huang and repaid approximately $ 2.0 million of debts due to him. The related party debt was additional financial support provided by Dewu Huang for YBY’s daily operation. | The Company had the following related party balances at the end of the years: SCHEDULE OF RELATED PARTY TRANSACTION Amount due from related party 2021 2020 Hongye Financial Consulting (Shenzhen) Co., Ltd. 84,838 Nil $ 84,838 $ Nil Being lease of the quarter ended March 31, 2021 paid on behalf of Hongye Financial Consulting (Shenzhen) Co., Ltd. for the shared office in Shenzhen. Related party debt 2021 2020 Zhida Hong (1) $ 3,727,371 $ 5,043,489 Bihua Yang (2) 370,523 - Dewu Huang (3) 712,064 81,287 Zhongpeng Chen - 160,427 Jinlong Huang 104,006 144,237 $ 4,913,964 $ 5,429,440 (1) The decrease was due to net repayment of debt due to Zhida Hong. During years ended March 31, 2021, the Company received financial support of $ 2.2 3.6 (2) Being financial support from Bihua Yang for XKJ’s daily operation. (3) The increase of related party debt was additional financial support provided by Dewu Huang for YBY’s daily operation. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | ||
SCHEDULE OF INVENTORIES | Inventories consist of the following as of December 31, 2021 and March 31, 2021: SCHEDULE OF INVENTORIES December 31, 2021 March 31, 2021 Raw materials $ 242,644 $ 234,870 Work in progress 3,916 - Finished goods 51,636 35,564 Total inventories $ 298,196 $ 270,434 | Inventories consist of the following as of March 31, 2021 and 2020: SCHEDULE OF INVENTORIES 2021 2020 Raw materials $ 234,871 $ 230,742 Work in progress - 62,150 Finished goods 35,564 54,639 Total inventories $ 270,434 $ 347,531 |
PREPAYMENTS AND OTHER RECEIVA_2
PREPAYMENTS AND OTHER RECEIVABLES (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Mar. 31, 2021 | |
Receivables [Abstract] | ||
SCHEDULE OF PREPAYMENTS AND OTHER RECEIVABLES | Prepayments and other receivables consist of the following as of December 31, 2021 and March 31, 2021: SCHEDULE OF PREPAYMENTS AND OTHER RECEIVABLES December 31, 2021 March 31, 2021 Prepayment 34,248 - Deposit 79,447 155,830 Receivable of consideration on disposal of subsidiaries 269,057 258,929 Other receivables 227,869 269,402 Total Prepayment $ 610,621 $ 684,161 | Prepayments and other receivables consists of the following as of March 31, 2021 and 2020: SCHEDULE OF PREPAYMENTS AND OTHER RECEIVABLES 2021 2020 Deposit 155,830 123,965 Receivable of consideration on disposal of subsidiaries 258,929 - Other receivables 269,402 108,009 Total Prepayment $ 684,161 $ 231,974 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||
SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT | Property, plant and equipment consists of the following as of December 31, 2021 and March 31, 2021: SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT December 31, 2021 March 31, 2021 Production plant $ 73,871 $ 71,642 Motor vehicles 1,189,673 1,020,893 Office equipment 28,129 14,073 1,291,673 1,106,608 Less: accumulated depreciation (422,070 ) (312,631 ) Plant and equipment, net $ 869,603 $ 793,977 | Plant and equipment consists of the following as of March 31, 2021 and 2020: SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT 2021 2020 Production plant $ 71,642 $ 67,247 Motor vehicles 1,020,893 868,743 Office equipment 14,073 19,471 1,106,608 955,461 Less: accumulated depreciation (312,631 ) (370,442 ) Plant and equipment, net $ 793,977 $ 585,019 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION | The reconciliation of income taxes computed at the PRC statutory tax rate applicable to the PRC, to income tax expenses are as follows: SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION Three months ended Nine months ended December 31, December 31, 2021 2020 2021 2020 PRC statutory tax rate 25 % 25 % 25 % 25 % Computed expected benefits (expense) 3,457 (71,949 ) 35,120 (884,253 ) Temporary differences (30,951 ) 29,440 (87,797 ) 629,954 Permanent difference 1,444 6,640 1,691 131,595 Changes in valuation allowance 28,259 51,654 68,879 145,900 Income tax expense $ 2,209 $ (15,784 ) 17,893 23,196 | The reconciliation of income taxes computed at the PRC federal statutory tax rate applicable to the PRC, to income tax expenses are as follows: SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION 2021 2020 PRC statutory tax rate 25 % 25 % Computed expected benefits $ (891,076 ) $ (241,137 ) Temporary differences (50,911 ) (15,205 ) Permanent difference 56,227 3,732 Changes in valuation allowance 911,627 268,680 Reported income tax expense $ 25,867 $ 16,070 Reported income tax expense $ 25,867 $ 16,070 |
CONSOLIDATED SEGMENT DATA (Tabl
CONSOLIDATED SEGMENT DATA (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Mar. 31, 2021 | |
Segment Reporting [Abstract] | ||
SCHEDULE OF SEGMENT REPORTING | Selected information for period ended December 31, 2021 in the segment structure is presented in the following tables: SCHEDULE OF SEGMENT REPORTING Garment Logistics Services Property management and leasing Epidemic prevention supplies Corporate and other Totals Revenue from external customers 2,488,173 4,144,604 3,202,956 - - 9,835,733 Intersegment revenue - - - - - - Interest income 1,925 63 140 - 6 2,135 Interest expense 4,181 506 456 - 232 5,375 Depreciation and amortization 1,981 90,655 18,443 4,482 - 115,561 Operating income (loss) 96,275 210,878 47,935 - (344,327 ) 10,761 Segment assets 1,833,807 2,433,062 7,770,529 87,597 947,253 13,072,248 Expenditures for segment assets - 148,604 27,664 - - 176,268 | Selected information in the segment structure is presented in the following tables: SCHEDULE OF SEGMENT REPORTING Garment Logistics Services Property management and leasing Epidemic prevention supplies Corporate and other Totals Revenue from external customers 6,896,410 4,580,733 1,278,517 11,979,099 - 24,734,759 Intersegment revenue 2,304 - - - - 2,304 Interest income 23 0 8 - 199 230 Interest expense 16,787 795 7 - 1,553 19,142 Depreciation and amortization 5,036 90,549 - 5,429 - 101,014 Operating income (loss) 327,161 191,730 4,220 (3,280,313 ) (850,972 ) (3,608,174 ) Segment assets 4,410,466 2,236,574 9,316,090 33,737 2,342,379 18,424,084 Expenditures for segment assets 79,460 326,391 - - - 405,851 |
SCHEDULE OF GEOGRAPHICAL INFORMATION | The Company operates predominantly in China. In presenting information on the basis of geographical location, revenue is based on the geographical location of customers and long-lived assets are based on the geographical location of the assets. SCHEDULE OF GEOGRAPHICAL INFORMATION Geographic Information Three months ended Nine months ended 2021 2020 2021 2020 Revenues United States - 4,787 - 11,868,854 China 2,791,470 3,406,766 9,835,733 9,145,210 Total 2,791,470 3,411,552 9,835,733 21,014,064 December 31, 2021 March 31, 2020 Long-Lived Assets China 8,186,834 10,426,602 | Geographic Information SCHEDULE OF GEOGRAPHICAL INFORMATION Revenues Long-Lived Assets China 13,131,787 10,426,602 United States 11,602,972 - Total 24,734,759 10,426,602 |
LEASE RIGHT-OF-USE ASSET AND _2
LEASE RIGHT-OF-USE ASSET AND LEASE LIABILITIES (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Mar. 31, 2021 | |
Lease Right-of-use Asset And Lease Liabilities | ||
SCHEDULE OF LEASE COST | The Following table summarizes the components of lease expense: SCHEDULE OF LEASE COST 2021 2020 2021 2020 Three months ended Nine months ended 2021 2020 2021 2020 Operating lease cost 968,170 444,162 2,878,730 668,883 Short-term lease cost 20,955 - 62,799 - Lease cost $ 989,125 $ 444,162 2,941,529 668,883 | The Following table summarizes the components of lease expense: SCHEDULE OF LEASE COST 2021 2020 Operating lease cost 1,021,267 451,685 Short-term lease cost 35,727 63,785 Lease cost 1,056,994 515,470 |
SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO LEASES | The following table summarizes supplemental information related to leases: SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO LEASES 2021 2020 2021 2020 Three months ended Nine months ended 2021 2020 2021 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flow from operating leases $ 989,170 $ 444,162 2,941,529 668,883 Right-of-use assets obtained in exchange for new operating leases liabilities (3,390 ) 10,378,042 3,42,457 10,404,962 Weighted average remaining lease term - Operating leases (years) 2.0 3.1 2.0 3.1 Weighted average discount rate - Operating leases 4.75 % 4.35 % 4.75 % 4.35 % | The following table summarizes supplemental information related to leases: SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO LEASES 2021 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flow used in operating leases $ 1,650,847 $ 515,470 Right-of-use assets obtained in exchange for new operating leases liabilities 9,380,402 1,982,393 Weighted average remaining lease term - Operating leases (years) 2.8 4.2 Weighted average discount rate - Operating leases 4.35 % 4.35 % |
SCHEDULE OF OPERATING LEASE LIABILITY | The following table summarizes the maturity of operating lease liabilities: SCHEDULE OF OPERATING LEASE LIABILITY Years ending December 31 Lease cost 2022 $ 3,877,767 2023 3,857,516 2024 103,853 2025 Total lease payments 7,839,136 Less: Interest (531,253 ) Total $ 7,307,883 | The following table summarizes the maturity of operating lease liabilities: SCHEDULE OF OPERATING LEASE LIABILITY Years ending March 31 Lease cost 2022 $ 3,710,121 2023 3,792,954 2024 2,891,377 2025 58,344 Total lease payments 10,452,795 Less: Interest (820,170 ) Total $ 9,632,625 |
RISKS AND UNCERTAINTIES (Tables
RISKS AND UNCERTAINTIES (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Mar. 31, 2021 | |
Risks and Uncertainties [Abstract] | ||
SCHEDULE OF CONCENTRATION RISKS | The followings are the percentages of accounts receivable balance of the top customers over accounts receivable for each segment as of December 31, 2021 and March 31, 2021. SCHEDULE OF CONCENTRATION RISKS Garment manufacturing segment December 31, 2021 March 31, 2021 Customer A 87.0 % 98.4 % Customer B 13.0 % 1.6 % The high concentration as of December 31, 2021 was mainly due to business development of a large distributor of garments. Logistics services segment December 31, 2021 March 31, 2021 Customer A 12.2 % 16.6 % Customer B 11.0 % Nil % Customer C 10.0 % 30.2 % Customer D 7.3 % Nil % Customer E 6.5 % 12.7 % | Garment manufacturing segment SCHEDULE OF CONCENTRATION RISKS March 31, 2021 March 31, 2020 Customer A 98.4 % 85.5 % Customer B 1.6 % Nil % The high concentration as at March 31, 2021 was mainly due to business development of a large distributor of garments. Management believes that should the Company lose any one of its major customers, it was able to sell similar products to other customers. Logistics services segment March 31, 2021 March 31, 2020 Customer A 30.2 % 22.4 % Customer B 16.6 % 18.3 % Customer C 12.7 % 3.8 % Customer D 5.5 % 2.7 % Customer E 5.5 % Nil % |
SCHEDULE OF PURCHASES FROM SUPPLIERS | The following tables summarized the purchases from five largest suppliers of each of the reportable segment for the three and nine months ended December 31, 2021 and 2020. SCHEDULE OF PURCHASES FROM SUPPLIERS Three months ended Nine months ended December 31, December 31, 2021 2020 2021 2020 Garment manufacturing segment 100.0 % 100.0 % 99.8 % 97.7 % Logistics services segment 100.0 % 79.1 % 92.2 % 99.7 % Property management and subleasing 100.0 % 100.0 % 100.0 % 100.0 % Epidemic prevention supplies Nil % 100.0 % Nil % 100 % | The following tables summarized the percentage of purchases from five largest suppliers of each of the reportable segment purchase for the years ended March 31, 2021 and 2020. SCHEDULE OF PURCHASES FROM SUPPLIERS Year ended March 31, 2021 2020 Garment manufacturing segment 98.7 % 92.7 % Logistics services segment 49.9 % 25.6 % Property management and subleasing 100.0 % Nil % Epidemic prevention supplies 90.8 % Nil % |
SCHEDULE OF PLANT AND EQUIPMENT USEFUL LIVES | Plant and equipment are carried at cost less accumulated depreciation. Depreciation is provided over the assets’ estimated useful lives, using the straight-line method. Estimated useful lives of the plant and equipment are as follows: SCHEDULE OF PLANT AND EQUIPMENT USEFUL LIVES Production plant 5 10 Motor vehicles 10 15 Office equipment 5 10 |
DISPOSITION OF SUBSIDIARIES (Ta
DISPOSITION OF SUBSIDIARIES (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Disposition Of Subsidiaries | |
SUMMARY OF FINANCIAL POSITION OF ENTITIES AND GAIN OR LOSS ON DISPOSAL | Financial position of the entities at disposal date and gain or loss on disposal: Garment Manufacturing Segment SUMMARY OF FINANCIAL POSITION OF ENTITIES AND GAIN OR LOSS ON DISPOSAL Financial position of DT September 30, 2020, date of disposal Current assets $ 673,025 Noncurrent assets - Current liabilities (70,481 ) Net assets $ 602,544 The consideration was at the fair value as of date of disposal, which was also the carrying value of DT, resulting no Logistics Services Segment Financial position of HPF November 16, 2020, date of disposal Current assets $ 740,060 Noncurrent assets 42,658 Current liabilities (565,362 ) Net assets $ 217,356 |
ACCRUED EXPENSES AND OTHER PA_2
ACCRUED EXPENSES AND OTHER PAYABLES (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
SCHEDULE OF ACCRUED EXPENSES AND OTHER PAYABLES | Accrued expenses and other payables consist of the following as of March 31, 2021 and 2020: SCHEDULE OF ACCRUED EXPENSES AND OTHER PAYABLES 2021 2020 Accrued wages and welfare 82,548 61,776 Accrued expenses 55,000 5,753 Other tax payable 28,242 25,206 Rental payable 29,741 24,972 Customers’ deposits 150,993 - Other payables 335,460 113,210 Accrued expenses and other payables $ 681,984 $ 230,917 |
BASIS OF PRESENTATION (Details
BASIS OF PRESENTATION (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||
Net Income (Loss) Attributable to Parent | $ 11,619 | $ (303,581) | $ 122,587 | $ (3,560,206) | $ (3,590,169) | $ (980,617) | |||
Net loss | (11,619) | 303,581 | (122,587) | 3,560,206 | 3,590,169 | 980,617 | |||
Net current liability | 4,602,684 | 4,602,684 | 4,430,933 | 4,095,286 | |||||
Deficit on total equity | $ 21,808 | $ 3,065,809 | $ 21,808 | $ 3,065,809 | $ 81,498 | $ 3,066,724 | $ 4,672 | $ 2,676,500 | $ 2,177,550 |
SCHEDULE OF RELATED PARTIES REL
SCHEDULE OF RELATED PARTIES RELATIONSHIP WITH THE COMPANY (Details) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Mar. 31, 2021 | |
Zhida Hong [Member] | ||
Related Party Transaction [Line Items] | ||
Name of Related Parties | Zhida Hong | Zhida Hong |
Relationship with the Company | President, CEO, and a director of the Company | President, CEO, and a director of the Company |
Zhongpeng Chen [Member] | ||
Related Party Transaction [Line Items] | ||
Name of Related Parties | Zhongpeng Chen | Zhongpeng Chen |
Relationship with the Company | A legal representative of HPF, became not a related party when HPF was disposed of in November, 2020 | A legal representative of HPF, became not a related party when HPF was disposed of in November, 2020 |
Bihua Yang [Member] | ||
Related Party Transaction [Line Items] | ||
Name of Related Parties | Bihua Yang | Bihua Yang |
Relationship with the Company | A legal representative of XKJ | A legal representative of XKJ |
Zhiyong Zhou [Member] | ||
Related Party Transaction [Line Items] | ||
Name of Related Parties | Zhiyong Zhou | |
Relationship with the Company | General Manager of XKJ | |
Dewu Huang [Member] | ||
Related Party Transaction [Line Items] | ||
Name of Related Parties | Dewu Huang | Dewu Huang |
Relationship with the Company | A legal representative of YBY | A legal representative of YBY |
Jinlong Huang [Member] | ||
Related Party Transaction [Line Items] | ||
Name of Related Parties | Jinlong Huang | Jinlong Huang |
Relationship with the Company | A spouse of legal representative of HSW | A spouse of legal representative of HSW |
Hongye Financial Consulting (Shenzhen) Co., Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Name of Related Parties | Hongye Financial Consulting (Shenzhen) Co., Ltd. | |
Relationship with the Company | A company controlled by CEO, Mr. Zhida Hong |
SCHEDULE OF RELATED PARTY TRANS
SCHEDULE OF RELATED PARTY TRANSACTION (Details) - USD ($) | Dec. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | |||
Related Party Transaction [Line Items] | ||||||
Amounts due from related parties | $ 171,364 | $ 84,838 | ||||
Amounts due to related parties | 3,536,615 | 4,913,964 | 5,429,440 | |||
Hongye Financial Consulting (Shenzhen) Co., Ltd [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Amounts due from related parties | 154,210 | 84,838 | ||||
Zhiyong Zhou [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Amounts due from related parties | [1] | 17,154 | ||||
Zhida Hong [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Amounts due to related parties | 3,208,463 | [2] | 3,727,371 | [2] | 5,043,489 | |
Bihua Yang [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Amounts due to related parties | [3] | 370,523 | [3] | |||
Dewu Huang [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Amounts due to related parties | 177,755 | [4] | 712,064 | [4] | 81,287 | |
Jinlong Huang [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Amounts due to related parties | $ 150,397 | 104,006 | 144,237 | |||
Zhongpeng Chen [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Amounts due to related parties | $ 160,427 | |||||
[1] | Being cash advance to Zhiyong Zhou to pay for daily operating expenditures of XKJ. | |||||
[2] | The decrease was due to net repayment of debt due to Zhida Hong. During the three and nine months ended December 31, 2021, the Company received financial support of $ | |||||
[3] | Being financial support from Bihua Yang for XKJ’s daily operation. | |||||
[4] | The decrease was due to net repayment of debt due to Dewu Huang. During the nine months ended December 31, 2021, the company received interest free advanced loan as financial support of approximately $ |
SCHEDULE OF RELATED PARTY TRA_2
SCHEDULE OF RELATED PARTY TRANSACTION (Details) (Parenthetical) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Related Party Transaction [Line Items] | |||||
Proceeds from related party debt | $ 3,797,473 | $ 7,697,827 | $ 9,200,975 | $ 2,475,728 | |
Repayments of related party debt | 5,341,046 | $ 6,605,044 | 9,702,083 | $ 1,063,323 | |
Zhida Hong [Member] | |||||
Related Party Transaction [Line Items] | |||||
Proceeds from related party debt | $ 30,000 | 270,000 | 2,200,000 | ||
Repayments of related party debt | $ 300,000 | 900,000 | $ 3,600,000 | ||
Huang Dewu [Member] | |||||
Related Party Transaction [Line Items] | |||||
Proceeds from related party debt | 1,500,000 | ||||
Repayments of related party debt | $ 2,000,000 |
SCHEDULE OF INVENTORIES (Detail
SCHEDULE OF INVENTORIES (Details) - USD ($) | Dec. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 242,644 | $ 234,870 | $ 230,742 |
Work in progress | 3,916 | 62,150 | |
Finished goods | 51,636 | 35,564 | 54,639 |
Total inventories | $ 298,196 | $ 270,434 | $ 347,531 |
SCHEDULE OF PREPAYMENTS AND OTH
SCHEDULE OF PREPAYMENTS AND OTHER RECEIVABLES (Details) - USD ($) | Dec. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 |
Receivables [Abstract] | |||
Prepayment | $ 34,248 | ||
Deposit | 79,447 | 155,830 | $ 123,965 |
Receivable of consideration on disposal of subsidiaries | 269,057 | 258,929 | |
Other receivables | 227,869 | 269,402 | 108,009 |
Total Prepayment | $ 610,621 | $ 684,161 | $ 231,974 |
SCHEDULE OF PROPERTY, PLANT AND
SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) | Dec. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 |
Property, Plant and Equipment [Line Items] | |||
Plant and equipment, gross | $ 1,291,673 | $ 1,106,608 | $ 955,461 |
Less: accumulated depreciation | (422,070) | (312,631) | (370,442) |
Plant and equipment, net | 869,603 | 793,977 | 585,019 |
Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Plant and equipment, gross | 73,871 | 71,642 | 67,247 |
Motor Vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Plant and equipment, gross | 1,189,673 | 1,020,893 | 868,743 |
Office Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Plant and equipment, gross | $ 28,129 | $ 14,073 | $ 19,471 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||||||
Depreciation expense | $ 44,164 | $ 32,051 | $ 115,561 | $ 83,210 | $ 101,014 | $ 114,391 |
SHORT-TERM BANK LOAN (Details N
SHORT-TERM BANK LOAN (Details Narrative) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2020USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2021USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2021CNY (¥) | Mar. 31, 2021CNY (¥) | Aug. 31, 2020CNY (¥) | Mar. 31, 2020CNY (¥) | Aug. 31, 2019USD ($) | Aug. 31, 2019CNY (¥) | Sep. 30, 2018CNY (¥) | |
Minimum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, interest rate | 4.84% | 4.84% | ||||||||||
Maximum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, interest rate | 6.96% | 6.96% | ||||||||||
Dongguan Agricultural Bank of China [Member] | Facility Agreement [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit maximum borrowing capacity | $ 153,172 | ¥ 1,000,000 | ||||||||||
Line of credit outstanding value | $ 157,354 | $ 152,607 | ¥ 1,000,000 | |||||||||
Dongguan Agricultural Bank of China [Member] | Facility Agreement [Member] | Minimum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, interest rate | 4.84% | |||||||||||
Dongguan Agricultural Bank of China [Member] | Facility Agreement [Member] | Maximum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, interest rate | 4.90% | |||||||||||
Dongguan Agricultural Bank of China [Member] | Ding Yinping [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit outstanding value | $ 6,596 | ¥ 41,921 | ||||||||||
Dongguan Agricultural Bank of China [Member] | New Facility Agreement [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit maximum borrowing capacity | $ | $ 147,264 | |||||||||||
Line of credit outstanding value | $ | $ 152,607 | |||||||||||
Line of credit facility, maturity date | Jul. 31, 2021 | |||||||||||
Dongguan Agricultural Bank of China [Member] | New Facility Agreement [Member] | RMB [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit maximum borrowing capacity | ¥ | ¥ 1,000,000 | |||||||||||
Line of credit outstanding value | ¥ | ¥ 1,000,000 | |||||||||||
Dongguan Agricultural Bank of China [Member] | New Facility Agreement [Member] | Minimum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, interest rate | 434.00% | |||||||||||
Dongguan Agricultural Bank of China [Member] | New Facility Agreement [Member] | Maximum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, interest rate | 4.90% | |||||||||||
Dongguan Agricultural Commercial Bank [Member] | Facility Agreement [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit maximum borrowing capacity | $ | $ 212,334 | |||||||||||
Line of credit outstanding value | $ | $ 211,868 | |||||||||||
Line of credit facility, interest rate | 6.96% | |||||||||||
Line of credit facility, maturity month year | 2020-09 | |||||||||||
Dongguan Agricultural Commercial Bank [Member] | Facility Agreement [Member] | RMB [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit maximum borrowing capacity | ¥ | ¥ 1,500,000 | |||||||||||
Line of credit outstanding value | ¥ | ¥ 1,500,000 | |||||||||||
Webank [Member] | Facility Agreement [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit maximum borrowing capacity | $ | $ 88,358 | |||||||||||
Webank [Member] | Facility Agreement [Member] | RMB [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit maximum borrowing capacity | ¥ | ¥ 600,000 | |||||||||||
Webank [Member] | Facility Agreement [Member] | Minimum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, interest rate | 16.20% | |||||||||||
Webank [Member] | Facility Agreement [Member] | Maximum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, interest rate | 16.29% |
SCHEDULE OF EFFECTIVE INCOME TA
SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||||||
PRC statutory tax rate | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% |
Computed expected benefits | $ 3,457 | $ (71,949) | $ 35,120 | $ (884,253) | $ (891,076) | $ (241,137) |
Temporary differences | (30,951) | 29,440 | (87,797) | 629,954 | (50,911) | (15,205) |
Permanent difference | 1,444 | 6,640 | 1,691 | 131,595 | 56,227 | 3,732 |
Change in valuation allowance | 28,259 | 51,654 | 68,879 | 145,900 | 911,627 | 268,680 |
Income tax expense | $ 2,209 | $ (15,784) | $ 17,893 | $ 23,196 | $ 25,867 | $ 16,070 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||||
Federal statutory tax rate | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% |
Percentage of preferential tax benefits and EIT rate and term description | The preferential tax rate will be expired at end of year 2022 and the EIT rate will be 25% from year 2023. | |||||
Percentage of preferential value added tax | 3.00% | 3.00% | ||||
Accumulated tax losses | $ 1.5 | $ 0.8 | ||||
Accumulated net operating loss | $ 4.7 | $ 1.2 | ||||
H S W D T And Y S [Member] | ||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||||
Percentage of preferential value added tax | 13.00% | |||||
Shenzhen Hua Peng Fa Logistic Co Ltd [Member] | ||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||||
Percentage of preferential value added tax | 3.00% | |||||
Domestic Tax Authority [Member] | ||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||||
Percentage of value added tax | 13.00% | 13.00% | ||||
Logistic Company [Member] | ||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||||
Percentage of value added tax | 9.00% | 9.00% | ||||
Dongguan Heng Sheng Wei Garments Co., Ltd [Member] | ||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||||
Percentage of preferential value added tax | 13.00% | |||||
Minimum [Member] | ||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||||
Percentage on enterprise income tax | 5.00% | |||||
Maximum [Member] | ||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||||
Percentage on enterprise income tax | 15.00% | |||||
HONG KONG | ||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||||
Income tax rate | 16.50% | 16.50% | 16.50% | |||
People's Republic of China [Member] | ||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||||
Federal statutory tax rate | 25.00% | 25.00% | 25.00% | |||
Percentage of preferential tax benefits and EIT rate and term description | The preferential tax rate will be expired at end of year 2022 and the EIT rate will be 25% from year 2023 | |||||
People's Republic of China [Member] | Minimum [Member] | ||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||||
Percentage on enterprise income tax | 5.00% | |||||
People's Republic of China [Member] | Maximum [Member] | ||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||||
Percentage on enterprise income tax | 15.00% |
SCHEDULE OF SEGMENT REPORTING (
SCHEDULE OF SEGMENT REPORTING (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||||||
Revenues | $ 2,791,470 | $ 3,411,552 | $ 9,835,733 | $ 21,014,064 | $ 24,734,759 | $ 10,172,379 |
Intersegment revenue | 2,304 | |||||
Interest income | 2,135 | 230 | ||||
Interest expense | 2,526 | 646 | 5,375 | 6,586 | 19,142 | 20,799 |
Depreciation and amortization | 115,561 | 101,014 | ||||
Operating income (loss) | (27,676) | $ (288,526) | 10,761 | (3,593,015) | (3,608,174) | (864,318) |
Segment assets | 13,072,248 | 13,072,248 | ||||
Expenditures for segment assets | 176,268 | $ 392,108 | 405,851 | 136,001 | ||
Segment assets | 13,014,718 | 13,014,718 | 18,424,084 | $ 8,421,978 | ||
Garment Manufacturing Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 2,488,173 | 6,896,410 | ||||
Intersegment revenue | 2,304 | |||||
Interest income | 1,925 | 23 | ||||
Interest expense | 4,181 | 16,787 | ||||
Depreciation and amortization | 1,981 | 5,036 | ||||
Operating income (loss) | 96,275 | 327,161 | ||||
Segment assets | 1,833,807 | 1,833,807 | ||||
Expenditures for segment assets | 79,460 | |||||
Segment assets | 4,410,466 | |||||
Logistic Services Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 4,144,604 | 4,580,733 | ||||
Intersegment revenue | ||||||
Interest income | 63 | 0 | ||||
Interest expense | 506 | 795 | ||||
Depreciation and amortization | 90,655 | 90,549 | ||||
Operating income (loss) | 210,878 | 191,730 | ||||
Segment assets | 2,433,062 | 2,433,062 | ||||
Expenditures for segment assets | 148,604 | 326,391 | ||||
Segment assets | 2,236,574 | |||||
Property Management and Subleasing [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 3,202,956 | 1,278,517 | ||||
Intersegment revenue | ||||||
Interest income | 140 | 8 | ||||
Interest expense | 456 | 7 | ||||
Depreciation and amortization | 18,443 | |||||
Operating income (loss) | 47,935 | 4,220 | ||||
Segment assets | 7,770,529 | 7,770,529 | ||||
Expenditures for segment assets | 27,664 | |||||
Segment assets | 9,316,090 | |||||
Epidemic Prevention Supplies Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 11,979,099 | |||||
Intersegment revenue | ||||||
Interest income | ||||||
Interest expense | ||||||
Depreciation and amortization | 4,482 | 5,429 | ||||
Operating income (loss) | (3,280,313) | |||||
Segment assets | 87,597 | 87,597 | ||||
Expenditures for segment assets | ||||||
Segment assets | 33,737 | |||||
Corporate and Other [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | ||||||
Intersegment revenue | ||||||
Interest income | 6 | 199 | ||||
Interest expense | 232 | 1,553 | ||||
Depreciation and amortization | ||||||
Operating income (loss) | (344,327) | (850,972) | ||||
Segment assets | $ 947,253 | 947,253 | ||||
Expenditures for segment assets | ||||||
Segment assets | $ 2,342,379 |
SCHEDULE OF GEOGRAPHICAL INFORM
SCHEDULE OF GEOGRAPHICAL INFORMATION (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Revenues | $ 2,791,470 | $ 3,411,552 | $ 9,835,733 | $ 21,014,064 | $ 24,734,759 | $ 10,172,379 |
Long-Lived Assets | 10,426,602 | |||||
UNITED STATES | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Revenues | 4,787 | 11,868,854 | 11,602,972 | |||
Long-Lived Assets | ||||||
CHINA | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Revenues | 2,791,470 | $ 3,406,766 | 9,835,733 | $ 9,145,210 | 13,131,787 | |
Long-Lived Assets | $ 8,186,834 | $ 8,186,834 | $ 10,426,602 |
CONSOLIDATED SEGMENT DATA (Deta
CONSOLIDATED SEGMENT DATA (Details Narrative) - Segment | 9 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Mar. 31, 2021 | |
Segment Reporting [Abstract] | ||
Number of Operating Segments | 4 | 4 |
SCHEDULE OF LEASE COST (Details
SCHEDULE OF LEASE COST (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Lease Right-of-use Asset And Lease Liabilities | ||||||
Operating lease cost | $ 968,170 | $ 444,162 | $ 2,878,730 | $ 668,883 | $ 1,021,267 | $ 451,685 |
Short-term lease cost | 20,955 | 62,799 | 35,727 | 63,785 | ||
Lease cost | $ 989,125 | $ 444,162 | $ 2,941,529 | $ 668,883 | $ 1,056,994 | $ 515,470 |
SCHEDULE OF SUPPLEMENTAL INFORM
SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO LEASES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Lease Right-of-use Asset And Lease Liabilities | ||||||
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow used in operating leases | $ 989,170 | $ 444,162 | $ 2,941,529 | $ 668,883 | $ 1,650,847 | $ 515,470 |
Right-of-use assets obtained in exchange for new operating leases liabilities | $ (3,390) | $ 10,378,042 | $ 342,457 | $ 10,404,962 | $ 9,380,402 | $ 1,982,393 |
Weighted average remaining lease term - Operating leases (years) | 2 years | 3 years 1 month 6 days | 2 years | 3 years 1 month 6 days | 2 years 9 months 18 days | 4 years 2 months 12 days |
Weighted average discount rate - Operating leases | 4.75% | 4.35% | 4.75% | 4.35% | 4.35% | 4.35% |
SCHEDULE OF OPERATING LEASE LIA
SCHEDULE OF OPERATING LEASE LIABILITY (Details) - USD ($) | Dec. 31, 2021 | Mar. 31, 2021 |
Lease Right-of-use Asset And Lease Liabilities | ||
2022 | $ 3,877,767 | $ 3,710,121 |
2023 | 3,857,516 | 3,792,954 |
2024 | 103,853 | 2,891,377 |
2025 | 58,344 | |
Total lease payments | 7,839,136 | 10,452,795 |
Less: Interest | (531,253) | (820,170) |
Total | $ 7,307,883 | $ 9,632,625 |
LEASE RIGHT-OF-USE ASSET AND _3
LEASE RIGHT-OF-USE ASSET AND LEASE LIABILITIES (Details Narrative) - USD ($) | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Apr. 02, 2020 | Mar. 31, 2020 |
Weighted average discount rate leases | 4.75% | 4.35% | 4.35% | 4.35% | |
Operating lease, right of use asset | $ 7,307,883 | $ 9,632,625 | $ 1,835,717 | ||
Operating lease, liability | $ 7,307,883 | $ 9,632,625 | |||
Accounting Standards Update 2016-02 [Member] | |||||
Operating lease, right of use asset | $ 60,000 | ||||
Operating lease, liability | $ 60,000 | ||||
Plant and Dormitory [Member] | |||||
Lease period | 4 years 6 months | 4 years 6 months | |||
Floors in Commercial Building [Member] | |||||
Lease period | 3 years | 3 years | |||
Head Office [Member] | |||||
Lease period | 5 years | 5 years |
SCHEDULE OF CONCENTRATION RISKS
SCHEDULE OF CONCENTRATION RISKS (Details) - Accounts Receivable [Member] - Customer Concentration Risk [Member] | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | |
Customer A [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 30.20% | 22.40% | |
Customer A [Member] | Garment Manufacturing Segment [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 87.00% | 98.40% | 85.50% |
Customer A [Member] | Logistics Services Segment [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 12.20% | 16.60% | |
Customer B [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 16.60% | 18.30% | |
Customer B [Member] | Garment Manufacturing Segment [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 13.00% | 1.60% | |
Customer B [Member] | Logistics Services Segment [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 11.00% | ||
Customer C [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 12.70% | 3.80% | |
Customer C [Member] | Logistics Services Segment [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10.00% | 30.20% | |
Customer D [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 5.50% | 2.70% | |
Customer D [Member] | Logistics Services Segment [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 7.30% | ||
Customer E [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 5.50% | ||
Customer E [Member] | Logistics Services Segment [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 6.50% | 12.70% |
SCHEDULE OF PURCHASES FROM SUPP
SCHEDULE OF PURCHASES FROM SUPPLIERS (Details) - Five Largest Suppliers [Member] | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Garment Manufacturing Segment [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Percentage of inventory purchase | 100.00% | 100.00% | 99.80% | 97.70% | 98.70% | 92.70% |
Logistic Services Segment [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Percentage of inventory purchase | 100.00% | 79.10% | 92.20% | 99.70% | 49.90% | 25.60% |
Property Management and Subleasing [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Percentage of inventory purchase | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | |
Eepidemic Prevention Supplies [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Percentage of inventory purchase | 100.00% | 100.00% | 90.80% |
SCHEDULE OF PLANT AND EQUIPMENT
SCHEDULE OF PLANT AND EQUIPMENT USEFUL LIVES (Details) | 12 Months Ended |
Mar. 31, 2021 | |
Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Plant and equipment, useful lives | 5 years |
Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Plant and equipment, useful lives | 10 years |
Motor Vehicles [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Plant and equipment, useful lives | 10 years |
Motor Vehicles [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Plant and equipment, useful lives | 15 years |
Office Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Plant and equipment, useful lives | 5 years |
Office Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Plant and equipment, useful lives | 10 years |
RISKS AND UNCERTAINTIES (Detail
RISKS AND UNCERTAINTIES (Details Narrative) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021USD ($) | Dec. 31, 2021CNY (¥) | Dec. 31, 2020 | Mar. 31, 2021USD ($)shares | Mar. 31, 2021CNY (¥)shares | Mar. 31, 2020USD ($)shares | |
Concentration Risk [Line Items] | ||||||||
Translated exchange rates | 6.355 | 6.355 | 6.355 | 6.553 | 7.08 | |||
Revenue and expenses translated average exchange rates | 6.442 | 6.442 | 6.779 | 6.78 | 6.78 | 6.94 | ||
Outstanding borrowings | $ 157,354 | ¥ 1,000,000 | $ 152,607 | |||||
Assets, fair value | 0 | |||||||
Liabilities, fair value | 0 | |||||||
Allowance for doubtful accounts | 0 | |||||||
Write downs for obsolete finished goods | 0 | $ 0 | ||||||
Impairment loss on goodwill | 475,003 | |||||||
Impairment of long-lived assets | $ 0 | $ 0 | ||||||
Potentially dilutive ordinary shares | shares | 0 | 0 | 0 | |||||
Effective federal statutory tax rate | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% |
Deferred tax benefit | $ 0 | $ 0 | ||||||
U.S. Tax Reform [Member] | ||||||||
Concentration Risk [Line Items] | ||||||||
Effective federal statutory tax rate | 21.00% | 21.00% | ||||||
Income tax examination, description | The U.S. Tax Reform modified the U.S. Internal Revenue Code by, among other things, reducing the statutory U.S. federal corporate income tax rate from 35% to 21% for taxable years beginning after December 31, 2017 | The U.S. Tax Reform modified the U.S. Internal Revenue Code by, among other things, reducing the statutory U.S. federal corporate income tax rate from 35% to 21% for taxable years beginning after December 31, 2017 | ||||||
People's Republic of China [Member] | ||||||||
Concentration Risk [Line Items] | ||||||||
Effective federal statutory tax rate | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | |||
RMB [Member] | ||||||||
Concentration Risk [Line Items] | ||||||||
Outstanding borrowings | ¥ | ¥ 1,000,000 | |||||||
Minimum [Member] | ||||||||
Concentration Risk [Line Items] | ||||||||
Line of credit facility, interest rate | 4.84% | 4.84% | 4.84% | 4.84% | ||||
Maximum [Member] | ||||||||
Concentration Risk [Line Items] | ||||||||
Line of credit facility, interest rate | 6.96% | 6.96% | 6.96% | 6.96% | ||||
Two Customers [Member] | Garment Segment and Epidemic Prevention Supplies Segment [Member] | ||||||||
Concentration Risk [Line Items] | ||||||||
Percentage of sales | 57.40% | 57.40% | ||||||
Two Customers [Member] | Minimum [Member] | Garment Segment and Epidemic Prevention Supplies Segment [Member] | ||||||||
Concentration Risk [Line Items] | ||||||||
Percentage of sales | 10.00% | 10.00% | ||||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | No Single Customer [Member] | ||||||||
Concentration Risk [Line Items] | ||||||||
Concentration Risk, Percentage | 10.00% | 10.00% | ||||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | One Customer [Member] | ||||||||
Concentration Risk [Line Items] | ||||||||
Concentration Risk, Percentage | 10.00% | 10.00% | 10.00% | |||||
Revenue performance obligations percentage | 24.80% | 24.80% |
SUMMARY OF FINANCIAL POSITION O
SUMMARY OF FINANCIAL POSITION OF ENTITIES AND GAIN OR LOSS ON DISPOSAL (Details) - USD ($) | Nov. 16, 2020 | Sep. 30, 2020 |
Garment Manufacturing Segment [Member] | DT [Member] | ||
Current assets | $ 673,025 | |
Noncurrent assets | ||
Current liabilities | (70,481) | |
Net assets | $ 602,544 | |
Logistic Services Segment [Member] | HPF [Member] | ||
Current assets | $ 740,060 | |
Noncurrent assets | 42,658 | |
Current liabilities | (565,362) | |
Net assets | $ 217,356 |
DISPOSITION OF SUBSIDIARIES (De
DISPOSITION OF SUBSIDIARIES (Details Narrative) - USD ($) | Oct. 02, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Sep. 30, 2020 |
Disposal of inventory | $ 114,229 | |||
Inventory write-downs | $ 0 | $ 0 | ||
DT [Member] | ||||
Gain or loss recognized on disposal | $ 0 |
SCHEDULE OF ACCRUED EXPENSES AN
SCHEDULE OF ACCRUED EXPENSES AND OTHER PAYABLES (Details) - USD ($) | Dec. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 |
Payables and Accruals [Abstract] | |||
Accrued wages and welfare | $ 82,548 | $ 61,776 | |
Accrued expenses | 55,000 | 5,753 | |
Other tax payable | 28,242 | 25,206 | |
Rental payable | 29,741 | 24,972 | |
Customers’ deposits | 150,993 | ||
Other payables | 335,460 | 113,210 | |
Accrued expenses and other payables | $ 778,260 | $ 681,984 | $ 230,917 |
SHARE CAPITAL AND RESERVES (Det
SHARE CAPITAL AND RESERVES (Details Narrative) - USD ($) | Dec. 31, 2020 | Nov. 30, 2020 | Aug. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Company offered common stocks shares | $ 6,735,000 | ||||
Description on statutory reserve | In accordance with the relevant laws and regulations of the PRC, the subsidiary of the Company established in the PRC is required to transfer 10% of its profit after taxation prepared in accordance with the accounting regulations of the PRC to the statutory reserve until the reserve balance reaches 50% of the subsidiary’s paid-up capital. Such reserve may be used to offset accumulated losses or increase the registered capital of the subsidiary, subject to the approval from the PRC authorities, and are not available for dividend distribution to the shareholders | ||||
Statutory reserve appropriation amount | $ 10,937 | $ 1,735 | |||
Paid-up statutory reserve | 13,821 | $ 23,514 | |||
Additional Paid-in Capital [Member] | |||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Company offered common stocks shares | $ 6,733,653 | ||||
Consolidated statutory reserve | $ 20,630 | ||||
Investor [Member] | |||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Company offered common stocks shares | $ 600,000 | $ 747,000 | |||
Subscription price | $ 5 | $ 5 |