| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 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)
Principles of Consolidation The consolidated financial statements include the accounts of the Company and all subsidiaries, as discussed above.
A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting powers; or has the power
to appoint or remove the majority of the members of the board of directors; or to cast a majority of votes at the meeting of directors;
or has the power to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or
equity holders. All significant intercompany balances and transactions have been eliminated in consolidation. (c) 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 market activity). The Company has derivative
liabilities, embedded conversion feature and warrants that are not traded in an active market with readily observable quoted prices, and therefore the
Company used significant unobservable inputs (Level 3) to measure the fair value of these options and derivative liabilities at inception
and at each subsequent balance sheet date. 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. (d) 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, 2023 and 2022. 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. (e) 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 receivables 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 (f) 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 0.02 (g) 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. (h) Accounting for the Impairment of Long-Lived
Assets 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 (i) Revenue Recognition Revenue is generated through sale of goods, delivery services, and provision of property management and subleasing. 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, 2023 and 2022. Rental income from operating leases is recognized on a straight-line basis over the term of the relevant lease. 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. (j) 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. Diluted earnings (loss) per share is calculated
by dividing net earnings (loss) attributable to ordinary shareholders, as adjusted for the effect of dilutive ordinary equivalent shares,
if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Ordinary equivalent
shares consist of unvested restricted shares, ordinary shares issuable upon the exercise of outstanding share options using the treasury
stock method, and ordinary shares issuable upon the conversion of convertible note, option and preferred shares using the if converted
method. Ordinary equivalent shares are not included in the denominator of the diluted earnings per share calculation when inclusion of
such shares would be anti-dilutive. For the year ended March 31, 2023, the Company had ordinary equivalent shares assumed converted from convertible
note and warrants. The weighted average numbers of dilutive potential ordinary shares was 5,339,039 Nil (k) 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, 2023 and 2022. 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, 2023 and 2022. 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 (l) 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. (m) 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. Accounting for Convertible Instruments: In August 2020, FASB issued ASU 2020-06, Accounting for Convertible Instruments
and Contracts in an Entity’s Own Equity (ASU 2020-06), as part of its overall simplification initiative to reduce costs and complexity
of applying accounting standards while maintaining or improving the usefulness of the information provided to users of financial statements.
Among other changes, the new guidance removes from GAAP separation models for convertible debt that require the convertible debt to be
separated into a debt and equity component, unless the conversion feature is required to be bifurcated and accounted for as a derivative
or the debt is issued at a substantial premium. As a result, after adopting the guidance, entities will no longer separately present such
embedded conversion features in equity and will instead account for the convertible debt wholly as debt. The new guidance also requires
use of the “if-converted” method when calculating the dilutive impact of convertible debt on earnings per share, which is
consistent with the Company’s current accounting treatment under the current guidance. The guidance is effective for financial statements
issued for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years, with early adoption permitted,
but only at the beginning of the fiscal year. 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. |
