Cover
Cover | 12 Months Ended |
Mar. 31, 2021shares | |
Cover [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Mar. 31, 2021 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2021 |
Current Fiscal Year End Date | --03-31 |
Entity File Number | 000-55631 |
Entity Registrant Name | Zhong Yuan Bio-Technology Holdings Ltd |
Entity Central Index Key | 0001672886 |
Entity Incorporation, State or Country Code | E9 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | No |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | true |
Elected Not To Use the Extended Transition Period | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 17,145,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Current assets | ||
Cash at bank | $ 194,590 | $ 60,790 |
Accounts receivable, net of allowance of $nil | 264,749 | 329,891 |
Inventories | 1,487,683 | 224,879 |
Due from related companies | 188,202 | 772,661 |
Prepaid expenses and other current assets | 301,370 | 141,017 |
Total current assets | 2,436,594 | 1,529,238 |
Other assets | ||
Deposit for acquisition | 0 | 446,192 |
Right-of-use assets | 1,005,649 | 294,188 |
Property, plant and equipment, net | 15,353 | 9,839 |
Total other assets | 1,021,002 | 750,219 |
Total assets | 3,457,596 | 2,279,457 |
Current liabilities | ||
Bank loan | 402,254 | 460,030 |
Accrued expenses and other payables | 206,262 | 66,673 |
Value added and other taxes payable | 51,592 | 8,901 |
Lease liabilities, current | 101,134 | 93,077 |
Total current liabilities | 761,242 | 628,681 |
Non-current liabilities | ||
Bank loan, non-current | 261,251 | 0 |
Lease liabilities, noncurrent | 934,610 | 170,966 |
Total non-current liabilities | 1,195,861 | 170,966 |
Total liabilities | 1,957,103 | 799,647 |
Stockholders' equity | ||
Ordinary shares, 50,000,000 shares authorized at par value of $0.001 each; 17,145,000 shares issued and outstanding as of March 31, 2021 and 2020 | 17,145 | 17,145 |
Additional paid-in capital | 1,563,472 | 1,563,472 |
Accumulated losses | (242,269) | (214,247) |
Accumulated other comprehensive income | 162,145 | 113,440 |
Total stockholders' equity | 1,500,493 | 1,479,810 |
Total liabilities and stockholders' equity | $ 3,457,596 | $ 2,279,457 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2021 | Mar. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 |
Ordinary shares, shares authorized | 500,000,000 | 500,000,000 |
Ordinary shares, shares issued | 171,450,000 | 171,450,000 |
Ordinary shares, shares outstanding | 171,450,000 | 171,450,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
NET SALES | $ 1,624,086 | $ 1,219,650 |
Cost of sales | (270,628) | (257,034) |
Gross profit | 1,353,458 | 962,616 |
General and administrative expenses | (574,634) | (598,610) |
Research and development expenses | (211,037) | (182,309) |
Selling and marketing expenses | (582,382) | (267,206) |
Operating loss | (14,595) | (85,509) |
Other income (expenses) | ||
Other income (expenses) | 11,793 | (424) |
Subsidy income | 0 | 2,298 |
Interest income | 90 | 2,451 |
Interest expense | (24,650) | (6,115) |
Total other income (expenses), net | (12,767) | (1,790) |
Loss before income taxes | (27,362) | (87,299) |
Income tax expense | (660) | 0 |
Net loss | (28,022) | (87,299) |
Other comprehensive income (loss) | ||
Foreign currency translation adjustment | 48,705 | (14,229) |
Comprehensive income (loss) | $ (76,727) | $ (101,528) |
Loss per share - Basic and diluted (cents) | $ (0.16) | $ (0.52) |
Weighted average number of shares - Basic and diluted* | 17,145,000 | 16,688,197 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) | Ordinary Shares | Additional Paid-In Capital | Accumulated Losses | Accumulated Other Comprehensive Income | Total |
Balance at beginnig, Shares at Mar. 31, 2019 | 161,500,000 | ||||
Balance at beginnig, Value at Mar. 31, 2019 | $ 16,150 | $ 1,435,200 | $ (126,948) | $ 127,669 | $ 1,452,071 |
Effect of shares exchange, Shares | 8,500,000 | ||||
Effect of shares exchange, Value | $ 850 | (16,583) | (15,733) | ||
Issuance of shares through private placement, Shares | 1,450,000 | ||||
Issuance of shares through private placement, Value | $ 145 | 144,855 | 145,000 | ||
Net income | (87,299) | (87,299) | |||
Foreign currency translation adjustment | (14,229) | (14,229) | |||
Balance at Ending, Shares at Mar. 31, 2020 | 171,450,000 | ||||
Balance at Ending, Value at Mar. 31, 2020 | $ 17,145 | 1,563,472 | (214,247) | 113,440 | 1,479,810 |
Effect of the one-for-ten reverse stock split, shares | (154,305,000) | ||||
Effect of the one-for-ten reverse stock split, value | |||||
Issuance of shares through private placement, Shares | 50,000 | ||||
Issuance of shares through private placement, Value | $ 50 | 49,950 | 50,000 | ||
Cancellation of shares, shares | (50,000) | ||||
Cancellation of shares, value | $ (50) | (49,950) | (50,000) | ||
Net income | (28,022) | (28,022) | |||
Foreign currency translation adjustment | 48,705 | 48,705 | |||
Balance at Ending, Shares at Mar. 31, 2021 | 17,145,000 | ||||
Balance at Ending, Value at Mar. 31, 2021 | $ 17,145 | $ 1,563,472 | $ (242,269) | $ 162,145 | $ 1,500,493 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (28,022) | $ (87,299) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of property, plant and equipment | 5,990 | 6,278 |
Amortization of right-of-use assets | 176,382 | 13,300 |
Loss on disposal of fixed assets | 0 | 291 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 65,142 | 14,813 |
Inventories | 162,276 | 9,228 |
Prepaid expenses and other current assets | (254,853) | (6,409) |
Accounts payables | (706) | 0 |
Accrued expenses and other payables | 140,295 | (96,775) |
Value added and other taxes payable | 42,691 | 0 |
Net cash (used in)/provided by operating activities | 309,195 | (146,573) |
Cash flows from investing activities: | ||
Proceeds from disposal of available-for-sale investment | 0 | 330,269 |
Payment of deposit for acquisition | 0 | (453,776) |
Purchase of property, plant and equipment | (5,632) | (7,571) |
Net cash on acquisition | 4,644 | 0 |
Net cash used in investing activities | (988) | (131,078) |
Cash flows from financing activities: | ||
Proceeds from Private Placement | 50,000 | 145,000 |
Payment for cancellation of shares | (50,000) | 0 |
Proceeds from bank loans | 663,505 | 467,849 |
Repayment of bank loan /short term loan | (460,030) | (198,599) |
Advances to the related companies | 0 | 114,413 |
Repayment from the related companies | (299,010) | (177,904) |
Net cash provided by/(used in) financing activities | (95,535) | 350,759 |
Effect of exchange rate changes on cash | (78,872) | (17,695) |
Net increase in cash | 133,800 | 55,413 |
Cash at beginning of year | 60,790 | 5,377 |
Cash at end of year | 194,590 | 60,790 |
Supplemental information: | ||
Cash paid for income tax | 0 | 15,309 |
Cash paid for interests | 24,250 | 10,208 |
Major non-cash transactions: | ||
Right of use assets obtained in exchange for operating lease obligations | $ 1,148,422 | $ 312,489 |
Nature of business and organiza
Nature of business and organization | 12 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Nature of business and organization | Note 1 — Nature of business and organization Nature of operations Zhong Yuan Bio-Technology Holdings Limited (“ZY Holdings” or the “Company”), through its subsidiaries, is engaged in the business of developing and marketing nervonic acid-based health supplements and sales of acer truncatum seedlings. ZY Holdings together with its subsidiaries are collectively referred to as the “Company”. Share Exchange On August 31, 2019, ZY Holdings closed on a share exchange (the “Share Exchange”) with Zhong Yuan Investment Limited (“Zhong Yuan Investment”), a Seychelles company limited by shares. Prior to the exchange, Zhong Yuan Investment owned 100% of the shares of China Bio-Technology Holdings Limited (“China Bio”), a company organized under the laws of the Republic of Seychelles. Under the Share Exchange Agreement, ZY Holdings issued 161,500,000 shares to Zhong Yuan Investment in exchange of 100% equity interest in China Bio. As a result of the Share Exchange, China Bio is now a wholly owned subsidiary of ZY Holdings. Immediately following the closing of the Share Exchange, the Company had 170,000,000 shares of common stock outstanding, 95% of which were owned by Zhong Yuan Investment. The Share Exchange has been accounted for as a reverse acquisition using the purchase method of accounting, with no goodwill being recognized. ZY Holdings (the legal acquirer) has been considered the accounting acquiree and China Bio (the legal acquiree) the accounting acquirer. The consolidated financial statements prior to the closing of the Share Exchange are actually those of China Bio, and the accounts of ZY Holdings are consolidated from the date of consummation of the Share Exchange. Reorganization of China Bio In and around January 2018 China Bio completed a reorganization of its legal structure. The reorganization involved the incorporation of China Bio and its wholly owned subsidiaries, Zhong Yuan Bio-Technology (Hong Kong) Limited (“ZY HK”, previously known as Hua Hong Powerloop Technology (Hong Kong) Limited, a holding company incorporated on June 13, 2016 under the laws of Hong Kong) and Zhong Yuan Bio-Technology (Shenzhen) Company Limited (“ZY Shenzhen”, a holding company established on June 10, 2014 under the laws of the People’s Republic of China (“PRC”) and previously known as Shenzhen Chuang Feng Clear Energy Company Limited); and the transfer of all equity ownership of Bao Feng Bio-Technology (Beijing) Limited (“BF Beijing”, previously known as Beijing Yuan Bao Feng Century Agricultural Technology Limited, an operating company incorporated on August 30, 2012 under the laws of the PRC) to ZY Shenzhen from the former shareholders of BF Beijing. On January 19, 2018, ZY Shenzhen entered into an agreement to acquire 100% of the equity ownership of BF Beijing for a total cash consideration of $1,351,500 (RMB8,500,000) from the former shareholders of BF Beijing. To fund ZY Shenzhen’s acquisition of BF Beijing, these former shareholders agreed to provide an interest-free loan to China Bio which in turn provided an interest-free loan to ZY Shenzhen of the same amount of $1,351,500 (RMB8,500,000). For the purpose of this transaction, in January 2018, these former shareholders had established a majority ownership in China Bio whose shares were issued and paid up by way of capitalization of the said interest-free loan of $1,351,500 provided by these former shareholders. China Bio has a direct 100% equity interest in ZY Shenzhen. On February 13, 2019, ZY Shenzhen received approval from the Economic and Trade Bureau of Beijing, the PRC, on the acquisition of BF Beijing. Since China Bio and its subsidiaries have effectively been controlled by the same group of shareholders before and after the reorganization, they are considered under common control. The above-mentioned transactions have been accounted for as recapitalization of BF Beijing with no adjustment to the historical basis of the assets and liabilities of BF Beijing and the operations were consolidated as though the transaction occurred as of the beginning of the first accounting period presented in these financial statements. For the purpose of presenting the financial statements on a consistent basis, the consolidated financial statements have been prepared as if the Company, ZY Shenzhen and ZY HK had been in existence since the beginning of the earliest period presented and throughout the whole periods covered by these financial statements. Reverse Stock Split On July 24, 2020, the Company completed a one-for-ten reverse stock split of the Company’s ordinary shares (the “Reverse Stock Split”). As a result of the Reverse Stock Split, the authorized share capital of the Company was decreased from 500,000,000 ordinary shares with a par value of US$0.0001 each to 50,000,000 ordinary shares with a par value of US$0.001 each, and the number of issued and outstanding ordinary shares was decreased from 171,450,000 shares to 17,145,000 shares. Private Placement On December 13, 2019, the Company closed on the sale of 1,450,000 Ordinary Shares, at a purchase price of $0.10 per Share, pursuant to a private securities offering. On November 17, 2020, the Company sold 50,000 Ordinary Shares (post-Reverse Stock Split), at a purchase price of $1.00 per Share, pursuant to a private securities offering. Cancellation of shares On November 17, 2020, the Company acquired 25,000 Ordinary Shares (post-Reverse Stock Split) from one of the shareholders of the Company at total consideration of US$25,000. These shares were thereafter cancelled. On November 18, 2020, the Company acquired 25,000 Ordinary Shares (post-Reverse Stock Split) from one of the shareholders of the Company at total consideration of US$25,000. These shares were thereafter cancelled. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | Note 2 — Summary of significant accounting policies Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities Exchange Commission (“SEC”). Principles of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries. All intercompany transactions and balances are eliminated upon consolidation. All significant intercompany transactions and balances between the Company and its subsidiaries are eliminated upon consolidation. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies, 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. Non-controlling interest represents the portion of the net assets of a subsidiaries attributable to interests that are not owned by the Company. The non-controlling interest is presented in the consolidated balance sheets, separately from equity attributable to the shareholders of the Company. Non-controlling interest’s operating result is presented on the face of the consolidated statements of income and comprehensive income as an allocation of the total income for the year between non-controlling shareholders and the shareholders of the Company. Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the periods presented. Significant accounting estimates reflected in the Company’s consolidated financial statements include but not limited to the useful lives of property and equipment and capitalized development cost, impairment of long-lived assets, valuation of accounts receivables, revenue recognition, provision for contingent liabilities, and realization of deferred tax assets and uncertain tax positions. Actual results could differ from these estimates. Foreign currency translation The subsidiaries within the Company maintain their books and records in their respective functional currency, Chinese Renminbi (“RMB”) and Hong Kong dollars (“HK$”), being the lawful currency in the PRC and Hong Kong, respectively. The Company’s financial statements are reported using U.S. Dollars. The results of operations and the consolidated statements of cash flows denominated in foreign currencies are translated at the average rates of exchange during the reporting period. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currencies is translated at the historical rates of exchange at the time of capital contributions. Because cash flows are translated based on the average translation rates, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component of accumulated other comprehensive income included in consolidated statements of changes in equity. Gains and losses from foreign currency transactions are included in the consolidated statement of income and comprehensive income. The exchange rates used to translate amounts in RMB and HK$ into U.S. Dollars for the purposes of preparing the consolidated financial statements are as follows:- 2021 2020 Balance sheet items, except for equity accounts RMB1=$0.1526 HK$1=$0.1286 RMB1=$0.1412 HK$1=$0.1290 Items in statements of income and cash flows RMB1=$0.1475 HK$1=$0.1290 RMB1=$0.1436 HK$1=$0.1279 No representation is made that the RMB and HK$ amounts could have been, or could be, converted into U.S. dollars at the above rates. Fair value measurement ASC 825-10 requires certain disclosures regarding the fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: ● Level 1 — inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 — inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted market prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable and inputs derived from or corroborated by observable market data. ● Level 3 — inputs to the valuation methodology are unobservable. Unless otherwise disclosed, the fair value of the Company’s financial instruments including cash, accounts receivable, prepayments, deposits and other current assets, accounts payable, customer deposits, salaries and benefits payables, and taxes payable approximates their recorded values due to their short-term maturities. The fair value of the long term prepayments, deposits and other assets approximate their carrying amounts because the deposits were paid in cash. Cash Cash comprise cash at banks and on hand, which includes deposits with original maturities of three months or less with commercial banks in PRC. As of March 31, 2021 and 2020, cash balances were $194,590 and $60,790. The Company maintains bank accounts in the PRC. Cash balances in bank accounts in PRC are not insured by the Federal Deposit Insurance Corporation or other programs. Prepayments, deposits and other assets, net Prepayment, deposit and other assets, net, primarily consists of advances to suppliers for purchasing goods; rental deposit made to the landlord; prepaid expenses and other receivables. Prepayment, deposit and other assets are classified as either current or non-current based on the terms of the respective agreements. These advances are unsecured and are reviewed periodically to determine whether their carrying value has become impaired. Accounts receivable, net Accounts receivable, net, is stated at the original invoiced amount net of write-offs and allowance for doubtful accounts. The Company reviews the accounts receivable on a periodic basis and makes allowances when there is doubt as to the collectability of individual balances. Past-due balances over 90 days are reviewed individually for collectability. In evaluating the collectability of individual accounts receivable balances, the Company considers several factors, including the age of the balance, the customer’s payment history, current credit-worthiness, and current economic trends. Accounts receivable balances are written off after all collection efforts have been exhausted. Typically, the Company includes unbilled receivables in accounts receivable for contracts on which revenue has been recognized, but for which the customer has not yet been billed. Unbilled receivables, substantially all of which are expected to be billed within one year are stated at their estimated realizable value and consist of costs and fees billable on contract completion or the occurrence of contractual payment phase. Inventories Inventories are stated at the lower of cost or market. Cost is determined using the weighted average cost method. Market value is determined by reference to selling prices after the balance sheet date or to management’s estimates based on prevailing market conditions. The management also regularly evaluates the composition of its inventories to identify slow-moving and obsolete inventories to determine if valuation allowance is required. Property and equipment, net Property and equipment, net, mainly comprise furniture and furniture, vehicles, computer and equipment are stated at cost less accumulated depreciation and impairment. Property and equipment are depreciated over the estimated useful lives of the assets on a straight-line basis, after considering the estimated residual value. The estimated useful lives are as follows: Useful Life Office equipment, fixtures and furniture 3-5 years Computer equipment 3-5 years Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and the related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is charged to the statement of income and comprehensive income. Impairment for long-lived assets Long-lived assets, including office equipment, furniture and fixtures and automobiles are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. When these events occur, the Company measures impairment by comparing the carrying values of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amounts of the assets, the Company would recognize an impairment loss based on the excess of the carrying value over the assessed discounted cash flow amount. For the years ended March 31, 2021 and 2020, the Company recognized nil impairment for the long-lived assets. Revenue recognition Revenue is recognized when the following four criteria are met: (i) persuasive evidence of an arrangement exists, (ii) product delivery has occurred or the services have been rendered, (iii) the fees are fixed or determinable, and (iv) collectibility is reasonably assured. The Company generates its revenue primarily from the sales of health care supplements. Sales of products are generally recognized when title transfers and the risks and rewards of ownership have passed to customers and when the selling price has been fixed and collectability is reasonably assured. The Company does not provide its customers with the right of return (except for quality), after-sale warranty or price protection. There are no customer acceptance provisions associated with the Company’s products. The Company is subject to value added tax at 17% on the revenues earned for products sold in the PRC. The Company presents its revenue net of value added and other taxes, sales discounts and returns. There were insignificant product returns for the two years ended March 31, 2021 and hence no provision has been made for sales returns as of March 31, 2021 and 2020, respectively. Advertising expenditures Advertising expenditures are expensed as incurred and such expenses were minimal for the periods presented. Advertising expenditures have been included as part of selling and marketing expenses. Operating leases The Company adopted ASU 2016-02, Leases (Topic 842), on April 1, 2019, using a modified retrospective approach reflecting the application of the standard to leases existing at, or entered into after, the beginning of the earliest comparative period presented in the consolidated financial statements. The Company leases its offices which are classified as operating leases in accordance with Topic 842. Under Topic 842, lessees are required to recognize the following for all leases (with the exception of short-term leases) on the commencement date: (i) lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (ii) right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. At the commencement date, the Company recognizes the lease liability at the present value of the lease payments not yet paid, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate for the same term as the underlying lease. The right-of-use asset is recognized initially at cost, which primarily comprises the initial amount of the lease liability, plus any initial direct costs incurred, consisting mainly of brokerage commissions, less any lease incentives received. All right-of-use assets are reviewed for impairment. No impairment for right-of-use lease assets as of March 31, 2021. Income taxes The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. No significant penalties or interest relating to income taxes have been incurred during the years ended March 31, 2019 and 2018. All of the tax returns of the Company’s subsidiary in China remain subject to examination by the tax authorities for five years from the date of filing. Value added tax Revenue represents the invoiced value of service, net of VAT. The VAT is based on gross sales price and VAT rates range up to 17%, depending on the type of service provided. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded in taxes payable. All of the VAT returns filed by the Company’s subsidiary in China, have been and remain subject to examination by the tax authorities for five years from the date of filing. Employee defined contribution plan Full time employees of the Company in the PRC participate in a government mandated multi-employer defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. Chinese labour regulations require that the Company make contributions to the government for these benefits based on a certain percentage of the employee’s salaries. The Company has no legal obligation for the benefits beyond the contributions. The total amount was expensed as incurred. Earnings per share The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share”. ASC 260 requires companies to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common share outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of the potential Ordinary Shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential Ordinary Shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. Significant risk and uncertainties (a) Concentration of credit risk Assets that potentially subject the Company to significant concentration of credit risk primarily consist of cash, restricted cash, accounts receivable and other current assets. The maximum exposure of such assets to credit risk is their carrying amounts as at the balance sheet dates. As of March 31, 2021 and 2020, the aggregate amount of cash of $194,590 and $60,154, respectively, were held at major financial institutions in PRC, where there currently is no rule or regulation requiring the financial institutions to maintain insurance to cover bank deposits in the event of bank failure. To limit exposure to credit risk relating to deposits, the Company primarily place cash deposits with large financial institutions in PRC. The Company conducts credit evaluations of its customers and suppliers, and generally does not require collateral or other security from them. The Company establishes an accounting policy for allowance for doubtful accounts on the individual customer’s and supplier’s financial condition, credit history, and the current economic conditions. (b) Foreign currency risk A majority of the Company’s expense transactions are denominated in RMB and a significant portion of the Company and its subsidiaries’ assets and liabilities are denominated in RMB. RMB is not freely convertible into foreign currencies. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China (“PBOC”). Remittances in currencies other than RMB by the Company in China must be processed through the PBOC or other China foreign exchange regulatory bodies which require certain supporting documentation in order to affect the remittance. The Company’s functional currency is the RMB, and the Company’s financial statements are presented in U.S. dollars. It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the RMB and the U.S. dollar in the future. The change in the value of the RMB relative to the U.S. dollar may affect our financial results reported in the U.S. dollar terms without giving effect to any underlying changes in our business or results of operations. Currently, our assets, liabilities, revenues and costs are denominated in RMB. To the extent that the Company needs to convert U.S. dollars into RMB for capital expenditures and working capital and other business purposes, appreciation of RMB against U.S. dollar would have an adverse effect on the RMB amount the Company would receive from the conversion. Conversely, if the Company decides to convert RMB into U.S. dollar for the purpose of making payments for dividends, strategic acquisition or investments or other business purposes, appreciation of U.S. dollar against RMB would have a negative effect on the U.S. dollar amount available to the Company. (c) Significant customers Sales revenue from three major customers was $602,969, or approximately 39% of the Company’s total sales for the year ended March 31, 2021. No other single customer accounted for more than 10% of the Company’s total revenues during the year ended March 31, 2021. The Company’s accounts receivable from these customers were $151,389 (d) Significant suppliers Two major vendors provided approximately 86% of total purchases by the Company during the year ended March 31, 2021. The Company’s accounts payable due to this vendor was nil as of March 31, 2021. Comprehensive income (loss) Comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under U.S. GAAP are recorded as an element of shareholders’ equity but are excluded from net income. Other comprehensive income (loss) consists of a foreign currency translation adjustment resulting from the Company not using the U.S. dollar as its functional currencies. Statement of Cash Flows In accordance with ASC 230, “Statement of Cash Flows,” cash flows from the Company’s operations are formulated based upon the local currencies. As a result, amounts related to assets and liabilities reported on the statements of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets. Commitments and Contingencies In the normal course of business, the Company is subject to contingencies, including legal proceedings and claims arising out of the business that relate to a wide range of matters, such as government investigations and tax matters. The Company recognizes a liability for such contingency if it determines it is probable that a loss has occurred and a reasonable estimate of the loss can be made. The Company may consider many factors in making these assessments including historical and the specific facts and circumstances of each matter. Recently issued accounting pronouncements In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework -Changes to the Disclosure Requirements for Fair Value Measurement (“ASU No. 2018-13”). The primary focus of ASU 2018-13 is to improve the effectiveness of the disclosure requirements for fair value measurements. ASU No. 2018-13 removes the requirement to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for the timing of transfers between levels and the valuation processes for Level 3 fair value measurements. It also adds a requirement to disclose changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and to disclose the range and weighted average of significant unobservable inputs used to develop recurring and nonrecurring Level 3 fair value measurements. For certain unobservable inputs, entities may disclose other quantitative information in lieu of the weighted average if the other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop the Level 3 fair value measurement. In addition, public entities are required to provide information about the measurement uncertainty of recurring Level 3 fair value measurements from the use of significant unobservable inputs if those inputs reasonably could have been different at the reporting date. ASU No. 2018-13 is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Entities are permitted to early adopt either the entire standard or only the provisions that eliminate or modify the requirements. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. The Company is still evaluating the impact of adopting ASU No. 2018-13 on its financial statements, but does not expect the adoption of ASU No. 2018-13 to have a material impact on its audited consolidated financial statements. The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company’s consolidated balance sheets, statements of income and comprehensive income and statements of cash flows. |
Accounts receivable, net
Accounts receivable, net | 12 Months Ended |
Mar. 31, 2021 | |
Credit Loss [Abstract] | |
Accounts receivable, net | Note 3 — Accounts receivable, net Accounts receivable, net, consists of the following: Years ended March 31, 2021 2020 Accounts receivable $ 264,749 $ 329,891 Less: Allowance for doubtful accounts — — Total accounts receivable, net $ 264,749 $ 329,891 |
Inventories
Inventories | 12 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 4 — Inventories Inventories consisted of the following: Years ended March 31, 2021 2020 Raw materials $ — $ 112,960 Work in progress — 42,734 Finished goods 1,487,683 69,185 $ 1,487,683 $ 224,879 |
Due from related companies
Due from related companies | 12 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Due from related companies | Note 5 — Due from related companies The amount due from related companies was unsecured, non-interest bearing and repayable on demand. |
Prepayments, deposits and other
Prepayments, deposits and other current assets | 12 Months Ended |
Mar. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepayments, deposits and other current assets | Note 6 — Prepayments, deposits and other current assets Prepayments, deposits and other current assets consisted of the following: Years ended March 31, 2021 2020 Advances to suppliers $ 132,718 $ 57,875 Rental deposits 26,924 7,545 Prepaid expense 63,994 13,642 Other receivables, net of allowance of $nil (2021) and $15,532 (2020) 77,734 61,955 $ 301,370 $ 141,017 |
Property and equipment, net
Property and equipment, net | 12 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, net | Note 7 — Property and equipment, net Property and equipment, net, consisted of the following: Years ended March 31, 2021 2020 Computer equipment $ 22,690 $ 11,863 Office equipment, fixtures and furniture 22,178 19,743 Subtotal 44,868 31,606 Less: Accumulated depreciation (29,515 ) (21,767 ) Total $ 15,353 $ 9,839 |
Bank loans
Bank loans | 12 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Bank loans | Note 8 — Bank loans Bank loans consisted of the following: Years ended March 31, 2021 2020 Unsecured loan from China Construction Bank wholly repayable within 1 year $ 402,254 $ 460,030 Secured loan from China Construction Bank wholly repayable more than 1 year 261,251 — Total $ 663,505 $ 460,030 As of March 31, 2021, the outstanding As of March 31, 2021, the outstanding Interest expense for the years ended March 31, 2021and 2020 were $24,250 and $10,208, respectively. |
Acquisition
Acquisition | 12 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisition | Note 9 — Acquisition On March 1, 2020, the Company entered into an acquisition agreement to acquire 100% equity interest in Dandong Bao Feng Seedling Technology Co. Ltd. (“Dandong BF”) from Yu Chang, the shareholder of Zhong Yuan Investment and father of Ms. Ting-ting Chang, CEO and director of the Company, for a total consideration of $1,482,600 (or RMB10,500,000), of which $446,192 (or RMB3,160,000) was paid upon signing of the acquisition agreement. On December 31, 2020, the Company completed the acquisition of 100% equity interest in Dandong BF from Yu Chang, the shareholder of Zhong Yuan Investment and father of Ms. Ting Ting Chang, CEO and director of the Company, for a total consideration of $1,482,600 (or RMB10,500,000). The cash consideration of $446,192 (or RMB3,160,000) was paid upon signing of the acquisition agreement and the balance of $1,036,408 (or RMB 7,340,000) was paid upon completion of acquisition on December 31, 2020. Dandong BF was incorporated in the PRC on March 11, 2019 and is principally engaged in the research, development and growing of Acer Truncatum seeds in Dandong city, Liaoning Province, in the northeastern region of the PRC. The acquisition had been accounted for as a business combination and the results of the operation of Dandong BF have been included in the Company’s consolidated financial statements from the acquisition date. The Company made estimates and judgments in determining the fair value of acquired assets and liabilities, based on an independent preliminary valuation report and management’s experience with similar assets and liabilities. The following table summarizes the estimated fair value of major classes of assets acquired and liabilities assumed at the date of acquisition, using the exchange rate of 6.5274 on that day. ASSETS Fair value Net tangible assets $ 1,608,600 Goodwill — Total Purchase Consideration $ 1,608,600 The following is a reconciliation of the fair value of major classes of assts acquired and liabilities assumed that comprised the net tangible assets as of December 31, 2020. Carrying amount of major classes of acquired assets Fair value Cash $ 4,644 Inventories 1,425,080 Amount due from a related party 151,362 Property and equipment, net 5,873 Other assets 21,641 Total assets 1,608,600 Less: Total liabilities — Total purchase consideration $ 1,608,600 In the consolidated statements of operations, revenues and expenses included operations of Dandong BF since January 2, 2021, which is the day after acquisition date. |
Taxes
Taxes | 12 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Taxes | Note 10 — Taxes (a) Income tax Seychelles China Bio-Tech was incorporated in Seychelles and is not subject to tax on income or capital gains under the laws of Seychelles. Additionally, Seychelles does not impose a withholding tax on payments of dividends to shareholders. Hong Kong ZY HK is established in Hong Kong. Under the Hong Kong tax laws, ZY HK is exempted from income tax on its foreign-derived income and there are no withholding taxes in Hong Kong on remittance of dividends. PRC ZY Shenzhen is governed by the Enterprise Income Tax (“EIT”) laws of the PRC. Under EIT laws of the PRC, domestic enterprises and Foreign Investment Enterprises (the “FIE”) are usually subject to a unified 25% enterprise income tax rate. As ZY Shenzhen is an investment holding company, there was revenue recorded in the books of ZY Shenzhen and as a result, there was no EIT for the years ended March 31, 2021 and 2020. BF Beijing is governed by the EIT laws of the PRC and is subject to an EIT rate of 20% because BF Beijing is classified as small profit making enterprise under the EIT laws. Significant components of the provision for income taxes are as follows: Years ended March 31, 2021 2020 Current $ 660 — Deferred — — Total provision for income taxes $ 660 $ — The following table reconciles China statutory rates to the Company’s effective tax rate: Years ended March 31, 2021 2020 PRC statutory rates 20.0% 20..0% The Company has not recognized an income tax benefit for its operating losses generated based on uncertainties concerning its ability to generate taxable income in future periods. The tax benefit for the periods presented is offset by a valuation allowance established against deferred tax assets arising from the net operating losses and other temporary differences, the realization of which could not be considered more likely than not. In future periods, tax benefits and related deferred tax assets will be recognized when management considers realization of such amounts to be more likely than not. For the years ended March 31, 2021 and 2020, the Company incurred losses, resulting from operating activities, which result in deferred tax assets at the effective statutory rates. The deferred tax asset has been off-set by an equal valuation allowance. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the cumulative earnings and projected future taxable income in making this assessment. Recovery of substantially all of the group’s deferred tax assets is dependent upon the generation of future income, exclusive of reversing taxable temporary differences. Based (b) Value added tax Enterprises who sell goods in the PRC are subject to a value added tax in accordance with the PRC laws. VAT standard rates are 6% to 17% of the gross sales price. A credit is available whereby the VAT paid on the purchases of semi-finished products or raw materials used in the production of the Company’s finished products can be used to offset the VAT due on sales of the finished products and services. (c) Tax payable Taxes payable consists of the following: Years ended March 31, 2021 2020 VAT and other tax payable $ 51,592 $ 8,901 Total $ 51,592 $ 8,901 |
Capital transactions
Capital transactions | 12 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Capital transactions | Note 11 — Capital transactions (a) Stock Split On July 24, 2020, the Company completed a 1-for-10 reverse stock split of Ordinary Shares, such that for each ten shares outstanding prior to the Stock Split, there was one share outstanding after the Stock Split. All shares of Ordinary Shares and amount per share referenced in this report have been adjusted retroactively to reflect the Stock Split. (b) Private Placement On November 17 , 2020, the Company issued 50,000 Ordinary Shares (post-Reverse Stock Split) at a purchase price of $1.00 per Share, pursuant to a private securities offiering. (c) Share cancellation On Novemebr 17, 2020 the Company cancelled 50,000 Ordinary Shares (post-Reverse Stock Split) at a purchase price of $1.00 per Share. |
Related party transaction
Related party transaction | 12 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related party transaction | Note 12 — Related party transaction On December 31, 2020, the Company completed the acquisition of 100% equity interest in Dandong BF from Yu Chang, the shareholder of Zhong Yuan Investment and father of Ms. Ting-ting Chang, CEO and director of the Company, for a total consideration of $1,482,600 (or RMB10,500,000). Please refer to Note 9 – Acquisition. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Note 13 — Contingencies and commitment (a) Contingencies From time to time, the Company may be subject to certain legal proceedings, claims and disputes that arise in the ordinary course of business. Although the outcomes of these legal proceedings cannot be predicted, the Company does not believe that these actions, in the aggregate, will have a material adverse impact on its financial position, results of operations or liquidity. (b) Lease commitment As of March 31, 2021, the Company leases offices space and warehouse for its inventories under certain non-cancelable operating leases, with terms ranging between one and five years. The Company considers that those renewal or termination options are reasonably certain to be exercised in the determination of the lease term and initial measurement of right of use assets and lease liabilities. Lease expense for lease payment is recognized on a straight-line basis over the lease term. The Company determines whether a contract is or contains a lease at inception of the contract and whether that lease meets the classification criteria of a finance or operating lease. When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, most of the Company’s leases do not provide a readily determinable implicit rate. Therefore, the Company discount lease payments based on an estimate of its incremental borrowing rate. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The table below presents the operating lease related assets and liabilities recorded on the consolidated balance sheets: March 31, 2021 Rights of use lease assets $ 1,005,649 Lease liabilities, current $ 101,134 Lease liabilities, non-current 934,610 Total operating lease liabilities $ 1,035,744 The weighted average remaining lease terms and discount rates for all of operating leases were as follows as of March 31, 2021: Weighted average remaining lease term (years) 7.45 Weighted average discount rate 4.75% The following is a schedule, by years, of maturities of lease liabilities as of March 31, 2021: March 31, 2021 2022 $ 107,691 2023 229,643 2024 116,965 2025 110,098 2026 and thereafter 686,352 Total undiscounted cash flows 1,250,749 Less: imputed interest (215,005 ) Present value of lease liabilities $ 1,035,744 Operating lease expenses for the years ended March 31, 2021 and 2020 were $140,491 and $107,812, respectively. |
Subsequent events
Subsequent events | 12 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent events | Note 14 - Subsequent events In accordance with ASC Topic 855, “Subsequent Events” which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued, the Company has evaluated all events or transactions that occurred up to the date the audited financial statements were available to issue. Based upon this review, the Company has not identified any subsequent events that would have required adjustment or disclosure in the consolidated financial statements. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities Exchange Commission (“SEC”). |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries. All intercompany transactions and balances are eliminated upon consolidation. All significant intercompany transactions and balances between the Company and its subsidiaries are eliminated upon consolidation. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies, 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. Non-controlling interest represents the portion of the net assets of a subsidiaries attributable to interests that are not owned by the Company. The non-controlling interest is presented in the consolidated balance sheets, separately from equity attributable to the shareholders of the Company. Non-controlling interest’s operating result is presented on the face of the consolidated statements of income and comprehensive income as an allocation of the total income for the year between non-controlling shareholders and the shareholders of the Company. |
Use of estimates | The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the periods presented. Significant accounting estimates reflected in the Company’s consolidated financial statements include but not limited to the useful lives of property and equipment and capitalized development cost, impairment of long-lived assets, valuation of accounts receivables, revenue recognition, provision for contingent liabilities, and realization of deferred tax assets and uncertain tax positions. Actual results could differ from these estimates. |
Foreign currency translation | The subsidiaries within the Company maintain their books and records in their respective functional currency, Chinese Renminbi (“RMB”) and Hong Kong dollars (“HK$”), being the lawful currency in the PRC and Hong Kong, respectively. The Company’s financial statements are reported using U.S. Dollars. The results of operations and the consolidated statements of cash flows denominated in foreign currencies are translated at the average rates of exchange during the reporting period. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currencies is translated at the historical rates of exchange at the time of capital contributions. Because cash flows are translated based on the average translation rates, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component of accumulated other comprehensive income included in consolidated statements of changes in equity. Gains and losses from foreign currency transactions are included in the consolidated statement of income and comprehensive income. The exchange rates used to translate amounts in RMB and HK$ into U.S. Dollars for the purposes of preparing the consolidated financial statements are as follows:- 2021 2020 Balance sheet items, except for equity accounts RMB1=$0.1526 HK$1=$0.1286 RMB1=$0.1412 HK$1=$0.1290 Items in statements of income and cash flows RMB1=$0.1475 HK$1=$0.1290 RMB1=$0.1436 HK$1=$0.1279 No representation is made that the RMB and HK$ amounts could have been, or could be, converted into U.S. dollars at the above rates. |
Fair value measurement | ASC 825-10 requires certain disclosures regarding the fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: ● Level 1 — inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 — inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted market prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable and inputs derived from or corroborated by observable market data. ● Level 3 — inputs to the valuation methodology are unobservable. Unless otherwise disclosed, the fair value of the Company’s financial instruments including cash, accounts receivable, prepayments, deposits and other current assets, accounts payable, customer deposits, salaries and benefits payables, and taxes payable approximates their recorded values due to their short-term maturities. The fair value of the long term prepayments, deposits and other assets approximate their carrying amounts because the deposits were paid in cash. |
Cash | Cash comprise cash at banks and on hand, which includes deposits with original maturities of three months or less with commercial banks in PRC. As of March 31, 2021 and 2020, cash balances were $194,590 and $60,790. The Company maintains bank accounts in the PRC. Cash balances in bank accounts in PRC are not insured by the Federal Deposit Insurance Corporation or other programs. |
Prepayments, deposits and other assets, net | Prepayment, deposit and other assets, net, primarily consists of advances to suppliers for purchasing goods; rental deposit made to the landlord; prepaid expenses and other receivables. Prepayment, deposit and other assets are classified as either current or non-current based on the terms of the respective agreements. These advances are unsecured and are reviewed periodically to determine whether their carrying value has become impaired |
Accounts receivable, net | Accounts receivable, net, is stated at the original invoiced amount net of write-offs and allowance for doubtful accounts. The Company reviews the accounts receivable on a periodic basis and makes allowances when there is doubt as to the collectability of individual balances. Past-due balances over 90 days are reviewed individually for collectability. In evaluating the collectability of individual accounts receivable balances, the Company considers several factors, including the age of the balance, the customer’s payment history, current credit-worthiness, and current economic trends. Accounts receivable balances are written off after all collection efforts have been exhausted. Typically, the Company includes unbilled receivables in accounts receivable for contracts on which revenue has been recognized, but for which the customer has not yet been billed. Unbilled receivables, substantially all of which are expected to be billed within one year are stated at their estimated realizable value and consist of costs and fees billable on contract completion or the occurrence of contractual payment phase. |
Inventories | Inventories are stated at the lower of cost or market. Cost is determined using the weighted average cost method. Market value is determined by reference to selling prices after the balance sheet date or to management’s estimates based on prevailing market conditions. The management also regularly evaluates the composition of its inventories to identify slow-moving and obsolete inventories to determine if valuation allowance is required. |
Property and equipment, net | Property and equipment, net, mainly comprise furniture and furniture, vehicles, computer and equipment are stated at cost less accumulated depreciation and impairment. Property and equipment are depreciated over the estimated useful lives of the assets on a straight-line basis, after considering the estimated residual value. The estimated useful lives are as follows: Useful Life Office equipment, fixtures and furniture 3-5 years Computer equipment 3-5 years Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and the related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is charged to the statement of income and comprehensive income. |
Impairment for long-lived assets | Long-lived assets, including office equipment, furniture and fixtures and automobiles are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. When these events occur, the Company measures impairment by comparing the carrying values of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amounts of the assets, the Company would recognize an impairment loss based on the excess of the carrying value over the assessed discounted cash flow amount. For the years ended March 31, 2021 and 2020, the Company recognized nil impairment for the long-lived assets. |
Revenue recognition | Revenue is recognized when the following four criteria are met: (i) persuasive evidence of an arrangement exists, (ii) product delivery has occurred or the services have been rendered, (iii) the fees are fixed or determinable, and (iv) collectibility is reasonably assured. The Company generates its revenue primarily from the sales of health care supplements. Sales of products are generally recognized when title transfers and the risks and rewards of ownership have passed to customers and when the selling price has been fixed and collectability is reasonably assured. The Company does not provide its customers with the right of return (except for quality), after-sale warranty or price protection. There are no customer acceptance provisions associated with the Company’s products. The Company is subject to value added tax at 17% on the revenues earned for products sold in the PRC. The Company presents its revenue net of value added and other taxes, sales discounts and returns. There were insignificant product returns for the two years ended March 31, 2021 and hence no provision has been made for sales returns as of March 31, 2021 and 2020, respectively. |
Advertising expenditures | Advertising expenditures are expensed as incurred and such expenses were minimal for the periods presented. Advertising expenditures have been included as part of selling and marketing expenses. |
Operating leases | The Company adopted ASU 2016-02, Leases (Topic 842), on April 1, 2019, using a modified retrospective approach reflecting the application of the standard to leases existing at, or entered into after, the beginning of the earliest comparative period presented in the consolidated financial statements. The Company leases its offices which are classified as operating leases in accordance with Topic 842. Under Topic 842, lessees are required to recognize the following for all leases (with the exception of short-term leases) on the commencement date: (i) lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (ii) right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. At the commencement date, the Company recognizes the lease liability at the present value of the lease payments not yet paid, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate for the same term as the underlying lease. The right-of-use asset is recognized initially at cost, which primarily comprises the initial amount of the lease liability, plus any initial direct costs incurred, consisting mainly of brokerage commissions, less any lease incentives received. All right-of-use assets are reviewed for impairment. No impairment for right-of-use lease assets as of March 31, 2021. |
Income taxes | The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. No significant penalties or interest relating to income taxes have been incurred during the years ended March 31, 2019 and 2018. All of the tax returns of the Company’s subsidiary in China remain subject to examination by the tax authorities for five years from the date of filing. |
Value added tax | Revenue represents the invoiced value of service, net of VAT. The VAT is based on gross sales price and VAT rates range up to 17%, depending on the type of service provided. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded in taxes payable. All of the VAT returns filed by the Company’s subsidiary in China, have been and remain subject to examination by the tax authorities for five years from the date of filing. |
Employee defined contribution plan | Full time employees of the Company in the PRC participate in a government mandated multi-employer defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. Chinese labour regulations require that the Company make contributions to the government for these benefits based on a certain percentage of the employee’s salaries. The Company has no legal obligation for the benefits beyond the contributions. The total amount was expensed as incurred |
Earnings per share | The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share”. ASC 260 requires companies to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common share outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of the potential Ordinary Shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential Ordinary Shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. |
Concentrations of Risks | (a) Concentration of credit risk Assets that potentially subject the Company to significant concentration of credit risk primarily consist of cash, restricted cash, accounts receivable and other current assets. The maximum exposure of such assets to credit risk is their carrying amounts as at the balance sheet dates. As of March 31, 2021 and 2020, the aggregate amount of cash of $194,590 and $60,154, respectively, were held at major financial institutions in PRC, where there currently is no rule or regulation requiring the financial institutions to maintain insurance to cover bank deposits in the event of bank failure. To limit exposure to credit risk relating to deposits, the Company primarily place cash deposits with large financial institutions in PRC. The Company conducts credit evaluations of its customers and suppliers, and generally does not require collateral or other security from them. The Company establishes an accounting policy for allowance for doubtful accounts on the individual customer’s and supplier’s financial condition, credit history, and the current economic conditions. (b) Foreign currency risk A majority of the Company’s expense transactions are denominated in RMB and a significant portion of the Company and its subsidiaries’ assets and liabilities are denominated in RMB. RMB is not freely convertible into foreign currencies. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China (“PBOC”). Remittances in currencies other than RMB by the Company in China must be processed through the PBOC or other China foreign exchange regulatory bodies which require certain supporting documentation in order to affect the remittance. The Company’s functional currency is the RMB, and the Company’s financial statements are presented in U.S. dollars. It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the RMB and the U.S. dollar in the future. The change in the value of the RMB relative to the U.S. dollar may affect our financial results reported in the U.S. dollar terms without giving effect to any underlying changes in our business or results of operations. Currently, our assets, liabilities, revenues and costs are denominated in RMB. To the extent that the Company needs to convert U.S. dollars into RMB for capital expenditures and working capital and other business purposes, appreciation of RMB against U.S. dollar would have an adverse effect on the RMB amount the Company would receive from the conversion. Conversely, if the Company decides to convert RMB into U.S. dollar for the purpose of making payments for dividends, strategic acquisition or investments or other business purposes, appreciation of U.S. dollar against RMB would have a negative effect on the U.S. dollar amount available to the Company. (c) Significant customers Sales revenue from three major customers was $602,969, or approximately 39% of the Company’s total sales for the year ended March 31, 2021. No other single customer accounted for more than 10% of the Company’s total revenues during the year ended March 31, 2021. The Company’s accounts receivable from these customers were $151,389 (d) Significant suppliers Two major vendors provided approximately 86% of total purchases by the Company during the year ended March 31, 2021. The Company’s accounts payable due to this vendor was nil as of March 31, 2021. |
Comprehensive income (loss) | Comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under U.S. GAAP are recorded as an element of shareholders’ equity but are excluded from net income. Other comprehensive income (loss) consists of a foreign currency translation adjustment resulting from the Company not using the U.S. dollar as its functional currencies. |
Statement of Cash Flows | In accordance with ASC 230, “Statement of Cash Flows,” cash flows from the Company’s operations are formulated based upon the local currencies. As a result, amounts related to assets and liabilities reported on the statements of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets. |
Commitments and Contingencies | Commitments and Contingencies In the normal course of business, the Company is subject to contingencies, including legal proceedings and claims arising out of the business that relate to a wide range of matters, such as government investigations and tax matters. The Company recognizes a liability for such contingency if it determines it is probable that a loss has occurred and a reasonable estimate of the loss can be made. The Company may consider many factors in making these assessments including historical and the specific facts and circumstances of each matter. |
Recently issued accounting pronouncements | Recently issued accounting pronouncements In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework -Changes to the Disclosure Requirements for Fair Value Measurement (“ASU No. 2018-13”). The primary focus of ASU 2018-13 is to improve the effectiveness of the disclosure requirements for fair value measurements. ASU No. 2018-13 removes the requirement to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for the timing of transfers between levels and the valuation processes for Level 3 fair value measurements. It also adds a requirement to disclose changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and to disclose the range and weighted average of significant unobservable inputs used to develop recurring and nonrecurring Level 3 fair value measurements. For certain unobservable inputs, entities may disclose other quantitative information in lieu of the weighted average if the other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop the Level 3 fair value measurement. In addition, public entities are required to provide information about the measurement uncertainty of recurring Level 3 fair value measurements from the use of significant unobservable inputs if those inputs reasonably could have been different at the reporting date. ASU No. 2018-13 is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Entities are permitted to early adopt either the entire standard or only the provisions that eliminate or modify the requirements. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. The Company is still evaluating the impact of adopting ASU No. 2018-13 on its financial statements, but does not expect the adoption of ASU No. 2018-13 to have a material impact on its audited consolidated financial statements. The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company’s consolidated balance sheets, statements of income and comprehensive income and statements of cash flows. |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of exchange rates | The exchange rates used to translate amounts in RMB and HK$ into U.S. Dollars for the purposes of preparing the consolidated financial statements are as follows:- 2021 2020 Balance sheet items, except for equity accounts RMB1=$0.1526 HK$1=$0.1286 RMB1=$0.1412 HK$1=$0.1290 Items in statements of income and cash flows RMB1=$0.1475 HK$1=$0.1290 RMB1=$0.1436 HK$1=$0.1279 |
Schedule of estimated useful lives | The estimated useful lives are as follows: Useful Life Office equipment, fixtures and furniture 3-5 years Computer equipment 3-5 years |
Accounts receivable, net (Table
Accounts receivable, net (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Credit Loss [Abstract] | |
Accounts receivable | Accounts receivable, net, consists of the following: Years ended March 31, 2021 2020 Accounts receivable $ 264,749 $ 329,891 Less: Allowance for doubtful accounts — — Total accounts receivable, net $ 264,749 $ 329,891 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following: Years ended March 31, 2021 2020 Raw materials $ — $ 112,960 Work in progress — 42,734 Finished goods 1,487,683 69,185 |
Prepayments, deposits and oth_2
Prepayments, deposits and other current assets (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepayments, deposits and other assets | Prepayments, deposits and other current assets consisted of the following: Years ended March 31, 2021 2020 Advances to suppliers $ 132,718 $ 57,875 Rental deposits 26,924 7,545 Prepaid expense 63,994 13,642 Other receivables, net of allowance of $nil (2021) and $15,532 (2020) 77,734 61,955 $ 301,370 $ 141,017 |
Property and equipment, net (Ta
Property and equipment, net (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, net | Property and equipment, net, consisted of the following: Years ended March 31, 2021 2020 Computer equipment $ 22,690 $ 11,863 Office equipment, fixtures and furniture 22,178 19,743 Subtotal 44,868 31,606 Less: Accumulated depreciation (29,515 ) (21,767 ) Total $ 15,353 $ 9,839 |
Bank loans (Tables)
Bank loans (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Bank loans | Bank loans consisted of the following: Years ended March 31, 2021 2020 Unsecured loan from China Construction Bank wholly repayable within 1 year $ 402,254 $ 460,030 Secured loan from China Construction Bank wholly repayable more than 1 year 261,251 — Total $ 663,505 $ 460,030 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Schedule of acquisition | ASSETS Fair value Net tangible assets $ 1,608,600 Goodwill — Total Purchase Consideration $ 1,608,600 The following is a reconciliation of the fair value of major classes of assts acquired and liabilities assumed that comprised the net tangible assets as of December 31, 2020. Carrying amount of major classes of acquired assets Fair value Cash $ 4,644 Inventories 1,425,080 Amount due from a related party 151,362 Property and equipment, net 5,873 Other assets 21,641 Total assets 1,608,600 Less: Total liabilities — Total purchase consideration $ 1,608,600 |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of provision for income taxes | Significant components of the provision for income taxes are as follows: Years ended March 31, 2021 2020 Current $ 660 — Deferred — — Total provision for income taxes $ 660 $ — |
Schedule of Effective Income Tax Rate Reconciliation | The following table reconciles China statutory rates to the Company’s effective tax rate: Years ended March 31, 2021 2020 PRC statutory rates 20.0% 20..0% |
Schedule of Taxes payable | Taxes payable consists of the following: Years ended March 31, 2021 2020 VAT and other tax payable $ 51,592 $ 8,901 Total $ 51,592 $ 8,901 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of operating lease related assets and liabilities | The table below presents the operating lease related assets and liabilities recorded on the consolidated balance sheets: March 31, 2021 Rights of use lease assets $ 1,005,649 Lease liabilities, current $ 101,134 Lease liabilities, non-current 934,610 Total operating lease liabilities $ 1,035,744 The weighted average remaining lease terms and discount rates for all of operating leases were as follows as of March 31, 2021: Weighted average remaining lease term (years) 7.45 Weighted average discount rate 4.75% |
Schedule of maturities of lease liabilities | The following is a schedule, by years, of maturities of lease liabilities as of March 31, 2021: March 31, 2021 2022 $ 107,691 2023 229,643 2024 116,965 2025 110,098 2026 and thereafter 686,352 Total undiscounted cash flows 1,250,749 Less: imputed interest (215,005 ) Present value of lease liabilities $ 1,035,744 |
Nature of business and organi_2
Nature of business and organization (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |
Nov. 17, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Reverse stock split | 1-for-10 | ||
Number of shares cancelled | 50,000 | ||
Private securities offering [Member] | |||
Sale of common stock private placement | 50,000 | ||
Share Price | $ 1 | ||
China Bio [Member] | |||
Percentage of holding | 100.00% | ||
Zhong Yuan Investment [Member] | |||
Percentage of holding | 100.00% | ||
Number of shares exchanged | 161,500,000 | ||
Shares Outstanding | 170,000,000 | ||
Percentage of shares Outstanding | 95.00% | ||
BF Beijing [Member] | |||
Percentage of holding | 100.00% | ||
Cash consideration | $ 1,351,500 |
Summary of significant accoun_4
Summary of significant accounting policies (Details) | 12 Months Ended |
Mar. 31, 2021 | |
Office equipment, fixtures and furniture [Member] | Minimum [Member] | |
Estimated useful lives | 3 years |
Office equipment, fixtures and furniture [Member] | Maximum [Member] | |
Estimated useful lives | 5 years |
Computer Equipment [Member] | Minimum [Member] | |
Estimated useful lives | 3 years |
Computer Equipment [Member] | Maximum [Member] | |
Estimated useful lives | 5 years |
Summary of significant accoun_5
Summary of significant accounting policies (Details Narrative) - USD ($) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Cash | $ 194,590 | $ 60,790 | $ 5,377 |
Impairment of long-lived assets | 0 | 0 | |
Sales returns | $ 0 | 0 | |
Value added tax rate | 17.00% | ||
Penalties or interest | $ 0 | 0 | |
Revenues | 1,624,086 | 1,219,650 | |
Accounts receivable | 264,749 | $ 329,891 | |
Revenue Benchmark [Member] | |||
Concentration | 10.00% | ||
Revenue Benchmark [Member] | Three Customer | |||
Revenues | $ 602,969 | ||
Concentration | 39.00% | ||
Accounts receivable | $ 151,389 | ||
Purchases [Member] | Two Vendor | |||
Concentration | 86.00% |
Accounts receivable, net (Detai
Accounts receivable, net (Details) - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Credit Loss [Abstract] | ||
Accounts receivable | $ 264,749 | $ 329,891 |
Less: Allowance for doubtful accounts | 0 | 0 |
Total accounts receivable, net | $ 264,749 | $ 329,891 |
Inventories (Details)
Inventories (Details) - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 0 | $ 112,960 |
Work in progress | 0 | 42,734 |
Finished goods | 1,487,683 | 69,185 |
Inventory net | $ 1,487,683 | $ 224,879 |
Prepayments, deposits and oth_3
Prepayments, deposits and other current assets (Details) - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Advances to suppliers | $ 132,718 | $ 57,875 |
Rental deposits | 26,924 | 7,545 |
Prepaid expense | 63,994 | 13,642 |
Other receivables, net of allowance of $nil (2021) and $15,532 (2020) | 77,734 | 61,955 |
Prepaid expenses | $ 301,370 | $ 141,017 |
Property and equipment, net (De
Property and equipment, net (Details) - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Subtotal | $ 44,868 | $ 31,606 |
Less: accumulated depreciation | (29,515) | (21,767) |
Total | 15,353 | 9,839 |
Computer Equipment [Member] | ||
Subtotal | 22,690 | 11,863 |
Office equipment, fixtures and furniture [Member] | ||
Subtotal | $ 22,178 | $ 19,743 |
Property and equipment, net (_2
Property and equipment, net (Details Narrative) - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 5,990 | $ 6,278 |
Bank loans (Details)
Bank loans (Details) - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Bank loans | $ 663,505 | $ 460,030 |
China Construction Bank [Member] | ||
Bank loans | 402,254 | 460,030 |
China Construction Bank 1 [Member] | ||
Bank loans | $ 261,251 | $ 0 |
Bank loans (Details Narrative)
Bank loans (Details Narrative) - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Bank loans | $ 402,254 | $ 460,030 |
Interest expense | 24,250 | $ 10,208 |
China Construction Bank [Member] | ||
Bank loans | $ 402,254 | |
Interest rate | 3.8525% | |
Term | 12 months | |
China Construction Bank 1 [Member] | ||
Bank loans | $ 261,251 | |
Interest rate | 4.55% | |
Term | 36 months |
Acquisition (Details)
Acquisition (Details) | Dec. 31, 2020USD ($) |
Business Combinations [Abstract] | |
Net tangible assets | $ 1,608,600 |
Goodwill | 0 |
Total purchase consideration | $ 1,608,600 |
Acquisition (Details 1)
Acquisition (Details 1) | Dec. 31, 2020USD ($) |
Business Combinations [Abstract] | |
Cash | $ 4,644 |
Inventories | 1,425,080 |
Amount due from a related party | 151,362 |
Property and equipment, net | 5,873 |
Other assets | 21,641 |
Total assets | 1,608,600 |
Less: Total liabilities | 0 |
Total purchase consideration | $ 1,608,600 |
Taxes (Details)
Taxes (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Current | $ 660 | $ 0 |
Deferred | 0 | 0 |
Total provision for income taxes | $ 660 | $ 0 |
Taxes (Details 1)
Taxes (Details 1) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
PRC statutory rates | 20.00% | 20.00% |
Taxes (Details 2)
Taxes (Details 2) - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
VAT and other tax payable | $ 51,592 | $ 8,901 |
Total | $ 51,592 | $ 8,901 |
Taxes (Details Narrative)
Taxes (Details Narrative) | 12 Months Ended |
Mar. 31, 2021 | |
Income tax rate | 25.00% |
Value added tax rate | 17.00% |
BF Beijing [Member] | |
Income tax rate | 20.00% |
Capital transactions (Details N
Capital transactions (Details Narrative) - $ / shares | 1 Months Ended | 12 Months Ended |
Nov. 17, 2020 | Mar. 31, 2021 | |
Reverse stock split | 1-for-10 | |
Number of shares cancelled | 50,000 | |
Private securities offering [Member] | ||
Sale of common stock private placement | 50,000 | |
Share Price | $ 1 |
Related party transaction (Deta
Related party transaction (Details Narrative) | 1 Months Ended |
Dec. 31, 2020USD ($) | |
Dandong BF [Member] | |
Consideration received | $ 1,482,600 |
Contingencies and commitment (D
Contingencies and commitment (Details) - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
Rights of use lease assets | $ 1,005,649 | $ 294,188 |
Lease liabilities, current | 101,134 | 93,077 |
Lease liabilities, noncurrent | 934,610 | $ 170,966 |
Total operating lease liabilities | $ 1,035,744 | |
Weighted average remaining lease term (years) | 7 years 5 months 12 days | |
Weighted average discount rate | 4.75% |
Contingencies and commitment _2
Contingencies and commitment (Details 1) | Mar. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2022 | $ 107,691 |
2023 | 229,643 |
2024 | 116,965 |
2025 | 110,098 |
2026 and thereafter | 686,352 |
Total undiscounted cash flows | 1,250,749 |
Less: imputed interest | (215,005) |
Present value of lease liabilities | $ 1,035,744 |
Contingencies and commitment _3
Contingencies and commitment (Details Narrative) - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating lease expenses | $ 140,491 | $ 107,812 |