| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES | Note 2 —
Summary of Significant Accounting Policies and Practices 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 applicable rules and regulations of the Securities and Exchange Commission (“SEC”). Principles of consolidation The consolidated financial
statements include the financial statements of the Company and its subsidiary. All inter-company transactions have been eliminated upon
consolidation. Use of estimates and assumptions 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 estimates required to be made by management
include, but are not limited to, the valuation of accounts receivable, useful lives of property and equipment, the recoverability of long-lived
assets and implicit interest rate of operating leases. Actual results could differ from those estimates. Risks and uncertainties Economic and political risks The Company’s operations
are mainly conducted in Hong Kong. Accordingly, the Company’s business, financial condition, and results of operations may be influenced
by changes in the political, economic, and legal environments in Hong Kong. The Company’s operations
in Hong Kong are subject to special considerations and significant risks not typically associated with companies in North America and
Western Europe. These include risks associated with, among others, the political, economic, and legal environment and foreign currency
exchange. The Company’s results may be adversely affected by changes in the political and social conditions in Hong Kong, and by
changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad,
and rates and methods of taxation, among other things. Inflation Risk Management monitors changes
in price levels. Historically inflation has not materially impacted the Company’s audited consolidated financial statements; however,
significant increases in the price of raw materials and labor that cannot be passed to the Company’s customers could adversely impact
Company’s results of operations. World unrest due to wars and
terrorist attacks have led to further economic disruptions. Mounting inflationary cost pressures and recessionary fears have negatively
impacted the global economy. Since mid-2022, the U.S. Federal Reserve has addressed elevated inflation by increasing interest rates, as
inflation remains elevated. Given current market conditions, the Company may be unable to access the capital markets, and additional capital
may only be available to the Company on terms that could be significantly detrimental to the Company’s existing stockholders and
to the Company’s business. Foreign currency translation The Company uses Hong Kong
dollars (“HKD”) as its reporting currency. The functional currency of the Company and its subsidiary which is incorporated
in Hong Kong is HKD, which is its respective local currency based on the criteria of ASC 830, “Foreign Currency Matters”. Convenience translation Translations of amounts in
the consolidated balance sheets, consolidated statements of income and consolidated statements of cash flows from HKD into US$ as of and
for the year ended March 31, 2024 are solely for the convenience of the reader and were calculated at the noon buying rate of US$1 = HKD7.8259,
as published in H.10 statistical release of the United States Federal Reserve Board. In the consolidated financial
statements of the Company, transactions in currencies other than the functional currency are measured and recorded in the functional
currency using the exchange rate in effect at the date of the transaction. At the balance sheet date, monetary assets and liabilities
that are denominated in currencies other than the functional currency are translated into the functional currency using the exchange
rate at the balance sheet date. All gains and losses arising from foreign currency transactions are recorded in the consolidated statements
of income during the year in which they occur. Cash and cash equivalents Cash and cash equivalents
mainly represents cash at bank and demand deposits which have original maturities less than three months and are unrestricted as to withdrawal
or use. As of March 31, 2023 and 2024, the Company had HKD21, 362,580 885,666 Accounts receivable, net Accounts receivables are recorded
and carried at the original invoiced amount less an allowance for any potential uncollectible amounts. The Company make estimates
of expected credit and collectability trends for the allowance for credit losses and allowance for unbilled receivables based upon our
assessment of various factors, including historical experience, the age of the accounts receivable balances, credit quality of our customers,
current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect our
ability to collect from customers. The provision is recorded against accounts receivable balances, with a corresponding charge recorded
in the consolidated statements of income. Actual amounts received may differ from management’s estimate of credit worthiness and
the economic environment. Delinquent account balances are written-off against the allowance for doubtful accounts after management has
determined that the likelihood of collection is not probable. Provision for doubtful accounts
was nil nil Merchandise inventories, net Merchandise inventories are
stated at the lower of cost or net realizable value, on a weighted average basis. Costs include mainly the cost of merchandise inventories.
Any excess of the cost over the net realizable value of each item of merchandise inventories is recognized as a provision for diminution
in the value of merchandise inventories. Net realizable value is the estimated selling price in the normal course of business less any
costs to sell products. The Company periodically evaluates merchandise inventories for their net realizable value adjustments and reduces
the carrying value of those merchandise inventories that are obsolete or in excess of the forecasted usage to their estimated net realizable
value based on various factors including aging and expiration dates, as applicable, taking into consideration historical and expected
future product sales. For the years ended March 31, 2023 and 2024, no merchandise inventory reserve was recorded because no slow-moving,
obsolete, or damaged merchandise inventory was identified. Prepayments Prepayments primarily consists
of prepaid expenses. These amounts are refundable and bear no interest. Management reviews its prepayments on a regular basis to determine
if the allowance is adequate and adjusts the allowance when necessary. As of March 31, 2023 and 2024, no allowance was deemed necessary. Deferred initial public offering (“IPO”)
costs Pursuant to ASC 340-10-S99-1,
IPO costs directly attributable to an offering of equity securities are deferred and would be charged against the gross proceeds of the
offering as a reduction of additional paid-in capital. These costs include legal fees related to the registration drafting and counsel,
consulting fees related to the registration preparation, the SEC filing and print related costs. During the year ended March 31, 2024,
the Company recorded a charge of HKD2,075,897 HKD3,176,871 252,768 Long-term deposits Long-term deposits are mainly
for rent, utilities and money deposited with certain manufacturers. These amounts are refundable and bear no interest. The long-term deposits
are refunded from manufacturers when the terms and conditions set forth in the agreements have been satisfied. Property and equipment, net Property and equipment are
stated at cost less accumulated depreciation and impairment if applicable. Depreciation is computed using the straight-line method after
consideration of the estimated useful lives. The estimated useful lives are as follows: Useful Life Office equipment 2 years Office furniture and fixtures 2 years Leasehold improvements lesser of lease term or expected useful life 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 statements of
operations. Expenditures for maintenance and repairs are charged to earnings as incurred, while additions, renewals and betterment, which
are expected to extend the useful life of assets, are capitalized. The Company also re-evaluates the periods of depreciation to determine
whether subsequent events and circumstances warrant revised estimates of useful lives. Impairment for long-lived assets Long-lived assets, including
property and equipment and intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances
(such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying
value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash
flows the assets are expected to generate and recognizes an impairment loss when estimated undiscounted future cash flows expected to
result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of
the asset. If an impairment is identified, the Company will reduce the carrying amount of the asset to its estimated fair value based
on a discounted cash flows approach or, when available and appropriate, to comparable market values. As of March 31, 2023 and 2024, no Fair value measurement The accounting standard regarding
fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair
value of financial instruments held by the Company. The accounting standards define
fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements
for fair value measures. The three levels are defined as follow:
● 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, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.
● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. Financial instruments included
in current assets and current liabilities are reported in the consolidated balance sheets at face value or cost, which approximate fair
value because of the short period of time between the origination of such instruments and their expected realization and their current
market rates of interest. Leases The Company determines if
an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, operating
lease liability, and operating lease liability, non-current in the Company’s consolidated balance sheets. ROU assets represent the
Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s 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. When determining the lease term, the Company includes options to extend or terminate
the lease when it is reasonably certain that it will exercise that option, if any. As the Company’s leases do not provide an implicit
rate, the Company used an incremental borrowing rate based on the information available at commencement date in determining the present
value of lease payments. The Company has elected to adopt the following lease policies in conjunction with the adoption of ASU 2016-02:
(i) for leases that have lease terms of 12 months or less and does not include a purchase option that is reasonably certain to exercise,
the Company elected not to apply ASC 842 recognition requirements; and (ii) the Company elected to apply the package of practical expedients
for existing arrangements entered into prior to April 1, 2020 to not reassess (a) whether an arrangement is or contains a lease, (b) the
lease classification applied to existing leases, and(c) initial direct costs. Contract Balances The timing of revenue recognition
may differ from the timing of invoicing to customers. For certain services, customers are required to pay before the services are delivered.
The Company recognizes a contract asset or a contract liability in the consolidated balance sheets, depending on the relationship between
the Company’s performance and the customer’s payment. The Company classifies its
right to consideration in exchange for services transferred to a customer as either a receivable or a contract asset. A receivable is
a right to consideration that is unconditional as compared to a contract asset which is a right to consideration that is conditional upon
factors other than the passage of time. The Company recognizes accounts receivable in its consolidated balance sheets when it performs
a service in advance of receiving consideration and if it has the unconditional right to receive consideration. The Company did not have
any capitalized contract costs as of March 31, 2023 and 2024. Contract liabilities are
recognized if the Company receives consideration in advance of performance, which is mainly in relation to emerging and other services.
The Company expects to recognize a significant majority of this balance as revenue over the next 12 months, and the remainder thereafter.
As of March 31, 2023 and 2024, the contract liabilities of the Company amounted to HKD1,705,854 008,415 Revenue Recognition Revenue from contracts with
customers is recognized using the five-step model defined by ASC Topic 606 requires the Company to (1) identify its contracts with customers,
(2) identify its performance obligations under those contracts, (3) determine the transaction prices of those contracts, (4) allocate
the transaction prices to its performance obligations in those contracts and (5) recognize revenue when each performance obligation under
those contracts is satisfied. Revenue is recognized when promised goods or services are transferred to the customer in an amount that
reflects the consideration expected in exchange for those goods or services. Under ASC 606, revenue is
recognized when control of promised goods or services is transferred to the Company’s customers in an amount of consideration to
which an entity expects to be entitled to in exchange for those goods or services. Control is the ability to direct the use of and obtain
substantially all of the remaining benefits from the specified goods and services. The Company currently generates
its revenue through sourcing and wholesaling of Japanese beauty products, as well as personal care products and other products, through
distribution network to Japan market. Currently, the Company sells its products through sourcing and wholesale customers. The Company
sells goods under Free On Board (“FOB”) shipping point term, and revenue is recognized when product is loaded on the ships
and control is deemed as transferred. Typical payment terms set forth in the invoice are within 30 to 120 days. Tooling revenue is earned
from manufacturing multiple tools, molds and assembly equipment as part of a tooling program for a customer. Given that the Company is
providing a significant service of producing highly interdependent component parts of the tooling program, each component does not generate
standalone values. It must be a completed mold so the customer can benefit from the purchase. Based on the arrangement with the customer,
the Company recognizes revenue at a point in time. In such cases, the Company recognizes revenue at the evidence transfer of control. The Company is the principal
for the majority of its transactions and recognizes revenue on a gross basis. The Company is the principal when it has control of the
merchandise before it is transferred to customers, which generally is established when the Company is primarily responsible for merchandising
decisions, maintains the relationship with customer, and has pricing discretion. Merchandise costs Cost of sales of beauty products,
personal care products and other products, which are directly related to revenue-generating transactions, primarily consist of cost of
purchasing of products. Selling, general and administrative expenses Selling, general and administrative
expenses consist primarily of motor vehicle running expenses, travelling and entertainment and general administrative expenses such as
of staff costs, rental expenses, depreciation, legal and professional fees and other miscellaneous administrative expenses. Employee Benefit Hong Kong Employment Ordinance
(“The Ordinance”) requires an employee employed under a continuous employment contract is entitled to sickness allowance if
(1) the sick leave taken is not less than four consecutive days; (2) the sick leave take is supported by an appropriate medical certificate;
and (3) the employee has accumulated sufficient number of paid sickness days. The daily rate of sickness allowance is a sum equivalent
to four-fifths of the average daily wages earned by an employee in the 12-month period preceding the first sickness day. The Ordinance also requires
an employee is entitled to 12 statutory holidays regardless of his or her length of services. Holiday pay should be paid to the employee
whose continuous employment contract is not less than three months immediately preceding a statutory holiday is entitled to the holiday
pay. An employee is entitled to
a paid annual leave after having been employed under a continuous employment contract for every 12 months. An employee’s paid annual
leave increases progressively from 7 days to a maximum of 14 days in accordance with his or her length of employment. Under Hong Kong Mandatory
Provident Fund Schemes Ordinance, an employer shall enroll their regular employees in Mandatory Provident Fund Schemes. Regular employees
are those who are at between 18 and 65 years of age and have been employed for consecutive 60 days or more. An employer is required to
make regular mandatory contributions of at least 5% of the employee’s monthly income between HKD7,000 HKD1,500 HKD30,000 Income taxes Raytech is not subject to
tax on income or capital gains under the current laws of the British Virgin Islands. In addition, upon payments of dividends by Raytech
and the Company’s subsidiary in Hong Kong, Pure Beauty to the Company’s shareholders, no British Virgin Islands withholding
tax will be imposed. Pure Beauty is incorporated
in and carry trade and business in Hong Kong and is subject to Hong Kong profits tax under Inland Revenue Department Ordinance. The charge for taxation is
based on actual results for the year as adjusted for items that are non-assessable or disallowed; and it is calculated using tax
rates that have been enacted or substantively enacted by the balance sheet date. The Group is not currently subject to tax in the British
Virgin Islands. 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, 2022, 2023 and 2024. Related parties Parties, which can be a corporation
or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise
significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if
they are subject to common control or common significant influence, such as a family member or relative, shareholder, or a related corporation. 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 a 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. 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 ordinary 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. For the years ended March 31, 2022, 2023 and 2024, there were no dilutive shares. Concentration of Risks Concentration of credit
risk Financial instruments that
potentially expose the Company to concentrations of credit risk consist primarily of cash and accounts receivable. The Company places
its cash with financial institutions with high credit ratings and quality. Accounts receivable primarily
comprise of amounts receivable from the service customers. To reduce credit risk, the Company performs ongoing credit evaluations of the
financial condition of these service customers. The Company establishes a provision for doubtful accounts based upon estimates, factors
surrounding the credit risk of specific service customers and other information. Concentration of customers As of March 31, 2022 and 2023,
one major customer, who is a distributor represent and sell brands of well-known manufactures from Japan and abroad, accounted for 96.8%
and 99.6% of the Company’s total accounts receivable respectively. As of March 31, 2024, two customers, who are distributors represent
and sell brands of well-known manufactures from Japan, the U.S., UK, Europe and Australia accounted for 72.1% and 27.9% of the Company’s
total accounts receivable respectively. For the years ended March
31, 2022 and 2023, one major customer, who is a distributor represent and sell brands of well-known manufactures from Japan and abroad,
accounted for 97.8% and 91.3% of the Company’s total revenues respectively. For the year ended March 31, 2024, two major customers,
who are distributors represent and sell brands of well-known manufactures from Japan, the U.S. and Europe, accounted for 74.1% and 16.5%
of the Company’s total revenues respectively. Concentration of manufacturers As of March 31, 2022, two
manufacturers accounted for 82.6% and 15.2% of the total balance of accounts payable respectively. As of March 31, 2023, one manufacturer
accounted for 92.3% of the total balance of accounts payable. As of March 31, 2024, one manufacturer accounted for 97.1% of the total
balance of accounts payable. The manufacturer is a related party, which was disclosed in the Note 10. For the year ended March 31,
2022, two manufacturers accounted for 77.3% and 22.3% of our total purchases, respectively. For the year ended March 31, 2023, two
manufacturers accounted for 83.1% and 10.4% of our total purchases respectively. For the year ended March 31, 2024, one manufacturer
accounted for 88.5 % of our total purchases. The manufacturer is a related party, which was disclosed in the Note 10. Segment reporting ASC 280, “Segment Reporting”,
establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organizational
structure as well as information about geographical areas, business segments and major customers in consolidated financial statements
for detailing the Company’s business segments. Based on the criteria established by ASC 280, the Company’s chief operating
decision maker (“CODM”) has been identified as the Chief Executive Officer, who reviews consolidated results when making decisions
about allocating resources and assessing performance of the Company. As a whole and hence, the Company has only one reportable segment.
The Company does not distinguish between markets or segments for the purpose of internal reporting. As the Company’s long-lived
assets are substantially located in Hong Kong, no geographical segments are presented. Recently issued accounting pronouncements The Company considers the
applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards
that are issued. Under the Jumpstart Our Business Startups Act of 2012, as amended (the “JOBS Act”), the Company meets the
definition of an emerging growth company, or EGC, and has elected the extended transition period for complying with new or revised accounting
standards, which delays the adoption of these accounting standards until they would apply to private companies. On December 18, 2019, the
FASB issued ASU No. 2019-12, Income taxes (Topic 740), Simplifying the Accounting for Income Taxes. This guidance amends ASC Topic 740
and addresses several aspects including 1) evaluation of step-up tax basis of goodwill when there is not a business combination, 2) policy
election to not allocate consolidated taxes on a separate entity basis to entities not subject to income tax, 3) accounting for tax law
changes or rates during interim periods, 4) ownership changes from equity method investment to subsidiary or vice versa, 5) elimination
of exception to intrapetrous allocation when there is gain in discontinued operations and a loss from continuing operations, and 6) treatment
of franchise taxes that are partially based on income. The amendments in this Update are effective for the Company for fiscal years beginning
after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The Company is evaluating the impact
of this guidance on its consolidated financial statements and related disclosures. In October 2020, the FASB
issued ASU 2020-08, “Codification Improvements to Subtopic 310-20, Receivables—Nonrefundable Fees and Other Costs”.
The amendments in this Update represent changes to clarify the Codification. The amendments make the Codification easier to understand
and easier to apply by eliminating inconsistencies and providing clarifications. ASU 2020-08 is effective for the Company for fiscal years
beginning after December 15, 2021 and interim periods within fiscal years beginning after December 15, 2022. All entities should apply
the amendments in this Update on a prospective basis as of the beginning of the period of adoption for existing or newly purchased callable
debt securities. These amendments do not change the effective dates for Update 2017-08. The Company is currently evaluating the impact
of this new standard on the Company’s consolidated financial statements and related disclosures. In October 2020, the FASB
issued ASU 2020-10, “Codification Improvements”. The amendments in this Update represent changes to clarify the Codification
or correct unintended application of guidance that are not expected to have a significant effect on current accounting practice or create
a significant administrative cost to most entities. The amendments in this Update affect a wide variety of Topics in the Codification
and apply to all reporting entities within the scope of the affected accounting guidance. ASU 2020-10 is effective for the Company for
fiscal years beginning after December 15, 2021 and interim periods within fiscal years beginning after December 15, 2022.The amendments
in this Update should be applied retrospectively. The Company does not expect the adoption of this standard to have a material impact
on its consolidated financial statements. In October 2021, the FASB
issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,
which requires entities to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance
with ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The update will generally result in an entity recognizing contract
assets and contract liabilities at amounts consistent with those recorded by the acquiree immediately before the acquisition date rather
than at fair value. The new standard is effective on a prospective basis for fiscal years beginning after December 15, 2022, with early
adoption permitted. This standard is effective for the Company on January 1, 2023 and the Company does not expect a significant impact
to the consolidated financial statements upon adoption. However, the ultimate impact is dependent upon the size and frequency of future
acquisitions. 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, consolidated statements of income and consolidated statements of cash flows. |
