Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Mar. 31, 2014 | 15-May-14 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'China Grand Resorts, Inc. | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0000860543 | ' |
Current Fiscal Year End Date | '--09-30 | ' |
Entity Common Stock, Shares Outstanding | ' | 3,272,311 |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Sep. 30, 2013 |
Current Assets: | ' | ' |
Cash and cash equivalents | $12,356 | $12,108 |
Others receivables | 10,565 | 10,609 |
Total current assets | 22,921 | 22,717 |
Property and equipment, net (Note 4) | 1,411 | 2,818 |
Total Assets | 24,332 | 25,535 |
Current Liabilities: | ' | ' |
Others payable (Note 5) | 17,133 | 33,161 |
Loan from related parties (Note 6) | 1,374,357 | 1,280,513 |
Total Current Liabilities | 1,391,490 | 1,313,674 |
STOCKHOLDERS' EQUITY (DEFICIT) | ' | ' |
Common stock, $0.001 par value; authorized 1,750,000,000 shares; 3,272,311 shares issued and outstanding as of 3,272,311 shares issued and outstanding as of March 31, 2014 and September 30, 2013, respectively | 3,272 | 3,272 |
Additional paid-in capital | 10,099,040 | 10,099,040 |
Accumulated deficit | -11,471,428 | -11,389,594 |
Accumulated other comprehensive income (loss) | 1,958 | -857 |
Total Shareholders' Equity (Deficit) | -1,367,158 | -1,288,139 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $24,332 | $25,535 |
CONSOLIDATED_BALANCE_SHEETS_PA
CONSOLIDATED BALANCE SHEETS PARENTHETICALS (USD $) | Mar. 31, 2014 | Sep. 30, 2013 |
Stockholders equity number of shares par value and other disclosures | ' | ' |
Common Stock, par or stated value | $0.00 | $0.00 |
Common Stock, shares authorized | 1,750,000,000 | 1,750,000,000 |
Common Stock, shares issued | 3,272,311 | 3,272,311 |
Common Stock, shares outstanding | 3,272,311 | 3,272,311 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
Income statement | ' | ' | ' | ' |
Consulting revenue | $0 | $0 | $0 | $0 |
Cost of consulting revenue | 0 | 0 | 0 | 0 |
Gross profit | 0 | 0 | 0 | 0 |
General and administrative expenses | 21,765 | 22,561 | 50,447 | 69,776 |
Depreciation and amortization expenses | 492 | 985 | 1,410 | 11,311 |
Total operating expenses | 22,257 | 23,546 | 51,857 | 81,087 |
Loss from operations | -22,257 | -23,546 | -51,857 | -81,087 |
Interest income | 3 | 4 | 8 | 7 |
Interest expenses | -15,216 | -13,106 | -29,985 | -25,642 |
Other expenses | 0 | 0 | 0 | 0 |
Total other income (expenses) | -15,213 | -13,102 | -29,977 | -25,635 |
Loss before income taxes | -37,470 | -36,648 | -81,834 | -106,722 |
Provision for income taxes | 0 | 0 | 0 | 0 |
Net Loss | -37,470 | -36,648 | -81,834 | -106,722 |
Effects of foreign currency conversion | 10,390 | -2,923 | 2,815 | -11,591 |
Comprehensive Loss | ($27,080) | ($39,571) | ($79,019) | ($118,313) |
Basic and diluted loss per share | ($0.01) | ($0.01) | ($0.03) | ($0.03) |
Weighted average number of shares-basic and diluted | 3,272,311 | 3,272,311 | 3,272,311 | 3,272,311 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net loss from continuing operations | ($81,834) | ($106,722) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ' | ' |
Depreciation and amortization | 1,410 | 11,311 |
Interest expense for loans from related parties | 29,985 | 25,642 |
Change in operating assets and liabilities | ' | ' |
Other receivables. | 44 | 19,121 |
Other payables. | -16,028 | -17,852 |
Net cash provided by (used in) operating activities | -66,423 | -68,500 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Net cash provided by (used in) investing activities | 0 | 0 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Proceeds from related parties' loans | 63,859 | 90,926 |
Repayment to related parties for loans | 0 | 0 |
Net cash provided by (used in) financing activities | 63,859 | 90,926 |
EFFECT OF EXCHANGE RATE CHANGE ON CASH AND CASH EQUIVALENTS | 2,812 | -11,698 |
NET CHANGES IN CASH AND CASH EQUIVALENTS | 248 | 10,728 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 12,108 | 911 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 12,356 | 11,639 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ' | ' |
Income taxes paid | 0 | 0 |
Interest paid | 0 | 0 |
Non-cash financing activities: | ' | ' |
Interest expense for loans from related parties.. | $29,985 | $25,642 |
DESCRIPTION_OF_BUSINESS_AND_OR
DESCRIPTION OF BUSINESS AND ORGANIZATION | 6 Months Ended |
Mar. 31, 2014 | |
DESCRIPTION OF BUSINESS AND ORGANIZATION | ' |
DESCRIPTION OF BUSINESS AND ORGANIZATION | ' |
NOTE 1 – DESCRIPTION OF BUSINESS AND ORGANIZATION | |
China Grand Resorts, Inc. (“CGND”) and its wholly owned subsidiaries Sun New Media Transaction Service Ltd. (“SNMTS”), China Focus Channel Development Co., Ltd (“CFCD”) and Key Proper Holdings Limited (“KPH”), financial statements defined herein below, collectively referred to as the “Company” or “we" have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). | |
(a) Organization | |
The Company was incorporated in the state of Nevada on September 21, 1989 under the name Fulton Ventures, Inc. On September 19, 2002, we changed our name to Asia Premium Television Group, Inc. to more accurately reflect our business at the time. In March 2007, we effected a 1,000 for 1 reverse stock split of our issued and outstanding common stock. Effective on November 16, 2009, we changed our name to China Grand Resorts Inc. to more accurately reflect our new business efforts and effected a 20 for 1 reverse split of our common stock. All shares and per share amounts in these consolidated financial statements and note thereto have been retrospectively adjusted to all periods presented to give effect to the reverse stock split. | |
On July 1, 2007, the Company acquired 100% interest of SNMTS, a company incorporated in Hong Kong, and its wholly owned subsidiary CFCD, a company incorporated in the People’s Republic of China, from NextMart Inc. for $1. On December 8, 2009, the Company incorporated KPH, a company incorporated in the British Virgin Islands. | |
Below is the organization chart: | |
Acquisition of commercial income rights | |
On August 1, 2009, the Company entered into a subscription and asset sale agreement (the “Agreement”) with Beijing Hua Hui Hengye Investment Ltd. (“Hua Hui”), an unaffiliated PRC company. Hua Hui is a PRC real estate construction and development conglomerate that specializes in constructing and developing travel, resorts, hotels, and apartment properties in popular tourist and other destinations within the PRC. Under the Agreement, we received from Hua Hui the commercial income rights to 10,000 square meters of a 17 story apartment building in the Huadun Changde International Hotel’s Apartment Complex (the “Apartment Complex” ) located in the city of Changde, Hunan Province (“Project”). The Project is developed by Changde Hua Hui Construction Investment Co., Ltd. (“Changde Hua Hui”), a 99.33% owned subsidiary of Hua Hui. Changde Hua Hui agrees to convey to us the commercial income rights to 10,000 square meters of the Project. | |
The Apartment Complex consists of a total of 215,000 square meters located on an approximately 3.6 acre piece of land. The Project is comprised of a total 128 apartments, of which we will have the commercial rights to approximately 60 apartments. The commercial income rights means the exclusive right to own and/or receive any and all income and proceeds derived from these apartments. The commercial income rights to 10,000 square meters were valued at approximately $8,777,000 by an independent valuation firm and we agreed to pay a total of $7,317,000 as consideration. In exchange, we agreed to issue to Hua Hui, 2,774,392 shares of our common stock valued at $2.4 per share (the closing price of the Company’s common stock on the transaction date, August 1, 2009 after giving effect of 20 for 1 reverse split) for a total stock value of $6,658,536 and transferred to Hua Hui certain other Company assets valued at $658,241. These assets consisted of all of our shares of the GlobStream, certain assets of both Sun New Media Transaction Services Limited and China Focus Channel Development Co., Ltd, and other miscellaneous assets of ours. | |
On September 8, 2009, we satisfied the issuance of the 2,774,392 shares by issuing 832,318 shares to Wise Gold Investment Ltd., a British Virgin Island company acting on behalf of Hua Hui. On that same date, we also issued 1,942,074 shares of common stock to Blossom Grow Holdings Limited, a British Virgin Island company, as escrow agent under an escrow agreement by and among us the escrow agent, and Hua Hui. The escrow agent will hold the escrow shares pending completion of the Project which is expected to occur at or near the end of calendar 2010. If the escrow agent receives written instructions from the Company that the Project is completed in accordance with the terms of the Agreement, the escrow agent will release the escrow shares to Hua Hui. However, if after the projected completion date, the Project has not been completed, the escrow shares will continue to be held at escrow for one year. If after one year, the project still has not been completed, then the Company and Hua Hui will negotiate an agreement to deal with the escrow shares. On December 5, 2011 and September 2, 2012, the Company entered into Supplemental Agreements with Hua Hui and Blossom Grow Holdings Limited, pursuant to which, the escrow agent will hold the escrow shares to August 31 2013. Due to change of decoration structure and style, and the ineffective communications with the construction contractors, Hua Hui has informed us that the Project is expected to be completed during the second quarter of calendar year 2014. On December 2, 2013, the Company entered into another Supplemental Agreement with Hua Hui and Blossom Grow Holdings Limited, pursuant to which, the escrow agent will hold the escrow shares to August 31 2014. All permits concerning the Project have been acquired from governmental authorities, and the construction of the Project is 95% completed as the date of this report. During the escrow period, Hua Hui will be able to vote such shares provided it has reached an agreement with us on such matter(s). Otherwise, the escrow agent will not vote on such matter(s). As a result, Hua Hui and Mr. Menghua Liu, Hua Hui’s Chairman and majority shareholder and the Company’s Chairman and Chief Executive Office, are deemed the beneficial owner of such shares. After giving effect to the transaction, Hua Hui became the Company’s majority shareholder and beneficially owns approximately 84.8% Company’s outstanding shares. | |
Acquisition of commercial income rights | |
With respect to the 10,000 square meters residential space, Changde Hua Hui performs the actual unit sales. We agree to pay Changde Hua Hui a sales commission of 3% of the unit sales price. As of March 31, 2014, 12 units, or approximately 1,893 square meters were sold. The total sales price is approximately $707,935 (RMB4,354,797). The commercial income rights discussed above means we will receive the net proceeds from sale of the apartments. Net proceed means sales price net of project costs, selling expenses, and other expenses directly related to disposal of the apartments. Project costs are “costs clearly associated with acquisition, development, and construction of a real estate project.” As defined in ASC 970-605-20. In China, after a real estate project is substantially completed, a real estate development company must submit a “project cost report” to the local government for approval. A real estate development must book the project costs based on the amount approved by the local government. Because the Project has not been completed and the project costs has not been finalized and approved by the local government, we can not determine the net proceed amount as of the date of this report. Changde Hua Hui agrees to hold the proceeds from sale of the apartments, and deliver the net proceeds to us when the amount is fixed or determinable. | |
Since the Company can not be able to determine the amount of net proceed receivable at the date of this report, and based on ASC 450-30-25-1 “A contingency that might result in a gain usually should not be reflected in the financial statements because to do so might be to recognize revenue before its realization.” And ASC 450-30-50-1 “Adequate disclose should be made of a contingency that might result in a gain, but care shall be exercised to avoid misleading implications as to the likelihood of realization.”, the company discloses the fact of the sale of the apartments, and the amount of the proceed receivable can not be determined at the reporting date. |
SUMMARIES_OF_SIGNIFICANT_ACCOU
SUMMARIES OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended | ||||
Mar. 31, 2014 | |||||
SUMMARIES OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||||
SUMMARIES OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||||
NOTE 2 – SUMMARIES OF SIGNIFICANT ACCOUNTING POLICIES | |||||
(a) Basis of Presentation and Consolidation | |||||
The accompanying unaudited consolidated financial statements of China Grand Resorts, Inc. (“CGND”) and its wholly owned subsidiaries including Sun New Media Transaction Service Ltd. (“SNMTS”), China Focus Channel Development Co., Ltd (“CFCD”) and Key Prosper Holdings Limited (“KPH”), defined herein below, collectively referred to as the “Company” or “we" have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission and in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with US GAAP have been condensed or omitted in accordance with such rules and regulations. The information furnished in the interim consolidated financial statements includes normal recurring adjustments and reflects all adjustments that, in the opinion of management, are necessary for a fair presentation of such consolidated financial statements. Although management believes the disclosures and information presented are adequate to make the information not misleading, it is suggested that these interim consolidated financial statements be read in conjunction with the Company's most recent audited consolidated financial statements and notes included in its annual report on Form 10-K for the fiscal year ended September 30, 2013 filed on December 30, 2013. Operating results for the three and six months ended March 31, 2014, are not necessarily indicative of the results that may be expected for longer periods or the entire year. | |||||
The Company’s consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“USGAAP”) and applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. | |||||
The consolidated financial statements include the accounts of the Company and its subsidiaries, SNMTS, CFCD and KPH. All inter-company balances and transactions between the entities have been eliminated in consolidation. | |||||
In preparing the consolidated financial statements, we evaluated the period from the balance sheet date through the date the financial statements were issued for material subsequent events requiring recognition or disclosure. No such events were identified for this period. | |||||
(b) Going Concern and Management Plan | |||||
As of March 31, 2014, the Company had an accumulated deficit totaling $11,471,428 and negative working capital $1,368,569.The Company suffered a loss of $81,834 for the six months ended March 31, 2014 and $210,830 for the year ended September 30, 2013. In view of the matters described above, the appropriateness of the going concern basis is dependent upon continuing operations of the Company, which in turn is dependent upon the Company's ability to raise additional capital, obtain financing and succeed in its future operations. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. | |||||
As a result of the transaction with Hua Hui as discussed in Note (1), we received the commercial income rights of the Project. | |||||
The Company is actively pursuing additional capital in an effort to fund its ongoing capital requirements, as well as seeking agreements with potential strategic partners to develop a new business strategy, other than its ownership of the commercial income rights to the Project. | |||||
(c) Use of estimates | |||||
The preparation of the financial statements in conformity with US GAAP requires management of the Company to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the years presented. Actual results could differ from those estimates. The Company bases its estimates on historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Significant accounting estimates reflected in the Company's consolidated financial statements include allowance for doubtful accounts, estimated useful lives and contingent liabilities. | |||||
(d) Cash | |||||
Cash consists of cash on hand and at banks which are unrestricted as to withdrawal or use. Management believes that the banks which hold the Company’s cash are of high credit quality. | |||||
(e) Foreign currency translation | |||||
The Company uses United States dollars (“U.S. Dollar” or “USD” or “$”) for financial reporting purposes. The subsidiaries within the Company maintain their books and records in their respective functional currency, Chinese Renminbi (“RMB”) and Hong Kong dollars (“HK$”), being the lawful currency in the PRC and Hong Kong, respectively. Assets and liabilities of the subsidiaries are translated from RMB or HK$ into U.S. Dollars using the applicable exchange rates prevailing at the balance sheet date. Items on the statements of operations and cash flows are translated at average exchange rates during the reporting period. Equity accounts are translated at historical rates. Adjustments resulting from the translation of the Company’s financial statements are recorded as accumulated other 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: | |||||
2014 | 2013 | ||||
March 31, | RMB6.1644= | RMB6.2689 =1 | |||
HK$7.7584=1 | HK$7.7624=1 | ||||
Six Months ended | RMB6.12442= | RMB6.29156 =1 | |||
March 31, | HK$7.75643=1 | HK$7.75363=1 | |||
There is no assurance that the RMB amounts could have been, or could be, converted into U.S. dollars at the above rates. | |||||
(f) Property and equipment | |||||
Property and equipment are recorded at cost less accumulated depreciation and amortization. Expenditures for major additions and betterments that extend the useful lives of property and equipment are capitalized, upon being placed in service. Expenditures for maintenance and repairs are charged to general and administrative expense as incurred. Depreciation of property and equipment is computed by the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized on a straight-line basis over the estimated useful life. | |||||
Upon sale or retirement of property, plant and equipment, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is reflect in operation. | |||||
The estimated useful lives of the assets are as follows: | |||||
Computer software | 3 years | ||||
Office equipment | 2-5 years | ||||
(g) Impairment of long-lived assets | |||||
Long-lived assets, including intangible assets with definite lives and property, plant and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. | |||||
Based on the Company’s assessment, there have been no events or changes in circumstances that would indicate any impairment of long-lived assets as of March 31, 2014 and 2013. | |||||
(h) Fair value measurements | |||||
ASC Topic 820, Fair Value Measurement and Disclosures, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This topic also establishes a fair value hierarchy which requires classification based on observable and unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value: | |||||
Level 1 - Quoted prices in active markets for identical assets or liabilities. | |||||
Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||
Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |||||
Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter. | |||||
The carrying values of cash and cash equivalents, other receivables, other payables, shareholders payables and related party payable approximate fair values due to their short maturities. | |||||
There was no asset or liability measured at fair value on a non-recurring basis as of March 31, 2014 and 2013. | |||||
(i) Income taxes | |||||
The Company follows the liability method of accounting for income taxes in accordance with ASC 740 “Income Taxes”. Under this method, future tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax balances. Future tax assets and liabilities are measured using enacted or substantially enacted tax rates expected to apply to the taxable income in the years in which those differences are expected to be recovered or settled. The effect on future tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the date of enactment or substantive enactment. The tax loss arising from PRC can be carried forward for five years. Agreed tax losses by respective local tax authorities can be offset against future taxable profits of the respective companies. A valuation allowance is provided for deferred tax assets if it is more likely than not that the Company will not realize the future benefit, or if the future deductibility is uncertain. It is uncertain for the Company that the operating result in PRC will have profit and it is more likely than not that the Company will not realize the future benefit. Therefore, there was no deferred tax asset as of Marh 31, 2014 and 2013, respectively. | |||||
(j) Revenue recognition | |||||
In accordance with FASB ASC 605, "Revenue Recognition", we recognize revenue when the earnings process is complete, both title and the risks and rewards of ownership are transferred or services have been rendered and accepted, the selling price is fixed or determinable, and collectability is reasonably assured. | |||||
(k) Loss per share | |||||
Basic earnings (loss) per share is computed on the basis of the weighted-average number of shares of the Company’s common stock outstanding during the fiscal years. Diluted earnings (loss) per share is computed on the basis of the weighted-average number of shares of the common stock plus any (loss) effect of dilutive potential common shares outstanding during the year using the if-converted method. As the Company has a loss, presenting diluted net loss per share is considered anti-dilutive and not included in the consolidated statements of operations. | |||||
(l) Nonmonetary transactions | |||||
The Company accounts for nonmonetary transactions based on the fair value of the assets (or services) involved in accordance with the requirements of FASB ASC Topic 845, “Nonmonetary Transactions”. | |||||
(m) Comprehensive income | |||||
Comprehensive income is defined as the change in equity of a company during the period from transactions and other events and circumstances excluding transactions resulting from investments from owners and distributions to owners. | |||||
Accumulated other comprehensive income (loss) and comprehensive income (loss) consist of changes in unrealized gains and losses on foreign currency translation. This comprehensive income is not included in the computation of income tax expense or benefit. | |||||
(n) Commitments and contingencies | |||||
The Company is subject to lawsuits, investigations and other claims related to operations, product, taxing authorities, environmental and other matters out of the normal course of business, and is required to assess the likelihood of any adverse judgments or outcomes to these matters, as well as potential ranges of probable losses and fees. A determination of the amount of reserves and disclosures required, if any, for these contingencies are made after considerable analysis of each individual issue. The Company accrues for contingent liabilities when an assessment of the risk of loss is probable and can be reasonably estimated. The Company discloses contingent liabilities when the risk of loss is reasonably possible or probable. | |||||
(o) Pension and employee benefits | |||||
Full time employees of the Company’s PRC subsidiary 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. The PRC labor regulations require the Company to accrue for these benefits based on certain percentages of the employees’ salaries. Cost for the pension and employee benefits for the six months ended March 31, 2014 and 2013 were $13,998 and $10,186, respectively. | |||||
(p) Recently issued accounting standards | |||||
In July 2013, the FASB issued ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carry forward, a Similar Tax Loss, or a Tax Credit Carry forward Exists.” This standard requires that an unrecognized tax benefits, or a portion of an unrecognized tax benefit be presented on a reduction to a deferred tax asset for an NOL carry forward, a similar tax loss, or a tax credit carry forward with certain exceptions to this rule. If certain exception conditions exists, an entity should present an unrecognized tax benefit in the financial statements as a liability and should not net the unrecognized tax benefit with a deferred tax asset. This standard is effective for fiscal years and interim periods within those years beginning after December 15, 2013. The Company does not expect the adoption of the new provisions to have a material impact on our financial condition or results of operations. | |||||
In March 2013, the FASB issued guidance on when foreign currency translation adjustments should be released to net income. When a parent entity ceases to have a controlling financial interest in a subsidiary or group of assets that is a business within a foreign entity, the parent is required to release any related cumulative translation adjustment into net income. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The guidance is effective prospectively beginning January 1, 2014. It is not expected to have a material impact in the financial statements. | |||||
The Company believes that there were no other accounting standards recently issued that had or are expected to have a material impact on our financial position or results of operations. | |||||
CONCENTRATION_OF_CREDIT_RISK
CONCENTRATION OF CREDIT RISK | 6 Months Ended |
Mar. 31, 2014 | |
CONCENTRATION OF CREDIT RISK | ' |
CONCENTRATION OF CREDIT RISK | ' |
NOTE 3 – CONCENTRATION OF CREDIT RISK | |
As at March 31, 2014 and 2013, approximately 99% of the Company’s cash represented cash balances deposited with banks located in the PRC. According to existing PRC laws and regulations, remittance of these cash balances out of the PRC is subject to various restrictions imposed by the PRC government. Remittance of these cash balances out of the PRC is subject to various restrictions imposed by the PRC government. | |
The Company does not have any off-balance-sheet credit exposure as a result of its customers. |
PROPERTY_AND_EQUIPMENT_NET
PROPERTY AND EQUIPMENT, NET | 6 Months Ended | ||||||
Mar. 31, 2014 | |||||||
PROPERTY AND EQUIPMENT, NET | ' | ||||||
PROPERTY AND EQUIPMENT, NET | ' | ||||||
NOTE 4 – PROPERTY AND EQUIPMENT, NET | |||||||
The following is a summary of property and equipment, at cost, less accumulated depreciation: | |||||||
March 31, | September 30, | ||||||
2014 | 2013 | ||||||
(unaudited) | |||||||
Computer software | $ | - | $ | 1,741 | |||
Office equipment | 21,938 | 21,984 | |||||
Sub total | 21,938 | 23,725 | |||||
Less: accumulated depreciation | -20,527 | -20,907 | |||||
Total property and equipment, net | $ | 1,411 | $ | 2,818 | |||
Depreciation and amortization expenses for the six months ended March 31, 2014 and 2013 were $1,410 and $11,311, respectively. | |||||||
OTHER_PAYABLES
OTHER PAYABLES | 6 Months Ended | ||||||
Mar. 31, 2014 | |||||||
OTHER PAYABLES | ' | ||||||
OTHER PAYABLES | ' | ||||||
NOTE 5 – OTHER PAYABLES | |||||||
Other payables consist of the following: | |||||||
March 31, | September 30, | ||||||
2014 | 2013 | ||||||
(unaudited) | |||||||
Professional Fees | $ | 4,000 | $ | 20,000 | |||
Office expenses | 13,133 | 13,161 | |||||
Total other payables | $ | 17,133 | $ | 33,161 |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended | ||||||
Mar. 31, 2014 | |||||||
RELATED PARTY TRANSACTIONS | ' | ||||||
RELATED PARTY TRANSACTIONS | ' | ||||||
NOTE 6 – RELATED PARTY TRANSACTIONS | |||||||
Loans from related parties consist of the following: | |||||||
March 31, | September 30, | ||||||
2014 | 2013 | ||||||
(unaudited) | |||||||
Redrock Capital Venture Limited (a) | $ | 100,281 | $ | 100,281 | |||
Beijing Hua Hui Hengye Investment Limited (b) | 1,274,076 | 1,180,232 | |||||
Total | $ | 1,374,357 | $ | 1,280,513 | |||
(a) From June 2009 through December 2009, we received loans from Redrock Capital Venture Limited (“Redrock”) for working capital purpose. The loans are unsecured, due on demand, and without formal writing loan agreements. The loans amounted to $100,281 as of December 31, 2009 and remained the same amount as of March 31, 2014. Redrock is currently a minority shareholder of the Company. | |||||||
(b) Commencing in October 2009, we began receiving loans from time to time from Hua Hui, our largest shareholder, for working capital purposes. As of March 31, 2014, the amount due to Hua Hui is $1,274,076 which is due on demand and bears interest at the prevailing rate charged by the PRC Central Bank. The loans that we received from Hua Hui in the six months ended March 31, 2014 and 2013 amounted to $63,859 and $90,926, respectively. The interest accrued for the six months ended March 31, 2014 amounted to approximately $29,985 and the effective interest rate of the loans was 5.59%. The interest accrued for the six months ended March 31, 2013 amounted to approximately $25,642 and the effective interest rate of the loans was 5.56%. | |||||||
CAPITAL_STOCK
CAPITAL STOCK | 6 Months Ended |
Mar. 31, 2014 | |
CAPITAL STOCK | ' |
CAPITAL STOCK | ' |
NOTE 7 – CAPITAL STOCK | |
(a) Common Stock | |
On September 8, 2009, pursuant to the transaction with Beijing Hua Hui on August 1, 2009, the Company issued 832,318 shares of its common stock to Wise Gold Investment Ltd., a British Virgin Island company acting on behalf of Hua Hui. In addition, on that same date, it issued 1,942,074 shares of common stock to Blossom Grow Holdings Limited, a British Virgin Island company, as escrow agent under an escrow agreement by and among the Company, the escrow agent, and Hua Hui. | |
Effective on November 16, 2009, we effected a 20 for 1 reverse split of our issued and outstanding common stock. This reverse stock split already gave retroactive effect in the computation of basis and diluted EPS for all period presented accordingly. | |
As of March 31, 2014 and 2013, the Company had 3,272,311 and 3,272,311 shares issued and outstanding, respectively. | |
(b) Warrants/Options | |
On June 28, 2009, pursuant to the Acquisition Agreement made and entered into by the Company and GlobStream, the Company issued warrants to Mr. Luo Wenjun for the option to purchase 7,782 shares of common stock with an exercise price of $3 per share and an expiration after March 23, 2019. | |
These Warrants may be exercised, in whole or in part, by the Holder during the Exercise Period by (i) the presentation and surrender of this Warrant to the Company along with a duly executed Notice of Exercise specifying the number of Warrant Shares to be purchased, and (ii) delivery of payment to the Company of the Exercise Price for the number of Warrant Shares specified in the Notice of Exercise. | |
As of March 31, 2014, the Company had 7,782 common stock warrants outstanding. | |
(c) 2001 stock plan | |
In 2001, the Board of Directors adopted a Stock Plan (“Plan”). Under the terms and conditions of the Plan, the Board of Directors is empowered to grant stock options to employees, consultants, officers and directors of the Company. Additionally, the Board will determine at the time of granting the vesting provision and whether the options will be qualified as Incentive Stock Options under Section 422 of the Internal Revenue Code (Section 422 provides certain tax advantages to the employee recipients). The Plan was approved by the shareholders of the Company on September 15, 2001. The total number of shares of common stock available under the Plan may not exceed 100. As of March 31, 2014, no options were granted under the Plan. |
RENTAL_EXPENSE
RENTAL EXPENSE | 6 Months Ended |
Mar. 31, 2014 | |
RENTAL EXPENSE | ' |
RENTAL EXPENSE | ' |
NOTE 8 – RENTAL EXPENSE | |
In December 2009, we relocated our office to a new location in Beijing consisting of 192.70 square meters. The new Beijing office lease is from December 11, 2009 to December 10, 2011 and provides for monthly lease payment of $5,333 with two months period of free rent. In August 2011, we renewed this lease agreement from December 11, 2011 to December 12, 2012. The monthly lease payment is $6,253. Currently, Hua Hui, our majority shareholder, provides an office to us at no cost. However, Hua Hui may charge us rent in the future. We have not reach an agreement as of the date of this filing. | |
Rental expenses for the six months ended March 31, 2014 and 2013 was $0 and $12,790, respectively. | |
INCOME_TAXES
INCOME TAXES | 6 Months Ended |
Mar. 31, 2014 | |
INCOME TAXES | ' |
INCOME TAXES | ' |
NOTE 9 – INCOME TAXES | |
The entities within the Company file separate tax returns in the respective tax jurisdictions that they operate. | |
British Virgin Islands | |
Key Prosper Holdings Limited incorporated in the British Virgin Islands as exempted company is not subject to any income tax in the British Virgin Islands. | |
Hong Kong | |
SNMTS is generally subject to Hong Kong income tax on its taxable income derived from trade or businesses carried out in Hong Kong at 16.5% for the six months ended March 31, 2014 and 2013. However, as SNMTS has not generated any revenue or income, no provision for Hong Kong income tax has been made. As SNMTS has yet commenced operations, the expenses incurred are not deductible and no loss carry forward was thus resulted. | |
PRC | |
CFCD established in the PRC was subject to the PRC Enterprise Income Tax (“EIT”) at 33% prior to January 1, 2008. | |
The PRC Enterprise Income Tax Law, among other things, imposes a unified income tax rate of 25% for both domestic and foreign invested enterprises registered in the PRC. The New EIT Law provides a grandfathering on tax holidays which were granted under the then effective tax laws and regulations. The NEW EIT Law also imposes a withholding tax of 10% unless reduced by a tax treaty, for dividends distributed by a PRC-resident enterprise to its immediate holding company outside the PRC for earnings accumulated beginning on January 1, 2008 and undistributed earnings generated prior to January 1, 2008 are exempt from such withholding tax. As the PRC subsidiary is loss status, the Company has not provided for withholding taxes of its PRC subsidiary as of March 31, 2014 and 2013. | |
According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational or other errors made by the taxpayer or the withholding agent. The statute of limitations extends five years under special circumstances. In the case of transfer pricing issues, the statute of limitations is 10 years. | |
There is no state of limitations in the case of tax evasions. Accordingly, the income tax returns of China Grand Resorts, Inc. for the six months ended March 31, 2014 and 2013 are open to examination by the PRC state and local tax authorities. | |
As of March 31, 2014 and 2013, the Company did not have any significant temporary differences and carry forwards that may result in deferred tax. The Company has analyzed the tax positions taken or expected to be taken in its tax filing and has concluded it has no material liability related to uncertain tax positions or unrecognized tax benefits. The Company does not anticipate any significant increases or decreases to its liability for unrecognized tax benefits within the next 12 months. | |
NONMONETARY_TRANSACTION
NON-MONETARY TRANSACTION | 6 Months Ended |
Mar. 31, 2014 | |
NON-MONETARY TRANSACTION | ' |
NON-MONETARY TRANSACTION | ' |
NOTE 10 – NON-MONETARY TRANSACTION | |
On August 1, 2009, we entered into a subscription and asset sale agreement with Hua Hui. Under the terms of the Agreement, we received from Hua Hui the commercial income rights to 10,000 square meters to a 17 story apartment building in the Huadun Changde International Hotel’s Apartment Complex located in the city of Changde, Hunan Province (“Project”). The Project is currently under development by Changde Hua Hui. In exchange, we agreed to issue to Hua Hui 2,774,392 shares of our common stock. As additional consideration, we transferred to Hua Hui all of our shares of the GlobStream Technology Inc., certain assets of both SNMTS and CFCD and certain assets of the Company. | |
According to ASC 845-10-S99, transfers of non-monetary assets to a company by its promoters or shareholders in exchange for stock prior to or at the time of the entity’s initial public offering normally should be recorded at the transferors' historical cost basis determined under GAAP. In this transaction, Hua Hui became the controlling shareholder of the Company after it transferred the commercial income rights to the Company. Therefore, the accounting principles in ASC 845-10-S99 were followed and the Company recorded the rights at its historical cost basis, which was internally developed and had zero basis. | |
According to ASC 845-10-30, the accounting for non-monetary transactions should be based on the fair values of the assets (or services) involved, which is the same basis as that used in monetary transactions. Thus, the cost of a non-monetary asset acquired in exchange for another non-monetary asset is the fair value of the asset surrendered to obtain it, and a gain or loss shall be recognized on the exchange. The fair value of the asset received shall be used to measure the cost if it is more clearly evident than the fair value of the asset surrendered. Similarly, a non-monetary asset received in a nonreciprocal transfer shall be recorded at the fair value of the asset received. A transfer of a non-monetary asset to a stockholder or to another entity in a nonreciprocal transfer shall be recorded at the fair value of the asset transferred and a gain or loss shall be recognized on the disposition of the asset. We recorded the disposal of the subsidiaries and assets at fair value. As the result of the transaction with Hua Hui, we experienced a loss on disposal of the above mentioned assets of $1,345,688 in fiscal year 2009. |
COMMITMENT_AND_CONTINGENCIES
COMMITMENT AND CONTINGENCIES | 6 Months Ended |
Mar. 31, 2014 | |
Commitment and Contingencies: | ' |
COMMITMENTS AND CONTINGENCIES | ' |
NOTE 11 – COMMITMENTS AND CONTINGENCIES | |
Economic and Political Risks | |
The Company faces a number of risks and challenges not typically associated with companies in North America and Western Europe, since its assets exist solely in the PRC, and its revenues are derived from its operations therein. The PRC is a developing country with an early stage market economic system, overshadowed by the state. Its political and economic systems are very different from the more developed countries and are in a state of change. The PRC also faces many social, economic and political challenges that may produce major shocks and instabilities and even crises, in both its domestic arena and in its relationships with other countries, including the United States. Such shocks, instabilities and crises may in turn significantly and negatively affect the Company's performance. | |
Accounting_Policies_Policies
Accounting Policies (Policies) | 6 Months Ended | ||||
Mar. 31, 2014 | |||||
Accounting Policies | ' | ||||
Basis of Accounting, Policy | ' | ||||
(a) Basis of Presentation and Consolidation | |||||
The accompanying unaudited consolidated financial statements of China Grand Resorts, Inc. (“CGND”) and its wholly owned subsidiaries including Sun New Media Transaction Service Ltd. (“SNMTS”), China Focus Channel Development Co., Ltd (“CFCD”) and Key Prosper Holdings Limited (“KPH”), defined herein below, collectively referred to as the “Company” or “we" have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission and in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with US GAAP have been condensed or omitted in accordance with such rules and regulations. The information furnished in the interim consolidated financial statements includes normal recurring adjustments and reflects all adjustments that, in the opinion of management, are necessary for a fair presentation of such consolidated financial statements. Although management believes the disclosures and information presented are adequate to make the information not misleading, it is suggested that these interim consolidated financial statements be read in conjunction with the Company's most recent audited consolidated financial statements and notes included in its annual report on Form 10-K for the fiscal year ended September 30, 2013 filed on December 30, 2013. Operating results for the three and six months ended March 31, 2014, are not necessarily indicative of the results that may be expected for longer periods or the entire year. | |||||
The Company’s consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“USGAAP”) and applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. | |||||
The consolidated financial statements include the accounts of the Company and its subsidiaries, SNMTS, CFCD and KPH. All inter-company balances and transactions between the entities have been eliminated in consolidation. | |||||
In preparing the consolidated financial statements, we evaluated the period from the balance sheet date through the date the financial statements were issued for material subsequent events requiring recognition or disclosure. No such events were identified for this period. | |||||
Going Concern and Management Plan | ' | ||||
(b) Going Concern and Management Plan | |||||
As of March 31, 2014, the Company had an accumulated deficit totaling $11,471,428 and negative working capital $1,368,569.The Company suffered a loss of $81,834 for the six months ended March 31, 2014 and $210,830 for the year ended September 30, 2013. In view of the matters described above, the appropriateness of the going concern basis is dependent upon continuing operations of the Company, which in turn is dependent upon the Company's ability to raise additional capital, obtain financing and succeed in its future operations. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. | |||||
As a result of the transaction with Hua Hui as discussed in Note (1), we received the commercial income rights of the Project. | |||||
The Company is actively pursuing additional capital in an effort to fund its ongoing capital requirements, as well as seeking agreements with potential strategic partners to develop a new business strategy, other than its ownership of the commercial income rights to the Project. | |||||
Use of Estimates | ' | ||||
(c) Use of estimates | |||||
The preparation of the financial statements in conformity with US GAAP requires management of the Company to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the years presented. Actual results could differ from those estimates. The Company bases its estimates on historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Significant accounting estimates reflected in the Company's consolidated financial statements include allowance for doubtful accounts, estimated useful lives and contingent liabilities. | |||||
Cash | ' | ||||
(d) Cash | |||||
Cash consists of cash on hand and at banks which are unrestricted as to withdrawal or use. Management believes that the banks which hold the Company’s cash are of high credit quality. | |||||
Foreign Currency Translation | ' | ||||
(e) Foreign currency translation | |||||
The Company uses United States dollars (“U.S. Dollar” or “USD” or “$”) for financial reporting purposes. The subsidiaries within the Company maintain their books and records in their respective functional currency, Chinese Renminbi (“RMB”) and Hong Kong dollars (“HK$”), being the lawful currency in the PRC and Hong Kong, respectively. Assets and liabilities of the subsidiaries are translated from RMB or HK$ into U.S. Dollars using the applicable exchange rates prevailing at the balance sheet date. Items on the statements of operations and cash flows are translated at average exchange rates during the reporting period. Equity accounts are translated at historical rates. Adjustments resulting from the translation of the Company’s financial statements are recorded as accumulated other 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: | |||||
2014 | 2013 | ||||
March 31, | RMB6.1644= | RMB6.2689 =1 | |||
HK$7.7584=1 | HK$7.7624=1 | ||||
Six Months ended | RMB6.12442= | RMB6.29156 =1 | |||
March 31, | HK$7.75643=1 | HK$7.75363=1 | |||
There is no assurance that the RMB amounts could have been, or could be, converted into U.S. dollars at the above rates. | |||||
Property and Equipment | ' | ||||
(f) Property and equipment | |||||
Property and equipment are recorded at cost less accumulated depreciation and amortization. Expenditures for major additions and betterments that extend the useful lives of property and equipment are capitalized, upon being placed in service. Expenditures for maintenance and repairs are charged to general and administrative expense as incurred. Depreciation of property and equipment is computed by the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized on a straight-line basis over the estimated useful life. | |||||
Upon sale or retirement of property, plant and equipment, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is reflect in operation. | |||||
The estimated useful lives of the assets are as follows: | |||||
Computer software | 3 years | ||||
Office equipment | 2-5 years | ||||
Impairment of Long-Lived Assets | ' | ||||
(g) Impairment of long-lived assets | |||||
Long-lived assets, including intangible assets with definite lives and property, plant and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. | |||||
Based on the Company’s assessment, there have been no events or changes in circumstances that would indicate any impairment of long-lived assets as of March 31, 2014 and 2013. | |||||
Fair Value Measurement | ' | ||||
(h) Fair value measurements | |||||
ASC Topic 820, Fair Value Measurement and Disclosures, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This topic also establishes a fair value hierarchy which requires classification based on observable and unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value: | |||||
Level 1 - Quoted prices in active markets for identical assets or liabilities. | |||||
Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||
Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |||||
Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter. | |||||
The carrying values of cash and cash equivalents, other receivables, other payables, shareholders payables and related party payable approximate fair values due to their short maturities. | |||||
There was no asset or liability measured at fair value on a non-recurring basis as of March 31, 2014 and 2013. | |||||
Income Taxes | ' | ||||
(i) Income taxes | |||||
The Company follows the liability method of accounting for income taxes in accordance with ASC 740 “Income Taxes”. Under this method, future tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax balances. Future tax assets and liabilities are measured using enacted or substantially enacted tax rates expected to apply to the taxable income in the years in which those differences are expected to be recovered or settled. The effect on future tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the date of enactment or substantive enactment. The tax loss arising from PRC can be carried forward for five years. Agreed tax losses by respective local tax authorities can be offset against future taxable profits of the respective companies. A valuation allowance is provided for deferred tax assets if it is more likely than not that the Company will not realize the future benefit, or if the future deductibility is uncertain. It is uncertain for the Company that the operating result in PRC will have profit and it is more likely than not that the Company will not realize the future benefit. Therefore, there was no deferred tax asset as of Marh 31, 2014 and 2013, respectively. | |||||
Revenue Recognition | ' | ||||
(j) Revenue recognition | |||||
In accordance with FASB ASC 605, "Revenue Recognition", we recognize revenue when the earnings process is complete, both title and the risks and rewards of ownership are transferred or services have been rendered and accepted, the selling price is fixed or determinable, and collectability is reasonably assured. | |||||
Loss Per Share | ' | ||||
(k) Loss per share | |||||
Basic earnings (loss) per share is computed on the basis of the weighted-average number of shares of the Company’s common stock outstanding during the fiscal years. Diluted earnings (loss) per share is computed on the basis of the weighted-average number of shares of the common stock plus any (loss) effect of dilutive potential common shares outstanding during the year using the if-converted method. As the Company has a loss, presenting diluted net loss per share is considered anti-dilutive and not included in the consolidated statements of operations. | |||||
Non Monetary Transaction | ' | ||||
(l) Nonmonetary transactions | |||||
The Company accounts for nonmonetary transactions based on the fair value of the assets (or services) involved in accordance with the requirements of FASB ASC Topic 845, “Nonmonetary Transactions”. | |||||
Comprehensive Income | ' | ||||
(m) Comprehensive income | |||||
Comprehensive income is defined as the change in equity of a company during the period from transactions and other events and circumstances excluding transactions resulting from investments from owners and distributions to owners. | |||||
Accumulated other comprehensive income (loss) and comprehensive income (loss) consist of changes in unrealized gains and losses on foreign currency translation. This comprehensive income is not included in the computation of income tax expense or benefit. | |||||
Commitments and Contingencies | ' | ||||
(n) Commitments and contingencies | |||||
The Company is subject to lawsuits, investigations and other claims related to operations, product, taxing authorities, environmental and other matters out of the normal course of business, and is required to assess the likelihood of any adverse judgments or outcomes to these matters, as well as potential ranges of probable losses and fees. A determination of the amount of reserves and disclosures required, if any, for these contingencies are made after considerable analysis of each individual issue. The Company accrues for contingent liabilities when an assessment of the risk of loss is probable and can be reasonably estimated. The Company discloses contingent liabilities when the risk of loss is reasonably possible or probable. | |||||
Pension and employee Benefits | ' | ||||
(o) Pension and employee benefits | |||||
Full time employees of the Company’s PRC subsidiary 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. The PRC labor regulations require the Company to accrue for these benefits based on certain percentages of the employees’ salaries. Cost for the pension and employee benefits for the six months ended March 31, 2014 and 2013 were $13,998 and $10,186, respectively. | |||||
Recently Issued Accounting Standards | ' | ||||
(p) Recently issued accounting standards | |||||
In July 2013, the FASB issued ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carry forward, a Similar Tax Loss, or a Tax Credit Carry forward Exists.” This standard requires that an unrecognized tax benefits, or a portion of an unrecognized tax benefit be presented on a reduction to a deferred tax asset for an NOL carry forward, a similar tax loss, or a tax credit carry forward with certain exceptions to this rule. If certain exception conditions exists, an entity should present an unrecognized tax benefit in the financial statements as a liability and should not net the unrecognized tax benefit with a deferred tax asset. This standard is effective for fiscal years and interim periods within those years beginning after December 15, 2013. The Company does not expect the adoption of the new provisions to have a material impact on our financial condition or results of operations. | |||||
In March 2013, the FASB issued guidance on when foreign currency translation adjustments should be released to net income. When a parent entity ceases to have a controlling financial interest in a subsidiary or group of assets that is a business within a foreign entity, the parent is required to release any related cumulative translation adjustment into net income. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The guidance is effective prospectively beginning January 1, 2014. It is not expected to have a material impact in the financial statements. | |||||
The Company believes that there were no other accounting standards recently issued that had or are expected to have a material impact on our financial position or results of operations |
Foreign_Currency_Translation_T
Foreign Currency Translation (Table) | 6 Months Ended | ||||
Mar. 31, 2014 | |||||
Foreign Currency Translation {1} | ' | ||||
Foreign Currency Translation | ' | ||||
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: | |||||
2014 | 2013 | ||||
March 31, | RMB6.1644= | RMB6.2689 =1 | |||
HK$7.7584=1 | HK$7.7624=1 | ||||
Six Months ended | RMB6.12442= | RMB6.29156 =1 | |||
March 31, | HK$7.75643=1 | HK$7.75363=1 |
Estimated_Life_of_Plant_and_Eq
Estimated Life of Plant and Equipment (Table) | 6 Months Ended | |
Mar. 31, 2014 | ||
Estimated Life of Plant and Equipment | ' | |
Estimated life of plant and equipment | ' | |
The estimated useful lives of the assets are as follows: | ||
Computer software | 3 years | |
Office equipment | 2-5 years | |
Property_and_Equipment_Net_Tab
Property and Equipment Net (Table) | 6 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Property and Equipment Net | ' | ||||||
Property and Equipment Net . | ' | ||||||
The following is a summary of property and equipment, at cost, less accumulated depreciation: | |||||||
March 31, | September 30, | ||||||
2014 | 2013 | ||||||
(unaudited) | |||||||
Computer software | $ | - | $ | 1,741 | |||
Office equipment | 21,938 | 21,984 | |||||
Sub total | 21,938 | 23,725 | |||||
Less: accumulated depreciation | -20,527 | -20,907 | |||||
Total property and equipment, net | $ | 1,411 | $ | 2,818 |
Other_Payables_Table
Other Payables (Table) | 6 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Other Payables | ' | ||||||
Other Payables | ' | ||||||
Other payables consist of the following: | |||||||
March 31, | September 30, | ||||||
2014 | 2013 | ||||||
(unaudited) | |||||||
Professional Fees | $ | 4,000 | $ | 20,000 | |||
Office expenses | 13,133 | 13,161 | |||||
Total other payables | $ | 17,133 | $ | 33,161 |
Loan_from_related_parties_Tabl
Loan from related parties (Table) | 6 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Loan from related parties | ' | ||||||
Loan from related parties | ' | ||||||
Loans from related parties consist of the following: | |||||||
March 31, | September 30, | ||||||
2014 | 2013 | ||||||
(unaudited) | |||||||
Redrock Capital Venture Limited (a) | $ | 100,281 | $ | 100,281 | |||
Beijing Hua Hui Hengye Investment Limited (b) | 1,274,076 | 1,180,232 | |||||
Total | $ | 1,374,357 | $ | 1,280,513 | |||
Below_is_the_organization_char
Below is the organization chart in existence (Details) | Mar. 31, 2014 |
Below is the organization chart in existence | ' |
Percentage held by China Grand Resorts, Inc in Sun New Media Transaction Services Limited | 100.00% |
Percentage held by China Grand Resorts, Inc in Key Prosper Holding Limited | 100.00% |
Percentage held by Sun New Media Transaction Services Limited in China Focus Channel Development Co., Ltd. | 100.00% |
Acquisition_of_commercial_inco
Acquisition of commercial income rights (Details) (USD $) | Aug. 01, 2009 |
Commercial income rights details | ' |
Received from Hua Hui the commercial income rights in square meters of 17 story Apartment | 10,000 |
The Project is developed by Changde Hua Hui Construction Investment Co., Ltd. ("Changde Hua Hui"),owned subsidiary of Hua Hui | 99.33% |
Changde Hua Hui agrees to convey to company the commercial income rights in square meters | 10,000 |
The Apartment complex consists of a total square meteres | 215,000 |
The Apartment Complex located on an approximately acre piece of land | 3.6 |
Project is comprised of a total apartments | 128 |
No of apartments have commercial rights | 60 |
The commercial income rights to 10,000 square meters were valued at approximately | $8,777,000 |
An independent valuation firm and we agreed to pay a total of as consideration | 7,317,000 |
We agreed to issue to Hua Hui shares | 2,774,392 |
shares of our common stock valued at per share | $2.40 |
Total stock value | 6,658,536 |
Company assets valued at | $658,241 |
Issuance_of_share_Details
Issuance of share (Details) | Sep. 08, 2009 |
Share details | ' |
Total issuance of shares | 2,774,392 |
Issued to shares to Wise Gold Investment Ltd. | 832,218 |
Issued shares to common stock to Blossom Grow Holdings Limited | 1,942,074 |
Hua Hui became the Company's majority shareholder and beneficially owns approximately | 84.80% |
Company_sales_Details
Company sales (Details) (USD $) | Dec. 31, 2013 |
Company's sales Details | ' |
Company agreed to Changde Hua Hui a sales commission | 3.00% |
No of square meters were sold | 1,893 |
The total sales price is approximately | $707,935 |
Going_Concern_and_Management_P
Going Concern and Management Plan (Details) (USD $) | Mar. 31, 2014 |
Going Concern and Management plan details | ' |
Company had an accumulated deficit totaling | $11,471,428 |
Negative Working capital | $1,368,569 |
Going_Concern_Net_Loss_Details
Going Concern Net Loss (Details) (USD $) | 6 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Sep. 30, 2013 | |
Company Loss Details | ' | ' |
The Company suffered a loss of | $81,834 | $210,830 |
The_exchange_rates_used_to_tra
The exchange rates used to translate amounts in RMB and HK$ into U.S. Dollars parentheticals (Details) | Mar. 31, 2014 | Mar. 31, 2013 |
The exchange rates used to translate amounts in RMB and HK$ into U.S. Dollars | ' | ' |
Average Exchange rates used to translate amounts in RMB into U.S. Dollars for the purposes of preparing the consolidated financial statements | 6.1644 | 6.2689 |
Average Exchange rates used to translate amounts in HK$ into U.S. Dollars for the purposes of preparing the consolidated financial statements, | 7.7584 | 7.7624 |
The_exchange_rates_used_to_tra1
The exchange rates used to translate amounts in RMB and HK$ into U.S. Dollars -Six Months ended (Details) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
The exchange rates used to translate amounts in RMB and HK$ into U.S. Dollars | ' | ' |
The Exchange rates used to translate amounts in RMB into U.S. Dollars for the purposes of preparing the consolidated financial statements | 6.12442 | 6.29156 |
The Exchange rates used to translate amounts in HK$ into U.S. Dollars for the purposes of preparing the consolidated financial statements | 7.75643 | 7.75363 |
The_estimated_useful_lives_of_
The estimated useful lives of the assets (Details) | Mar. 31, 2014 |
The estimated useful lives of the assets | ' |
Computer software life in years | 3 |
Office equipment Minimum life in years | 2 |
Office equipment Maximum life in years | 5 |
Pension_and_Employee_Benefits_
Pension and Employee Benefits (Details) (USD $) | 6 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Pension and other Employee Benefits | ' | ' |
Cost of pension and employee benefits | $13,998 | $10,186 |
CONCENTRATION_OF_CREDIT_RISK_D
CONCENTRATION OF CREDIT RISK (DETAILS) | Mar. 31, 2014 | Mar. 31, 2013 |
CONCENTRATION OF CREDIT RISK {2} | ' | ' |
Percnetage of the Company's cash deposited with banks located in the PRC. | 99.00% | 99.00% |
Property_And_Equipment_Net_Cos
Property And Equipment Net Cost Less Accumulated Depreciation (Details) (USD $) | Mar. 31, 2014 | Sep. 30, 2013 |
Property And Equipment Net Cost Less Accumulated Depreciation | ' | ' |
Computer softwares | $0 | $1,741 |
Office equipments | 21,938 | 21,984 |
Sub Total | 21,938 | 23,725 |
Less: accumulated depreciation | -20,527 | -20,907 |
Total Property and equipments, net | $1,411 | $2,818 |
Property_And_Equipment_Net_Dep
Property And Equipment Net Depreciation And Amortization (Details) (USD $) | 6 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Property And Equipment Net Depreciation And Amortization | ' | ' |
Depreciation and amortization expense | $1,410 | $11,311 |
Other_Payables_Details
Other Payables (Details) (USD $) | Mar. 31, 2014 | Sep. 30, 2013 |
Others Payables | ' | ' |
Professional Fees | $4,000 | $20,000 |
Office Expenses | 13,133 | 13,161 |
Total Others Payables | $17,133 | $33,161 |
Related_Party_Transactions_Par
Related Party Transactions Parentheticals (Details) (USD $) | Mar. 31, 2014 | Sep. 30, 2013 |
Related Party Transactions Parentheticals | ' | ' |
Unsecured loan amount from Redrock Capital Venture Limited | $100,281 | $100,281 |
Received loans from Hua hui | $1,274,076 | $1,180,232 |
Related_Party_Transactions_Loa
Related Party Transactions Loan (Details) (USD $) | Mar. 31, 2014 | Sep. 30, 2013 |
Related Party Transactions Loans | ' | ' |
Redrock Capital Venture Limited (a) | $100,281 | $100,281 |
Beijing Hua Hui Hengye Investment Limited (b) | 1,274,076 | 1,180,232 |
Total Loans | $1,374,357 | $1,280,513 |
Related_Party_Transactions_for
Related Party Transactions for Six months (Details) (USD $) | 6 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Transaction details | ' | ' |
The loans that we received from Hua Hui in the six months | $63,859 | $90,926 |
Accured Interest on loan transactions | $29,985 | $25,642 |
Effective Interest rate of the loans | 5.59% | 5.56% |
Capital_Stock_Common_Stock_Det
Capital Stock - Common Stock (Details) | Nov. 16, 2009 | Sep. 08, 2009 |
Capital Stock - Common Stock | ' | ' |
Issue of shares by the Company of its common stock to Wise Gold Investment Ltd., a British Virgin Island company, acting on behalf of Hua Hui. | ' | 832,318 |
Issuance of Shares to Blossom Grow Holdings Ltd., Escrow agents | ' | 1,942,074 |
Ratio of Reverse Stock Split for 1 share | 20 | ' |
Shares_Issued_and_Outstanding_
Shares Issued and Outstanding (Details) | Mar. 31, 2014 | Mar. 31, 2013 |
Issued and Outstanding shares details | ' | ' |
Company had issued and outstanding shares | 3,272,311 | 3,272,311 |
Capital_Stock_Warrants_Options
Capital Stock Warrants Options (Details) (USD $) | Mar. 31, 2014 | Jun. 28, 2009 |
Capital Stock Warrants Options | ' | ' |
Common Stock warrants issued to Investors. | 0 | 0 |
Common Stock warrants issued relating to acquisition agreement. | 0 | 7,782 |
Common Stock Warrants Exercise Price. | $0 | $3 |
Common Stock Warrants Outstanding. | 7,782 | 0 |
2001_Stock_Plan_Details
2001 Stock Plan (Details) | Mar. 31, 2014 |
Stock plan details | ' |
The total number of shares of common stock available under the Plan may not exceed | 100 |
Rental_Expenses_Office_Lease_a
Rental Expenses - Office Lease agreement (Details) (USD $) | 12 Months Ended | 24 Months Ended |
Dec. 10, 2012 | Dec. 10, 2011 | |
Rental Expenses - Office Lease agreement | ' | ' |
Area of new space in Beijing for lease | 192.7 | 192.7 |
Monthly lease payment | $6,253 | $5,333 |
Rental_Expenses_Details
Rental Expenses (Details) (USD $) | 6 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Rental expenses | ' | ' |
Rental expenses. | $0 | $12,790 |
Income_Taxes_Hong_Kong_PRC_Det
Income Taxes Hong Kong PRC (Details) | Mar. 31, 2014 | Mar. 31, 2013 |
Income Taxes Hong Kong PRC | ' | ' |
Income tax rate on its taxable income derived from trade or businesses carried out in Hong Kong | 16.50% | 16.50% |
PRC Enterprise Income Tax ("EIT") prior to January 1, 2008. | 33.00% | 33.00% |
Unified Income Tax Rate for both domestic and foreign invested enterprises | 25.00% | 25.00% |
Withholding tax rate | 10.00% | 10.00% |
Statute of limitation period for underpayment of taxes due to computational errors by the tax payer or withholding agent | 3 | 3 |
Statute of limitation period for special circumstances | 5 | 5 |
In the case of transfer pricing issues the statute of limitations period in years | 10 | 10 |
Non_Monetary_Transaction_Subsc
Non Monetary Transaction Subscriptions (Details) | Aug. 01, 2009 |
Non Monetary Transaction Subscriptions | ' |
Area of Commercial incomes rights of 17 story apartment buildings | 10,000 |
Considerations by means of issuance of common stocks | 2,774,392 |
Non_Monetary_Transaction_Accou
Non Monetary Transaction Accounting (Details) (USD $) | Sep. 30, 2009 |
Non Monetary Transaction Accounting | ' |
Loss on disposal of assets | $1,345,688 |