NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For
the years ended March 31, 2019 and 2018
(Currency
expressed in United States Dollars (“US$”), except for number of shares)
1.
|
DESCRIPTION
OF BUSINESS AND ORGANIZATION
|
ECCO
Auto World Corporation is organized as a Nevada limited liability company, incorporated on June 6, 2016. For purposes of consolidated
financial statement presentation, ECCO Auto World Corporation and its subsidiary are herein referred to as “the Company”
or “we”. The Company is a business whose planned principal operations are to develop and operate an Automobile mobile
application or a platform to connect auto repair shops and car owners.
On
June 7, 2017, the Company acquired 100% interest in ECCO Auto World Corporation, a private limited liability company incorporated
in Labuan, resulting in the latter becoming a wholly-owned subsidiary company of the Company.
Details
of the Company’s subsidiary:
|
Company
name
|
|
Place
and date of incorporation
|
|
Particulars
of issued capital
|
|
Principal
activities
|
|
|
|
|
|
|
|
|
1.
|
ECCO
Auto World Corporation
|
|
Labuan,
March 1, 2017
|
|
100
shares of ordinary share of US$1 each
|
|
Investment
holding
|
2.
|
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES
|
Basis
of presentation
The
accompanying condensed consolidated financial statements are prepared in accordance with generally accepted accounting principles
in the United States of America (“US GAAP”).
On
June 30, 2018, the Company’s Board of Directors had approved a change in fiscal year end from February 28
th
to March 31
st
. Following such change, the date of the Company’s next fiscal year end is March 31
st
,
2019.
Basis
of consolidation
The
condensed consolidated financial statements include the accounts of the Company and its subsidiary. All inter-company accounts
and transactions have been eliminated upon consolidation.
Use
of estimates
Management
uses estimates and assumptions in preparing these consolidated financial statements in accordance with US GAAP. Those estimates
and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities in
the balance sheet, and the reported revenue and expenses during the periods reported. Actual results may differ from these estimates.
Revenue
recognition
In
accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”)
Topic 605, “
Revenue Recognition
”, the Company recognizes revenue from sales of goods when the following four
revenue criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) selling price is fixed
or determinable; and (4) collectability is reasonable assured.
Revenue
is measured at the fair value of the consideration received or receivable, net of discounts and taxes applicable to the revenue.
ECCO
AUTO WORLD CORPORATION
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For
the years ended March 31, 2019 and 2018
(Currency
expressed in United States Dollars (“US$”), except for number of shares)
The
Company derives its revenue from provision of car maintenance and servicing scheduling and system optimization advisory services.
The services are billed on a fixed-fee basis.
Cost
of revenue
Cost
of revenue includes the cost of consultation services of Automobile mobile application and related services.
Cash
and cash equivalents
The
Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents.
Property
and equipment
Property
and equipment is stated at cost less accumulated depreciation and impairment. Depreciation of plant and equipment are calculated
on the straight-line method over their estimated useful lives as follows:
Classification
|
|
Estimated
useful lives
|
Computer
and peripherals
|
|
5
years
|
Expenditures
for maintenance and repairs are expenses as incurred.
Income
taxes
Income
taxes are determined in accordance with the provisions of ASC Topic 740, “
Income Taxes
” (“ASC Topic 740”).
Under this method, deferred 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 basis. Deferred tax
assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the periods in which
those temporary differences are expected to be recovered or settled. Any effect on deferred tax assets and liabilities of a change
in tax rates is recognized in income in the period that includes the enactment date.
ASC
740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements
uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized
in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities.
Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50%
likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant
facts.
The
Company conducts major businesses in Malaysia and Hong Kong, and is expanding to China and Thailand. The Company is subject to
tax in these jurisdiction. As a result of its business activities, the Company will file tax returns that are subject to examination
by the foreign tax authority.
Net
income/(loss) per share
The
Company calculates net income/(loss) per share in accordance with ASC Topic 260,
“Earnings per Share.”
Basic
income/(loss) per share is computed by dividing the net income/(loss) by the weighted-average number of common shares outstanding
during the period. Diluted income per share is computed similar to basic income/(loss) per share except that the denominator is
increased to include the number of additional common shares that would have been outstanding if the potential common stock equivalents
had been issued and if the additional common shares were dilutive.
ECCO
AUTO WORLD CORPORATION
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For
the years ended March 31, 2019 and 2018
(Currency
expressed in United States Dollars (“US$”), except for number of shares)
Foreign
currencies translation
Transactions
denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates
prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional
currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting
exchange differences are recorded in the Condensed Consolidated Statements of Operations and Comprehensive Income
The
reporting currency of the Company is United States Dollars (“US$”) and the accompanying financial statements have
been expressed in US$. In addition, the Company’s subsidiary in Malaysia maintains their books and record in their local
currency, Ringgits Malaysia (“RM”) which is functional currency as being the primary currency of the economic environment
in which the entity operates.
In
general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated
into US$, in accordance with ASC Topic 830-30, “
Translation of Financial Statement”
, using the exchange rate
on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses
resulting from translation of financial statements of foreign subsidiary are recorded as a separate component of accumulated other
comprehensive income within the statements of stockholders’ equity.
Translation
of amounts from RM into US$1 has been made at the following exchange rates for the respective periods:
|
|
As of and for the year ended March
31
|
|
|
|
2019
|
|
|
2018
|
|
|
|
|
|
|
|
|
Year-end RM : US$1 exchange rate
|
|
|
4.08
|
|
|
|
3.92
|
|
Year-average RM : US$1 exchange rate
|
|
|
4.07
|
|
|
|
4.22
|
|
Source
of currency rate: https://www.x-rates.com/
Fair
value of financial instruments
The
carrying value of the Company’s financial instruments: cash and cash equivalents, and accounts payable and approximate their
fair values because of the short-term nature of these financial instruments.
The
Company also follows the guidance of the ASC Topic 820-10, “
Fair Value Measurements and Disclosures
” (“ASC
820-10”), with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a three-tier
fair value hierarchy that prioritizes the inputs used in measuring fair value as follows:
|
Level
1
: Observable inputs such as quoted prices in active markets;
|
|
|
|
Level
2
: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and
|
|
|
|
Level
3
: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own
assumptions.
|
Recent
accounting pronouncements
The
Company has reviewed all recently issued, but not yet effective, accounting pronouncements and do not believe the future adoption
of such any pronouncements may be expected to cause a material impact on its financial condition or the results of its operations,
as follow:
In
May 2014, the FASB issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers” (“ASU
2014-09”). ASU 2014-09 supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605)”,
and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects
the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective
for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early
adoption is not permitted. In August 2015, the FASB issued an Accounting Standards Update to defer by one year the effective dates
of its new revenue recognition standard until annual reporting periods beginning after December 15, 2017 (2018 for calendar-year
public entities) and interim periods therein. Management is currently assessing the impact of the adoption of ASU 2014-09 and
has not determined the effect of the standard on our ongoing financial reporting.
In
February 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”)
No. 2016-02, Leases (Topic 842). Under the new guidance, lessees will be required recognize the following for all leases (with
the exception of short-term leases) at the commencement date: 1) A lease liability, which is a lessee’s obligation to make
lease payments arising from a lease, measured on a discounted basis; and 2) A right-of-use asset, which is an asset that represents
the lessee’s right to use, or control the use of, a specified asset for the lease term. The new lease guidance simplified
the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities.
Lessees will no longer be provided with a source of off-balance sheet financing. The amendments in this ASU are effective for
fiscal years beginning after December 15, 2019, including interim periods within those years. The Company is evaluating this ASU
and has not determined the effect of this standard on its ongoing financial reporting.
In
September 2017, the FASB has issued ASU No. 2017-13,
Revenue Recognition
(Topic 605),
Revenue from Contracts
with Customers
(Topic 606),
Leases
(Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs
Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer
Comments.” The amendments in ASU No. 2017-13 amends the early adoption date option for certain companies related to the
adoption of ASU No. 2014-09 and ASU No. 2016-02. Both of the below entities may still adopt using the public company adoption
guidance in the related ASUs, as amended. The effective date is the same as the effective date and transition requirements for
the amendments for ASU 2014-09 and ASU 2016-02.
In
January 2017, the FASB issued ASU No. 2017-01 , “Business Combinations (Topic 805): Clarifying the Definition of a Business”,
which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether
transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This amendment was effective for
fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The adoption of ASU No. 2017-01
did not have a material impact on the Company’s financial position, results of operations and liquidity.
In
September 2017, the FASB has issued ASU No. 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic
606), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July
20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments.” The amendments in ASU No.
2017-13 amends the early adoption date option for certain companies related to the adoption of ASU No. 2014-09 and ASU No. 2016-02.
Both of the below entities may still adopt using the public company adoption guidance in the related ASUs, as amended. The effective
date is the same as the effective date and transition requirements for the amendments for ASU 2014-09 and ASU 2016-02.
In
February 2018, the FASB has issued ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220), which allows
a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the
Tax Cuts and Jobs Act. Consequently, the amendments eliminate the stranded tax effects resulting from the Tax Cuts and Jobs Act
and will improve the usefulness of information in financial statement. The amendments in this ASU are effective for fiscal years
beginning after December 15, 2018, and interim periods within those fiscal years. The Company has analyzed the consequences of
such adoption and has not determined the effect of this standard on its ongoing financial reporting.
In
August 2018, the FASB has issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure
Requirements of Fair Value Measurement. This amendment modifies the disclosure requirements on fair value measurements in Topic
820, Fair Value Measurement, based on the concepts in the Concepts Statement, including the consideration of costs and benefits,
with the primary purpose to improve the effectiveness of disclosures in the notes to financial statements by facilitating clear
communication of the information required by US GAAP. The amendments in this update are effective for all entities for fiscal
years, and interim periods within those fiscal years, beginning after December 15, 2019.
The
Company has reviewed all recently issued, but not yet effective, accounting pronouncements and do not believe the future adoption
of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.
Off-Balance Sheet Arrangements
As of March 31, 2019, we have no significant off-balance sheet arrangements that
have or are reasonably likely to have a current or future effect on our financial condition, changes in our financial condition,
revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to our stockholders.
ECCO
AUTO WORLD CORPORATION
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For
the years ended March 31, 2019 and 2018
(Currency
expressed in United States Dollars (“US$”), except for number of shares)
3.
|
PROPERTY
AND EQUIPMENT
|
|
|
As of
|
|
|
As of
|
|
|
|
March 31, 2019
|
|
|
March 31, 2018
|
|
|
|
|
|
|
|
|
Computer and peripherals
|
|
|
3,656
|
|
|
|
3,656
|
|
Accumulated depreciation
|
|
|
(975
|
)
|
|
|
(244
|
)
|
Property and equipment, net
|
|
|
2,681
|
|
|
|
3,412
|
|
Depreciation
expense for the year ended March 31, 2019 and March 31, 2018 were $731 and $
244
,
respectively.
On
June 6, 2016, the founder of the Company, Ms. Woo Shuk Fong purchased 100,000 shares of restricted common stock of the Company
at a par value of $0.0001 per share for the Company’s initial working capital.
On
September 22, 2016, the other founder of the Company, Mr. Yiap Soon Keong purchased 24,000,000 shares of restricted common stock
of the Company at a par value of $0.0001 per share for the Company’s initial working capital. Greenpro Venture Capital Limited
and Greenpro Asia Strategic SPC purchased 4,000,000 and 52,000,000 shares of restricted common stock of the company respectively
at par value of $0.0001 per share for the Company’s initial working capital.
On
September 25, 2016, Ms. Woo Shuk Fong purchased 20,000 shares of restricted common stock of the Company, at $0.1 per share, for
$2,000.
On
December 28, 2016, Ms. Wong Yuen Ling purchased 100,000 shares of restricted common stock of the Company, at $0.1 per share, for
$10,000.
On
January 19, 2017, Mr. Yiap Soon Keong purchased 10,000,000 shares of restricted common stock of the Company, at par value of $0.0001
per share, for $1,000.
On
November 20, 2017, the Company resolved to close the offering (“the Offering”) from the registration statement on
Form S-1/A, dated September 6, 2017, that had been declared effective by the Securities and Exchange Commission on September 14,
2017. The Offering resulted in 1,669,644 shares of common stock being sold at $0.15 per share for a total of $250,447.
On January 24, 2018, Home Boutique International Limited subscribed 666,666 shares
of common stock of the Company at $0.30 per share,
for $199,999.
ECCO
AUTO WORLD CORPORATION
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For
the years ended March 31, 2019 and 2018
(Currency
expressed in United States Dollars (“US$”), except for number of shares)
As
of March 31, 2018, the Company has 92,556,310 shares issued and outstanding. There are no shares of preferred stock issued and
outstanding as of March 31, 2018.
On
August 24, 2018, Home Boutique International Limited subscribed 333,333 shares of common stock of the Company at $0.30 per share,
for $100,000.
On
September 26, 2018, Home Boutique International Limited further subscribed 200,000 shares of common stock of the Company at $0.30
per share, for
$60,000
All
proceeds received are used for the Company’s working capital.
As
of March 31, 2019 the Company has 93,089,643 shares issued and outstanding respectively. There are no shares of preferred stock
issued and outstanding.
5.
|
OTHER
PAYABLES AND ACCRUED LIABILITIES
|
|
|
As of
|
|
|
As of
|
|
|
|
March 31, 2019
|
|
|
March 31, 2018
|
|
|
|
|
|
|
|
|
Accrued audit fee
|
|
|
14,000
|
|
|
|
14,500
|
|
Accrued professional fee
|
|
|
80
|
|
|
|
5,000
|
|
Accrued review fee
|
|
|
1,500
|
|
|
|
-
|
|
Accrued Software Development Cost
|
|
|
-
|
|
|
|
25,000
|
|
Total other payable and accrued liabilities
|
|
|
15,580
|
|
|
|
44,500
|
|
|
6.
|
DUE
TO RELATED PARTIES
|
The
amounts due to related parties are unsecured, interest-free with no fixed repayment term, for working capital purpose.
For
the year ended March 31, 2019, the local (United States) and foreign components of income/(loss) before income taxes were
comprised of the following:
|
|
For the year ended
|
|
|
For the year ended
|
|
|
|
March 31, 2019
|
|
|
March 31, 2018
|
|
|
|
|
|
|
|
|
Tax jurisdictions from:
|
|
|
|
|
|
|
|
|
-Local
|
|
$
|
(130,107
|
)
|
|
$
|
(407,287
|
)
|
-Foreign, representing
|
|
|
|
|
|
|
|
|
- Labuan
|
|
|
(5,463
|
)
|
|
|
1,062
|
|
Loss before income tax
|
|
$
|
(135,570
|
)
|
|
$
|
(406,225
|
)
|
ECCO
AUTO WORLD CORPORATION
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For
the years ended March 31, 2019 and 2018
(Currency
expressed in United States Dollars (“US$”), except for number of shares)
The
provision for income taxes consisted of the following:
|
|
|
For the year ended
|
|
|
|
For
the year ended
|
|
|
|
|
March
31, 2019
|
|
|
|
March
31, 2018
|
|
Current:
|
|
|
|
|
|
|
|
|
-Local
|
|
|
-
|
|
|
$
|
-
|
|
-Foreign
|
|
|
-
|
|
|
|
-
|
|
Deferred:
|
|
|
|
|
|
|
|
|
-Local
|
|
|
-
|
|
|
|
-
|
|
-Foreign
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
-
|
|
|
$
|
-
|
|
The
effective tax rate in the periods presented is the result of the mix of income earned in various tax jurisdictions that apply
a broad range of income tax rates. The Company has subsidiaries that operate in various countries: United States and Malaysia
that are subject to taxes in the jurisdictions in which they operate, as follows:
United
States of America
The
Tax Cuts and Jobs Act was enacted in the United States on December 22, 2017. The Act reduces the US federal corporate tax rate
from 35% to 21%, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously
tax deferred, and creates new taxes on certain foreign sourced earnings. In December 2017, the SEC issued SAB 118, which directs
taxpayers to consider the impact of the U.S. legislation as “provisional” when it does not have the necessary information
available, prepared or analyzed (including computations) in reasonable detail to complete its accounting for the change in tax
law.
As
of January 31, 2019, the Company does not recognize any provisional amount for the transition tax.
We
re-measured certain deferred tax assets and liabilities based on the rates at which they are anticipated to reverse in the future,
which is generally 21%. However, we are still examining certain aspects of the Act and refining our calculations, the Company
is registered in the State of Nevada and is subject to the tax laws of the United States of America. As of March 31, 2019, the
operations in the United States of America incurred $537,394 of cumulative net operating losses which can be carried forward to
offset future taxable income. The net operating loss carryforwards begin to expire in 2038, if unutilized. The Company has provided
for a full valuation allowance of $112,852 against the deferred tax assets on the expected future tax benefits from the net operating
loss carryforwards as the management believes it is more likely than not that these assets will not be realized in the future.
Labuan
Under
the current laws of the Labuan, ECCO Auto World Corporation is governed under the Labuan Business Activity Act, 1990. The tax
charge for such company is based on 3% of net audited profit.
9.
|
CONCENTRATIONS
OF RISK
|
The
Company is exposed to the following concentrations of risk:
For
the year ended March 31, 2019 and 2018, the customers who accounted for 10% or more of the Company’s sales and its
outstanding receivable balance at year-end are presented as follows:
|
|
For the year ended March
31
|
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
|
Revenue
|
|
|
Percentage of Revenue
|
|
|
Accounts Receivable, Trade
|
|
Customer A
|
|
$
|
-
|
|
|
$
|
4,500
|
|
|
|
-
|
|
|
|
100
|
%
|
|
$
|
-
|
|
|
$
|
-
|
|
Customer B
|
|
$
|
10,000
|
|
|
$
|
-
|
|
|
|
100
|
%
|
|
|
-
|
|
|
$
|
10,000
|
|
|
$
|
-
|
|
|
|
$
|
10,000
|
|
|
$
|
4,500
|
|
|
|
100
|
%
|
|
|
100
|
%
|
|
$
|
10,000
|
|
|
$
|
-
|
|
ECCO
AUTO WORLD CORPORATION
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For
the years ended March 31, 2019 and 2018
(Currency
expressed in United States Dollars (“US$”), except for number of shares)
9.
|
CONCENTRATIONS
OF RISK
|
For
the year ended March 31, 2019 and 2018, the vendors who accounted for 10% or more of the Company’s purchases and its
outstanding payable balance at year-end are presented as follows:
|
|
For the year ended March 31
|
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
|
Cost of Revenue
|
|
|
Percentage of Cost of Revenues
|
|
|
Accounts Payable, Trade
|
|
Vendor A
|
|
$
|
-
|
|
|
$
|
4,000
|
|
|
|
-
|
|
|
|
100
|
%
|
|
$
|
-
|
|
|
$
|
4,000
|
|
|
|
$
|
-
|
|
|
$
|
4,000
|
|
|
|
-
|
|
|
|
100
|
%
|
|
$
|
-
|
|
|
$
|
4,000
|
|
The
Company cannot guarantee that the current exchange rate will remain stable, therefore there is a possibility that the Company
could post the same amount of income for two comparable periods and because of the fluctuating exchange rate actually post higher
or lower income depending on exchange rate of RM converted into US$ on that date. The exchange rate could fluctuate depending
on changes in political and economic environments without notice.
10.
|
COMMITMENTS
AND CONTINGENCIES
|
As
of March 31, 2019, the Company has no commitments or contingencies involved.
11.
|
RELATED
PARTY TRANSACTIONS
|
|
|
For
the year ended
March
31, 2019
|
|
|
For
the year ended
March
31, 2018
|
|
|
|
|
|
|
|
|
Asia UBS Global Limited (1)
|
|
|
|
|
|
|
|
|
- Accounting Fee
|
|
$
|
-
|
|
|
$
|
2,800
|
|
- Company Renewal Fee
|
|
|
4,542
|
|
|
|
2,442
|
|
|
|
|
|
|
|
|
|
|
GreenPro Financial Consulting Limited (2)
|
|
|
|
|
|
|
|
|
- Professional Fee
|
|
|
18,800
|
|
|
|
27,600
|
|
|
|
|
|
|
|
|
|
|
Imocha Sdn Bhd (3)
|
|
|
|
|
|
|
|
|
- Cost of Revenue
|
|
|
-
|
|
|
|
4,000
|
|
- Software development fee
|
|
|
100,000
|
|
|
|
325,000
|
|
|
|
|
|
|
|
|
-
|
|
|
|
$
|
123,342
|
|
|
$
|
361,842
|
|
(1)
Asia UBS Global Limited is a subsidiary of Greenpro Capital Corp. through its subsidiary Greenpro Venture Capital Limited owns
approximately 4.30% of the Company issued and outstanding shares as of March 31, 2019. For the year ended March 31, 2019, the
Company has incurred company renewal fees of $4,542. For the year ended March 31, 2018, the Company has incurred accounting fee
and company renewal fees of $2,800 and $2,442 respectively.
(2)
Greenpro Financial Consulting Limited is a subsidiary of Greenpro Capital Corp., through its subsidiary Greenpro Venture Capital
Limited owns approximately 4.30% of the Company issued and outstanding shares as of March 31, 2019. For the year ended March 31,
2019 and 2018, the Company has incurred professional fees of $18,800 and $27,600 respectively.
(3)
For the year ended March 31, 2019 and 2018, the Company has enter into and settle transaction with Imocha Sdn Bhd amounted to
$100,000 and $325,000 regarding the software development cost. For year ended March 31, 2018, the Company generated a revenue
of $4,500 in which the cost of revenue amounted to $4,000 related to services provided by Imocha Sdn Bhd. There is no cost of
revenue for the year ended March 31, 2019.
In
accordance with ASC Topic 855, “
Subsequent Events
”, which establishes general standards of accounting for and
disclosure of events that occur after the balance sheet date but before financial statements are issued, the Company has evaluated
all events or transactions that occurred after March 31, 2019 up through the date the Company presented these audited financial
statements.