The accompanying financial statements have
been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the financial statements,
for the year ended March 31, 2020 the Company incurred a net loss and having net current liabilities and shareholders’ deficit.
These conditions raise substantial doubt about the Company’s ability to continue as a going concern. Management’s
plans in regard to these matters are also described in Note 2. The financial statements do not include any adjustments that might
result from the outcome of this uncertainty.
NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS
For
the years ended March 31, 2020 and 2019
(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.
On February 17, 2020, Ecco Auto World
Corp (the “ECCO”) and Mr Joson Yeo Hung Kwang Mr Chai Kok Leong and Mr Loke Che Chan, Gilbert, each representing
49.5%, 49.5% and 1% shareholding of Free Share X- Change Limited, an Anguilla corporation, (“FSX”) entered into a
Sale and Purchase Agreement (the “FSX Purchase Agreement”), pursuant to which ECCO acquired 100% of the issued
and outstanding shares of FSX (the “Acquisition”). As consideration thereof, ECCO agreed to paid cash
consideration of US$15 to the sharaeholders
FSX wholly owned a subsidiary Vtrade Technology
Sdn Bhd, (the “Vtrade”) in Malaysia, is a private Limited company incorporated in July 12th, 2018
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.
|
Free Share X-change Limited
|
|
Anguilla,
December 17, 2013
|
|
101 shares of ordinary shares of US$15 in total
|
|
Providing system and software development, Information
technology (IT) consultancy and managed services.
|
|
|
|
|
|
|
|
|
3.
|
Vtrade Technology Sdn Bhd
|
|
Malaysia,
July 12, 2018
|
|
2 shares of ordinary shares of US$0.48 in total
|
|
Providing system and software development, Information technology
(IT) consultancy and managed services.
|
2.
|
GOING CONCERN UNCERTAINTIES
|
The accompanying financial statements have
been prepared using the going concern basis of accounting, which contemplates the realization of assets and the satisfaction of
liabilities in the normal course of business.
As of March 31, 2020, the Company suffered
an accumulated deficit of $793,612 and continuously incurred a net operating loss of $35,693 for year ended March 31, 2020. The
company also has a net current liabilities of $180,207 for year ended March 31, 2020. The continuation of the Company as a going
concern through March 31, 2020 is dependent upon improving the profitability and the continuing financial support from its stockholders.
Management believes the existing shareholders or external financing will provide the additional cash to meet the Company’s
obligations as they become due.
These and other factors raise substantial
doubt about the Company’s ability to continue as a going concern. These financial statements do not include any adjustments
to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of
liabilities that may result in the Company not being able to continue as a going concern.
3.
|
SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
|
Basis
of presentation
The accompanying consolidated financial statements
are prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”).
Basis
of consolidation
The 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.
The
Company derives its revenue from provision of servicing scheduling, system optimization advisory services, also providing Finance
IT solution, system and software development, Information technology (IT) consultancy and managed services. The services are
billed on a fixed-fee basis.
ECCO
AUTO WORLD CORPORATION
NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS
For
the years ended March 31, 2020 and 2019
(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 and system and software development,
Information technology (IT) consultancy and managed services. The services are billed on a fixed-fee basis.
Cost
of revenue
Cost of revenue includes the cost of consultation
services in providing system and software development, Information technology (IT) consultancy and managed 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.
Plant and
equipment
Plant 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, 2020 and 2019
(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
|
|
|
|
2020
|
|
|
2019
|
|
|
|
|
|
|
|
|
Year-end RM : US$1 exchange rate
|
|
|
4.31
|
|
|
|
4.08
|
|
Year-average RM : US$1 exchange rate
|
|
|
4.16
|
|
|
|
4.07
|
|
Source
of currency rate: https://www.x-rates.com/
Fair
value of financial instruments
The
carrying value of the Company’s financial instruments: cash and cash equivalents, and accounts payable and approximate their
fair values because of the short-term nature of these financial instruments.
The
Company also follows the guidance of the ASC Topic 820-10, “Fair Value Measurements and Disclosures” (“ASC
820-10”), with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a three-tier
fair value hierarchy that prioritizes the inputs used in measuring fair value as follows:
|
Level
1: Observable inputs such as quoted prices in active markets;
|
|
|
|
Level
2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and
|
|
|
|
Level
3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own
assumptions.
|
Recent
accounting pronouncements
The
Company has reviewed all recently issued, but not yet effective, accounting pronouncements and do not believe the future adoption
of such any pronouncements may be expected to cause a material impact on its financial condition or the results of its operations,
as follow:
Off-Balance
Sheet Arrangements
As
of March 31, 2020, we have no significant off-balance sheet arrangements that have or are reasonably likely to have a current
or future effect on our financial condition, changes in our financial condition, revenues or expenses, results of operations,
liquidity, capital expenditures or capital resources that are material to our stockholders.
ECCO
AUTO WORLD CORPORATION
NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS
For
the years ended March 31, 2020 and 2019
(Currency
expressed in United States Dollars (“US$”), except for number of shares)
4.
|
PROPERTY
AND EQUIPMENT
|
|
|
As of
|
|
|
As of
|
|
|
|
March 31, 2020
|
|
|
March 31, 2019
|
|
|
|
|
|
|
(Restated)
|
|
|
|
|
|
|
|
|
Computer and peripherals
|
|
|
51,266
|
|
|
|
51,266
|
|
Accumulated depreciation
|
|
|
(16,796
|
)
|
|
|
(6,467
|
)
|
Effect of translation
|
|
|
(1,921
|
)
|
|
|
-
|
|
Property and equipment, net
|
|
|
32,549
|
|
|
|
44,799
|
|
Depreciation
expense for the year ended March 31, 2020 and March 31, 2019 were $10,329 and $6,232, 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 $199,999.
ECCO
AUTO WORLD CORPORATION
NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS
For
the years ended March 31, 2020 and 2019
(Currency
expressed in United States Dollars (“US$”), 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, 2020, the Company has
93,089,643 shares issued and outstanding. There are no shares of preferred stock issued and outstanding.
6.
|
OTHER
PAYABLES AND ACCRUED LIABILITIES
|
|
|
As of
|
|
|
As of
|
|
|
|
March 31, 2020
|
|
|
March 31, 2019
|
|
|
|
|
|
|
(Restated)
|
|
|
|
|
|
|
|
|
Accrued audit fee
|
|
|
28,991
|
|
|
|
14,000
|
|
Accrued professional fee
|
|
|
-
|
|
|
|
80
|
|
Accrued review fee
|
|
|
3,800
|
|
|
|
1,500
|
|
Accrued others
|
|
|
-
|
|
|
|
39,833
|
|
Other payable
|
|
|
148,893
|
|
|
|
111,375
|
|
Total other payable and accrued liabilities
|
|
|
181,684
|
|
|
|
166,788
|
|
As of March 31, 2020, the other payable is
made up of loan from non-trade third party amounted to US$148,893.
7.
|
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, 2020, 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, 2020
|
|
|
March 31, 2019
|
|
|
|
|
|
|
(Restated)
|
|
|
|
|
|
|
|
|
Tax jurisdictions from:
|
|
|
|
|
|
|
|
|
-Local
|
|
$
|
(81,440
|
)
|
|
$
|
(130,107
|
)
|
-Foreign, representing
|
|
|
|
|
|
|
|
|
- Labuan
|
|
|
(2,889
|
)
|
|
|
(5,463
|
)
|
-Malaysia
|
|
|
41,701
|
|
|
|
(335,347
|
)
|
-Anguilla
|
|
|
6,935
|
|
|
|
145,814
|
|
Loss before income tax
|
|
$
|
(35,693
|
)
|
|
$
|
(325,103
|
)
|
ECCO
AUTO WORLD CORPORATION
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For
the years ended March 31, 2020 and 2019
(Currency
expressed in United States Dollars (“US$”), except for number of shares)
The
provision for income taxes consisted of the following:
|
|
|
As of
|
|
|
|
As of
|
|
|
|
|
March 31, 2020
|
|
|
|
March 31, 2019
|
|
|
|
|
|
|
|
|
(Restated)
|
|
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, 2020,
the operations in the United States of America incurred $647,523 of cumulative net operating losses which can be carried
forward to offset future taxable income. The net operating loss carryforwards begin to expire in 2040, if unutilized. The
Company has provided for a full valuation allowance of $135,980 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.
Malaysia
Vtrade Technology
Sdn Bhd is subject to Malaysia Corporate Tax, which
is charged at the statutory income tax rate range from 17% to 24% on its assessable income. As of March 31, 2020, the operations
in the Malaysia incurred $293,645 of cumulative net operating losses which can be carried forward to offset future taxable income,
at the tax rate of 17%. The Company has provided for a full valuation allowance of $49,920 against the deferred
tax assets on the expected future tax benefits from the net operating loss carry forwards as the management believes it is more
likely than not that these assets will not be realized in the future.
Anguilla
Under
the current laws of the Anguilla Free Share Xchange Limited is registered as an international business company which governs by
the International Business Companies Act of Anguilla and there is no income tax charged in Anguilla.
9.
|
CONCENTRATIONS
OF RISK
|
The
Company is exposed to the following concentrations of risk:
For
the year ended March 31, 2020 and 2019, 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
|
|
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
|
|
Revenue
|
|
|
Percentage of Revenue
|
|
|
Accounts Receivable, Trade
|
|
Customer A
|
|
$
|
91,751
|
|
|
$
|
-
|
|
|
|
95
|
%
|
|
|
-
|
%
|
|
$
|
-
|
|
|
$
|
-
|
|
Customer B
|
|
$
|
-
|
|
|
$
|
10,000
|
|
|
|
-
|
|
|
|
100
|
%
|
|
$
|
-
|
|
|
$
|
10,000
|
|
|
|
$
|
91,751
|
|
|
$
|
10,000
|
|
|
|
95
|
%
|
|
|
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)
10.
|
CONCENTRATIONS
OF RISK
|
For
the year ended March 31, 2020 and 2019, 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
|
|
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
|
|
Cost of Revenue
|
|
|
Percentage of Cost of Revenues
|
|
|
Accounts Payable, Trade
|
|
Vendor A
|
|
$
|
1,861
|
|
|
$
|
-
|
|
|
|
100
|
%
|
|
|
-
|
%
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
$
|
1,861
|
|
|
$
|
-
|
|
|
|
100
|
%
|
|
|
-
|
%
|
|
$
|
-
|
|
|
$
|
-
|
|
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.
11.
|
COMMITMENTS
AND CONTINGENCIES
|
As
of March 31, 2020, the Company has no commitments or contingencies involved.
12.
|
RELATED
PARTY TRANSACTIONS
|
|
|
For the year ended
March 31, 2020
|
|
|
For the year ended
March 31, 2019
|
|
|
|
|
|
|
(Restated)
|
|
|
|
|
|
|
|
|
Asia UBS Global Limited (1)
|
|
|
|
|
|
|
|
|
- Professional Fee
|
|
$
|
10,100
|
|
|
$
|
-
|
|
- Company Renewal Fee
|
|
|
4,767
|
|
|
|
4,542
|
|
|
|
|
|
|
|
|
|
|
GreenPro Financial Consulting Limited (2)
|
|
|
|
|
|
|
|
|
- Professional Fee
|
|
|
-
|
|
|
|
18,800
|
|
|
|
|
|
|
|
|
|
|
Imocha Sdn Bhd (3)
|
|
|
|
|
|
|
|
|
- Cost of Revenue
|
|
|
-
|
|
|
|
-
|
|
- Software development fee
|
|
|
-
|
|
|
|
100,000
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
14,867
|
|
|
$
|
123,342
|
|
(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, 2020. For the year ended March 31, 2020, the
Company has incurred professional fee of $14,867 and company renewal fees
of $4,767. For the year ended March 31, 2019, the Company has incurred company renewal fees of $4,542 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, 2020. For the year ended March 31
2019, the Company has incurred professional fees $18,800.
(3)
For the year ended March 31, 2019, the Company has enter into and settle transaction with Imocha Sdn Bhd amounted to $100,000
regarding the software development cost.
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, 2020 up through the date the Company presented these audited financial
statements. On March 16, 2020, the Malaysian government has imposed Movement Control Oder (MCO) for the period from March
18, 2020 to March 31, 2020 due to the COVID 19 outbreak. The MCO was later extended for additional two weeks to April 14, 2020,
and subsequently to April 28, 2020 and May 12, 2020. Under the MCO, only businesses categorized under essential services (e.g.
water, electricity, energy, telecommunications, postal, transportation, banking, health, pharmacy and food supply etc.) are allowed
to operate with limited business hours. All other non-essential businesses are required to halt physical operations and public
are only allowed to leave home for certain reasons, such as seeking medical assistance and buying groceries
Ecco Auto World Corp. (‘The Company’)
is unable to file its Form 10-K for the year ended March 31, 2020 (the “Report”) on time due to circumstances related
to the COVID-19 global outbreak. The main operation of the company is carried out in Kuala Lumpur, Malaysia. On March 16, 2020,
the Malaysian government has imposed Movement Control Oder (MCO) for the period from March 18, 2020 to March 31, 2020. The MCO
was later extended for additional two weeks to April 14, 2020, and subsequently to April 28, 2020 and May 12, 2020. Under the
MCO, only businesses categorized under essential services (e.g. water, electricity, energy, telecommunications, postal, transportation,
banking, health, pharmacy and food supply etc.) are allowed to operate with limited business hours. All other non-essential businesses
are required to halt physical operations and public are only allowed to leave home for certain reasons, such as seeking medical
assistance and buying groceries
The essential accounting documents and
information are stored in the Company’s office in Kuala Lumpur and the industry which the company operates in is not deemed
as essential services by the Malaysian government. As such, the accounting staffs of the Company have limited access to the document
and information necessary, which have affected our operations along with our accountants, auditors, consultants and professional
advisors in their efforts to timely file the Report. In reliance of the SEC Order, we will endeavor to file the Report no later
than August 13, 2020, which is within 45 days from the original due date.
Ecco Auto World Corp has restated its financial
statement for the year ended 31 March 2020 due to an accounting treatment error where a non-trade intercompany transaction amounted
to $12,364 was not eliminated in the 10K previously.