Document and Entity Information
Document and Entity Information | 9 Months Ended |
Dec. 31, 2018shares | |
Document And Entity Information | |
Entity Registrant Name | Organic Agricultural Co Ltd |
Entity Central Index Key | 1,749,849 |
Document Type | 10-Q |
Document Period End Date | Dec. 31, 2018 |
Amendment Flag | false |
Current Fiscal Year End Date | --03-31 |
Entity's Reporting Status Current | Yes |
Entity Emerging Growth Company | true |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | true |
Entity Ex Transition Period | false |
Entity Common Stock, Shares Outstanding | 11,167,736 |
Document Fiscal Period Focus | Q3 |
Document Fiscal Year Focus | 2,019 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Dec. 31, 2018 | Mar. 31, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 23,464 | $ 458,690 |
Inventories | 1,163,380 | 821,211 |
Other receivables | 42,241 | 3,184 |
Prepayments and deferred expenses | 99,703 | 526,100 |
Total current assets | 1,328,788 | 1,809,185 |
Long-term leasehold prepayments | 266,662 | |
Property plant and equipment, net | 8,432 | |
Total assets | 1,603,882 | 1,809,185 |
Current Liabilities: | ||
Accounts payable and accrued expenses | 19,824 | 72,951 |
Customer deposits | 219,338 | 31,844 |
Due to related parties | 240,018 | 571,650 |
Advances for shares to be issued | 425,749 | |
Other payable | 116 | |
Total current liabilities | 479,296 | 1,102,194 |
Total liabilities | 479,296 | 1,102,194 |
Shareholders' equity | ||
Common stock; $0.001 par value, 74,000,000 shares authorized; 11,162,736 and 10,000,000 shares issued and outstanding at December 31, 2018 and March 31, 2018, respectively | 11,163 | 10,000 |
Additional paid-in capital | 2,350,056 | 1,066,983 |
Deficit | (1,214,561) | (374,238) |
Other comprehensive (loss) income | (322) | 37,072 |
Total shareholders' equity of the Company | 1,146,336 | 739,817 |
Non-controlling interest | (21,750) | (32,826) |
Total shareholders' equity | 1,124,586 | 706,991 |
Total liabilities and shareholders' equity | $ 1,603,882 | $ 1,809,185 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Dec. 31, 2018 | Mar. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized | 74,000,000 | 74,000,000 |
Common stock, issued | 11,162,736 | 10,000,000 |
Common stock, outstanding | 11,162,736 | 10,000,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | ||||
Revenue | $ 211,130 | $ 373,936 | $ 214,815 | $ 373,936 |
Cost of Sales | 135,932 | 222,193 | 138,010 | 222,193 |
Gross Profit | 75,198 | 151,743 | 76,805 | 151,743 |
Operating costs and expenses: | ||||
Salaries and benefits | 40,222 | 298 | 498,760 | 298 |
Office supplies | 21,115 | 14,580 | 174,468 | 14,580 |
Rentals and leases | 11,341 | 3,599 | 35,687 | 3,599 |
Interest expense, net | 24,633 | 24,633 | ||
Professional fees | 30,699 | 86,493 | ||
Advertising and promotion expenses | 16,808 | 56,156 | ||
Depreciation and amortization | 885 | 2,116 | ||
Total operating costs and expenses | 121,070 | 43,110 | 853,680 | 43,110 |
Operating (loss) income | (45,872) | 108,633 | (776,875) | 108,633 |
Other income (expense) | (48) | 4 | 3,297 | 4 |
(Loss) income before provision for income taxes | (45,920) | 108,637 | (773,578) | 108,637 |
Provision for income taxes | ||||
Net income (loss) | (45,920) | 108,637 | (773,578) | 108,637 |
Less: net (loss) income attributable to non-controlling interests | 86,992 | 259,461 | 66,745 | 259,461 |
Net (loss) attributable to common shareholders | $ (132,912) | $ (150,824) | $ (840,323) | $ (150,824) |
Basic and diluted loss per share (in dollars per share) | $ (0.01) | $ (0.02) | $ (0.08) | $ (0.02) |
Weighted average number of shares outstanding (in shares) | 11,162,736 | 10,000,000 | 10,916,593 | 10,000,000 |
Other comprehensive (loss) income: | ||||
Net (loss) income | $ (45,920) | $ 108,637 | $ (773,578) | $ 108,637 |
Foreign currency translation adjustment | (11,211) | 54,706 | (93,063) | 54,706 |
Comprehensive (loss) income | (57,131) | 163,343 | (866,641) | 163,343 |
Less: Comprehensive income attributable to non-controlling interests | 85,726 | 286,479 | 11,076 | 286,479 |
Comprehensive (loss) attributable to the common shareholders | $ (142,857) | $ (123,136) | $ (877,717) | $ (123,136) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities | ||
Net (loss) income | $ (773,578) | $ 108,637 |
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 2,116 | |
Share based compensation | 377,000 | |
Changes in operating assets and liabilities: | ||
Prepayments and deferred expenses | 114,079 | 65,153 |
Inventories | (413,435) | 448,616 |
Other receivables | (39,332) | (1,489) |
Accounts payable and accrued expenses | (52,264) | |
Customer deposits | 190,258 | |
Due to related parties | 205,948 | (616,749) |
Other payable | 116 | 1,046 |
Net cash (used in) provided by operating activities | (389,092) | 5,214 |
Cash Flows from Investing Activities | ||
Purchase of fixed assets | (10,494) | |
Payment to Lvxin original shareholders for transfer of 51% interest | (222,403) | |
Net cash (used in) investing activities | (232,897) | |
Cash Flows from Financing Activities | ||
Proceeds from sale of common stock | 335,250 | |
Repayment to related parties | (101,955) | |
Loan from related parties | 7,661 | |
Net cash provided by financing activities | 240,956 | |
Effect of exchange rate fluctuation on cash and cash equivalents | (54,193) | (121) |
Net (decrease) increase in cash and cash equivalents | (435,226) | 5,093 |
Cash and cash equivalents, beginning of year | 458,690 | 38 |
Cash and cash equivalents, end of year | 23,464 | 5,131 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | ||
Cash paid for interest | 24,633 | |
Supplemental disclosure of non-cash activities | ||
Allocation of prepayments to Long-term leasehold prepayments | $ 266,662 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) | 9 Months Ended |
Dec. 31, 2018 | |
Statement of Cash Flows [Abstract] | |
Payment to Lvxin original shareholders for transfer of interest | 0.51 |
NATURE OF OPERATIONS AND BASIS
NATURE OF OPERATIONS AND BASIS OF PRESENTATION | 9 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS AND BASIS OF PRESENTATION | NOTE 1. NATURE OF OPERATIONS AND BASIS OF PRESENTATION Organic Agricultural Company Limited (“Organic Agricultural”, the “Company”, “we” or “us”) was incorporated in the State of Nevada on April 17, 2018. The Company, through its subsidiaries with headquarters in Harbin, China, sells paddy and selenium-enriched paddy agricultural products, rice and other products. The Company’s subsidiaries include: ● Organic Agricultural (Samoa) Co., Ltd. ● Organic Agricultural Company Limited (Hong Kong) ● Heilongjiang Tianci Liangtian Agricultural Technology Development Company Limited. ● all of the registered equity of Heilongjiang Yuxinqi Agricultural Technology Development Company Limited ● 51% of the registered equity of Baoqing County Lvxin Paddy Rice Plant Specialized Cooperative Reorganization On May 16, 2018, the Company completed a corporate reorganization to combine several controlled entities (now referred to as the “subsidiaries”) into Organic Agricultural. The specific transactions related to this reorganization are as follows: On March 31, 2017, Hao Shuping and the shareholders of Lvxin signed an Equity Transfer Agreement, whereby shareholders of Lvxin transferred 51% of the controlling interest in Lvxin to Hao Shuping. Hao Shuping agreed to pay the Lvxin shareholders RMB 2,029,586 (US$305,472) in cash and cause the company that would become Organic Agricultural to issue to them 152,736 shares (valued at US$152,736). Hao Shuping and the shareholders of Lvxin also signed an irrevocable supplemental agreement that gave Hao Shuping voting and managerial control over Lvxin. By June 22, 2018, Tianci Liangtian paid off all consideration to Lvxin’s former shareholders. On January 1, 2018, pursuant to the Equity Transfer Agreement between Hao Shuping and Tianci Liangtian, Hao Shuping transferred his 51% controlling interest in Lvxin to Tianci Liangtian. As control of both entities resided with Hao Shuping, we have accounted for the combination of Lvxin with Tianci Liangtian as a transaction between entities under common control. ● On January 8, 2018, the shareholders of Tianci Liangtian transferred ownership of Tianci Liangtian to Organic Agricultural HK, which is wholly owned by Organic Agricultural (Samoa) Co., Ltd. (“Organic Agricultural Samoa”), a privately held limited company registered in Samoa on December 6, 2017. ● On May 16, 2018, the Company issued 10,000,000 shares of its common stock, par value $0.001 to the shareholders of Organic Agricultural Samoa, in exchange for 100% of the outstanding shares of Organic Agricultural Samoa (the “Share Exchange”). |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The accompanying consolidated financial statements have been prepared on the accrual basis of accounting. All significant intercompany accounts and transactions have been eliminated in consolidation when applicable. The unaudited interim financial statements of the Company as of December 31, 2018 and for the three and nine months ended December 31, 2018 and 2017, have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the SEC which apply to interim financial statements. Accordingly, they do not include all of the information and footnotes normally required by accounting principles generally accepted in the United States of America for annual financial statements. In the opinion of management, such information contains all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for the periods presented. The interim financial information should be read in conjunction with the financial statements and the notes thereto, included in the Company’s Registration Statement on Form S-1 (File No. 333-226810) filed with the SEC. The results of operations for the three and nine months ended December 31, 2018 are not necessarily indicative of the results to be expected for future quarters or for the year ending March 31, 2019. The Company’s consolidated financial statements are expressed in U.S. Dollars and are presented in accordance with the United States Generally Accepted Accounting Principles (“U.S. GAAP”). Principles of consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant inter-company accounts and transactions have been eliminated. The consolidated financial statements include the assets, liabilities, and net income or loss of these subsidiaries. The Company’s subsidiaries are listed as follows: Name Place of Incorporation Attributable Authorized Organic Agricultural (Samoa) Co., Ltd. Samoa 100 USD 1,000,000 Organic Agricultural Company Limited (Hong Kong) Hong Kong 100 HKD 10,000 Heilongjiang Tianci Liangtian Agricultural Technology Development Company Limited China 100 0 Heilongjiang Yuxinqi Agricultural Technology Development Company Limited China 100 0 Baoqing County Lvxin Paddy Rice Plant Specialized Cooperative China 51 0 Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however, actual results could differ from those estimates. One significant item subject to such estimates and assumptions is the inventory valuation allowances. These estimates are often based on complex judgments and assumptions that management believes to be reasonable but are inherently uncertain and unpredictable. Actual results could differ from these estimates. Cash and cash equivalents Cash consists of cash on hand and bank deposits, which are unrestricted as to withdrawal and use. All highly liquid investments with original stated maturities of three months or less are classified as cash and cash equivalents. Cash equivalents approximate or equal fair value due to their short-term nature. The Company’s cash and cash equivalents consist of cash on hand and cash in bank, as of December 31, 2018 and March 31, 2018. Revenue recognition The Company recognizes revenue in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 605, “ Revenue Recognition Effective April 1, 2018, the Company adopted ASC 606 — Revenue from Contracts with Customers. Under ASC 606, the Company recognizes revenue from the commercial sales of products, licensing agreements and contracts by applying the following steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract; and (5) recognize revenue when each performance obligation is satisfied. There was no impact on the Company’s financial statements as a result of adopting Topic 606 for the three and nine months ended December 31, 2018 and 2017. Fair Value Measurements The Company applies the provisions of ASC 820, Fair Value Measurements Fair value is defined as the price that would be received when selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining the fair value for the assets and liabilities required or permitted to be recorded, the Company considers the principal or most advantageous market in which it would transact, and it considers assumptions that market participants would use when pricing the asset or liability. ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes three levels of inputs that may be used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices in markets that are not active or for similar assets and liabilities, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). There were no transfers between level 1, level 2 or level 3 measurements during the three and nine months ended December 31 2018 and 2017. Financial assets and liabilities of the Company primarily consists of cash, prepayments & deferred expenses, inventories, other receivables, accounts payable and accrued liabilities, customer deposits, due to related parties, advances for shares to be issued and other payables. As at December 31, 2018 and March 31, 2018, the carrying values of these financial instruments approximated their fair values due to the short-term nature of these instruments. Functional currency and foreign currency translation An entity’s functional currency is the currency of the primary economic environment in which it operates. Normally that is the currency of the environment in which the entity primarily generates and expends cash. Management’s judgment is essential to determine the functional currency by assessing various indicators, such as cash flows, sales price and market, expenses, financing and inter-company transactions and arrangements. The functional currency of the Company is the Chinese Renminbi (“RMB’), except the functional currency of Organic Agricultural HK is the Hong Kong Dollar (“HKD”), and the functional currency of Organic Agricultural Samoa and Organic Agricultural is the United States dollar (“US Dollars” or “$”). The reporting currency of these consolidated financial statements is in US Dollars. The financial statements of the Company, which are prepared using the RMB, are translated into the Company’s reporting currency, the US Dollar. Assets and liabilities are translated using the exchange rate at each reporting period end date. Revenue and expenses are translated using average rates prevailing during each reporting period, and shareholders’ equity is translated at historical exchange rates. Adjustments resulting from the translation are recorded as a separate component of accumulated other comprehensive income or loss. 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 transactions. Foreign currency exchange gains and losses resulting from these transactions are included in operations. The exchange rates used for foreign currency translation are as follows: For the Three Months Ended December 31, 2018 2017 (USD to RMB/USD to HKD) (USD to RMB) Assets and liabilities period end exchange rate 6.8776 / 7.8317 6.5074 Revenue and expenses period average 6.9162 / 7.8293 6.6133 For the Nine Months Ended December 31, 2018 2017 (USD to RMB/USD to HKD) (USD to RMB) Assets and liabilities period end exchange rate 6.8776 / 7.8317 6.5074 Revenue and expenses period average 6.7008 / 7.8408 6.7149 Income taxes The Company follows FASB ASC Topic 740, Income Taxes ASC 740-10-30 requires income tax positions to meet a more-likely-than-not recognition threshold to be recognized in the financial statements. Under ASC 740-10-30, tax positions that previously failed to meet the more-likely-than-not threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Under ASC 740-10-40, previously recognized tax positions that no longer meet the more-likely-than-not threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. The application of tax laws and regulations is subject to legal and factual interpretation, judgment and uncertainty. Tax laws and regulations themselves are subject to change as a result of changes in fiscal policy, changes in legislation, the evolution of regulations and court rulings. Therefore, the actual liability may be materially different from our estimates, which could result in the need to record additional tax liabilities or potentially reverse previously recorded tax liabilities or the deferred tax asset valuation allowance. Lvxin products sales and services have been exempt from enterprise income tax, according to the “PRC Income Tax Law” Article 27 (1)”, income from agricultural, forestry, animal husbandry and fisheries Industries shall be exempt from business tax. Earnings (loss) per share The Company computes earnings (loss) Earnings Per Share Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of contracts to issue ordinary common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. The computation of diluted EPS includes the estimated impact of the exercise of contracts to purchase common stock using the treasury stock method and the potential shares of converted common stock associated with the convertible debt using the if-converted method. Potential common shares that have an anti-dilutive effect (i.e., those that increase earnings per share or decrease loss per share) are excluded from the calculation of diluted EPS. Share-Based Compensation The Company has adopted the provisions of ASC 718 requiring employee equity awards to be accounted for under the fair value method. Accordingly, share-based compensation is measured at grant date, based on the fair value of the award. No equity instruments were granted during the year ended March 31, 2018 and no compensation expense is required to be recognized under provisions of ASC 718 with respect to employees. During the nine months ended December 31, 2018, specifically on June 13, 2018, the Company granted a total of 290,000 shares with a fair value on the grant date of $1.30 per share to 8 employees and $377,000 compensation expense was recognized under the provisions of ASC 718. These shares were fully vested when issued. Segment Information and Geographic Data The Company is operating in one segment in accordance with the accounting guidance FASB ASC Topic 280, Segment Reporting Concentration of Credit Risk The Company maintains cash balances in four banks in China. In China, the insurance coverage of each bank is RMB500,000 (approximately USD$75,000). As of December 31, 2018, the Company’s does not have balance that exceed the insurance balance. As of December 31, 2018 and March 31, 2018, the Company has customer deposits of $219,338 and $31,844 from four and one customers, respectively. As of December 31, 2018, Shouhang Commerce and Trade, Zhao Zhilian and Zhang Jianhua represented 70.2%, 14.6% and 13.3% of total customer deposits, respectively. As of March 31, 2018, Zhao Zhilian represented 100% of total customer deposits. As of December 31, 2018 and March 31, 2018, the Company has prepayments & deferred expenses of $0 and $128,293, respectively, to one vendor. For the nine months ended December 31, 2018 and 2017, the Company’s purchases from this vendor total $134,905 and $104,742, respectively. For the three months ended December 31, 2018 and 2017, there were no purchases from this vendor. Recently accounting pronouncements In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220), Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In July 2017, the FASB issued Accounting Standards Update (“ASU”) No. 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815) The adoption of ASU No.2017-11 will not have an effect on the Company’s financial statements. In May 2017, the FASB issued ASU No. 2017-09, Compensation – Stock Compensation: (Topic 718): Scope of Modification Accounting In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-01, Business Combinations (Topic 805) - Clarifying the Definition of a Business In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients In February 2016, the FASB issued ASU No. 2016-02, Leases. The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. This accounting standard update is not expected to have a material impact on the Company’s financial statements. We do not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements of operations and cash flows. |
PREPAYMENTS AND DEFERRED EXPENS
PREPAYMENTS AND DEFERRED EXPENSES | 9 Months Ended |
Dec. 31, 2018 | |
Prepayments And Deferred Expenses | |
PREPAYMENTS AND DEFERRED EXPENSES | NOTE 3. PREPAYMENTS AND DEFERRED EXPENSES Prepayments are reported as prepayments and deferred expenses on the consolidated balance sheets. Deferred expenses include prepaid paddy planting land rent and Tianci Liangtian office rent. As of December 31, 2018 and March 31, 2018, prepayments and deferred expenses were $99,703 and $526,100, respectively. |
INVENTORIES
INVENTORIES | 9 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 4. INVENTORIES Inventories are generally kept for a short period of time. Inventories comprise of growing costs, harvesting costs, raw materials, finished goods (including harvesting agricultural produce Paddy and manufactured goods rice and other products). Growing costs Harvest costs Raw materials Harvesting agricultural produce Paddy Most cultural costs, including amortization of capitalized cultural costs and certain other costs, such as indirect labor including farm supervision and management and irrigation that benefit multiple crops are allocated to crops on a per-kilogram basis. The cost of Harvesting agricultural produce Paddy includes all relevant expenditures incurred before and during the entire cultivation period and after harvesting, mainly including seed, fertilizer and other production materials, land rent, labor, and other related costs, subject to impairment if the cost of inventory exceeds market value. Manufactured goods rice and other products At December 31, 2018 and March 31, 2018, inventories consisted of the following: December 31 March 31 2018 2018 (Unaudited) Growing cost $ - $ 633,607 Selenium enriched paddy 690,283 187,604 Ordinary paddy 401,137 - Rice and other products 59,959 - Packing and other materials 12,00 - $ 1,163,380 $ 821,211 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 5. INCOME TAXES A reconciliation of income (loss) before income taxes for domestic and foreign locations for nine months ended December 31, 2018, and 2017 is as follows: 2018 2017 (Unaudited) ( ) United States $ (87,486 ) $ - Foreign (686,092 ) 108,637 (Loss) before income taxes $ (773,578 ) $ 108,637 The difference between the U.S. federal statutory income tax rate and the Company’s effective tax rate was as follows: December 31 December 31 2018 2017 U.S. federal statutory income tax rate 21 % 34 % Rates in PRC, net 0 % 0 % Effects of tax basis differences (21 )% (34 )% The Company’s effective tax rate (0 )% (0 )% The Company did not recognize deferred taxes since it is not likely to realize such deferred taxes. The deferred tax would only apply to the Company in the U.S., as the Company’s current operations in China are not subject to income tax. As of December 31, 2018, the Company has net operating loss carry forwards in the PRC that expires in 2023. As a result, the Company provided a 100% allowance on all deferred tax assets of approximately $172,000 and $0 related to its operations in the PRC as of December 31, 2018 and 2017, respectively. The valuation allowance has increased by $172,000 and $0 for the nine months ended December 31, 2018 and 2017, respectively. The Company has incurred losses from its United States operations during all periods presented. Accordingly, management provided a 100% valuation allowance of approximately $15,000 and $0 against the deferred tax assets related to the Company’s United States operations as of December 31, 2018 and March 31, 2017, respectively, because the deferred tax benefits of the net operating loss carry forward in the United States is not likely to be utilized. The Company is subject to examination by the Internal Revenue Service (IRS) in the United States as well as by the taxing authorities in China, where the firm has significant business operations. The tax years under examination vary by jurisdiction. The table below presents the earliest tax year that remain subject to examination by major jurisdiction. U.S. Federal March 31, 2018 China March 31, 2018 The Company accounts for income taxes in accordance with ASC 740, Income Taxes United States On December 22, 2017, the “Tax Cuts and Jobs Act” (“The Act”) was enacted. Under the provisions of the Act, the U.S. corporate tax rate decreased from 35% to 21%. Accordingly, we have remeasured our deferred tax assets on our net operating loss carryforwards in the U.S at the lower enacted tax rate of 21%. However, this remeasurement had no effect on our income tax expense as we have provided a 100% valuation allowance on our deferred tax assets previously. Additionally, the Tax Act imposes a one-time transition tax on deemed repatriation of historical earnings of foreign subsidiaries, and future foreign earnings are subject to U.S. taxation. The transition tax, if applicable, is a one-time income tax which, if elected, can be paid over 8 years. However, this one-time transition tax had no effect on our income tax expense as we have no undistributed foreign earnings prior to December 22, 2017 since we have cumulative foreign losses. Samoa Organic Agricultural (Samoa) Co., Ltd was incorporated in Samoa and, under the current laws of Samoa, it is not subject to income tax. China Tianci Liantian and Yuxinqi are subject to a 25% standard enterprise income tax in the PRC. Income tax was $0 at December 31, 2018 and 2017. Lvxin products sales and services have been exempt from enterprise income tax, according to the “PRC Income Tax Law” Article 27 (1), which states that income from agricultural, forestry, animal husbandries and fisheries Industry shall be exempt from business income tax. |
ADVANCES FOR SHARES TO BE ISSUE
ADVANCES FOR SHARES TO BE ISSUED | 9 Months Ended |
Dec. 31, 2018 | |
Advances For Shares To Be Issued | |
ADVANCES FOR SHARES TO BE ISSUED | NOTE 6. ADVANCES FOR SHARES TO BE ISSUED Advances for shares to be issued consisted of the following as of the periods indicated: December 31 March 31 2018 2018 (Unaudited) Advances for shares to be issued $ - $ 425,749 $ - $ 425,749 As of March 31, 2018, the Company had received an advance for 410,000 shares to be issued of $425,749. This amount was prepaid to Tianci Liangtian by certain individuals in anticipation of the formation of Organic Agricultural Company Limited and was reclassified as a capital contribution to the Company after Organic Agricultural Company Limited was organized in April 2018 and entered into Subscription Agreements with those individuals. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | Amount due to related parties Amount due to related parties consisted of the following as of the periods indicated: December 31 March 31 2018 2018 (Unaudited) Hao Shuping $ 41,752 $ 112,690 Shen Zhenai 8,696 752 15 shareholders of Lvxin 189,570 458,208 $ 240,018 $ 571,650 Hao Shuping is the main shareholder of the Company, and Shen Zhenai is the President, Chairman of the Board, director and shareholder of the Company. These advances represent temporary borrowings for operating costs between the Company and management. They are non-interest bearing and due on demand. As of December 31, 2018, the Company has a balance due to 15 shareholders of Lvxin of $189,570, which was recorded as Due To Related Parties. It represents advances for expenses paid to suppliers by the 15 shareholders. The balance is non-interest bearing and due on demand. As of March 31, 2018, the Company has a balance due to the 15 shareholders of Lvxin of $458,208, which was recorded as Due To Related Parties. This balance was paid off on June 22, 2018, as consideration for the sale of their 51% interest to Tianci Liangtian. |
CONTINGENCIES AND COMMITMENT
CONTINGENCIES AND COMMITMENT | 9 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES AND COMMITMENT | NOTE 8. CONTINGENCIES AND COMMITMENT Contingencies Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company’s management and legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company’s legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material would be disclosed. Loss contingencies considered to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantee would be disclosed. The Company was not subject to any material loss contingencies as of December 31, 2018 and March 31, 2018. Commitments In November 2017, Tianci Liangtian leased office space from November 20, 2017 to December 5, 2018 under an operating lease agreement (approximately 666 square feet). Under the terms of the lease, Tianci Liangtian paid approximately $1,592 in lease deposits and is committed to make annual lease payments. In December 2018, Yuxingqi renewed the lease agreement. Under the terms, Yuxingqi committed to make annual lease payments of CNY¥ 290,000 (approximately US$42,000). In April 2018, Lvxin leased office space of approximately176.86 square meters under a one year lease agreement. Lvxin paid approximately US$4,532 (RMB30,000) as rent and is committed to make annual lease payments of US$4,532 (RMB30,000). The office address is the Fuyuanguandi, Pingshun Street, Baoqing County, Shuangyasha City, Heilongjiang Province. China 155600. The office contains our administrative functions, sales, e-commerce operations and marketing functions. The Company recorded rent expense of $35,687 for nine months ended December 31, 2018 and $11,341 for three months ended December 31, 2018. The Company leases 497 hectares of cultivated land for cultivating pursuant to more than 300 lease agreements with individual farmers. Some of the leases are paid annually, some of the leases are paid in advance for periods from 12 to 22 years. The Company accounts for the land rental costs as a cost of production of the growing paddy annually. The Company recorded land rental costs of $nil and $nil for nine months ended December 31, 2018 and 2017, and $nil and $nil for three months ended December 31, 2018 and 2017. As of December 31, 2018 and March 31, 2018, the Company had made approximately $70,000 and $335,000 prepayments for cultivated land leases, respectively. Future annual minimum lease payments for non-cancellable operating leases are as follows: Fiscal year end of March 31 Amount $ 2019 $ 372,726 2020 402,596 2021 357,460 2022 280,862 2023 201,073 thereafter 1,001,366 Total $ 2,616,083 |
NON-CONTROLLING INTERESTS
NON-CONTROLLING INTERESTS | 9 Months Ended |
Dec. 31, 2018 | |
Noncontrolling Interest [Abstract] | |
NON-CONTROLLING INTERESTS | NOTE 9. NON-CONTROLLING INTERESTS Lvxin is the Company’s majority-owned subsidiary which is consolidated in the Company’s financial statements with a non-controlling interest (NCI) recognized. The Company holds 51% interest of Lvxin as of December 31, 2018 and March 31, 2018. As of December 31, 2018, and March 31, 2018, NCI in the consolidated balance sheet was $(21,750) and $(32,826), respectively. For nine months ended December 31, 2018, the comprehensive income (loss) attributable to shareholders’ equity and NCI was $(877,717) and $11,076, respectively. For nine months ended December 31, 2017, the comprehensive income (loss) attributable to shareholders’ equity and NCIs was $(123,136) and $286,479, respectively. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 10. SUBSEQUENT EVENTS During the period from January 1, 2019 to February 14, 2019, the Company sold 5,000 shares of its common stock for $6,500 to 1 shareholder. The Management of the Company determined that there were no other reportable subsequent events to be disclosed. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying consolidated financial statements have been prepared on the accrual basis of accounting. All significant intercompany accounts and transactions have been eliminated in consolidation when applicable. The unaudited interim financial statements of the Company as of December 31, 2018 and for the three and nine months ended December 31, 2018 and 2017, have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the SEC which apply to interim financial statements. Accordingly, they do not include all of the information and footnotes normally required by accounting principles generally accepted in the United States of America for annual financial statements. In the opinion of management, such information contains all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for the periods presented. The interim financial information should be read in conjunction with the financial statements and the notes thereto, included in the Company’s Registration Statement on Form S-1 (File No. 333-226810) filed with the SEC. The results of operations for the three and nine months ended December 31, 2018 are not necessarily indicative of the results to be expected for future quarters or for the year ending March 31, 2019. The Company’s consolidated financial statements are expressed in U.S. Dollars and are presented in accordance with the United States Generally Accepted Accounting Principles (“U.S. GAAP”). |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant inter-company accounts and transactions have been eliminated. The consolidated financial statements include the assets, liabilities, and net income or loss of these subsidiaries. The Company’s subsidiaries are listed as follows: Name Place of Incorporation Attributable Authorized Organic Agricultural (Samoa) Co., Ltd. Samoa 100 USD 1,000,000 Organic Agricultural Company Limited (Hong Kong) Hong Kong 100 HKD 10,000 Heilongjiang Tianci Liangtian Agricultural Technology Development Company Limited China 100 0 Heilongjiang Yuxinqi Agricultural Technology Development Company Limited China 100 0 Baoqing County Lvxin Paddy Rice Plant Specialized Cooperative China 51 0 |
Use of estimates | Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however, actual results could differ from those estimates. One significant item subject to such estimates and assumptions is the inventory valuation allowances. These estimates are often based on complex judgments and assumptions that management believes to be reasonable but are inherently uncertain and unpredictable. Actual results could differ from these estimates. |
Cash and cash equivalents | Cash and cash equivalents Cash consists of cash on hand and bank deposits, which are unrestricted as to withdrawal and use. All highly liquid investments with original stated maturities of three months or less are classified as cash and cash equivalents. Cash equivalents approximate or equal fair value due to their short-term nature. The Company’s cash and cash equivalents consist of cash on hand and cash in bank, as of December 31, 2018 and March 31, 2018. |
Revenue recognition | Revenue recognition The Company recognizes revenue in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 605, “ Revenue Recognition Effective April 1, 2018, the Company adopted ASC 606 — Revenue from Contracts with Customers. Under ASC 606, the Company recognizes revenue from the commercial sales of products, licensing agreements and contracts by applying the following steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract; and (5) recognize revenue when each performance obligation is satisfied. There was no impact on the Company’s financial statements as a result of adopting Topic 606 for the three and nine months ended December 31, 2018 and 2017. |
Fair Value Measurements | Fair Value Measurements The Company applies the provisions of ASC 820, Fair Value Measurements Fair value is defined as the price that would be received when selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining the fair value for the assets and liabilities required or permitted to be recorded, the Company considers the principal or most advantageous market in which it would transact, and it considers assumptions that market participants would use when pricing the asset or liability. ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes three levels of inputs that may be used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices in markets that are not active or for similar assets and liabilities, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). There were no transfers between level 1, level 2 or level 3 measurements during the three and nine months ended December 31 2018 and 2017. Financial assets and liabilities of the Company primarily consists of cash, prepayments & deferred expenses, inventories, other receivables, accounts payable and accrued liabilities, customer deposits, due to related parties, advances for shares to be issued and other payables. As at December 31, 2018 and March 31, 2018, the carrying values of these financial instruments approximated their fair values due to the short-term nature of these instruments. |
Functional currency and foreign currency translation | Functional currency and foreign currency translation An entity’s functional currency is the currency of the primary economic environment in which it operates. Normally that is the currency of the environment in which the entity primarily generates and expends cash. Management’s judgment is essential to determine the functional currency by assessing various indicators, such as cash flows, sales price and market, expenses, financing and inter-company transactions and arrangements. The functional currency of the Company is the Chinese Renminbi (“RMB’), except the functional currency of Organic Agricultural HK is the Hong Kong Dollar (“HKD”), and the functional currency of Organic Agricultural Samoa and Organic Agricultural is the United States dollar (“US Dollars” or “$”). The reporting currency of these consolidated financial statements is in US Dollars. The financial statements of the Company, which are prepared using the RMB, are translated into the Company’s reporting currency, the US Dollar. Assets and liabilities are translated using the exchange rate at each reporting period end date. Revenue and expenses are translated using average rates prevailing during each reporting period, and shareholders’ equity is translated at historical exchange rates. Adjustments resulting from the translation are recorded as a separate component of accumulated other comprehensive income or loss. 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 transactions. Foreign currency exchange gains and losses resulting from these transactions are included in operations. The exchange rates used for foreign currency translation are as follows: For the Three Months Ended December 31, 2018 2017 (USD to RMB/USD to HKD) (USD to RMB) Assets and liabilities period end exchange rate 6.8776 / 7.8317 6.5074 Revenue and expenses period average 6.9162 / 7.8293 6.6133 For the Nine Months Ended December 31, 2018 2017 (USD to RMB/USD to HKD) (USD to RMB) Assets and liabilities period end exchange rate 6.8776 / 7.8317 6.5074 Revenue and expenses period average 6.7008 / 7.8408 6.7149 |
Income taxes | Income taxes The Company follows FASB ASC Topic 740, Income Taxes ASC 740-10-30 requires income tax positions to meet a more-likely-than-not recognition threshold to be recognized in the financial statements. Under ASC 740-10-30, tax positions that previously failed to meet the more-likely-than-not threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Under ASC 740-10-40, previously recognized tax positions that no longer meet the more-likely-than-not threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. The application of tax laws and regulations is subject to legal and factual interpretation, judgment and uncertainty. Tax laws and regulations themselves are subject to change as a result of changes in fiscal policy, changes in legislation, the evolution of regulations and court rulings. Therefore, the actual liability may be materially different from our estimates, which could result in the need to record additional tax liabilities or potentially reverse previously recorded tax liabilities or the deferred tax asset valuation allowance. Lvxin products sales and services have been exempt from enterprise income tax, according to the “PRC Income Tax Law” Article 27 (1)”, income from agricultural, forestry, animal husbandry and fisheries Industries shall be exempt from business tax. |
Earnings (loss) per share | Earnings (loss) per share The Company computes earnings (loss) Earnings Per Share Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of contracts to issue ordinary common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. The computation of diluted EPS includes the estimated impact of the exercise of contracts to purchase common stock using the treasury stock method and the potential shares of converted common stock associated with the convertible debt using the if-converted method. Potential common shares that have an anti-dilutive effect (i.e., those that increase earnings per share or decrease loss per share) are excluded from the calculation of diluted EPS. |
Share-Based Compensation | Share-Based Compensation The Company has adopted the provisions of ASC 718 requiring employee equity awards to be accounted for under the fair value method. Accordingly, share-based compensation is measured at grant date, based on the fair value of the award. No equity instruments were granted during the year ended March 31, 2018 and no compensation expense is required to be recognized under provisions of ASC 718 with respect to employees. During the nine months ended December 31, 2018, specifically on June 13, 2018, the Company granted a total of 290,000 shares with a fair value on the grant date of $1.30 per share to 8 employees and $377,000 compensation expense was recognized under the provisions of ASC 718. These shares were fully vested when issued. |
Segment Information and Geographic Data | Segment Information and Geographic Data The Company is operating in one segment in accordance with the accounting guidance FASB ASC Topic 280, Segment Reporting |
Concentration of Credit Risk | Concentration of Credit Risk The Company maintains cash balances in four banks in China. In China, the insurance coverage of each bank is RMB500,000 (approximately USD$75,000). As of December 31, 2018, the Company’s does not have balance that exceed the insurance balance. As of December 31, 2018 and March 31, 2018, the Company has customer deposits of $219,338 and $31,844 from four and one customers, respectively. As of December 31, 2018, Shouhang Commerce and Trade, Zhao Zhilian and Zhang Jianhua represented 70.2%, 14.6% and 13.3% of total customer deposits, respectively. As of March 31, 2018, Zhao Zhilian represented 100% of total customer deposits. As of December 31, 2018 and March 31, 2018, the Company has prepayments & deferred expenses of $0 and $128,293, respectively, to one vendor. For the nine months ended December 31, 2018 and 2017, the Company’s purchases from this vendor total $134,905 and $104,742, respectively. For the three months ended December 31, 2018 and 2017, there were no purchases from this vendor. |
Recently accounting pronouncements | Recently accounting pronouncements In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220), Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In July 2017, the FASB issued Accounting Standards Update (“ASU”) No. 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815) The adoption of ASU No.2017-11 will not have an effect on the Company’s financial statements. In May 2017, the FASB issued ASU No. 2017-09, Compensation – Stock Compensation: (Topic 718): Scope of Modification Accounting In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-01, Business Combinations (Topic 805) - Clarifying the Definition of a Business In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients In February 2016, the FASB issued ASU No. 2016-02, Leases. The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. This accounting standard update is not expected to have a material impact on the Company’s financial statements. We do not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements of operations and cash flows. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Company's subsidiaries | The Company’s subsidiaries are listed as follows: Name Place of Incorporation Attributable Authorized Organic Agricultural (Samoa) Co., Ltd. Samoa 100 USD 1,000,000 Organic Agricultural Company Limited (Hong Kong) Hong Kong 100 HKD 10,000 Heilongjiang Tianci Liangtian Agricultural Technology Development Company Limited China 100 0 Heilongjiang Yuxinqi Agricultural Technology Development Company Limited China 100 0 Baoqing County Lvxin Paddy Rice Plant Specialized Cooperative China 51 0 |
Schedule of exchange rates used for foreign currency translation | The exchange rates used for foreign currency translation are as follows: For the Three Months Ended December 31, 2018 2017 (USD to RMB/USD to HKD) (USD to RMB) Assets and liabilities period end exchange rate 6.8776 / 7.8317 6.5074 Revenue and expenses period average 6.9162 / 7.8293 6.6133 For the Nine Months Ended December 31, 2018 2017 (USD to RMB/USD to HKD) (USD to RMB) Assets and liabilities period end exchange rate 6.8776 / 7.8317 6.5074 Revenue and expenses period average 6.7008 / 7.8408 6.7149 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | At December 31, 2018 and March 31, 2018, inventories consisted of the following: December 31 March 31 2018 2018 (Unaudited) Growing cost $ - $ 633,607 Selenium enriched paddy 690,283 187,604 Ordinary paddy 401,137 - Rice and other products 59,959 - Packing and other materials 12,001 - $ 1,163,380 $ 821,211 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of income (loss) before income taxes | A reconciliation of income (loss) before income taxes for domestic and foreign locations for nine months ended December 31, 2018, and 2017 is as follows: 2018 2017 (Unaudited) ( ) United States $ (87,486 ) $ - Foreign (686,092 ) 108,637 (Loss) before income taxes $ (773,578 ) $ 108,637 |
Schedule of difference between the U.S. federal statutory income tax rate and the Company's effective tax rate | The difference between the U.S. federal statutory income tax rate and the Company’s effective tax rate was as follows: December 31 December 31 2018 2017 U.S. federal statutory income tax rate 21 % 34 % Rates in PRC, net 0 % 0 % Effects of tax basis differences (21 )% (34 )% The Company’s effective tax rate (0 )% (0 )% |
Schedule of earliest tax year that remain subject to examination by major jurisdiction | The tax years under examination vary by jurisdiction. The table below presents the earliest tax year that remain subject to examination by major jurisdiction. U.S. Federal March 31, 2018 China March 31, 2018 |
ADVANCES FOR SHARES TO BE ISS_2
ADVANCES FOR SHARES TO BE ISSUED (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Advances For Shares To Be Issued | |
Schedule of advances for shares to be issued | Advances for shares to be issued consisted of the following as of the periods indicated: December 31 March 31 2018 2018 (Unaudited) Advances for shares to be issued $ - $ 425,749 $ - $ 425,749 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of amount due to related parties | Amount due to related parties consisted of the following as of the periods indicated: December 31 March 31 2018 2018 (Unaudited) Hao Shuping $ 41,752 $ 112,690 Shen Zhenai 8,696 752 15 shareholders of Lvxin 189,570 458,208 $ 240,018 $ 571,650 |
CONTINGENCIES AND COMMITMENT (T
CONTINGENCIES AND COMMITMENT (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future annual minimum lease payments for non-cancellable operating leases | Future annual minimum lease payments for non-cancellable operating leases are as follows: Fiscal year end of March 31 Amount $ 2019 $ 372,726 2020 402,596 2021 357,460 2022 280,862 2023 201,073 thereafter 1,001,366 Total $ 2,616,083 |
NATURE OF OPERATIONS AND BASI_2
NATURE OF OPERATIONS AND BASIS OF PRESENTATION (Details Narrative) | May 16, 2018USD ($)$ / shares | Mar. 31, 2017USD ($)shares | Dec. 31, 2018USD ($)$ / shares | Mar. 31, 2018USD ($)$ / shares | Jan. 01, 2018 | Mar. 31, 2017CNY (¥) | Feb. 09, 2012 |
Number of common stock exchanged, the stock was issued | $ 10,000,000 | $ 11,163 | $ 10,000 | ||||
Common stock (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | |||||
Hao Shuping [Member] | Equity Transfer Agreement [Member] | |||||||
Percentage of equity interest acquired | 51.00% | 51.00% | |||||
Cash | $ 305,472 | ||||||
Number of share issue | shares | 152,736 | ||||||
Value of share issue | $ 152,736 | ||||||
Hao Shuping [Member] | Equity Transfer Agreement [Member] | China, Yuan Renminbi | |||||||
Cash | ¥ | ¥ 2,029,586 | ||||||
Baoqing County Lvxin Paddy Rice Plant Specialized Cooperative [Member] | |||||||
Percentage of ownership interest | 51.00% | ||||||
Heilongjiang Tianci Liangtian Agricultural Technology Development Company Limited [Member] | Hao Shuping [Member] | Equity Transfer Agreement [Member] | |||||||
Percentage of equity interest acquired | 51.00% | ||||||
Organic Agricultural (Samoa) Co., Ltd. [Member] | |||||||
Percentage of equity interest acquired | 48.80% | ||||||
Common stock (in dollars per share) | $ / shares | $ 0.001 | ||||||
Percentage of exchange outstanding share | 100.00% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 9 Months Ended |
Dec. 31, 2018shares | |
Organic Agricultural (Samoa) Co., Ltd. [Member] | |
Place of Incorporation | Samoa |
Attributable equity interest | 1 |
Authorized capital | 1,000,000 |
Organic Agricultural Company Limited [Member] | HKD | |
Place of Incorporation | Hong Kong |
Attributable equity interest | 1 |
Authorized capital | 10,000 |
Heilongjiang Tianci Liangtian Agricultural Technology Development Company Limited [Member] | |
Place of Incorporation | China |
Attributable equity interest | 1 |
Authorized capital | 0 |
Heilongjiang Yuxinqi Agricultural Technology Development Company Limited [Member] | |
Place of Incorporation | China |
Attributable equity interest | 1 |
Authorized capital | 0 |
Baoqing County Lvxin Paddy Rice Plant Specialized Cooperative [Member] | |
Place of Incorporation | China |
Attributable equity interest | 0.51 |
Authorized capital | 0 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue And Expenses [Member] | ||||
Description of foreign currency translation | Period average | Period average | ||
Ren Ming Bi | Revenue And Expenses [Member] | ||||
Foreign currency translation | 6.9162 | 6.6133 | 6.7008 | 6.7149 |
Hong Kong, Dollars | Revenue And Expenses [Member] | ||||
Foreign currency translation | 7.8293 | 7.8408 | ||
Assets And Liabilities [Member] | ||||
Description of foreign currency translation | Period end exchange rate | Period end exchange rate | ||
Assets And Liabilities [Member] | Ren Ming Bi | ||||
Foreign currency translation | 6.8776 | 6.5074 | 6.8776 | 6.5074 |
Assets And Liabilities [Member] | Hong Kong, Dollars | ||||
Foreign currency translation | 7.8317 | 7.8317 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | Jun. 13, 2018USD ($)Number$ / sharesshares | Dec. 22, 2017 | Dec. 31, 2018USD ($)Number | Mar. 31, 2018USD ($)Number | Dec. 31, 2018CNY (¥) | Dec. 31, 2017USD ($) |
Insurance coverage | $ 75,000 | |||||
Customer deposits | $ 219,338 | $ 31,844 | ||||
Number of customers | Number | 4 | 1 | ||||
Prepayments & deferred expenses | $ 99,703 | $ 526,100 | ||||
Previous income tax rate | 35.00% | |||||
Revised income tax rate | 21.00% | |||||
Zhao Zhilian [Member] | ||||||
Percentage of concentration risk | 14.60% | 100.00% | ||||
Zhang Jianhua [Member] | ||||||
Percentage of concentration risk | 13.30% | |||||
Shouhang [Member] | ||||||
Percentage of concentration risk | 70.20% | |||||
Ren Ming Bi | ||||||
Insurance coverage | ¥ | ¥ 500,000 | |||||
Vendor [Member] | ||||||
Number of shares granted | shares | 290,000 | |||||
Fair value | $ / shares | $ 1.3 | |||||
Number of employees | Number | 8 | |||||
Compensation expense | $ 377,000 | |||||
Prepayments & deferred expenses | $ 0 | $ 128,293 | ||||
Purchase from vendor | $ 134,905 | $ 104,742 |
PREPAYMENTS AND DEFERRED EXPE_2
PREPAYMENTS AND DEFERRED EXPENSES (Details Narrative) - USD ($) | Dec. 31, 2018 | Mar. 31, 2018 |
Prepayments And Deferred Expenses | ||
Prepayments and deferred expenses | $ 99,703 | $ 526,100 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) | Dec. 31, 2018 | Mar. 31, 2018 |
Inventory | $ 1,163,380 | $ 821,211 |
Growing Cost [Member] | ||
Inventory | 633,607 | |
Selenium Enriched Paddy [Member] | ||
Inventory | 690,283 | 187,604 |
Ordinary Paddy [Member] | ||
Inventory | 401,137 | |
Rice And Other Products [Member] | ||
Inventory | 59,959 | |
Packing And Other Materials [Member] | ||
Inventory | $ 12,001 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||||
United States | $ (87,486) | |||
Foreign | (686,092) | 108,637 | ||
(Loss) before income taxes | $ (45,920) | $ 108,637 | $ (773,578) | $ 108,637 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) | 9 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
U.S. federal statutory income tax rate | 21.00% | 34.00% |
Rates in PRC, net | 0.00% | 0.00% |
Effects of tax basis differences | (21.00%) | (34.00%) |
The Company's effective tax rate | 0.00% | 0.00% |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) | 9 Months Ended |
Dec. 31, 2018 | |
U.S. Federal [Member] | |
Tax examination date | Mar. 31, 2018 |
China [Member] | |
Tax examination date | Mar. 31, 2018 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | Dec. 22, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 |
Allowance on deferred tax assets | $ 15,000 | $ 0 | |||
Income tax rate | 21.00% | 34.00% | |||
Cash and cash equivalents | $ 23,464 | $ 5,131 | $ 458,690 | $ 38 | |
Enterprise income tax | 0.00% | 0.00% | |||
Foreign income tax | $ 686,092 | $ (108,637) | |||
Previous income tax rate | 35.00% | ||||
Revised income tax rate | 21.00% | ||||
Maturity date | 8 years | ||||
Tianci Liantian and Yuxinqi [Member] | |||||
Enterprise income tax | 25.00% | ||||
Foreign income tax | |||||
People's Republic of China | |||||
Allowance on deferred tax assets | $ 172,000 | $ 0 | |||
Percentage of allowance on all deferred tax assets | 100.00% |
ADVANCES FOR SHARES TO BE ISS_3
ADVANCES FOR SHARES TO BE ISSUED (Details) - USD ($) | Dec. 31, 2018 | Mar. 31, 2018 |
Advances For Shares To Be Issued | ||
Advances for shares to be issued | $ 425,749 | |
Total advances for shares to be issued | $ 425,749 |
ADVANCES FOR SHARES TO BE ISS_4
ADVANCES FOR SHARES TO BE ISSUED (Details Narrative) - USD ($) | Dec. 31, 2018 | Mar. 31, 2018 |
Advances For Shares To Be Issued | ||
Advances for shares to be issued (in shares) | 410,000 | |
Advances for shares to be issued | $ 425,749 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | Dec. 31, 2018 | Mar. 31, 2018 |
Amount due to related parties | $ 240,018 | $ 571,650 |
Hao Shuping [Member] | ||
Amount due to related parties | 41,752 | 112,690 |
Shen Zhenai [Member] | ||
Amount due to related parties | 8,696 | 752 |
15 Shareholders Of Lvxin [Member] | ||
Amount due to related parties | $ 189,570 | $ 458,208 |
RELATED PARTY TRANSACTIONS (D_2
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | Dec. 31, 2018 | Jun. 22, 2018 | Mar. 31, 2018 |
Amount due to related parties | $ 240,018 | $ 571,650 | |
15 Shareholders Of Lvxin [Member] | |||
Amount due to related parties | $ 189,570 | $ 458,208 | |
Tianci Liangtian [Member] | |||
Noncontrolling Interest, Ownership Percentage by Parent | 51.00% |
CONTINGENCIES AND COMMITMENT (D
CONTINGENCIES AND COMMITMENT (Details) | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,019 | $ 372,726 |
2,020 | 402,596 |
2,021 | 357,460 |
2,022 | 280,862 |
2,023 | 201,073 |
thereafter | 1,001,366 |
Total | $ 2,616,083 |
CONTINGENCIES AND COMMITMENT _2
CONTINGENCIES AND COMMITMENT (Details Narrative) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Apr. 30, 2018USD ($)a | Apr. 30, 2018CNY (¥)a | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Mar. 31, 2018USD ($) | Nov. 30, 2017USD ($)a | |
Area of lease office | a | 176.86 | 176.86 | ||||||||
Lease term | 1 year | 1 year | ||||||||
Annual lease payments | $ 4,532 | |||||||||
Rent expense | $ 11,341 | $ 35,687 | ||||||||
Prepayments & deferred expenses | $ 99,703 | 99,703 | $ 99,703 | $ 526,100 | ||||||
Description of leases of cultivated land | The Company leases 497 hectares of cultivated land for cultivating pursuant to more than 300 lease agreements with individual farmers. Some of the leases are paid annually, some of the leases are paid in advance for periods from 12 to 22 years. | |||||||||
Land rental costs | ||||||||||
Prepayments for cultivated land leases | 70,000 | $ 70,000 | $ 70,000 | $ 335,000 | ||||||
Ren Ming Bi | ||||||||||
Annual lease payments | ¥ | ¥ 30,000 | |||||||||
Operating Lease Agreement [Member] | Heilongjiang Tianci Liangtian Agricultural Technology Development Company Limited [Member] | ||||||||||
Area of lease office | a | 666 | |||||||||
Lease deposits | $ 1,592 | |||||||||
Operating Lease Agreement [Member] | Heilongjiang Yuxinqi Agricultural Technology Development Company Limited [Member] | ||||||||||
Annual lease payments | $ 42,000 | |||||||||
Operating Lease Agreement [Member] | Heilongjiang Yuxinqi Agricultural Technology Development Company Limited [Member] | China, Yuan Renminbi | ||||||||||
Annual lease payments | ¥ | ¥ 290,000 |
NON-CONTROLLING INTERESTS (Deta
NON-CONTROLLING INTERESTS (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2018 | |
Non-controlling interest | $ (21,750) | $ (21,750) | $ (32,826) | ||
Comprehensive income (loss) attributable to non-controlling interest | 85,726 | $ 286,479 | 11,076 | $ 286,479 | |
Comprehensive income (loss) attributable to shareholders' equity | $ (142,857) | $ (123,136) | $ (877,717) | $ (123,136) | |
Lvxin [Member] | |||||
Noncontrolling Interest, Ownership Percentage by Parent | 51.00% | 51.00% | 51.00% |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - Subsequent Event [Member] | 2 Months Ended |
Feb. 14, 2019USD ($)shares | |
Number of shares issue to one shareholder | shares | 5,000 |
Value of shares issue to one shareholder | $ | $ 6,500 |