Note 20 - Restatements

12 Months Ended

Apr. 30, 2016

Notes

Note 20 - Restatements

NOTE 20 - RESTATEMENTS

During the course of internal evaluation, our accounting staff found classification errors in our previously reported financial statements for the fiscal year ended May 31, 2015 that required correction relating to balance sheet: (1) cash and cash equivalents, fixed deposits pledged with bank, other investment, deferred income, accounts payable and amount due to related parties.  The impacts of the changes reflected on a decrease in cash and cash equivalents by $4,261,755, an increase of fixed deposits pledged with bank by $3,223,718, an increase of other investment by $1,038,037, an increase in deferred income by $344,476, a decrease in accounts payable by $399,268 and an increase of amount due to related parties by $54,792. There were no changes in total asset, total liabilities and shareholders’ equity. (2) cash flow statement for the fiscal year ended May 31, 2015 that required to correction relating to an increase in deferred income of $344,476, a decrease in accounts payable $399,268, and a decrease in net cash provided by continuing operating activities by $54,792. Trust fund reflected on an increase of $1,038,037 and fixed deposits pledged with bank a decrease of $3,223,718. An increase of amount due to related parties by $54,792 and a decrease of Net cash used in continuing financing activities by $54,792.  The net cash provided by/(used in) continuing investing activities decreased by $4,261,755; the net increase/(decrease) in cash and cash equivalents decreased by $4,261,755; cash and cash equivalents at end of year decreased by $4,261,755. The details of the changes were reflected in the following items:

REDTONE ASIA INC.

BALANCE SHEETS (extract)

ITEMS	Original 2015	Restated 2015
Assets
Current assets
Cash and cash equivalents	$5,062,576	$800,821
Fixed deposits pledged with bank	-	3,223,718
Other investment	-	1,038,037
	5,062,576	5,062,576
Liabilities and stockholders’ equity
Liabilities
Current liabilities
Deferred income	794,435	1,138,911
Account payable	781,362	382,094
Amount due to related parties	2,033,852	2,088,644
	3,609,649	3,609,649

STATEMENTS OF CASH FLOWS (extract)

ITEMS	Original 2015	Restated 2015
Cash flows from operating activities
Decrease in deferred income	50,642	395,118
(Decrease) in accounts payable	(2,017,011)	(2,416,279)
Net cash provided by continuing operating activities	704,909	650,117
Cash flows from investing activities
Cash flows from investing activities – continuing operations
Increase in trust fund	-	(1,038,037)
Increase in fixed deposits pledged with bank	-	(3,223,718)
Net cash provided by/(used in) continuing investing activities	2,591,274	(1,670,481)
Cash flows from financing activities
Increase in amount due to related parties	148,993	203,785
Net cash used in continuing financing activities	(1,161,676)	(1,106,884)
Net increase/(decrease) in cash and cash equivalents
Continuing operations	2,134,507	(2,127,248)
Cash and cash equivalents at end of year
Continuing operations	5,062,576	800,821