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Investment in Joint Venture Company
12 Months Ended
Apr. 30, 2016
Investments, All Other Investments [Abstract]  
Investment in Joint Venture Company

NOTE 14 – INVESTMENT IN JOINT VENTURE COMPANY

 

Effective June 10, 2014, the Company owned a 19% equity interest in a joint venture company, Don Manuel (Shanghai) Investment Management Co. Ltd. (the “JV Company”), established in the Shanghai Tax Free Zone, to own, manage and operate Café De La Don Manuel branded coffee cafes throughout China. The agreement governing the creation and operation of the JV Company was dated May 27, 2014, and was valid until May 27, 2025. The registered capital of the JV Company is RMB 5 million (approximately $830,000). The Company’s share of the cash investment was $162,800 for the 19% equity interest. The Company paid $55,000 and the balance of $107,800 was payable in installments. The first café of the JV Company opened in October 2014 in the Bund area of Shanghai. Effective April 30, 2015, the Company relinquished its 19% equity interest in the JV Company due to disagreement with the JV Company shareholders. In addition, the Company forfeited $55,000 it paid as initial equity contribution. There are no additional payments to be made by the Company. For the years ended April 30, 2016 and 2015, the Company recorded $Nil and $55,000 as loss on investment in joint venture.