10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10–Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2018

or

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______________ to ______________

Commission file number: 000-55276

Verde Resources, Inc.

(Exact name of registrant as specified in its charter)

Nevada	32-0457838
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

Block B-5, 20/F, Great Smart Tower, 230 Wanchai Road, Wanchai, Hong Kong

(Address of principal executive offices)

(852) 21521223

(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act (Check one).

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	x
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

As of May 15, 2018 there were 115,038,909 shares of the issuer's common stock, par value $0.001, outstanding.

VERDE RESOURCES, INC.

FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2018

TABLE OF CONTENTS

		PAGE
PART I - FINANCIAL INFORMATION
Item 1.	Financial Statements.	3
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations.	22
Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	30
Item 4.	Controls and Procedures.	30
PART II - OTHER INFORMATION
Item 1.	Legal Proceedings.	31
Item 1A.	Risk Factors.	31
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	31
Item 3.	Defaults Upon Senior Securities.	31
Item 4.	Mine Safety Disclosures.	31
Item 5.	Other Information.	31
Item 6.	Exhibits.	32
	SIGNATURES	33

2

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

VERDE RESOURCES, INC.

INDEX TO INTERIMCONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD OF ENDED MARCH 31, 2018

	Page
Condensed Consolidated Balance Sheets		4
Condensed Consolidated Statements of Operations		5
Condensed Consolidated Statements of Cash Flows		6
Notes to Condensed Consolidated Financial Statements		7

3

Verde Resources, Inc.

Condensed Consolidated Balance Sheets

	As at March 31,			As at June 30,
	2018			2017
	(Unaudited)			(Audited)
ASSETS
Current Assets
Cash and cash equivalents	$	33,720		$	38,616
Amount due from related parties		4,831			4,088
Inventories		20,523			8,832
Deposit & prepayment		3,081			2,352
Total Current Assets	$	62,155		$	53,888
Long Term Assets
Property, plant and equipment	$	9,442		$	23,388
Total Long Term Assets	$	9,442		$	23,388
TOTAL ASSETS	$	71,597		$	77,276
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities
Accounts payable	$	1,669,224		$	1,560,749
Advanced from related parties		818,723			728,634
Accrual		49,180			101,979
Taxation payable		4,591			3,758
Loans from banks		2,542			4,645
Total Current Liabilities	$	2,544,260		$	2,399,765
Long term Liabilities
Loans from banks (non-current)	$	861		$	2,466
Total Long Term Liabilities	$	861		$	2,466
TOTAL LIABILITIES	$	2,545,121		$	2,402,231
STOCKHOLDERS' DEFICIT
Preferred stock, par value $0.001, 50,000,000 shares authorized, none issued and outstanding		-			-
Common stock, par value $0.001, 10,000,000,000 shares authorized, 115,038,909 and 96,038,909 shares issued and outstanding as of March 31, 2018 & June 30, 2017 respectively	$	115,039		$	96,039
Additional paid-in capital		2,416,243			2,055,243
Accumulated deficit		(4,857,956	)		(4,628,182	)
Accumulated other comprehensive income (loss)		413,793			731,182
Non-controlled interest		(560,643	)		(579,237	)
Total Stockholders' Deficit	$	(2,473,524	)	$	(2,324,955	)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$	71,597		$	77,276

The accompanying notes are an integral part of these condensed consolidated financial statements.

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Verde Resources, Inc.

Condensed Consolidated Statements of Operations

	Three Months Ended March 31,						Nine Months Ended March 31,
	2018			2017			2018			2017
REVENUES
Revenue		14,422			136,508		$	57,945		$	693,511
Cost of revenue		(10,846	)		(231,953	)		(56,925	)		(868,003	)
Gross loss		3,576			(95,445	)		1,020			(174,492	)
OPERATING EXPENSES:
Selling, general & administrative expenses		(353,539	)		(40,723	)		(342,239	)		(236,762	)
LOSS FROM OPERATIONS		(349,963	)		(136,168	)	$	(341,219	)	$	(411,254	)
OTHER INCOME(EXPENSES)		71,475			34,281			130,039			82,025
NET LOSS BEFORE INCOME TAX		(278,488	)		(101,887	)	$	(211,180	)	$	(329,229	)
Provision of Income Tax		-			-			-			-
NET LOSS		(278,488	)		(101,887	)	$	(211,180	)	$	(329,229	)
Non-controlled interest		(11,022	)		11,923			(18,594	)		23,548
Net loss contributed to the group		(289,510	)		(89,964	)		(229,774	)		(305,681	)
Other comprehensive income(loss)
Foreign currency translation income(loss)		(140,701	)		66,141		$	(317,389	)	$	224,679
Comprehensive income(loss)	$	(430,211	)	$	(23,823	)	$	(547,163	)	$	(81,002	)
Basic and Diluted Loss per Common Share	$	(0.003	)	$	(0.001	)	$	(0.002	)	$	(0.003	)
Weighted Average Number of Common Shares Outstanding		98,188,544			94,478,690			98,188,544			94,478,690

The accompanying notes are an integral part of these condensed consolidated financial statements.

5

Verde Resources, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	March 31, 2018			March 31, 2017
Cash flows from operating activities:
Net loss	$	(211,180	)	$	(329,229	)
Adjustments to reconcile loss to net cash used in operations
Depreciation		15,645			100,899
Waiver of consultancy service fee		(17,435	)		-
Stock-based compensation		380,000			-
Changes in operating assets and liabilities
(Increase) decrease in:
Accounts receivable from related parties		(274	)		(687	)
Deposits and prepayment		-			(68	)
Inventory		(10,127	)		61,839
Other receivable		-			-
Increase (decrease) in:
Accounts payable		(42,875	)		37,447
Accrued liabilities		(54,771	)		(73,410	)
GST payable		(652	)		955
Advanced from sub-contractor & related parties		(25,584	)		26,132
Deposit received from customer		-			-
Net cash provided by (used in) operating activities		32,747			(176,122	)
Cash flows from investing activities:
Proceeds from disposal of plant and equipment		-			-
Addition of motor vehicle		-			-
Net cash provided by investing activities		-			-
Cash flows from financing activities:
Proceeds from bank loans		-			-
Repayments of bank loans		(4,253	)		(14,777	)
Shareholders' loans waived		-			-
Proceeds from issuance of common stock		-			190,000
Net cash (used in) provided by financing activities		(4,253	)		175,223
Net increase (decrease) in cash and cash equivalent		28,494			(899	)
Effect of exchange rate changes on cash		(33,390	)		33,730
Net increase (decrease) in cash and cash equivalents		(4,896	)		32,831
Cash and cash equivalents at beginning of period		38,616			16,113
Cash and cash equivalents at end of period	$	33,720		$	48,944
Supplementary cash flow information
Income taxes paid	$	-		$	-
Interest paid	$	167		$	746
Supplementary non-cash information
Reorganization		-			-
Issuance of common stock		-			-

The accompanying notes are an integral part of these condensed financial statements.

6

Verde Resources, Inc.

Notes to Condensed Consolidated Financial Statements

March 31, 2018

(Unaudited)

NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS

Verde Resources, Inc. (the "Company" or "VRDR") was incorporated on April 22, 2010, in the State of Nevada, U.S.A. The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America, and the Company's fiscal year end is June 30.

Gold Billion Global Limited ("Gold Billion" or "GBL") was incorporated in British Virgin Islands on February 7, 2013. GBL was setup by the Board of Directors of Federal Mining Resources Limited ("FMR"). The major operation of GBL is to manage and monitor the mineral exploration and mining projects of FMR.

On July 1, 2013, FMR assigned its rights and obligation on Champmark Sdn Bhd ("CSB") to GBL. Four of the five members of CSB Board of Directors were appointed by FMR, with two of the GBL Board of Directors currently sitting on the CSB Board. According to ASC 810-05-08 A, CSB is a deemed subsidiary of GBL, where it has controlled the CSB Board of Directors, has assigned rights to receive future benefits and residual value, and obligations to absorb loss and finance for CSB by GBL. GBL has the power to direct the activities of CSB that most significantly impact CSB's economic performance and the obligation to absorb losses of CSB that could potentially be significant to the CSB or the right to receive benefits from CSB that could potentially be significant to CSB. GBL is the primary beneficiary of CSB because it has been assigned with all relevant rights and obligation and can direct the activities of CSB through the common directors and the 85% shareholder, FMR. Under 810-23-42, 43, it is determined that CSB is de-facto agent of GBL and GBL is the de-facto principal of CSB. GBL started to consolidate CSB from July 1, 2013, and the Company consolidated GBL and CSB from October 25, 2013, onwards.

On February 17, 2014, the Company entered into a Supplementary Agreement to the Assignment Agreement and completed an acquisition of GBL pursuant to the Supplementary Agreement. The acquisition was a reverse acquisition in accordance with ASC 805-40 "Reverse Acquisitions". The legal parent was VRDR which was the accounting acquiree while GBL was the accounting acquirer. There was a 15% non-controlling interest of Champmark SDN BHD ("CSB") after the acquisition. This transaction was accounted for as a recapitalization effected by a share exchange, wherein GBL with its 85% deemed subsidiary CSB was considered the acquirer for accounting and financial reporting purposes. The assets and liabilities of the acquired entity have been brought forward at their book value and no goodwill has been recognized.

As a result of the acquisition, the Company holds 100% equity interest in GBL and 85% variable interest in CSB. Our consolidated subsidiaries include GBL being our wholly-owned subsidiary and 85% of CSB being a variable interest entity (VIE) and deemed subsidiary of GBL.

On March 17, 2014, the Company through GBL and its deemed subsidiary CSB entered into a Sub-Contract Agreement with Borneo Oil & Gas Corporation Sdn Bhd ("BOG") for the engagement of its sub-contractor services to carry out exploration and exploitation works on alluvial and lode gold resources at Site IV-1 of the Merapoh Mine. The Sub-Contract Agreement is for a period of 5 years with a renewal for another 5 years subject to review by both parties. BOG is a wholly-owned subsidiary of Borneo Oil Berhad (BOB) which is listed on the main market of Kuala Lumpur Stock Exchange. BOG being a local company in Malaysia provides the Company with the advantage of local knowledge and well-established connection in dealing with the relevant local authorities in our mining operations.

On April 1, 2014, GBL purchased 85% equity interest of CSB, and CSB became indirect subsidiary of the Company.

Effective August 27, 2014, the Company's Articles of Incorporation were amended to increase the authorized shares of the Company from 100,000,000 shares of common stock to 250,000,000 shares of common stock. A copy of the Certificate of Amendment was filed with the Nevada Secretary of State. The Form 8K announcing the increase of the authorized shares of the Company was filed with SEC on September 15, 2014.

Effective February 20, 2016, Mr. Wu Ming Ding resigned all of his positions as President and Director of the Company with Mr. Balakrishnan B S Muthu being appointed President to fill the vacancy created. Effective February 20, 2016, Mr. Chen Ching was appointed Director of the Company and the entire Board of Directors now consists of Mr. Balakrishnan B S Muthu and Mr. Chen Ching. The SC 14F1 and Form 8-K announcing the change in officers and directors were filed with SEC on February 10, 2016 and February 22, 2016 respectively.

  

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Effective February 2, 2018, the Company's Articles of Incorporation were amended to increase the authorized shares of the Company from 250,000,000 shares of common stock to 10,000,000,000 shares of common stock. A copy of the Certificate of Amendment was filed with the Nevada Secretary of State. The Form 8K announcing the increase of the authorized shares of the Company was filed with SEC on February 6, 2018.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Condensed Consolidated Financial Statements

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. The results of operations for the periods ended March 31, 2018 are not necessarily indicative of the operating results for the full years.

Basis of Presentation

The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (GAAP). These condensed consolidated financial statements are expressed in United States dollars ($). Financial statements prepared in accordance with GAAP contemplate the realization of assets and the satisfaction of liabilities in the normal course of business. These condensed consolidated audited financial statements include all adjustments that, in the opinion of management, are necessary in order to make the financial statements not misleading.

Basis of Consolidation

The condensed consolidated financial statements include the financial statements of Verde Resources, Inc., its wholly owned subsidiary Gold Billion Global Limited ("GBL") and the 85% of the deemed subsidiary variable interest of Champmark SDN BHD ("CSB"). All inter-company balances and transactions between the Company and variable interest entity (VIE) have been eliminated upon consolidation.

The Company has adopted ASC Topic 810-10-5-8, "Variable Interest Entities", which requires a variable interest entity or VIE to be consolidated by a company if that company is subject to a majority of the risk of loss for the VIE or is entitled to receive a majority of the VIE's residual returns.

Variable Interest Entity

On July 1, 2013, the Company's subsidiary, GBL entered into a series of agreements ("VIE agreements") with FMR and details of the VIE agreements are as follows :

1.	Management Agreement, FMR entrusted the management rights of its subsidiary CSB to GBL that include:
	i)	management and administrative rights over the day-to-day business affairs of CSB and the mining operation at Site IV-1 of the Merapoh Gold Mine;
	ii)	final right for the appointment of members to the Board of Directors and the management team of CSB;
	iii)	act as principal of CSB;
	iv)	obligation to provide financial support to CSB;
	v)	option to purchase an equity interest in CSB;
	vi)	entitlement to future benefits and residual value of CSB;
	vii)	right to impose no dividend policy;
	viii)	human resources management.
2.	Debt Assignment, FMR assigned to GBL the sum of money in the amount of US Dollars One Hundred Nine Thousand Eight Hundred One And Cents Seventy-Two Only (US$ 109,801.72), now due to GBL from CSB under the financing obligation from the FMR to CSB.

With the above agreements, GBL demonstrates its ability to control CSB as the primary beneficiary and the operating results of the VIE was included in the condensed consolidated financial statements for the year ended June 30, 2014.

On April 1, 2014, the Board of Director of GBL notified FMR upon the decision to exercise the right of option to purchase 85% equity interest of CSB under Management Agreement Section 3.2.4 dated July 1, 2013 between GBL and FMR. This acquisition was completed on April 1, 2014 with consideration of US$1. GBL then became 85% shareholder of CSB and is required to consolidate CSB as a subsidiary.

8

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company's periodic filings with the Securities and Exchange Commission include, where applicable, disclosures of estimates, assumptions, uncertainties and markets that could affect the financial statements and future operations of the Company.

Cash and Cash Equivalents

Cash and cash equivalents include cash in banks, money market funds, and certificates of term deposits with maturities of less than three months, which are readily convertible to known amounts of cash and which, in the opinion of management, are subject to an insignificant risk of loss in value. The Company had $33,720 and $38,616 in cash and cash equivalents at March 31, 2018 and June 30, 2017, respectively.

Concentrations of Credit Risk

The Company's financial instruments that are exposed to concentrations of credit risk primarily consist of its cash and cash equivalents and related party payables it will likely incur in the near future. The Company places its cash and cash equivalents with financial institutions of high credit worthiness. At times, its cash and cash equivalents with a particular financial institution may exceed any applicable government insurance limits. The Company's management plans to assess the financial strength and credit worthiness of any parties to which it extends funds, and as such, it believes that any associated credit risk exposures are limited.

Risks and Uncertainties

The Company operates in the resource exploration industry that is subject to significant risks and uncertainties, including financial, operational, technological, and other risks associated with operating a resource exploration business, including the potential risk of business failure.

Accounts Receivable

Accounts receivable are recognized and carried at net realizable value. An allowance for doubtful accounts will be recorded in the period when a loss is probable based on an assessment of specific evidence indicating troubled collection, historical experience, accounts aging, ongoing business relation and other factors. Accounts are written off after exhaustive efforts at collection. If accounts receivable are to be provided for, or written off, they would be recognized in the consolidated statement of operations within operating expenses. At and, the Company has no allowance for doubtful accounts, as per management's judgment based on their best knowledge. As of March 31, 2018 and June 30, 2017, the longest credit term for certain customers are 60 days.

Provision for Doubtful Accounts

The Company maintains an allowance for doubtful accounts to reserve for potentially uncollectible receivables and reviews accounts receivable by amounts due by customers which are past due to identify specific customers with known disputes or collectability issues. In determining the amount of the reserve, the Company makes judgments about the creditworthiness of customers based on past collection experience and ongoing credit risk evaluations. At March 31, 2018 and June 30, 2017 there was no allowance for doubtful accounts.

Fair Value

ASC Topic 820 "Fair Value Measurement and Disclosures" establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market.

9

These tiers include:

● Level 1—defined as observable inputs such as quoted prices in active markets;

● Level 2—defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and

● Level 3—defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

The Company's financial instruments consist of cash and cash equivalents, trade receivables, other receivables, payables, and short term and long term debt. The carrying values of cash and cash equivalents, trade receivables, other receivables, and payables approximate their fair value due to their short maturities. The carrying value of long term debt approximates the fair value of debt of similar terms and remaining maturities available to the company.

The Company's non-financial assets are measured on a recurring basis. These non-financial assets are measured for impairment annually on the Company's measurement date at the reporting unit level using Level 3 inputs. For most assets, ASC 820 requires that the impact of changes resulting from its application be applied prospectively in the year in which the statement is initially applied.

The Company's non-financial assets measured on a non-recurring basis include the Company's property, plant and equipment and finite-use intangible assets which are measured for recoverability when indicators for impairment are present. ASC 820 requires companies to disclose assets and liabilities measured on a non-recurring basis in the period in which the re-measurement at fair value is performed.

The Company did not have any convertible bonds as of March 31, 2018 and June 30, 2017.

Foreign Currency Translation

The Company's reporting currency is the United States dollar ("$") and the accompanying consolidated financial statements have been expressed in United States dollars. The Company's functional currency is the Malaysian Ringgit ( "MYR") which is a functional currency as being the primary currency of the economic environment in which their operations are conducted.

In accordance with ASC Topic 830 "Translation of Financial Statements" , capital accounts of the consolidated financial statements are translated into United States dollars from MYR at their historical exchange rates when the capital transactions occurred. Assets and liabilities are translated at the exchange rates as of balance sheet date. Income and expenditures are translated at the average exchange rate of the respective year. The resulting exchange differences are recorded in the consolidated statement of operations.

	March 31, 2018		June 30, 2017
Period-end MYR : $1 exchange rate		0.2588		0.2329
Average MYR : $1 exchange rate		0.2447		0.2338

Comprehensive Income

Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income are required to be reported in a financial statement that is presented with the same prominence as other financial statements. Comprehensive income includes net income and the foreign currency translation changes.

10

Segment Reporting

The Company currently engages in one operation segment: Gold Mining. The expenses incurred were consisting principally of management services. The Company's major operation is located in Malaysia.

Mineral Acquisition and Exploration Costs

The Company has been primarily engaged in the acquisition, exploration, and development of mining properties. The Company was no longer considered an exploration stage company after the reverse take-over with its subsidiary GBL.

Mineral property acquisition and exploration costs are expensed as incurred. When it has been determined that a mineral property can be economically developed as a result of establishing proven and probable reserves, the costs incurred to develop such property are capitalized. Such costs will be amortized using the units-of-production method over the estimated life of the probable reserves.

Environmental Expenditures

The operations of the Company have been, and may in the future be, affected from time to time in varying degree by changes in environmental regulations, including those for future reclamation and site restoration costs. Both the likelihood of new regulations and their overall effect upon the Company vary greatly and are not predictable. The Company's policy is to meet or, if possible, surpass standards set by relevant legislation by application of technically proven and economically feasible measures.

Environmental expenditures that relate to ongoing environmental and reclamation programs are charged against earnings as incurred or capitalized and amortized depending on their future economic benefits. All of these types of expenditures incurred since inception have been charged against earnings due to the uncertainty of their future recoverability. Estimated future reclamation and site restoration costs, when the ultimate liability is reasonably determinable, are charged against earnings over the estimated remaining life of the related business operation, net of expected recoveries.

Revenue Recognition

In accordance with the ASC Topic 605, "Revenue Recognition", the Company recognizes revenue when persuasive evidence of an arrangement exists, transfer of title has occurred or services have been rendered, the selling price is fixed or determinable and collectibility is reasonably assured.

The Company derives revenues primarily from the sales of gold mineral to registered gold trading companies in Malaysia. The Company generally recognizes its revenues at the time of gold sales and its selling price is determined by the prevailing market value of gold bullion quoted by the leading registered gold trading company in Malaysia. Sales invoice will be duly presented to the trading companies when delivery is completed and revenue is then recognized.

Cost of Revenue

The cost of revenue consists of exploration cost, mine equipment depreciation, production cost, mine site management cost, sub-contractor cost, and royalty and tribute payment which are levied on the gross revenue at the rate of 18% on the invoiced value of gold sales.

Advertising Expenses

Advertising costs are expensed as incurred under ASC Topic 720, "Advertising Costs" . Advertising expenses incurred for the periods ended March 31, 2018 and June 30, 2017 were $0.

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Income Taxes

The provision for income taxes is determined in accordance with the provisions of ASC Topic 740, "Accounting for Income Taxes" ("ASC 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 years 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. As of March 31, 2018 and June 30, 2017, the Company did not have any significant unrecognized uncertain tax positions.

Recent Accounting Pronouncements

The FASB has issued Accounting Standards Update No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business , clarifying the definition of a business. The amendments affect all companies and other reporting organizations that must determine whether they have acquired or sold a business.

The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The amendments are intended to help companies and other organizations evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments provide a more robust framework to use in determining when a set of assets and activities is a business. They also provide more consistency in applying the guidance, reduce the costs of application, and make the definition of a business more operable.

For public companies, the amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those periods. For all other companies and organizations, the amendments are effective for annual periods beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019.

The FASB has issued Accounting Standards Update (ASU) No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.

To simplify the subsequent measurement of goodwill, the amendments eliminate Step 2 from the goodwill impairment test. The annual, or interim, goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In addition, income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable.

The amendments also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary.

The amendments should be applied on a prospective basis. The nature of and reason for the change in accounting principle should be disclosed upon transition.

A public business entity that is a U.S. Securities and Exchange Commission (SEC) filer should adopt the amendments for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019.

A public business entity that is not an SEC filer should adopt the amendments for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2020.

All other entities, including not-for-profit entities, which adopt the amendments should do so for their annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2021.

Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. 

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The FASB has issued Accounting Standards Update No. 2017-05, Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets.

A contract may involve the transfer of both nonfinancial assets and financial assets (e.g., cash and receivables). The amendments clarify that a financial asset is within the scope of Subtopic 610-20 if it meets the definition of an in substance nonfinancial asset. The amendments also define the term in substance nonfinancial asset.

The amendments clarify that nonfinancial assets within the scope of Subtopic 610-20 may include nonfinancial assets transferred within a legal entity to a counterparty. For example, a parent may transfer control of nonfinancial assets by transferring ownership interests in a consolidated subsidiary. A contract that includes the transfer of ownership interests in one or more consolidated subsidiaries is within the scope of Subtopic 610-20 if substantially all of the fair value of the assets that are promised to the counterparty in a contract is concentrated in nonfinancial assets.

The amendments clarify that an entity should identify each distinct nonfinancial asset or in substance nonfinancial asset promised to a counterparty and derecognize each asset when a counterparty obtains control of it.

The amendments are effective at the same time Topic 606, Revenue from Contracts with Customers is effective. For public entities, the amendments are effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. For all other entities, the amendments are effective for annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019.

The FASB has issued Accounting Standards Update (ASU) No. 2018-01, Leases (Topic 842):Land Easement Practical Expedient for Transition to Topic 842, which clarifies the application of the new leases guidance to land easements and eases adoption efforts for some land easements.

ASU 2018-01 is expected to reduce the cost of adopting the new leases standard for certain land easements. It is also an attempt to help ensure that companies can make a successful transition to the standard without compromising the quality of information provided to investors about these transactions. Land easements (also commonly referred to as rights of way) represent the right to use, access, or cross another entity’s land for a specified purpose. Land easements are used by utility and telecommunications companies, for example, when they need to take a small strip of land, or easement, to bury wires. Not all companies have historically accounted for them as leases. Stakeholders pointed out that the requirement to evaluate all old and existing land easements, sometimes numbering in the tens of thousands, to determine if they meet the definition of a lease under the new standard could be very costly. They also noted there would be limited benefit to applying this requirement, as many of their land easements would not meet the definition of a lease, or even if they met that definition, many of their easements are prepaid and, therefore, already are recognized on the balance sheet.

The land easements ASU addresses this by:

· Providing an optional transition practical expedient that, if elected, would not require an organization to reconsider their accounting for existing land easements that are not currently accounted for under the old leases standard; and

· Clarifying that new or modified land easements should be evaluated under the new leases standard, once an entity has adopted the new standard.

The FASB issued an Accounting Standards Update (ASU) that helps organizations address certain stranded income tax effects in accumulated other comprehensive income (AOCI) resulting from the Tax Cuts and Jobs Act.

ASU No. 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, provides financial statement preparers with an option to reclassify stranded tax effects within AOCI to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act (or portion thereof) is recorded.

13

The ASU requires financial statement preparers to disclose:

· A description of the accounting policy for releasing income tax effects from AOCI;

· Whether they elect to reclassify the stranded income tax effects from the Tax Cuts and Jobs Act; and

· Information about the other income tax effects that are reclassified.

The amendments affect any organization that is required to apply the provisions of Topic 220, Income Statement—Reporting Comprehensive Income, and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income as required by GAAP. The amendments are effective for all organizations for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. Organizations should apply the proposed amendments either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized.

Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on our consolidated financial statements upon adoption.

NOTE 3 - CASH AND CASH EQUIVALENT

The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. At March 31, 2018 and June 30, 2017 cash and cash equivalents consisted of bank deposits in Malaysia bank and petty cash on hands.

NOTE 4 - AMOUNT DUE FROM RELATED PARTIES

Amount due from related parties at March 31, 2018 and June 30, 2017 consist of the following items:

	March 31, 2018		June 30, 2017
Amount due from Stable Treasure Sdn. Bhd. (*)	$	4,831	$	4,088

(*) One of the directors of Stable Treasure Sdn. Bhd., Mr. Balakrishnan B S Muthu is also the director of the Company. The advances related to ordinary business transactions and bear no interest or collateral, repayable and renewable under normal business advancement terms.

NOTE 5 - INVENTORIES

Inventories are valued at cost, not in excess of market. Inventories are determined at first in first out basis and comprised of production cost, mine site management cost and sub-contractor cost. Inventories, at March 31, 2018 and June 30, 2017 are summarized as follows:

	March 31, 2018		June 30, 2017
Inventories	$	20,523	$	8,832

The inventories represent the gold minerals as at March 31, 2018 and June 30, 2017, which were comprised of 8% share by the Company and 92% share by the sub-contractor and the other parties such as original mine assigner.

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NOTE 6 - ACCOUNTS PAYABLE AND ADVANCED FROM RELATED PARITES

Accounts Payable

Accounts payable at March 31, 2018 and June 30, 2017 consist of the following items:

	March 31, 2018		June 30, 2017
Due to Changxin Wanlin Technology Co Ltd(*)	$	1,668,173	$	1,501,406
Other accounts payable		1,051		59,343
	$	1,669,224	$	1,560,749

(*) Due to Changxin Wanlin Technology Co Ltd are accounts payable derived from ordinary business transactions. One of the directors of Changxin Wanlin Technology Co. Ltd., Mr. Wu Ming Ding, has resigned as director of VRDR (as of February 20, 2016), GBL (as of February 11, 2016) and CSB (as of February 17, 2016). This accounts payable bears no interest or collateral, repayable and renewable under normal business accounts payable terms.

Advanced from related parties

 Advanced from related parties at March 31, 2018 and June 30, 2017, consist of the following items:

	March 31, 2018		June 30, 2017
Advanced from BOG (#1)	$	502,258	$	430,169
Advanced from Federal Mining Resources Limited(#2)	$	173,465	$	173,465
Advanced from Federal Capital Investment Limited (#3)	$	116,000	$	98,000
Advanced from Yorkshire Capital Limited (#4)	$	27,000	$	27,000
	$	818,723	$	728,634

(#1) BOG is one of the shareholders of the Company. The advances are related to ordinary business transactions and bear no interest or collateral, repayable and renewable under normal business advancement terms.

(#2) One of the directors of Federal Mining Resources Limited, Mr. Chen Ching, has been appointed as director of the Company effective February 20, 2016. Another director of Federal Mining Resources Limited, Mr. Wu Ming Ding, has resigned as director of the Company effective February 20, 2016. The advances are related to ordinary business transactions and bear no interest or collateral, repayable and renewable under normal business advancement terms.

(#3) One of the directors of Federal Capital Investment Limited, Mr. Wu Ming Ding, has resigned as director of the Company effective February 20, 2016. The advances are related to ordinary business transactions and bear no interest or collateral, repayable and renewable under normal business advancement terms.

(#4) One of the directors of Yorkshire Capital Limited, Mr. Lai Kui Shing, Andy, has resigned as director of CSB effective February 17, 2016. The advances are related to ordinary business transactions and bear no interest or collateral, repayable and renewable under normal business advancement terms.

15

NOTE 7 - PROPERTY, PLANT AND EQUIPMENT

Property and equipment at March 31, 2018 and June 30, 2017 are summarized as follows:

	March 31, 2018			June 30, 2017
Land and Building	$	1,017,702		$	915,962
Plant and Machinery		160,292			144,268
Office equipment		20,378			18,340
Project equipment		1,154,079			1,038,707
Computer		11,084			9,976
Motor Vehicle		119,308			107,381
Accumulated depreciation		(2,473,401	)		(2,211,246	)
	$	9,442		$	23,388

The depreciation expenses charged for the period ended March 31, 2018 and 2017 was $15,645 and $100,899.

NOTE 8 - LOANS FROM BANKS (HIRE PURCHASE INSTALLMENT LOANS)

The loans from banks include long term and short term and are summarized as follow:

	March 31, 2018		June 30, 2017
Loans from banks	$	2,542	$	4,645
Loans from banks(non-current)		861		2,466
Total	$	3,403	$	7,111

Hire purchase installment loans with total amount $3,522 and $7,533 as at March 31, 2018 and June 30, 2017 are $3,403 and $7,111 net of imprest charges equivalent to interest $119 and $422 are summarized as follows:

	Interest Rate	Monthly Due		March 31, 2018		June 30, 2017
Financial institution in Malaysia	N/A*	$	1,514	$	-	$	1,514
Financial institution in Malaysia	N/A*		266		-		1,059
Financial institution in Malaysia	N/A*		221		3,522		4,960
Hire purchase loans payable to banks				$	3,522	$	7,533

(*) Hire purchase installment loans with Motor Vehicles as collateral. The financial institutions in Malaysia are Islamic banks and bear no interest in the installment agreement. However, there are certain imprest charges equivalent to interests which are being calculated at an average annual rate of approximate 3.50% for the entire loans life and periods.

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The scheduled maturities of the CSL's hire purchase installment loans are as follows:

March 31,
2019		2,652
2020		870
2021		-
2022		-
Later years		-
Total minimum hire purchase installment payment	$	3,522
Less: Amount representing imprest charges equivalent to interest (current portion: $110 and non-current portion: $9)		(119	)
Present value of net minimum lease payments (#)	$	3,403

(#) Minimum payment reflected in the balance sheet as current and noncurrent obligations under hire purchases installment loans as at March 31, 2018.

NOTE 9 - INCOME TAX

The Company and its subsidiaries are subject to income taxes on an entity basis on income arising in, or derived from, the tax jurisdiction in which they operate. The Company is a Nevada incorporated company and subject to United State Federal Income Tax. The Tax Cuts and Jobs Act of (“TCJ Act”) was signed into law in December 2017, and among its many provisions, it imposed a mandatory one-time transition tax on undistributed international earnings and reduced the U.S. corporate income tax rate to 21%, effective January 1, 2018. No provision for income taxes in the United States has been made as the Company had no taxable income for the periods ended March 31, 2018 and 2017. GBL is a British Virgin Islands incorporated company and not required to pay income tax on corporate income. CSB is a Malaysia incorporated company and required to pay corporate income tax at 25% of taxable income.

A reconciliation between the income tax computed at the relevant statutory rate and the Company's provision for income tax is as follows:

	Period ended
	March 31, 2018			June 30, 2017
US Federal Income Tax Rate.		34	%		34	%
Valuation allowance – US Rate		(34	)%		(34	)%
BVI Income Tax Rate		0	%		0	%
Valuation allowance – BVI Rate		(0	)%		(0	)%
Malaysia Income Tax Rate		25	%		25	%
Valuation allowance – Malaysia Rate		(25	)%		(25	)%
Provision for income tax		-			-

Summary of the Company's net deferred tax liabilities and assets are as follows:

	March 31, 2018			June 30, 2017
Deferred tax assets:
Tax attribute carryforwards	$	82,491		$	114,774
Valuation allowances		(82,491	)		(114,774	)
Total	$	-		$	-

The Company has recorded valuation allowances for certain tax attribute carry forwards and other deferred tax assets due to uncertainty that exists regarding future realizability. If in the future the Company believes that it is more likely than not that these deferred tax benefits will be realized, the majority of the valuation allowances will be recognized in the consolidated statement of operations. The Company did not have any interest and penalty provided or recognized in the income statements for period March 31, 2018 and June 30, 2017 or balance sheet as of March 31, 2018 and June 30, 2017. The Company did not have uncertainty tax positions or events leading to uncertainty tax position within the next 12 months.

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NOTE 10 - COMMITMENTS AND CONTINGENCIES

As at March 31, 2018, the Company's hire purchase installment agreements are disclosed in Note 8. See Note 8 for the commitments for minimum installment payments under these agreements.

NOTE 11 - EARNINGS/(LOSS) PER SHARE

The Company has adopted ASC Topic No. 260, "Earnings Per Share," ("EPS") which requires presentation of basic and diluted EPS on the face of the income statement for all entities with complex capital structures, and requires a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation. In the accompanying financial statements, basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period.

The following table sets forth the computation of basic and diluted earnings per share:

	Three Months Ended March 31,
	2018			2017
Net loss applicable to common shares	$	(289,510	)	$	(89,964	)
Weighted average common shares outstanding (Basic)		98,188,544			94,478,690
Options		-			-
Warrants		-			-
Weighted average common shares outstanding (Diluted)		98,188,544			94,478,690
Net loss per share (Basic and Diluted)	$	(0.003	)	$	(0.001	)

	Nine Months Ended March 31,
	2018			2017
Net loss applicable to common shares	$	(229,774	)	$	(305,681	)
Weighted average common shares outstanding (Basic)		98,188,544			94,478,690
Options		-			-
Warrants		-			-
Weighted average common shares outstanding (Diluted)		98,188,544			94,478,690
Net loss per share (Basic and Diluted)	$	(0.002	)	$	(0.003	)

The Company has no potentially dilutive securities, such as options or warrants, currently issued and outstanding.

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NOTE 12 - CAPITAL STOCK

Authorized Stock

The Company has authorized 10,000,000,000 common shares and 50,000,000 preferred shares, both with a par value of $0.001 per share. Each common share entitles the holder to one vote, in person or proxy, on any matter on which action of the stockholders of the corporation is sought.

Effective February 2, 2018, the Company's Articles of Incorporation were amended to increase the authorized shares of the Company from 250,000,000 shares of common stock to 10,000,000,000 shares of common stock. A copy of the Certificate of Amendment was filed with the Nevada Secretary of State. The Form 8K announcing the increase of the authorized shares of the Company was filed with SEC on February 6, 2018.

Share Issuance

On January 29, 2014, the Company issued a total of 643,229 common shares for $665,238, of which 288,288 common shares at US$1.25 per share, 183,661 common shares at US$0.83 per share and 171,280 common shares at US$0.89 per share, to Borneo Oil & Gas Corporation Sdn Bhd ("BOG"), a Malaysia Limited Liability Company, under the terms of the Sub-Contractor Agreement for the engagement of its sub-contractor services.

On March 10, 2014, the Company issued a total of 693,180 common shares for $609,756, of which 179,340 common shares at US$0.85 per share and 513,840 common shares at US$0.89 per share, to Borneo Oil & Gas Corporation Sdn Bhd ("BOG"), a Malaysia Limited Liability Company, under the terms of the Sub-Contractor Agreement for the engagement of its sub-contractor services.

On January 21, 2015, the Company issued 5,900,000 common shares at US$0.05 per share to Borneo Oil & Gas Corporation Sdn Bhd ("BOG"), a Malaysia Limited Liability Company, under the terms of the Consultant Agreement for the additional services of its sub-contractor.

On September 29, 2016, the Company issued a total of 4,750,000 common shares at US$0.04 per share, of which 2,375,000 common shares to Vincent Lee Sen Min and 2,375,000 common shares to Reggie Abraham, both are Malaysian citizens.

On March 1, 2018, the Company issued a total of 10,000,000 common shares at US$0.02 per share to each of the two directors, of which 5,000,000 common shares to Balakrishnan B S Muthu and 5,000,000 common shares to Chen Ching. An aggregate of $200,000 for this transaction was recognized as stock-based compensation under selling, general and administrative expenses during the three and six months ended March 31, 2018.

On March 1, 2018, the Company issued a total of 9,000,000 common shares at US$0.02 per share to three consultants under the Consultant Agreements, of which 5,000,000 common shares to Vincent Yong Tuck Seng, 2,500,000 common shares to Georgia Suzanne Lingam and 1,500,000 common shares to Liu Jiew Shin, all are Malaysian citizens. An aggregate of $180,000 for this transaction was recognized as stock-based compensation under selling, general and administrative expenses during the three and six months ended March 31, 2018.

There were 115,038,909 and 96,038,909 common shares issued and outstanding at March 31, 2018 and June 30, 2017 respectively.

There are no preferred shares outstanding. The Company has issued no authorized preferred shares. The Company has no stock option plan, warrants, or other dilutive securities.

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NOTE 13 - RELATED PARTY TRANSACTIONS

As of March 31, 2018, advances were made by five companies of $2,486,896 related to ordinary business transactions. All advances related to ordinary business transactions, bear no interest or collateral, repayable and renewable under normal advancement terms. Details are disclosed in Note 6.

As of March 31, 2018, amounts due from one company of $4,831 related to ordinary business transactions. The receivable amounts related to ordinary business transactions bear no interest or collateral, repayable and renewable under normal advancement terms. Details are disclosed in Note 4.

During the period ended March 31, 2018, the Company received other income of $69,034 from BOG.

During the period ended March 31, 2018, the Company incurred cost of revenue worth of $42,880 to BOG.

NOTE 14 - GOING CONCERN AND LIQUIDITY CONSIDERATIONS

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. As of and for the period ended March 31, 2018, the Company had a net loss of $211,180 and working capital deficiency of $2,482,105. The Company intends to fund operations through debt and equity financing arrangements, which may be insufficient to fund its capital expenditures, working capital and other cash requirements for the period ending March 31, 2018 and subsequently.

The ability of the Company to survive is dependent upon, among other things, obtaining additional financing to continue operations, and development of its business plan.

In response to these problems, management intends to raise additional funds through public or private placement offerings, and related party loans.

These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.

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NOTE 15 - CONCENTRATIONS

Suppliers

The Company's major suppliers for the period ended March 31, 2018 and 2017 are listed as following:

Subcontractors

Accounts Payable

Nine

Nine

Months

Months

Ended

Ended

Major Suppliers

March 31, 2018

March 31, 2017

March 31, 2018

March 31, 2017

Company A

100

%

100

%

0

%

0

%

Customers

The Company's major customers for the period ended March 31, 2018 and 2017 are listed as following:

	Sales						Accounts Receivable
	Nine			Nine
	Months			Months
	Ended			Ended
Major Customers	March 31, 2018			March 31, 2017			March 31, 2018			March 31, 2017
Company M		0	%		5	%		0	%		0	%
Company N		0	%		1	%		0	%		0	%
Company O		100	%		94	%		0	%		0	%

NOTE 16 - SUBSEQUENT EVENTS

The Company has evaluated subsequent events from the balance sheet date through the date the financial statements were issued and determined that there are no additional items to disclose.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Forward-Looking Statements

Except for historical information, this report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve risks and uncertainties, including, among other things, statements regarding our business strategy, future revenues and anticipated costs and expenses. Such forward-looking statements include, among others, those statements including the words “expects,” “anticipates,” “intends,” “believes” and similar language. Our actual results may differ significantly from those projected in the forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, those discussed herein as well as in the “Description of Business – Risk Factors” section in our Annual Report on Form 10-K, as filed on September 30, 2013. You should carefully review the risks described in our Annual Report and in other documents we file from time to time with the Securities and Exchange Commission. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this report. We undertake no obligation to publicly release any revisions to the forward-looking statements or reflect events or circumstances after the date of this document.

Although we believe that the expectations reflected in these forward-looking statements are based on reasonable assumptions, there are a number of risks and uncertainties that could cause actual results to differ materially from such forward-looking statements.

All references in this Form 10-Q to the “Company,” “Verde Resources,” “we,” “us,” or “our” are to Verde Resources, Inc.

Business Overview

The Company is a Nevada corporation that conducts business operations in Pahang Malaysia through Champmark Sdn Bhd (“CSB”), a privately limited liability company incorporated in Malaysia which is a deemed subsidiary under the management control of our 100% subsidiary GBL.

On October 25, 2013, we entered into an Assignment Agreement For the Assignment of Management Right in Merapoh Gold Mines in Malaysia (“Assignment Agreement”) with Federal Mining Resources Limited (“FMR”), a company incorporated under the laws of the British Virgin Islands.

FMR owns 85% equity interest in CSB, a privately limited liability company incorporated in Malaysia. CSB is the Mining Contractor of the Mining Lease for Site IV-1 at the Merapoh Gold Mine under the Contract for Work with MMC Corporation Berhad, the Permit Holder of the Mining Lease.

Under the terms of the Assignment Agreement, FMR assigned its management rights of CSB’s mining operation in the Mining Lease to the Company, through its wholly-owned subsidiary Gold Billion Global Limited (“GBL”), in exchange for 80,000,000 shares of the Company’s common stock, which constituted 95.26% of our issued and outstanding capital stock as of and immediately after the consummation of the acquisition.

GBL was established on February 7, 2013, by the Board of Directors of FMR to monitor the CSB operation. The acquisition of 100% of the issued and outstanding capital stock of GBL was agreed upon on October 18, 2013, and completed on October 25, 2013, subject to the approval of the Board of Directors and the audit of GBL.

On February 17, 2014, we entered into a Supplementary Agreement to the Assignment Agreement and completed a reverse acquisition of GBL pursuant to the Supplementary Agreement. As a result of the acquisition, the Company holds 100% equity interest in GBL and 85% variable interest in CSB. Our consolidated subsidiaries include GBL being our wholly-owned subsidiary and 85% of CSB being a variable interest entity (VIE) and deemed subsidiary of GBL. On April 1, 2014, GBL purchased 85% equity interest of CSB, and CSB became indirect subsidiary of the Company.

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Corporate History and Structure

Verde Resources, Inc. was incorporated on April 22, 2010, in the State of Nevada, U.S.A. On October 17, 2013, Stephen Spalding and Michael Stiege resigned from all of their positions as officers and directors of the Company. In addition, the following persons were appointed to serve as directors and to assume the responsibilities of officers on October 17, 2013. Mr. Wu Ming Ding, as President and Director; Mr. Balakrishnan B S Muthu as Treasurer, Chief Financial Officer General Manager and Director; and Mr. Liang Wai Keen as Secretary. Mr. Wu and Mr. Muthu were added to the Board of Directors.

On April 1, 2014, the Board of Directors of Gold Billion Global Limited (“GBL”) notified Federal Mining Resources Limited (“FMR”) upon the decision to exercise the right of option to purchase 85% equity interest of Champmark Sdn Bhd (“CSB”) under Management Agreement Section 3.2.4 dated July 1, 2013, between GBL and FMR. This acquisition was completed on April 1, 2014, with consideration of US$1, and GBL then became 85% shareholder of CSB.

Effective February 20, 2016, Mr. Wu Ming Ding resigned all of his positions as President and Director of the Company with Mr. Balakrishnan B S Muthu being appointed President to fill the vacancy created. Effective February 20, 2016, Mr. Chen Ching was appointed Director of the Company, and the entire Board of Directors now consists of Mr. Balakrishnan B S Muthu and Mr. Chen Ching.

Effective February 2, 2018, the Company’s Articles of Incorporation were amended to increase the authorized shares of the Company from 250,000,000 shares of common stock to 10,000,000,000 shares of common stock. A copy of the Certificate of Amendment was filed with the Nevada Secretary of State. The Form 8K announcing the increase of the authorized shares of the Company was filed with SEC on February 6, 2018.

The following diagram illustrates our current corporate structure:

According to ASC 810-05-08 A, CSB is a deemed subsidiary of GBL where GBL has control the Board of Directors of CSB, rights to receive future benefits and residual value, and obligation to absorb loss and finance for CSB. GBL has the power to direct the activities of CSB that most significantly impact CSB’s economic performance and the obligation to absorb losses of CSB that could potentially be significant to the CSB or the right to receive benefits from CSB that could potentially be significant to CSB. GBL is the primary beneficiary of CSB because GBL can direct the activities of CSB through the common directors and 85% shareholder FMR. Under 810-23-42, 43, it is determined that CSB is de-facto agent of the principal GBL and so GBL will consolidate CSB from July 1, 2013. 

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Contractual Arrangements

Our exploration and mining business is currently provided through contractual arrangements with CSB through our wholly-owned subsidiary GBL.

CSB, the VIE of GBL, sells gold minerals directly to the registered gold trading company in Malaysia. We have been and are expected to continue to be dependent on our VIE to operate our exploration and mining business. GBL has entered into contractual arrangements with its VIE, which enable us to exercise effective control over the VIE, receive substantially all of the economic benefits from the VIE, and have the option to purchase equity interests in the VIE. 

On July 1, 2013, the Company’s subsidiary GBL entered into a series of agreements (“VIE agreements”) with FMR and details of the VIE agreements are as follows :

1.	Management Agreement, FMR entrusted the management rights of its subsidiary CSB to GBL that include:
	i)	management and administrative rights over the day-to-day business affairs of CSB and the mining operation at Site IV-1 of the Merapoh Gold Mine;
	ii)	final right for the appointment of members to the Board of Directors and the management team of CSB;
	iii)	act as principal of CSB;
	iv)	obligation to provide financial support to CSB;
	v)	option to purchase an equity interest in CSB;
	vi)	entitlement to future benefits and residual value of CSB;
	vii)	right to impose no dividend policy;
	viii)	human resources management.

2. Debt Assignment, FMR assigned to GBL the sum of money in the amount of US Dollars Three Hundred Nine Thousand Three Hundred Thirty One And Ninety Two cents (US$ 309,331.92), now due to GBL from CSB under the financing obligation from the FMR to CSB.

With the above agreements, GBL controls CSB as the primary beneficiary and the operating results of the VIE was included in the condensed consolidated financial statements for the nine months ended March 31, 2014.

CSB holds the operating right to Merapoh Gold Mine (the “Mine”) with all regulatory and government operating licenses in Malaysia.

On April 1, 2014, GBL purchased 85% equity interest of CSB, and CSB became indirect subsidiary of the Company.

Stage of Operation

The Company does not own any title and/or concession right in any mines. The Company is undertaking natural mineral resource extraction management services.

According to the United States Industry Guide 7 (a) (4) on mining operations, the Merapoh Gold Mine is currently in the production stage because the mine has produced approximately 8 kilogram gold from January 2017 to December 2017. According to the ASC 930-330-20 Glossary, the production phase is defined as “when saleable minerals are extracted (produced) from an ore body, regardless of the level of production”. However, the production is limited to a small part of the site, and extraction is alluvial gold only. The objective of the Company is preparing to improve the productivity of the mines to ensure that the operation will be carried out effectively and efficiently at minimum cost.

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Current Mining Property and Location

Merapoh Gold Mine (the “Mine”)

The Merapoh Gold Mine is located in northern Pahang, with convenient road access through Kelantan directly to mine site and is about 400 kilometers away from Kuala Lumpur. The Mine is located in the middle of Malaysia gold metallogenic belt. The central gold belt is the source of the majority of the gold deposits in the peninsula. It lies between the western and eastern tin belts and extends from Kelantan (Sungai Pergau, Sungai Galas) to Pahang (Merapoh, Kuala Lipis, Raub), Terengganu (Lubuk Mandi), Negri Sembilan and Johor (Gunung Ledang).

25

Description of the Mining Process

A planned sequence of events is involved in mining a pit:

· Identifying the resource

· Creating access to the ore body

· Removing the ore from the ore body

· Refining of the concentrate

It is an ongoing effort of our in-house exploration team to identify potential targets and conduct study to assess the feasibility of undertaking further exploration. Before any hole is drilled or rock mined, much planning goes into making sure the mining sequence runs smoothly and safely as possible. The process of creating access to the possible ore body includes possible ore excavation, possible ore assessment and possible ore segregation.

Process for removing ore concentrates from the ore body

1.	The ore body is transported to the treatment plants in vehicles capable of hauling huge, heavy loads.
2.	The ore body is separated into Ore Type 1 Stockpile and Ore Type 2 Stockpile.
3.	The monitor washes finer gold bearing material off larger rocks which is screened on an inclined coarse wire screen.
4.	An excavator is used to turn over the rocks so wash is removed from all sides of the coarse material.
5.	A monitor pushes the rock down the inclined coarse screen where the course is removed and stockpiled at the bottom.
6.	Finer material passes through the mesh screen into the sluice system and runs over the sluice.
7.	The carpets are removed and taken to refining facility for gold recovery.
8.	A suction pipe recovers water of the fine tailings pond for use in the system.

Refining of the concentrate

1.	The carpets holding concentrate from the sluice are brought to a shed in the camp site where the gold refined.
2.	The first stage of the refining is to wash the gold containing concentrate into large bins. This is pumped to a jig and shaking table.
3.	Nuggets are handpicked from the coarse fraction and the fine fraction is amalgamated to remove the gold. After distillation gold from the amalgam and the coarse are melted with flux and the gold is poured into small bars.

26

Results of Operations

For the three months ended March 31, 2018 and 2017:

We have generated $14,422 and $136,508 revenues for the three months ended March 31, 2018 and 2017, and have recorded a gross profit of $3,576 and gross loss of $95,445 for the three months ended March 31, 2018 and 2017. We have incurred $353,539 and $40,723 in operating expenses through March 31, 2018 and March 31, 2017. We have other income $71,475 and $34,281 for the three months ended March 31, 2018 and 2017.

The following table provides selected financial data about our company for the three months ended March 31, 2018 and March 31, 2017. 

Statement of Operation	3/31/2018		3/31/2017			Change
	Amount		Amount			%
Revenue	$	14,422	$	136,508			(89	)%
Cost of revenue	$	10,846	$	231,953			(95	)%
Gross Profit (Loss)	$	3,576	$	(95,445	)		(104	)%
Operating Expenses	$	353,539	$	40,723			768	%
Other Income	$	71,475	$	34,281			108	%

For the nine months ended March 31, 2018 and 2017:

We have generated $57,945 and $693,511 revenues for the nine months ended March 31, 2018 and 2017, and have recorded a gross profit of $1,020 and gross loss of $174,492 for the nine months ended March 31, 2018 and 2017. We have incurred $342,239 and $236,762 in operating expenses through March 31, 2018 and March 31, 2017. We have other income $130,039 and $82,025 for the nine months ended March 31, 2018 and 2017.

The following table provides selected financial data about our company for the nine months ended march 31, 2018 and March 31, 2017. 

Statement of Operation	3/31/2018		3/31/2017			Change
	Amount		Amount			%
Revenue	$	57,945	$	693,511			(92	)%
Cost of revenue	$	56,925	$	868,003			(93	)%
Gross Profit (Loss)	$	1,020	$	(174,492	)		(101	)%
Operating Expenses	$	342,239	$	236,762			45	%
Other Income	$	130,039	$	82,025			59	%

The revenue derived from the sales of gold mineral to customers in Malaysia. The decrease of revenue for the period ended March 31, 2018, was mainly due to a decrease in gold production because of depleting mineral reserves in the mine and gold sales during the period. The decrease of cost of revenue was mainly due to a decrease of gold production corresponding to the decrease in revenue during the period. Operating expenses comprised mainly of salaries, office costs, legal and professional fees, stock-based compensation and travelling expenses. The increase in operating expenses for the period was mainly due to the share based payment and an increase in foreign exchange gain during the period. Net other income comprise mainly of miscellaneous non-operating expenses, equipment rental income and waiver of consultancy service fee. The increase in net other income for the period was mainly due to the increase of equipment rental income and the waiver of consultancy service fee.

The revenue derived from the sales of gold mineral to customers in Malaysia. The decrease of revenue for the period ended March 31, 2018, was mainly due to a decrease in gold production and gold sales during the period. Operating expenses comprised mainly of salaries, office costs, legal and professional fees, consultancy service fee, stock-based compensation and travelling expenses. The operating expenses were mainly denominated in MYR and decrease compared with nine months ended March 31, 2018, due to decrease of cost of revenue. Moreover, the average rate of MYR :USD for nine months March 31, 2018 and March 31, 2017 was 0.2447 and 0.2387 respectively.

27

Plan of Operation

Our Industry and Principal Markets

As reported in the GFMS Annual Surveys 2017 released by Thomson Reuters, gold prices are likely to remain volatile in the near future, and the market is not expected to regain its composure as investors remain averse to risk. The forecast of a $1,259 average per ounce for 2017 is partly predicated on information contained in this report, but also on the expectation that the Indian market will start to find its feet again, helping to contain price weakness and providing a more stable backdrop for the returning investors. The longer term prognosis is for further price gains even against the headwind of the Federal Reserve raising rates.

In another forecast by Business Monitor International (BMI) in mid-2016, global gold mine output growth will continue to decelerate, as miners focus on cost cutting and divesting from unprofitable assets in a weak price environment. BMI made the forecast for global gold production to increase slightly, from 98.4 million ounces in 2016 to 106 million ounces by 2020, averaging 1.8% growth. BMI also reported that the Malaysia’s mining industry is anticipated to reach US$38.7bn by 2017, growing at an annual average rate of 2.5% from 2011 levels. The bulk of this growth will be led by the country’s nascent gold mining sector, which has attracted a number of foreign investors in recent years. The mineral exploration activities are subject to extensive national and local government regulations in Malaysia, which regulations may be revised or expanded at any time. Generally, compliance with these regulations requires the company to obtain the permits issued by government regulatory agencies. Certain permits require periodic renewal or review of their conditions. Malaysia provides an attractive mining legislative environment for foreign investors, but there is the risk that these laws will change once the country is able to attract enough foreign money.

Subcontractor

In an effort to enhance the efficiency of mine operations at the Merapoh Gold Mine, Champmark Sdn Bhd (“CSB”) entered into an Operation Term Sheet (“OTS”) agreement in July 2013 to outsource the exploitation works of alluvial gold resources at Site IV-1 of the Merapoh Gold Mine to a subcontractor Borneo Oil & Gas Corporation Sdn Bhd (“BOG”).

BOG has the experience and local knowledge in managing the exploitation of alluvial gold at the Merapoh Gold Mine. The Company will provide necessary disclosure when any significant agreements have been made with sub-contractors in the future.

BOG became the Company’s shareholder in January 29, 2014, and was no longer a third party subcontractor.

Expansion Plans

At present, we are well positioned working with our third party subcontractor, who has the experience and local knowledge to manage our exploitation of alluvial gold at the Merapoh Gold Mine. The Company believes that there are excellent growth opportunities for its business outside Malaysia. We are constantly exploring for potential acquisition of mining projects in other parts of the world.

The Company, through its wholly-owned subsidiary company Gold Billion Global Ltd (“GBL”) entered into a letter of intent with Xinjiang Changhe Mining Co., Ltd (“XCM”) on September 29, 2014. Under the letter of intent, GBL has offered to acquire ownership in XCM for the Ayigate Gold Project subject to due diligence. The Ayigate gold mine is located within the Tianshan region in Wuqia County, Xinjiang Uygur Autonomous Region of the People’s Republic of China. After several discussions, the Company decided not to proceed with the offer to acquire ownership in XCM.

As our business is affected by the fluctuations of gold prices, the Company intends to diversify its product line by acquiring mining projects with potential for different mineral resources other than gold. We continue to hold discussions with other mining companies for potential collaboration to carry out exploration and exploitation works on other mineral resources in Southeast Asia regions. Apart from the mining industry, the Company is taking steps to look into investment opportunities in the non-mining areas that include the bioenrgy industry and the food & beverage sector.

Limited Operating History; Need for Additional Capital

There is no historical financial information about us upon which to base an evaluation of our performance. We cannot guarantee we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources, possible delays in the exploration of our properties, and possible cost overruns due to price and cost increases in services.

We have no assurance that future financing will be available to us on acceptable terms. If financing is not available on satisfactory terms, we may be unable to continue, develop or expand our operations. Equity financing could result in additional dilution to existing shareholders.

28

Liquidity and Capital Resources

The following table provides selected cash flow data about our company for the nine months ended March 31, 2018 and March 31, 2017.

Cash Flow Date	3/31/2018			3/31/2017
Net Loss from operation	$	211,180		$	329,229
Net Cash Generated/(Used) from operating activities	$	32,747		$	(176,122	)
Net Cash Generated/(Used) from investing activities	$	-		$	-
Net Cash Generated/(Used) from financing activities	$	(4,253	)	$	175,223

For the nine months ended March 31, 2018, the Company had incurred net loss from operation of $211,180, which posted a negative impact to the company’s cash flow. The reconciliation on non-cash items such as depreciations provide positive impact on cash.

In the operation analysis, the net cash generated from (used in) operating activities increased from ($176,122) to $32,747. The $211,180 net loss was partially offset by the noncash expense such as $15,645 in depreciation, $380,000 stock-based compensation and noncash income of $17,435 in wavier of consultancy service fees. In the operating assets and liabilities, the net increase in current assets, such as accounts receivable from related parties, deposits and prepayment was $10,401, whereas the net decrease in current liabilities, such as accounts payable, accrued liabilities, advanced from related parties and deposit received from customer was $123,882, which provided negative cash flow effect to the $211,180 loss in operation. The final result of the cash flow from operating activities was a positive cash flow effect.

In the investing cash flow analysis, there was no change for the nine months ended March 31, 2018.

In the financing analysis, there was loan principal $4,253 repaid to a bank for the nine months ended March 31, 2018, compared to $14,777 repaid to the bank for the nine months ended March 31, 2017. The overall cash flow effect was negative.

The net decrease in exchange rate effect of $33,390 provided a negative cash flow effect. The cash and cash equivalents at the end of March 31, 2018, was decreased by $4,896 with $33,720 as a balance.

The cash flow situation will not allow for operations in the coming next 12 months by self-generated cash provided from operating activities. The Company needs to increase cash flow supplies with a long term plan until the Company makes sustainable profits and has a positive cash flow. Otherwise, loans from related parties may be a temporary solution, although we have no written loan agreements. There is no guarantee that we will be able to secure adequate financing. If we fail to secure sufficient funds, our business activities may be curtailed, or we may cease to operate.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures, or capital resources that is material to investors.

29

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

As a “smaller reporting company”, we are not required to provide the information required by this Item.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

As of March 31, 2018, management assessed the effectiveness of our internal control over financial reporting based on the criteria for effective internal control over financial reporting established in Internal Control--Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) and SEC guidance on conducting such assessments. Based on that evaluation, they concluded that, during the period covered by this report, such internal controls and procedures were not effective to detect the inappropriate application of US GAAP rules as more fully described below. This was due to deficiencies that existed in the design or operation of our internal controls over financial reporting that adversely affected our internal controls and that may be considered to be material weaknesses.

The matters involving internal controls and procedures that our management considered to be material weaknesses under the standards of the Public Company Accounting Oversight Board were: (1) lack of a functioning audit committee, (2) lack of a majority of outside directors on our board of directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures; (3) inadequate segregation of duties consistent with control objectives; and (4) management is dominated by three individuals without adequate compensating controls. The aforementioned material weaknesses were identified by our Chief Executive and Financial Officers in connection with the review of our financial statements as of March 31, 2018.

Management believes that the material weaknesses set forth above did not have an immediate negative effect on our financial results because of our small size of operation. However, management believes that the lack of a functioning audit committee and the lack of a majority of outside directors on our board of directors results in ineffective oversight in the establishment and monitoring of required internal controls and procedures, which could result in a material misstatement in our financial statements if the Company were growing substantially in the future periods.

Changes in Internal Controls

There have been no changes in our internal controls over financial reporting identified in connection with the evaluation required by paragraph (d) of Securities Exchange Act Rule 13a-15 or Rule 15d-15 that occurred in the nine months ended March 31, 2018 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

30

PART II – OTHER INFORMATION

Item 1. Legal Proceedings.

We know of no material, existing or pending legal proceedings against our Company, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which any of our directors, officers or affiliates, or any registered beneficial shareholder, is an adverse party or has a material interest adverse to our interest.

Item 1A. Risk Factors.

As a “smaller reporting company”, we are not required to provide the information required by this Item.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

N/A.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosure.

Pursuant to Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“ Dodd-Frank Act “), issuers that are operators, or that have a subsidiary that is an operator, of a coal or other mine in the United States are required to disclose in their periodic and annual reports filed with the SEC information regarding specified health and safety violations, orders and citations, related assessments and legal actions, and mining-related fatalities under the regulation of the Federal Mine Safety and Health Act of 1977. The Company did not have any mines in the United States during the period ended March 31, 2018.

Item 5. Other Information.

There were changes in Directors and Executive Officers effective on February 20, 2016. For details, please refer to SC 14F1 and Form 8-K filed by the registrant to SEC on February 10, 2016 and February 22, 2016 respectively, at SEC website: www.sec.gov.

31

Item 6. Exhibits.

The following exhibits are included as part of this report:

Exhibit No.	Description
31.1	Rule 13a-14(a) / 15d-14(a) Certification of Chief Executive Officer.
31.2	Rule 13a-14(a) / 15d-14(a) Certification of Chief Financial Officer.
32.1	Rule 1350 Certifications of Chief Executive Officer and Chief Financial Officer.
101*

____________

* The following financial information from Verde Resources, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2018, formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Balance Sheets as of March 31, 2018, and June 30, 2017, (ii) Condensed Statements of Operations for the three and nine months ended March 31, 2018 and 2017, (iii) Condensed Statements of Cash Flows for the nine months ended March 31, 2018 and 2017, and (iv) Notes to Condensed Financial Statements.

32

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	VERDE RESOURCES, INC.
	(Registrant)
Dated: May 15, 2018	By:	/s/ Balakrishnan B S Muthu
		Balakrishnan B S Muthu
		President
		(Principal Executive Officer)

33

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Balakrishnan B S Muthu, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Verde Resources, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 15, 2018	By:	/s/ Balakrishnan B S Muthu
		Balakrishnan B S Muthu
		Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Balakrishnan B S Muthu, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Verde Resources, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 15, 2018	By:	/s/ Balakrishnan B S Muthu
		Balakrishnan B S Muthu
		Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Balakrishnan B S Muthu, certify, as of the dates hereof, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report of Verde Resources, Inc. on Form 10-Q for the period ended March 31, 2018 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Form 10-Q fairly presents in all material respects the financial condition and results of operations of Verde Resources, Inc. at the dates and for the periods indicated.

Date: May 15, 2018	By:	/s/ Balakrishnan B S Muthu
		Balakrishnan B S Muthu
		Chief Executive Officer

I, Balakrishnan B S Muthu, certify, as of the dates hereof, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report of Verde Resources, Inc. on Form 10-Q for the period ended March 31, 2018 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Form 10-Q fairly presents in all material respects the financial condition and results of operations of Verde Resources, Inc. at the dates and for the periods indicated.

Date: May 15, 2018	By:	/s/ Balakrishnan B S Muthu
		Balakrishnan B S Muthu
		Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to Verde Resources, Inc. and will be retained by Verde Resources, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	9 Months Ended
	Mar. 31, 2018	May 15, 2018
Document And Entity Information [Abstract]
Entity Registrant Name	VERDE RESOURCES, INC.
Entity Central Index Key	0001506929
Trading Symbol	vrdr
Current Fiscal Year End Date	--06-30
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		115,038,909
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q3

XML

Condensed Consolidated Balance Sheets - USD ($)	Mar. 31, 2018	Jun. 30, 2017
Current Assets
Cash and cash equivalents	$ 33,720	$ 38,616
Amount due from related parties	4,831	4,088
Inventories	20,523	8,832
Deposit & prepayment	3,081	2,352
Total Current Assets	62,155	53,888
Long Term Assets
Property, plant and equipment	9,442	23,388
Total Long Term Assets	9,442	23,388
TOTAL ASSETS	71,597	77,276
Current Liabilities
Accounts payable	1,669,224	1,560,749
Advanced from related parties	818,723	728,634
Accrual	49,180	101,979
Taxation payable	4,591	3,758
Loans from banks	2,542	4,645
Total Current Liabilities	2,544,260	2,399,765
Long term Liabilities
Loans from banks (non-current)	861	2,466
Total Long Term Liabilities	861	2,466
TOTAL LIABILITIES	2,545,121	2,402,231
STOCKHOLDERS' DEFICIT
Preferred stock, par value $0.001, 50,000,000 shares authorized, none issued and outstanding
Common stock, par value $0.001, 10,000,000,000 shares authorized, 115,038,909 and 96,038,909 shares issued and outstanding as of March 31, 2018 & June 30, 2017 respectively	115,039	96,039
Additional paid-in capital	2,416,243	2,055,243
Accumulated deficit	(4,857,956)	(4,628,182)
Accumulated other comprehensive income (loss)	413,793	731,182
Non-controlled interest	(560,643)	(579,237)
Total Stockholders' Deficit	(2,473,524)	(2,324,955)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$ 71,597	$ 77,276

XML

Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares	Mar. 31, 2018	Jun. 30, 2017
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	10,000,000,000	250,000,000
Common stock, shares issued	115,038,909	96,038,909
Common stock, shares outstanding	115,038,909	96,038,909

XML

Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
REVENUES
Revenue	$ 14,422	$ 136,508	$ 57,945	$ 693,511
Cost of revenue	(10,846)	(231,953)	(56,925)	(868,003)
Gross loss	3,576	(95,445)	1,020	(174,492)
OPERATING EXPENSES:
Selling, general & administrative expenses	(353,539)	(40,723)	(342,239)	(236,762)
LOSS FROM OPERATIONS	(349,963)	(136,168)	(341,219)	(411,254)
OTHER INCOME(EXPENSES)	71,475	34,281	130,039	82,025
NET LOSS BEFORE INCOME TAX	(278,488)	(101,887)	(211,180)	(329,229)
Provision of Income Tax	0	0	0	0
NET LOSS	(278,488)	(101,887)	(211,180)	(329,229)
Non-controlled interest	(11,022)	11,923	(18,594)	23,548
Net loss contributed to the group	(289,510)	(89,964)	(229,774)	(305,681)
Other comprehensive income(loss)
Foreign currency translation income(loss)	(140,701)	66,141	(317,389)	224,679
Comprehensive income(loss)	$ (430,211)	$ (23,823)	$ (547,163)	$ (81,002)
Basic and Diluted Loss per Common Share (in dollars per share)	$ (0.003)	$ (0.001)	$ (0.002)	$ (0.003)
Weighted Average Number of Common Shares Outstanding (in shares)	98,188,544	94,478,690	98,188,544	94,478,690

XML

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net loss	$ (211,180)	$ (329,229)
Adjustments to reconcile loss to net cash used in operations
Depreciation	15,645	100,899
Waiver of consultancy service fee	(17,435)
Stock-based compensation	380,000
(Increase) decrease in:
Accounts receivable from related parties	(274)	(687)
Deposits and prepayment		(68)
Inventory	(10,127)	61,839
Other receivable	0	0
Increase (decrease) in:
Accounts payable	(42,875)	37,447
Accrued liabilities	(54,771)	(73,410)
GST payable	(652)	955
Advanced from sub-contractor & related parties	(25,584)	26,132
Deposit received from customer	0	0
Net cash provided by (used in) operating activities	32,747	(176,122)
Cash flows from investing activities:
Proceeds from disposal of plant and equipment	0	0
Addition of motor vehicle	0	0
Net cash provided by investing activities	0	0
Cash flows from financing activities:
Proceeds from bank loans	0	0
Repayments of bank loans	(4,253)	(14,777)
Shareholders' loans waived	0	0
Proceeds from issuance of common stock		190,000
Net cash (used in) provided by financing activities	(4,253)	175,223
Net increase (decrease) in cash and cash equivalent	28,494	(899)
Effect of exchange rate changes on cash	(33,390)	33,730
Net increase (decrease) in cash and cash equivalents	(4,896)	32,831
Cash and cash equivalents at beginning of period	38,616	16,113
Cash and cash equivalents at end of period	33,720	48,944
Supplementary cash flow information
Income taxes paid	0	0
Interest paid	167	746
Supplementary non-cash information
Reorganization	0	0
Issuance of common stock	$ 0	$ 0

XML

ORGANIZATION AND DESCRIPTION OF BUSINESS

9 Months Ended

Mar. 31, 2018

Organization And Description Of Business [Abstract]

ORGANIZATION AND DESCRIPTION OF BUSINESS

NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS

Verde Resources, Inc. (the "Company" or "VRDR") was incorporated on April 22, 2010, in the State of Nevada, U.S.A. The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America, and the Company's fiscal year end is June 30.

Gold Billion Global Limited ("Gold Billion" or "GBL") was incorporated in British Virgin Islands on February 7, 2013. GBL was setup by the Board of Directors of Federal Mining Resources Limited ("FMR"). The major operation of GBL is to manage and monitor the mineral exploration and mining projects of FMR.

On July 1, 2013, FMR assigned its rights and obligation on Champmark Sdn Bhd ("CSB") to GBL. Four of the five members of CSB Board of Directors were appointed by FMR, with two of the GBL Board of Directors currently sitting on the CSB Board. According to ASC 810-05-08 A, CSB is a deemed subsidiary of GBL, where it has controlled the CSB Board of Directors, has assigned rights to receive future benefits and residual value, and obligations to absorb loss and finance for CSB by GBL. GBL has the power to direct the activities of CSB that most significantly impact CSB's economic performance and the obligation to absorb losses of CSB that could potentially be significant to the CSB or the right to receive benefits from CSB that could potentially be significant to CSB. GBL is the primary beneficiary of CSB because it has been assigned with all relevant rights and obligation and can direct the activities of CSB through the common directors and the 85% shareholder, FMR. Under 810-23-42, 43, it is determined that CSB is de-facto agent of GBL and GBL is the de-facto principal of CSB. GBL started to consolidate CSB from July 1, 2013, and the Company consolidated GBL and CSB from October 25, 2013, onwards.

On February 17, 2014, the Company entered into a Supplementary Agreement to the Assignment Agreement and completed an acquisition of GBL pursuant to the Supplementary Agreement. The acquisition was a reverse acquisition in accordance with ASC 805-40 "Reverse Acquisitions". The legal parent was VRDR which was the accounting acquiree while GBL was the accounting acquirer. There was a 15% non-controlling interest of Champmark SDN BHD ("CSB") after the acquisition. This transaction was accounted for as a recapitalization effected by a share exchange, wherein GBL with its 85% deemed subsidiary CSB was considered the acquirer for accounting and financial reporting purposes. The assets and liabilities of the acquired entity have been brought forward at their book value and no goodwill has been recognized.

As a result of the acquisition, the Company holds 100% equity interest in GBL and 85% variable interest in CSB. Our consolidated subsidiaries include GBL being our wholly-owned subsidiary and 85% of CSB being a variable interest entity (VIE) and deemed subsidiary of GBL.

On March 17, 2014, the Company through GBL and its deemed subsidiary CSB entered into a Sub-Contract Agreement with Borneo Oil & Gas Corporation Sdn Bhd ("BOG") for the engagement of its sub-contractor services to carry out exploration and exploitation works on alluvial and lode gold resources at Site IV-1 of the Merapoh Mine. The Sub-Contract Agreement is for a period of 5 years with a renewal for another 5 years subject to review by both parties. BOG is a wholly-owned subsidiary of Borneo Oil Berhad (BOB) which is listed on the main market of Kuala Lumpur Stock Exchange. BOG being a local company in Malaysia provides the Company with the advantage of local knowledge and well-established connection in dealing with the relevant local authorities in our mining operations.

On April 1, 2014, GBL purchased 85% equity interest of CSB, and CSB became indirect subsidiary of the Company.

Effective August 27, 2014, the Company's Articles of Incorporation were amended to increase the authorized shares of the Company from 100,000,000 shares of common stock to 250,000,000 shares of common stock. A copy of the Certificate of Amendment was filed with the Nevada Secretary of State. The Form 8K announcing the increase of the authorized shares of the Company was filed with SEC on September 15, 2014.

Effective February 20, 2016, Mr. Wu Ming Ding resigned all of his positions as President and Director of the Company with Mr. Balakrishnan B S Muthu being appointed President to fill the vacancy created. Effective February 20, 2016, Mr. Chen Ching was appointed Director of the Company and the entire Board of Directors now consists of Mr. Balakrishnan B S Muthu and Mr. Chen Ching. The SC 14F1 and Form 8-K announcing the change in officers and directors were filed with SEC on February 10, 2016 and February 22, 2016 respectively.

Effective February 2, 2018, the Company's Articles of Incorporation were amended to increase the authorized shares of the Company from 250,000,000 shares of common stock to 10,000,000,000 shares of common stock. A copy of the Certificate of Amendment was filed with the Nevada Secretary of State. The Form 8K announcing the increase of the authorized shares of the Company was filed with SEC on February 6, 2018.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Condensed Consolidated Financial Statements

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. The results of operations for the periods ended March 31, 2018 are not necessarily indicative of the operating results for the full years.

Basis of Presentation

The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (GAAP). These condensed consolidated financial statements are expressed in United States dollars ($). Financial statements prepared in accordance with GAAP contemplate the realization of assets and the satisfaction of liabilities in the normal course of business. These condensed consolidated audited financial statements include all adjustments that, in the opinion of management, are necessary in order to make the financial statements not misleading.

Basis of Consolidation

The condensed consolidated financial statements include the financial statements of Verde Resources, Inc., its wholly owned subsidiary Gold Billion Global Limited ("GBL") and the 85% of the deemed subsidiary variable interest of Champmark SDN BHD ("CSB"). All inter-company balances and transactions between the Company and variable interest entity (VIE) have been eliminated upon consolidation.

The Company has adopted ASC Topic 810-10-5-8, "Variable Interest Entities", which requires a variable interest entity or VIE to be consolidated by a company if that company is subject to a majority of the risk of loss for the VIE or is entitled to receive a majority of the VIE's residual returns.

Variable Interest Entity

On July 1, 2013, the Company's subsidiary, GBL entered into a series of agreements ("VIE agreements") with FMR and details of the VIE agreements are as follows :

1.	Management Agreement, FMR entrusted the management rights of its subsidiary CSB to GBL that include:
	i)	management and administrative rights over the day-to-day business affairs of CSB and the mining operation at Site IV-1 of the Merapoh Gold Mine;
	ii)	final right for the appointment of members to the Board of Directors and the management team of CSB;
	iii)	act as principal of CSB;
	iv)	obligation to provide financial support to CSB;
	v)	option to purchase an equity interest in CSB;
	vi)	entitlement to future benefits and residual value of CSB;
	vii)	right to impose no dividend policy;
	viii)	human resources management.
2.	Debt Assignment, FMR assigned to GBL the sum of money in the amount of US Dollars One Hundred Nine Thousand Eight Hundred One And Cents Seventy-Two Only (US$ 109,801.72), now due to GBL from CSB under the financing obligation from the FMR to CSB.

With the above agreements, GBL demonstrates its ability to control CSB as the primary beneficiary and the operating results of the VIE was included in the condensed consolidated financial statements for the year ended June 30, 2014.

On April 1, 2014, the Board of Director of GBL notified FMR upon the decision to exercise the right of option to purchase 85% equity interest of CSB under Management Agreement Section 3.2.4 dated July 1, 2013 between GBL and FMR. This acquisition was completed on April 1, 2014 with consideration of US$1. GBL then became 85% shareholder of CSB and is required to consolidate CSB as a subsidiary.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company's periodic filings with the Securities and Exchange Commission include, where applicable, disclosures of estimates, assumptions, uncertainties and markets that could affect the financial statements and future operations of the Company.

Cash and Cash Equivalents

Cash and cash equivalents include cash in banks, money market funds, and certificates of term deposits with maturities of less than three months, which are readily convertible to known amounts of cash and which, in the opinion of management, are subject to an insignificant risk of loss in value. The Company had $33,720 and $38,616 in cash and cash equivalents at March 31, 2018 and June 30, 2017, respectively.

Concentrations of Credit Risk

The Company's financial instruments that are exposed to concentrations of credit risk primarily consist of its cash and cash equivalents and related party payables it will likely incur in the near future. The Company places its cash and cash equivalents with financial institutions of high credit worthiness. At times, its cash and cash equivalents with a particular financial institution may exceed any applicable government insurance limits. The Company's management plans to assess the financial strength and credit worthiness of any parties to which it extends funds, and as such, it believes that any associated credit risk exposures are limited.

Risks and Uncertainties

The Company operates in the resource exploration industry that is subject to significant risks and uncertainties, including financial, operational, technological, and other risks associated with operating a resource exploration business, including the potential risk of business failure.

Accounts Receivable

Accounts receivable are recognized and carried at net realizable value. An allowance for doubtful accounts will be recorded in the period when a loss is probable based on an assessment of specific evidence indicating troubled collection, historical experience, accounts aging, ongoing business relation and other factors. Accounts are written off after exhaustive efforts at collection. If accounts receivable are to be provided for, or written off, they would be recognized in the consolidated statement of operations within operating expenses. At and, the Company has no allowance for doubtful accounts, as per management's judgment based on their best knowledge. As of March 31, 2018 and June 30, 2017, the longest credit term for certain customers are 60 days.

Provision for Doubtful Accounts

The Company maintains an allowance for doubtful accounts to reserve for potentially uncollectible receivables and reviews accounts receivable by amounts due by customers which are past due to identify specific customers with known disputes or collectability issues. In determining the amount of the reserve, the Company makes judgments about the creditworthiness of customers based on past collection experience and ongoing credit risk evaluations. At March 31, 2018 and June 30, 2017 there was no allowance for doubtful accounts.

Fair Value

ASC Topic 820 "Fair Value Measurement and Disclosures" establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market.

These tiers include:

● Level 1—defined as observable inputs such as quoted prices in active markets;

● Level 2—defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and

● Level 3—defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

The Company's financial instruments consist of cash and cash equivalents, trade receivables, other receivables, payables, and short term and long term debt. The carrying values of cash and cash equivalents, trade receivables, other receivables, and payables approximate their fair value due to their short maturities. The carrying value of long term debt approximates the fair value of debt of similar terms and remaining maturities available to the company.

The Company's non-financial assets are measured on a recurring basis. These non-financial assets are measured for impairment annually on the Company's measurement date at the reporting unit level using Level 3 inputs. For most assets, ASC 820 requires that the impact of changes resulting from its application be applied prospectively in the year in which the statement is initially applied.

The Company's non-financial assets measured on a non-recurring basis include the Company's property, plant and equipment and finite-use intangible assets which are measured for recoverability when indicators for impairment are present. ASC 820 requires companies to disclose assets and liabilities measured on a non-recurring basis in the period in which the re-measurement at fair value is performed.

The Company did not have any convertible bonds as of March 31, 2018 and June 30, 2017.

Foreign Currency Translation

The Company's reporting currency is the United States dollar ("$") and the accompanying consolidated financial statements have been expressed in United States dollars. The Company's functional currency is the Malaysian Ringgit ( "MYR") which is a functional currency as being the primary currency of the economic environment in which their operations are conducted.

In accordance with ASC Topic 830 "Translation of Financial Statements" , capital accounts of the consolidated financial statements are translated into United States dollars from MYR at their historical exchange rates when the capital transactions occurred. Assets and liabilities are translated at the exchange rates as of balance sheet date. Income and expenditures are translated at the average exchange rate of the respective year. The resulting exchange differences are recorded in the consolidated statement of operations.

	March 31, 2018		June 30, 2017
Period-end MYR : $1 exchange rate		0.2588		0.2329
Average MYR : $1 exchange rate		0.2447		0.2338

Comprehensive Income

Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income are required to be reported in a financial statement that is presented with the same prominence as other financial statements. Comprehensive income includes net income and the foreign currency translation changes.

Segment Reporting

The Company currently engages in one operation segment: Gold Mining. The expenses incurred were consisting principally of management services. The Company's major operation is located in Malaysia.

Mineral Acquisition and Exploration Costs

The Company has been primarily engaged in the acquisition, exploration, and development of mining properties. The Company was no longer considered an exploration stage company after the reverse take-over with its subsidiary GBL.

Mineral property acquisition and exploration costs are expensed as incurred. When it has been determined that a mineral property can be economically developed as a result of establishing proven and probable reserves, the costs incurred to develop such property are capitalized. Such costs will be amortized using the units-of-production method over the estimated life of the probable reserves.

Environmental Expenditures

The operations of the Company have been, and may in the future be, affected from time to time in varying degree by changes in environmental regulations, including those for future reclamation and site restoration costs. Both the likelihood of new regulations and their overall effect upon the Company vary greatly and are not predictable. The Company's policy is to meet or, if possible, surpass standards set by relevant legislation by application of technically proven and economically feasible measures.

Environmental expenditures that relate to ongoing environmental and reclamation programs are charged against earnings as incurred or capitalized and amortized depending on their future economic benefits. All of these types of expenditures incurred since inception have been charged against earnings due to the uncertainty of their future recoverability. Estimated future reclamation and site restoration costs, when the ultimate liability is reasonably determinable, are charged against earnings over the estimated remaining life of the related business operation, net of expected recoveries.

Revenue Recognition

In accordance with the ASC Topic 605, "Revenue Recognition", the Company recognizes revenue when persuasive evidence of an arrangement exists, transfer of title has occurred or services have been rendered, the selling price is fixed or determinable and collectibility is reasonably assured.

The Company derives revenues primarily from the sales of gold mineral to registered gold trading companies in Malaysia. The Company generally recognizes its revenues at the time of gold sales and its selling price is determined by the prevailing market value of gold bullion quoted by the leading registered gold trading company in Malaysia. Sales invoice will be duly presented to the trading companies when delivery is completed and revenue is then recognized.

Cost of Revenue

The cost of revenue consists of exploration cost, mine equipment depreciation, production cost, mine site management cost, sub-contractor cost, and royalty and tribute payment which are levied on the gross revenue at the rate of 18% on the invoiced value of gold sales.

Advertising Expenses

Advertising costs are expensed as incurred under ASC Topic 720, "Advertising Costs" . Advertising expenses incurred for the periods ended March 31, 2018 and June 30, 2017 were $0.

Income Taxes

The provision for income taxes is determined in accordance with the provisions of ASC Topic 740, "Accounting for Income Taxes" ("ASC 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 years 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. As of March 31, 2018 and June 30, 2017, the Company did not have any significant unrecognized uncertain tax positions.

Recent Accounting Pronouncements

The FASB has issued Accounting Standards Update No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business , clarifying the definition of a business. The amendments affect all companies and other reporting organizations that must determine whether they have acquired or sold a business.

The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The amendments are intended to help companies and other organizations evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments provide a more robust framework to use in determining when a set of assets and activities is a business. They also provide more consistency in applying the guidance, reduce the costs of application, and make the definition of a business more operable.

For public companies, the amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those periods. For all other companies and organizations, the amendments are effective for annual periods beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019.

The FASB has issued Accounting Standards Update (ASU) No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.

To simplify the subsequent measurement of goodwill, the amendments eliminate Step 2 from the goodwill impairment test. The annual, or interim, goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In addition, income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable.

The amendments also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary.

The amendments should be applied on a prospective basis. The nature of and reason for the change in accounting principle should be disclosed upon transition.

A public business entity that is a U.S. Securities and Exchange Commission (SEC) filer should adopt the amendments for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019.

A public business entity that is not an SEC filer should adopt the amendments for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2020.

All other entities, including not-for-profit entities, which adopt the amendments should do so for their annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2021.

Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. 

The FASB has issued Accounting Standards Update No. 2017-05, Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets.

A contract may involve the transfer of both nonfinancial assets and financial assets (e.g., cash and receivables). The amendments clarify that a financial asset is within the scope of Subtopic 610-20 if it meets the definition of an in substance nonfinancial asset. The amendments also define the term in substance nonfinancial asset.

The amendments clarify that nonfinancial assets within the scope of Subtopic 610-20 may include nonfinancial assets transferred within a legal entity to a counterparty. For example, a parent may transfer control of nonfinancial assets by transferring ownership interests in a consolidated subsidiary. A contract that includes the transfer of ownership interests in one or more consolidated subsidiaries is within the scope of Subtopic 610-20 if substantially all of the fair value of the assets that are promised to the counterparty in a contract is concentrated in nonfinancial assets.

The amendments clarify that an entity should identify each distinct nonfinancial asset or in substance nonfinancial asset promised to a counterparty and derecognize each asset when a counterparty obtains control of it.

The amendments are effective at the same time Topic 606, Revenue from Contracts with Customers is effective. For public entities, the amendments are effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. For all other entities, the amendments are effective for annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019.

The FASB has issued Accounting Standards Update (ASU) No. 2018-01, Leases (Topic 842):Land Easement Practical Expedient for Transition to Topic 842, which clarifies the application of the new leases guidance to land easements and eases adoption efforts for some land easements.

ASU 2018-01 is expected to reduce the cost of adopting the new leases standard for certain land easements. It is also an attempt to help ensure that companies can make a successful transition to the standard without compromising the quality of information provided to investors about these transactions. Land easements (also commonly referred to as rights of way) represent the right to use, access, or cross another entity’s land for a specified purpose. Land easements are used by utility and telecommunications companies, for example, when they need to take a small strip of land, or easement, to bury wires. Not all companies have historically accounted for them as leases. Stakeholders pointed out that the requirement to evaluate all old and existing land easements, sometimes numbering in the tens of thousands, to determine if they meet the definition of a lease under the new standard could be very costly. They also noted there would be limited benefit to applying this requirement, as many of their land easements would not meet the definition of a lease, or even if they met that definition, many of their easements are prepaid and, therefore, already are recognized on the balance sheet.

The land easements ASU addresses this by:

· Providing an optional transition practical expedient that, if elected, would not require an organization to reconsider their accounting for existing land easements that are not currently accounted for under the old leases standard; and

· Clarifying that new or modified land easements should be evaluated under the new leases standard, once an entity has adopted the new standard.

The FASB issued an Accounting Standards Update (ASU) that helps organizations address certain stranded income tax effects in accumulated other comprehensive income (AOCI) resulting from the Tax Cuts and Jobs Act.

ASU No. 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, provides financial statement preparers with an option to reclassify stranded tax effects within AOCI to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act (or portion thereof) is recorded.

The ASU requires financial statement preparers to disclose:

· A description of the accounting policy for releasing income tax effects from AOCI;

· Whether they elect to reclassify the stranded income tax effects from the Tax Cuts and Jobs Act; and

· Information about the other income tax effects that are reclassified.

The amendments affect any organization that is required to apply the provisions of Topic 220, Income Statement—Reporting Comprehensive Income, and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income as required by GAAP. The amendments are effective for all organizations for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. Organizations should apply the proposed amendments either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized.

Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on our consolidated financial statements upon adoption.

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CASH AND CASH EQUIVALENT

9 Months Ended

Mar. 31, 2018

Cash and Cash Equivalents [Abstract]

CASH AND CASH EQUIVALENT

NOTE 3 - CASH AND CASH EQUIVALENT

The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. At March 31, 2018 and June 30, 2017 cash and cash equivalents consisted of bank deposits in Malaysia bank and petty cash on hands.

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AMOUNT DUE FROM RELATED PARTIES

9 Months Ended

Mar. 31, 2018

Due from Related Parties, Current [Abstract]

AMOUNT DUE FROM RELATED PARTIES

NOTE 4 - AMOUNT DUE FROM RELATED PARTIES

Amount due from related parties at March 31, 2018 and June 30, 2017 consist of the following items:

	March 31, 2018		June 30, 2017
Amount due from Stable Treasure Sdn. Bhd. (*)	$	4,831	$	4,088

(*) One of the directors of Stable Treasure Sdn. Bhd., Mr. Balakrishnan B S Muthu is also the director of the Company. The advances related to ordinary business transactions and bear no interest or collateral, repayable and renewable under normal business advancement terms.

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INVENTORIES

9 Months Ended

Mar. 31, 2018

Inventory Disclosure [Abstract]

INVENTORIES

NOTE 5 - INVENTORIES

Inventories are valued at cost, not in excess of market. Inventories are determined at first in first out basis and comprised of production cost, mine site management cost and sub-contractor cost. Inventories, at March 31, 2018 and June 30, 2017 are summarized as follows:

	March 31, 2018		June 30, 2017
Inventories	$	20,523	$	8,832

The inventories represent the gold minerals as at March 31, 2018 and June 30, 2017, which were comprised of 8% share by the Company and 92% share by the sub-contractor and the other parties such as original mine assigner.

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ACCOUNTS PAYABLE AND ADVANCED FROM RELATED PARTIES

9 Months Ended

Mar. 31, 2018

Payables and Accruals [Abstract]

ACCOUNTS PAYABLE AND ADVANCED FROM RELATED PARTIES

NOTE 6 - ACCOUNTS PAYABLE AND ADVANCED FROM RELATED PARITES

Accounts Payable

Accounts payable at March 31, 2018 and June 30, 2017 consist of the following items:

	March 31, 2018		June 30, 2017
Due to Changxin Wanlin Technology Co Ltd(*)	$	1,668,173	$	1,501,406
Other accounts payable		1,051		59,343
	$	1,669,224	$	1,560,749

(*) Due to Changxin Wanlin Technology Co Ltd are accounts payable derived from ordinary business transactions. One of the directors of Changxin Wanlin Technology Co. Ltd., Mr. Wu Ming Ding, has resigned as director of VRDR (as of February 20, 2016), GBL (as of February 11, 2016) and CSB (as of February 17, 2016). This accounts payable bears no interest or collateral, repayable and renewable under normal business accounts payable terms.

Advanced from related parties

 Advanced from related parties at March 31, 2018 and June 30, 2017, consist of the following items:

	March 31, 2018		June 30, 2017
Advanced from BOG (#1)	$	502,258	$	430,169
Advanced from Federal Mining Resources Limited(#2)	$	173,465	$	173,465
Advanced from Federal Capital Investment Limited (#3)	$	116,000	$	98,000
Advanced from Yorkshire Capital Limited (#4)	$	27,000	$	27,000
	$	818,723	$	728,634

(#1) BOG is one of the shareholders of the Company. The advances are related to ordinary business transactions and bear no interest or collateral, repayable and renewable under normal business advancement terms.

(#2) One of the directors of Federal Mining Resources Limited, Mr. Chen Ching, has been appointed as director of the Company effective February 20, 2016. Another director of Federal Mining Resources Limited, Mr. Wu Ming Ding, has resigned as director of the Company effective February 20, 2016. The advances are related to ordinary business transactions and bear no interest or collateral, repayable and renewable under normal business advancement terms.

(#3) One of the directors of Federal Capital Investment Limited, Mr. Wu Ming Ding, has resigned as director of the Company effective February 20, 2016. The advances are related to ordinary business transactions and bear no interest or collateral, repayable and renewable under normal business advancement terms.

(#4) One of the directors of Yorkshire Capital Limited, Mr. Lai Kui Shing, Andy, has resigned as director of CSB effective February 17, 2016. The advances are related to ordinary business transactions and bear no interest or collateral, repayable and renewable under normal business advancement terms.

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PROPERTY, PLANT AND EQUIPMENT

9 Months Ended

Mar. 31, 2018

Property, Plant and Equipment [Abstract]

PROPERTY, PLANT AND EQUIPMENT

NOTE 7 - PROPERTY, PLANT AND EQUIPMENT

Property and equipment at March 31, 2018 and June 30, 2017 are summarized as follows:

	March 31, 2018			June 30, 2017
Land and Building	$	1,017,702		$	915,962
Plant and Machinery		160,292			144,268
Office equipment		20,378			18,340
Project equipment		1,154,079			1,038,707
Computer		11,084			9,976
Motor Vehicle		119,308			107,381
Accumulated depreciation		(2,473,401	)		(2,211,246	)
	$	9,442		$	23,388

The depreciation expenses charged for the period ended March 31, 2018 and 2017 was $15,645 and $100,899.

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LOANS FROM BANKS (HIRE PURCHASE INSTALLMENT LOANS)

9 Months Ended

Mar. 31, 2018

Debt Disclosure [Abstract]

LOANS FROM BANKS (HIRE PURCHASE INSTALLMENT LOANS)

NOTE 8 - LOANS FROM BANKS (HIRE PURCHASE INSTALLMENT LOANS)

The loans from banks include long term and short term and are summarized as follow:

	March 31, 2018		June 30, 2017
Loans from banks	$	2,542	$	4,645
Loans from banks(non-current)		861		2,466
Total	$	3,403	$	7,111

Hire purchase installment loans with total amount $3,522 and $7,533 as at March 31, 2018 and June 30, 2017 are $3,403 and $7,111 net of imprest charges equivalent to interest $119 and $422 are summarized as follows:

	Interest Rate	Monthly Due		March 31, 2018		June 30, 2017
Financial institution in Malaysia	N/A*	$	1,514	$	-	$	1,514
Financial institution in Malaysia	N/A*		266		-		1,059
Financial institution in Malaysia	N/A*		221		3,522		4,960
Hire purchase loans payable to banks				$	3,522	$	7,533

(*) Hire purchase installment loans with Motor Vehicles as collateral. The financial institutions in Malaysia are Islamic banks and bear no interest in the installment agreement. However, there are certain imprest charges equivalent to interests which are being calculated at an average annual rate of approximate 3.50% for the entire loans life and periods.

The scheduled maturities of the CSL's hire purchase installment loans are as follows:

March 31,
2019		2,652
2020		870
2021		-
2022		-
Later years		-
Total minimum hire purchase installment payment	$	3,522
Less: Amount representing imprest charges equivalent to interest (current portion: $110 and non-current portion: $9)		(119	)
Present value of net minimum lease payments (#)	$	3,403

(#) Minimum payment reflected in the balance sheet as current and noncurrent obligations under hire purchases installment loans as at March 31, 2018.

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INCOME TAX

9 Months Ended

Mar. 31, 2018

Income Tax Disclosure [Abstract]

INCOME TAX

NOTE 9 - INCOME TAX

The Company and its subsidiaries are subject to income taxes on an entity basis on income arising in, or derived from, the tax jurisdiction in which they operate. The Company is a Nevada incorporated company and subject to United State Federal Income Tax. The Tax Cuts and Jobs Act of (“TCJ Act”) was signed into law in December 2017, and among its many provisions, it imposed a mandatory one-time transition tax on undistributed international earnings and reduced the U.S. corporate income tax rate to 21%, effective January 1, 2018. No provision for income taxes in the United States has been made as the Company had no taxable income for the periods ended March 31, 2018 and 2017. GBL is a British Virgin Islands incorporated company and not required to pay income tax on corporate income. CSB is a Malaysia incorporated company and required to pay corporate income tax at 25% of taxable income.

A reconciliation between the income tax computed at the relevant statutory rate and the Company's provision for income tax is as follows:

	Period ended
	March 31, 2018			June 30, 2017
US Federal Income Tax Rate.		34	%		34	%
Valuation allowance – US Rate		(34	)%		(34	)%
BVI Income Tax Rate		0	%		0	%
Valuation allowance – BVI Rate		(0	)%		(0	)%
Malaysia Income Tax Rate		25	%		25	%
Valuation allowance – Malaysia Rate		(25	)%		(25	)%
Provision for income tax		-			-

Summary of the Company's net deferred tax liabilities and assets are as follows:

	March 31, 2018			June 30, 2017
Deferred tax assets:
Tax attribute carryforwards	$	82,491		$	114,774
Valuation allowances		(82,491	)		(114,774	)
Total	$	-		$	-

The Company has recorded valuation allowances for certain tax attribute carry forwards and other deferred tax assets due to uncertainty that exists regarding future realizability. If in the future the Company believes that it is more likely than not that these deferred tax benefits will be realized, the majority of the valuation allowances will be recognized in the consolidated statement of operations. The Company did not have any interest and penalty provided or recognized in the income statements for period March 31, 2018 and June 30, 2017 or balance sheet as of March 31, 2018 and June 30, 2017. The Company did not have uncertainty tax positions or events leading to uncertainty tax position within the next 12 months.

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COMMITMENTS AND CONTINGENCIES

9 Months Ended

Mar. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 10 - COMMITMENTS AND CONTINGENCIES

As at March 31, 2018, the Company's hire purchase installment agreements are disclosed in Note 8. See Note 8 for the commitments for minimum installment payments under these agreements.

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EARNINGS/(LOSS) PER SHARE

9 Months Ended

Mar. 31, 2018

Earnings Per Share [Abstract]

EARNINGS/(LOSS) PER SHARE

NOTE 11 - EARNINGS/(LOSS) PER SHARE

The Company has adopted ASC Topic No. 260, "Earnings Per Share," ("EPS") which requires presentation of basic and diluted EPS on the face of the income statement for all entities with complex capital structures, and requires a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation. In the accompanying financial statements, basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period.

The following table sets forth the computation of basic and diluted earnings per share:

	Three Months Ended March 31,
	2018			2017
Net loss applicable to common shares	$	(289,510	)	$	(89,964	)
Weighted average common shares outstanding (Basic)		98,188,544			94,478,690
Options		-			-
Warrants		-			-
Weighted average common shares outstanding (Diluted)		98,188,544			94,478,690
Net loss per share (Basic and Diluted)	$	(0.003	)	$	(0.001	)

	Nine Months Ended March 31,
	2018			2017
Net loss applicable to common shares	$	(229,774	)	$	(305,681	)
Weighted average common shares outstanding (Basic)		98,188,544			94,478,690
Options		-			-
Warrants		-			-
Weighted average common shares outstanding (Diluted)		98,188,544			94,478,690
Net loss per share (Basic and Diluted)	$	(0.002	)	$	(0.003	)

The Company has no potentially dilutive securities, such as options or warrants, currently issued and outstanding.

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CAPITAL STOCK

9 Months Ended

Mar. 31, 2018

Stockholders' Equity Note [Abstract]

CAPITAL STOCK

NOTE 12 - CAPITAL STOCK

Authorized Stock

The Company has authorized 10,000,000,000 common shares and 50,000,000 preferred shares, both with a par value of $0.001 per share. Each common share entitles the holder to one vote, in person or proxy, on any matter on which action of the stockholders of the corporation is sought.

Effective February 2, 2018, the Company's Articles of Incorporation were amended to increase the authorized shares of the Company from 250,000,000 shares of common stock to 10,000,000,000 shares of common stock. A copy of the Certificate of Amendment was filed with the Nevada Secretary of State. The Form 8K announcing the increase of the authorized shares of the Company was filed with SEC on February 6, 2018.

Share Issuance

On January 29, 2014, the Company issued a total of 643,229 common shares for $665,238, of which 288,288 common shares at US$1.25 per share, 183,661 common shares at US$0.83 per share and 171,280 common shares at US$0.89 per share, to Borneo Oil & Gas Corporation Sdn Bhd ("BOG"), a Malaysia Limited Liability Company, under the terms of the Sub-Contractor Agreement for the engagement of its sub-contractor services.

On March 10, 2014, the Company issued a total of 693,180 common shares for $609,756, of which 179,340 common shares at US$0.85 per share and 513,840 common shares at US$0.89 per share, to Borneo Oil & Gas Corporation Sdn Bhd ("BOG"), a Malaysia Limited Liability Company, under the terms of the Sub-Contractor Agreement for the engagement of its sub-contractor services.

On January 21, 2015, the Company issued 5,900,000 common shares at US$0.05 per share to Borneo Oil & Gas Corporation Sdn Bhd ("BOG"), a Malaysia Limited Liability Company, under the terms of the Consultant Agreement for the additional services of its sub-contractor.

On September 29, 2016, the Company issued a total of 4,750,000 common shares at US$0.04 per share, of which 2,375,000 common shares to Vincent Lee Sen Min and 2,375,000 common shares to Reggie Abraham, both are Malaysian citizens.

On March 1, 2018, the Company issued a total of 10,000,000 common shares at US$0.02 per share to each of the two directors, of which 5,000,000 common shares to Balakrishnan B S Muthu and 5,000,000 common shares to Chen Ching. An aggregate of $200,000 for this transaction was recognized as stock-based compensation under selling, general and administrative expenses during the three and six months ended March 31, 2018.

On March 1, 2018, the Company issued a total of 9,000,000 common shares at US$0.02 per share to three consultants under the Consultant Agreements, of which 5,000,000 common shares to Vincent Yong Tuck Seng, 2,500,000 common shares to Georgia Suzanne Lingam and 1,500,000 common shares to Liu Jiew Shin, all are Malaysian citizens. An aggregate of $180,000 for this transaction was recognized as stock-based compensation under selling, general and administrative expenses during the three and six months ended March 31, 2018.

There were 115,038,909 and 96,038,909 common shares issued and outstanding at March 31, 2018 and June 30, 2017 respectively.

There are no preferred shares outstanding. The Company has issued no authorized preferred shares. The Company has no stock option plan, warrants, or other dilutive securities.

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RELATED PARTY TRANSACTIONS

9 Months Ended

Mar. 31, 2018

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

NOTE 13 - RELATED PARTY TRANSACTIONS

As of March 31, 2018, advances were made by five companies of $2,486,896 related to ordinary business transactions. All advances related to ordinary business transactions, bear no interest or collateral, repayable and renewable under normal advancement terms. Details are disclosed in Note 6.

As of March 31, 2018, amounts due from one company of $4,831 related to ordinary business transactions. The receivable amounts related to ordinary business transactions bear no interest or collateral, repayable and renewable under normal advancement terms. Details are disclosed in Note 4.

During the period ended March 31, 2018, the Company received other income of $69,034 from BOG.

During the period ended March 31, 2018, the Company incurred cost of revenue worth of $42,880 to BOG.

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GOING CONCERN AND LIQUIDITY CONSIDERATIONS

9 Months Ended

Mar. 31, 2018

Going Concern And Liquidity Considerations [Abstract]

GOING CONCERN AND LIQUIDITY CONSIDERATIONS

NOTE 14 - GOING CONCERN AND LIQUIDITY CONSIDERATIONS

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. As of and for the period ended March 31, 2018, the Company had a net loss of $211,180 and working capital deficiency of $2,482,105. The Company intends to fund operations through debt and equity financing arrangements, which may be insufficient to fund its capital expenditures, working capital and other cash requirements for the period ending March 31, 2018 and subsequently.

The ability of the Company to survive is dependent upon, among other things, obtaining additional financing to continue operations, and development of its business plan.

In response to these problems, management intends to raise additional funds through public or private placement offerings, and related party loans.

These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.

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CONCENTRATIONS

9 Months Ended

Mar. 31, 2018

Risks and Uncertainties [Abstract]

CONCENTRATIONS

NOTE 15 - CONCENTRATIONS

Suppliers

The Company's major suppliers for the period ended March 31, 2018 and 2017 are listed as following:

Subcontractors

Accounts Payable

Nine

Nine

Months

Months

Ended

Ended

Major Suppliers

March 31, 2018

March 31, 2017

March 31, 2018

March 31, 2017

Company A

100

%

100

%

0

%

0

%

Customers

The Company's major customers for the period ended March 31, 2018 and 2017 are listed as following:

	Sales						Accounts Receivable
	Nine			Nine
	Months			Months
	Ended			Ended
Major Customers	March 31, 2018			March 31, 2017			March 31, 2018			March 31, 2017
Company M		0	%		5	%		0	%		0	%
Company N		0	%		1	%		0	%		0	%
Company O		100	%		94	%		0	%		0	%

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SUBSEQUENT EVENTS

9 Months Ended

Mar. 31, 2018

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE 16 - SUBSEQUENT EVENTS

The Company has evaluated subsequent events from the balance sheet date through the date the financial statements were issued and determined that there are no additional items to disclose.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (GAAP). These condensed consolidated financial statements are expressed in United States dollars ($). Financial statements prepared in accordance with GAAP contemplate the realization of assets and the satisfaction of liabilities in the normal course of business. These condensed consolidated audited financial statements include all adjustments that, in the opinion of management, are necessary in order to make the financial statements not misleading.

Basis of Consolidation

Basis of Consolidation

The condensed consolidated financial statements include the financial statements of Verde Resources, Inc., its wholly owned subsidiary Gold Billion Global Limited ("GBL") and the 85% of the deemed subsidiary variable interest of Champmark SDN BHD ("CSB"). All inter-company balances and transactions between the Company and variable interest entity (VIE) have been eliminated upon consolidation.

The Company has adopted ASC Topic 810-10-5-8, "Variable Interest Entities", which requires a variable interest entity or VIE to be consolidated by a company if that company is subject to a majority of the risk of loss for the VIE or is entitled to receive a majority of the VIE's residual returns.

Variable Interest Entity

Variable Interest Entity

On July 1, 2013, the Company's subsidiary, GBL entered into a series of agreements ("VIE agreements") with FMR and details of the VIE agreements are as follows :

1.	Management Agreement, FMR entrusted the management rights of its subsidiary CSB to GBL that include:
	i)	management and administrative rights over the day-to-day business affairs of CSB and the mining operation at Site IV-1 of the Merapoh Gold Mine;
	ii)	final right for the appointment of members to the Board of Directors and the management team of CSB;
	iii)	act as principal of CSB;
	iv)	obligation to provide financial support to CSB;
	v)	option to purchase an equity interest in CSB;
	vi)	entitlement to future benefits and residual value of CSB;
	vii)	right to impose no dividend policy;
	viii)	human resources management.
2.	Debt Assignment, FMR assigned to GBL the sum of money in the amount of US Dollars One Hundred Nine Thousand Eight Hundred One And Cents Seventy-Two Only (US$ 109,801.72), now due to GBL from CSB under the financing obligation from the FMR to CSB.

With the above agreements, GBL demonstrates its ability to control CSB as the primary beneficiary and the operating results of the VIE was included in the condensed consolidated financial statements for the year ended June 30, 2014.

On April 1, 2014, the Board of Director of GBL notified FMR upon the decision to exercise the right of option to purchase 85% equity interest of CSB under Management Agreement Section 3.2.4 dated July 1, 2013 between GBL and FMR. This acquisition was completed on April 1, 2014 with consideration of US$1. GBL then became 85% shareholder of CSB and is required to consolidate CSB as a subsidiary.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company's periodic filings with the Securities and Exchange Commission include, where applicable, disclosures of estimates, assumptions, uncertainties and markets that could affect the financial statements and future operations of the Company.

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents include cash in banks, money market funds, and certificates of term deposits with maturities of less than three months, which are readily convertible to known amounts of cash and which, in the opinion of management, are subject to an insignificant risk of loss in value. The Company had $33,720 and $38,616 in cash and cash equivalents at March 31, 2018 and June 30, 2017, respectively.

Concentrations of Credit Risk

Concentrations of Credit Risk

The Company's financial instruments that are exposed to concentrations of credit risk primarily consist of its cash and cash equivalents and related party payables it will likely incur in the near future. The Company places its cash and cash equivalents with financial institutions of high credit worthiness. At times, its cash and cash equivalents with a particular financial institution may exceed any applicable government insurance limits. The Company's management plans to assess the financial strength and credit worthiness of any parties to which it extends funds, and as such, it believes that any associated credit risk exposures are limited.

Risks and Uncertainties

Risks and Uncertainties

The Company operates in the resource exploration industry that is subject to significant risks and uncertainties, including financial, operational, technological, and other risks associated with operating a resource exploration business, including the potential risk of business failure.

Accounts Receivable

Accounts Receivable

Accounts receivable are recognized and carried at net realizable value. An allowance for doubtful accounts will be recorded in the period when a loss is probable based on an assessment of specific evidence indicating troubled collection, historical experience, accounts aging, ongoing business relation and other factors. Accounts are written off after exhaustive efforts at collection. If accounts receivable are to be provided for, or written off, they would be recognized in the consolidated statement of operations within operating expenses. At and, the Company has no allowance for doubtful accounts, as per management's judgment based on their best knowledge. As of March 31, 2018 and June 30, 2017, the longest credit term for certain customers are 60 days.

Provision for Doubtful Accounts

Provision for Doubtful Accounts

The Company maintains an allowance for doubtful accounts to reserve for potentially uncollectible receivables and reviews accounts receivable by amounts due by customers which are past due to identify specific customers with known disputes or collectability issues. In determining the amount of the reserve, the Company makes judgments about the creditworthiness of customers based on past collection experience and ongoing credit risk evaluations. At March 31, 2018 and June 30, 2017 there was no allowance for doubtful accounts.

Fair Value

Fair Value

ASC Topic 820 "Fair Value Measurement and Disclosures" establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market.

These tiers include:

● Level 1—defined as observable inputs such as quoted prices in active markets;

● Level 2—defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and

● Level 3—defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

The Company's financial instruments consist of cash and cash equivalents, trade receivables, other receivables, payables, and short term and long term debt. The carrying values of cash and cash equivalents, trade receivables, other receivables, and payables approximate their fair value due to their short maturities. The carrying value of long term debt approximates the fair value of debt of similar terms and remaining maturities available to the company.

The Company's non-financial assets are measured on a recurring basis. These non-financial assets are measured for impairment annually on the Company's measurement date at the reporting unit level using Level 3 inputs. For most assets, ASC 820 requires that the impact of changes resulting from its application be applied prospectively in the year in which the statement is initially applied.

The Company's non-financial assets measured on a non-recurring basis include the Company's property, plant and equipment and finite-use intangible assets which are measured for recoverability when indicators for impairment are present. ASC 820 requires companies to disclose assets and liabilities measured on a non-recurring basis in the period in which the re-measurement at fair value is performed.

The Company did not have any convertible bonds as of March 31, 2018 and June 30, 2017.

Foreign Currency Translation

Foreign Currency Translation

The Company's reporting currency is the United States dollar ("$") and the accompanying consolidated financial statements have been expressed in United States dollars. The Company's functional currency is the Malaysian Ringgit ( "MYR") which is a functional currency as being the primary currency of the economic environment in which their operations are conducted.

In accordance with ASC Topic 830 "Translation of Financial Statements" , capital accounts of the consolidated financial statements are translated into United States dollars from MYR at their historical exchange rates when the capital transactions occurred. Assets and liabilities are translated at the exchange rates as of balance sheet date. Income and expenditures are translated at the average exchange rate of the respective year. The resulting exchange differences are recorded in the consolidated statement of operations.

	March 31, 2018		June 30, 2017
Period-end MYR : $1 exchange rate		0.2588		0.2329
Average MYR : $1 exchange rate		0.2447		0.2338

Comprehensive Income

Comprehensive Income

Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income are required to be reported in a financial statement that is presented with the same prominence as other financial statements. Comprehensive income includes net income and the foreign currency translation changes.

Segment Reporting

Segment Reporting

The Company currently engages in one operation segment: Gold Mining. The expenses incurred were consisting principally of management services. The Company's major operation is located in Malaysia.

Mineral Acquisition and Exploration Costs

Mineral Acquisition and Exploration Costs

The Company has been primarily engaged in the acquisition, exploration, and development of mining properties. The Company was no longer considered an exploration stage company after the reverse take-over with its subsidiary GBL.

Mineral property acquisition and exploration costs are expensed as incurred. When it has been determined that a mineral property can be economically developed as a result of establishing proven and probable reserves, the costs incurred to develop such property are capitalized. Such costs will be amortized using the units-of-production method over the estimated life of the probable reserves.

Environmental Expenditures

Environmental Expenditures

The operations of the Company have been, and may in the future be, affected from time to time in varying degree by changes in environmental regulations, including those for future reclamation and site restoration costs. Both the likelihood of new regulations and their overall effect upon the Company vary greatly and are not predictable. The Company's policy is to meet or, if possible, surpass standards set by relevant legislation by application of technically proven and economically feasible measures.

Environmental expenditures that relate to ongoing environmental and reclamation programs are charged against earnings as incurred or capitalized and amortized depending on their future economic benefits. All of these types of expenditures incurred since inception have been charged against earnings due to the uncertainty of their future recoverability. Estimated future reclamation and site restoration costs, when the ultimate liability is reasonably determinable, are charged against earnings over the estimated remaining life of the related business operation, net of expected recoveries.

Revenue Recognition

Revenue Recognition

In accordance with the ASC Topic 605, "Revenue Recognition", the Company recognizes revenue when persuasive evidence of an arrangement exists, transfer of title has occurred or services have been rendered, the selling price is fixed or determinable and collectibility is reasonably assured.

The Company derives revenues primarily from the sales of gold mineral to registered gold trading companies in Malaysia. The Company generally recognizes its revenues at the time of gold sales and its selling price is determined by the prevailing market value of gold bullion quoted by the leading registered gold trading company in Malaysia. Sales invoice will be duly presented to the trading companies when delivery is completed and revenue is then recognized.

Cost of Revenue

Cost of Revenue

The cost of revenue consists of exploration cost, mine equipment depreciation, production cost, mine site management cost, sub-contractor cost, and royalty and tribute payment which are levied on the gross revenue at the rate of 18% on the invoiced value of gold sales.

Advertising Expenses

Advertising Expenses

Advertising costs are expensed as incurred under ASC Topic 720, "Advertising Costs" . Advertising expenses incurred for the periods ended March 31, 2018 and June 30, 2017 were $0.

Income Taxes

Income Taxes

The provision for income taxes is determined in accordance with the provisions of ASC Topic 740, "Accounting for Income Taxes" ("ASC 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 years 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. As of March 31, 2018 and June 30, 2017, the Company did not have any significant unrecognized uncertain tax positions.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

The FASB has issued Accounting Standards Update No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business , clarifying the definition of a business. The amendments affect all companies and other reporting organizations that must determine whether they have acquired or sold a business.

The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The amendments are intended to help companies and other organizations evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments provide a more robust framework to use in determining when a set of assets and activities is a business. They also provide more consistency in applying the guidance, reduce the costs of application, and make the definition of a business more operable.

For public companies, the amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those periods. For all other companies and organizations, the amendments are effective for annual periods beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019.

The FASB has issued Accounting Standards Update (ASU) No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.

To simplify the subsequent measurement of goodwill, the amendments eliminate Step 2 from the goodwill impairment test. The annual, or interim, goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In addition, income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable.

The amendments also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary.

The amendments should be applied on a prospective basis. The nature of and reason for the change in accounting principle should be disclosed upon transition.

A public business entity that is a U.S. Securities and Exchange Commission (SEC) filer should adopt the amendments for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019.

A public business entity that is not an SEC filer should adopt the amendments for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2020.

All other entities, including not-for-profit entities, which adopt the amendments should do so for their annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2021.

Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. 

The FASB has issued Accounting Standards Update No. 2017-05, Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets.

A contract may involve the transfer of both nonfinancial assets and financial assets (e.g., cash and receivables). The amendments clarify that a financial asset is within the scope of Subtopic 610-20 if it meets the definition of an in substance nonfinancial asset. The amendments also define the term in substance nonfinancial asset.

The amendments clarify that nonfinancial assets within the scope of Subtopic 610-20 may include nonfinancial assets transferred within a legal entity to a counterparty. For example, a parent may transfer control of nonfinancial assets by transferring ownership interests in a consolidated subsidiary. A contract that includes the transfer of ownership interests in one or more consolidated subsidiaries is within the scope of Subtopic 610-20 if substantially all of the fair value of the assets that are promised to the counterparty in a contract is concentrated in nonfinancial assets.

The amendments clarify that an entity should identify each distinct nonfinancial asset or in substance nonfinancial asset promised to a counterparty and derecognize each asset when a counterparty obtains control of it.

The amendments are effective at the same time Topic 606, Revenue from Contracts with Customers is effective. For public entities, the amendments are effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. For all other entities, the amendments are effective for annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019.

The FASB has issued Accounting Standards Update (ASU) No. 2018-01, Leases (Topic 842):Land Easement Practical Expedient for Transition to Topic 842, which clarifies the application of the new leases guidance to land easements and eases adoption efforts for some land easements.

ASU 2018-01 is expected to reduce the cost of adopting the new leases standard for certain land easements. It is also an attempt to help ensure that companies can make a successful transition to the standard without compromising the quality of information provided to investors about these transactions. Land easements (also commonly referred to as rights of way) represent the right to use, access, or cross another entity’s land for a specified purpose. Land easements are used by utility and telecommunications companies, for example, when they need to take a small strip of land, or easement, to bury wires. Not all companies have historically accounted for them as leases. Stakeholders pointed out that the requirement to evaluate all old and existing land easements, sometimes numbering in the tens of thousands, to determine if they meet the definition of a lease under the new standard could be very costly. They also noted there would be limited benefit to applying this requirement, as many of their land easements would not meet the definition of a lease, or even if they met that definition, many of their easements are prepaid and, therefore, already are recognized on the balance sheet.

The land easements ASU addresses this by:

· Providing an optional transition practical expedient that, if elected, would not require an organization to reconsider their accounting for existing land easements that are not currently accounted for under the old leases standard; and

· Clarifying that new or modified land easements should be evaluated under the new leases standard, once an entity has adopted the new standard.

The FASB issued an Accounting Standards Update (ASU) that helps organizations address certain stranded income tax effects in accumulated other comprehensive income (AOCI) resulting from the Tax Cuts and Jobs Act.

ASU No. 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, provides financial statement preparers with an option to reclassify stranded tax effects within AOCI to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act (or portion thereof) is recorded.

The ASU requires financial statement preparers to disclose:

· A description of the accounting policy for releasing income tax effects from AOCI;

· Whether they elect to reclassify the stranded income tax effects from the Tax Cuts and Jobs Act; and

· Information about the other income tax effects that are reclassified.

The amendments affect any organization that is required to apply the provisions of Topic 220, Income Statement—Reporting Comprehensive Income, and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income as required by GAAP. The amendments are effective for all organizations for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. Organizations should apply the proposed amendments either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized.

Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on our consolidated financial statements upon adoption.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

Schedule of exchange differences recorded in consolidated statement of operations

	March 31, 2018		June 30, 2017
Period-end MYR : $1 exchange rate		0.2588		0.2329
Average MYR : $1 exchange rate		0.2447		0.2338

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AMOUNT DUE FROM RELATED PARTIES (Tables)

9 Months Ended

Mar. 31, 2018

Due from Related Parties, Current [Abstract]

Schedule of amount due from related parties

	March 31, 2018		June 30, 2017
Amount due from Stable Treasure Sdn. Bhd. (*)	$	4,831	$	4,088

(*) One of the directors of Stable Treasure Sdn. Bhd., Mr. Balakrishnan B S Muthu is also the director of the Company. The advances related to ordinary business transactions and bear no interest or collateral, repayable and renewable under normal business advancement terms.

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INVENTORIES (Tables)

9 Months Ended

Mar. 31, 2018

Inventory Disclosure [Abstract]

Schedule of inventories

	March 31, 2018		June 30, 2017
Inventories	$	20,523	$	8,832

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ACCOUNTS PAYABLE AND ADVANCED FROM RELATED PARTIES (Tables)

9 Months Ended

Mar. 31, 2018

Payables and Accruals [Abstract]

Schedule of accounts payable

	March 31, 2018		June 30, 2017
Due to Changxin Wanlin Technology Co Ltd(*)	$	1,668,173	$	1,501,406
Other accounts payable		1,051		59,343
	$	1,669,224	$	1,560,749

(*) Due to Changxin Wanlin Technology Co Ltd are accounts payable derived from ordinary business transactions. One of the directors of Changxin Wanlin Technology Co. Ltd., Mr. Wu Ming Ding, has resigned as director of VRDR (as of February 20, 2016), GBL (as of February 11, 2016) and CSB (as of February 17, 2016). This accounts payable bears no interest or collateral, repayable and renewable under normal business accounts payable terms.

Schedule of advanced from related parties

	March 31, 2018		June 30, 2017
Advanced from BOG (#1)	$	502,258	$	430,169
Advanced from Federal Mining Resources Limited(#2)	$	173,465	$	173,465
Advanced from Federal Capital Investment Limited (#3)	$	116,000	$	98,000
Advanced from Yorkshire Capital Limited (#4)	$	27,000	$	27,000
	$	818,723	$	728,634

(#1) BOG is one of the shareholders of the Company. The advances are related to ordinary business transactions and bear no interest or collateral, repayable and renewable under normal business advancement terms.

(#2) One of the directors of Federal Mining Resources Limited, Mr. Chen Ching, has been appointed as director of the Company effective February 20, 2016. Another director of Federal Mining Resources Limited, Mr. Wu Ming Ding, has resigned as director of the Company effective February 20, 2016. The advances are related to ordinary business transactions and bear no interest or collateral, repayable and renewable under normal business advancement terms.

(#3) One of the directors of Federal Capital Investment Limited, Mr. Wu Ming Ding, has resigned as director of the Company effective February 20, 2016. The advances are related to ordinary business transactions and bear no interest or collateral, repayable and renewable under normal business advancement terms.

(#4) One of the directors of Yorkshire Capital Limited, Mr. Lai Kui Shing, Andy, has resigned as director of CSB effective February 17, 2016. The advances are related to ordinary business transactions and bear no interest or collateral, repayable and renewable under normal business advancement terms.

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PROPERTY, PLANT AND EQUIPMENT (Tables)

9 Months Ended

Mar. 31, 2018

Property, Plant and Equipment [Abstract]

Schedule of property and equipment

	March 31, 2018			June 30, 2017
Land and Building	$	1,017,702		$	915,962
Plant and Machinery		160,292			144,268
Office equipment		20,378			18,340
Project equipment		1,154,079			1,038,707
Computer		11,084			9,976
Motor Vehicle		119,308			107,381
Accumulated depreciation		(2,473,401	)		(2,211,246	)
	$	9,442		$	23,388

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LOANS FROM BANKS (HIRE PURCHASE INSTALLMENT LOANS) (Tables)

9 Months Ended

Mar. 31, 2018

Debt Disclosure [Abstract]

Schedule of the summary of loans from banks

	March 31, 2018		June 30, 2017
Loans from banks	$	2,542	$	4,645
Loans from banks(non-current)		861		2,466
Total	$	3,403	$	7,111

Schedule of hire purchase installment

	Interest Rate	Monthly Due		March 31, 2018		June 30, 2017
Financial institution in Malaysia	N/A*	$	1,514	$	-	$	1,514
Financial institution in Malaysia	N/A*		266		-		1,059
Financial institution in Malaysia	N/A*		221		3,522		4,960
Hire purchase loans payable to banks				$	3,522	$	7,533

(*) Hire purchase installment loans with Motor Vehicles as collateral. The financial institutions in Malaysia are Islamic banks and bear no interest in the installment agreement. However, there are certain imprest charges equivalent to interests which are being calculated at an average annual rate of approximate 3.50% for the entire loans life and periods.

Schedule of maturities of the CSL's hire purchase installment loans

March 31,
2019		2,652
2020		870
2021		-
2022		-
Later years		-
Total minimum hire purchase installment payment	$	3,522
Less: Amount representing imprest charges equivalent to interest (current portion: $110 and non-current portion: $9)		(119	)
Present value of net minimum lease payments (#)	$	3,403

(#) Minimum payment reflected in the balance sheet as current and noncurrent obligations under hire purchases installment loans as at March 31, 2018.

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INCOME TAX (Tables)

9 Months Ended

Mar. 31, 2018

Income Tax Disclosure [Abstract]

Schedule of reconciliation between the income tax at statutory rate and the Company's provision for income tax

	Period ended
	March 31, 2018			June 30, 2017
US Federal Income Tax Rate.		34	%		34	%
Valuation allowance – US Rate		(34	)%		(34	)%
BVI Income Tax Rate		0	%		0	%
Valuation allowance – BVI Rate		(0	)%		(0	)%
Malaysia Income Tax Rate		25	%		25	%
Valuation allowance – Malaysia Rate		(25	)%		(25	)%
Provision for income tax		-			-

Schedule of deferred tax liabilities and assets, net

	March 31, 2018			June 30, 2017
Deferred tax assets:
Tax attribute carryforwards	$	82,491		$	114,774
Valuation allowances		(82,491	)		(114,774	)
Total	$	-		$	-

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EARNINGS/(LOSS) PER SHARE (Tables)

9 Months Ended

Mar. 31, 2018

Earnings Per Share [Abstract]

Schedule of computation of basic and diluted earnings per share

	Three Months Ended March 31,
	2018			2017
Net loss applicable to common shares	$	(289,510	)	$	(89,964	)
Weighted average common shares outstanding (Basic)		98,188,544			94,478,690
Options		-			-
Warrants		-			-
Weighted average common shares outstanding (Diluted)		98,188,544			94,478,690
Net loss per share (Basic and Diluted)	$	(0.003	)	$	(0.001	)

	Nine Months Ended March 31,
	2018			2017
Net loss applicable to common shares	$	(229,774	)	$	(305,681	)
Weighted average common shares outstanding (Basic)		98,188,544			94,478,690
Options		-			-
Warrants		-			-
Weighted average common shares outstanding (Diluted)		98,188,544			94,478,690
Net loss per share (Basic and Diluted)	$	(0.002	)	$	(0.003	)

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CONCENTRATIONS (Tables)

9 Months Ended

Mar. 31, 2018

Major suppliers

Concentration Risk [Line Items]

Schedules of concentration of risk

Subcontractors

Accounts Payable

Nine

Nine

Months

Months

Ended

Ended

Major Suppliers

March 31, 2018

March 31, 2017

March 31, 2018

March 31, 2017

Company A

100

%

100

%

0

%

0

%

Major customers

Concentration Risk [Line Items]

Schedules of concentration of risk

	Sales						Accounts Receivable
	Nine			Nine
	Months			Months
	Ended			Ended
Major Customers	March 31, 2018			March 31, 2017			March 31, 2018			March 31, 2017
Company M		0	%		5	%		0	%		0	%
Company N		0	%		1	%		0	%		0	%
Company O		100	%		94	%		0	%		0	%

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ORGANIZATION AND DESCRIPTION OF BUSINESS (Detail Textuals) - shares	1 Months Ended
	Mar. 17, 2014	Feb. 17, 2014	Mar. 31, 2018	Feb. 02, 2018	Jun. 30, 2017	Aug. 27, 2014	Aug. 26, 2014	Apr. 01, 2014	Jul. 01, 2013
Variable Interest Entity [Line Items]
Common stock, shares authorized			10,000,000,000	10,000,000,000	250,000,000	250,000,000	100,000,000
Gold Billion Global Limited
Variable Interest Entity [Line Items]
Equity interest ownership percentage		100.00%
Champmark Sdn Bhd ("CSB")
Variable Interest Entity [Line Items]
Variable interest, ownership percentage		85.00%
Champmark Sdn Bhd ("CSB") | FMR
Variable Interest Entity [Line Items]
Equity interest ownership percentage									85.00%
Champmark Sdn Bhd ("CSB") | Gold Billion Global Limited
Variable Interest Entity [Line Items]
Non-controlling interest, percentage		15.00%
Equity interest ownership percentage		85.00%						85.00%
Champmark Sdn Bhd ("CSB") | Gold Billion Global Limited | Borneo Oil And Gas Corporation Sdn Bhd | Sub-Contract Agreement
Variable Interest Entity [Line Items]
Term of contract	5 years
Renewal term of subcontract	5 years

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of exchange differences (Details)	Mar. 31, 2018	Jun. 30, 2017
Accounting Policies [Abstract]
Period-end MYR : $1 exchange rate	0.2588	0.2329
Average MYR : $1 exchange rate	0.2447	0.2338

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals) - USD ($)		1 Months Ended
	Apr. 01, 2014	Feb. 17, 2014
Gold Billion Global Limited
Variable Interest Entity [Line Items]
Equity interest ownership percentage		100.00%
Champmark SDN BHD ("CSB")
Variable Interest Entity [Line Items]
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage		85.00%
Champmark SDN BHD ("CSB") | Gold Billion Global Limited
Variable Interest Entity [Line Items]
Equity interest ownership percentage	85.00%	85.00%
Amount of consideration for acquisition	$ 1

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals 1)	9 Months Ended	12 Months Ended
	Mar. 31, 2018 USD ($) Segment	Jun. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)	Jun. 30, 2016 USD ($)
Variable Interest Entity [Line Items]
Cash and cash equivalents	$ 33,720	$ 38,616	$ 48,944	$ 16,113
Longest credit term for certain customers	60 days	60 days
Number of operating segments | Segment	1
Percentage of gross revenue as cost of revenue	18.00%
Advertising expenses	$ 0	$ 0
Gold Billion Global Limited
Variable Interest Entity [Line Items]
Debt assigned	$ 109,801.72

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AMOUNT DUE FROM RELATED PARTIES (Details) - USD ($)		Mar. 31, 2018	Jun. 30, 2017
Related Party Transaction [Line Items]
Amount due from Stable Treasure Sdn. Bhd.		$ 4,831	$ 4,088
Stable Treasure Sdn. Bhd.
Related Party Transaction [Line Items]
Amount due from Stable Treasure Sdn. Bhd.	[1]	$ 4,831	$ 4,088

[1] One of the directors of Stable Treasure Sdn. Bhd., Mr. Balakrishnan B S Muthu is also the director of the Company. The advances related to ordinary business transactions and bear no interest or collateral, repayable and renewable under normal business advancement terms.

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INVENTORIES - Summary of inventories (Details) - USD ($)	Mar. 31, 2018	Jun. 30, 2017
Inventory Disclosure [Abstract]
Inventories	$ 20,523	$ 8,832

XML

INVENTORIES - (Detail Textuals) - Gold minerals	Mar. 31, 2018	Jun. 30, 2017
Sub Contractor and Original Mine Assigner
Inventory [Line Items]
Percentage of share in inventories	92.00%	92.00%
Verde Resources, Inc.
Inventory [Line Items]
Percentage of share in inventories	8.00%	8.00%

XML

ACCOUNTS PAYABLE AND ADVANCED FROM RELATED PARTIES - Summary of accounts payable (Details) - USD ($)		Mar. 31, 2018	Jun. 30, 2017
Payables and Accruals [Abstract]
Due to Changxin Wanlin Technology Co Ltd	[1]	$ 1,668,173	$ 1,501,406
Other accounts payable		1,051	59,343
Total accounts payable		$ 1,669,224	$ 1,560,749

[1] Due to Changxin Wanlin Technology Co Ltd are accounts payable derived from ordinary business transactions. One of the directors of Changxin Wanlin Technology Co. Ltd., Mr. Wu Ming Ding, has resigned as director of VRDR (as of February 20, 2016), GBL (as of February 11, 2016) and CSB (as of February 17, 2016). This accounts payable bears no interest or collateral, repayable and renewable under normal business accounts payable terms.

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ACCOUNTS PAYABLE AND ADVANCED FROM RELATED PARTIES - Summary of advanced from related parties (Details 1) - USD ($)		Mar. 31, 2018	Jun. 30, 2017
Related Party Transaction [Line Items]
Advanced from related parties		$ 818,723	$ 728,634
BOG
Related Party Transaction [Line Items]
Advanced from related parties	[1]	502,258	430,169
Director | Federal Mining Resources Limited
Related Party Transaction [Line Items]
Advanced from related parties	[2]	173,465	173,465
Director | Federal Capital Investment Limited
Related Party Transaction [Line Items]
Advanced from related parties	[3]	116,000	98,000
Director | Yorkshire Capital Limited
Related Party Transaction [Line Items]
Advanced from related parties	[4]	$ 27,000	$ 27,000

[1] BOG is one of the shareholders of the Company. The advances are related to ordinary business transactions and bear no interest or collateral, repayable and renewable under normal business advancement terms.

[2] One of the directors of Federal Mining Resources Limited, Mr. Chen Ching, has been appointed as director of the Company effective February 20, 2016. Another director of Federal Mining Resources Limited, Mr. Wu Ming Ding, has resigned as director of the Company effective February 20, 2016. The advances are related to ordinary business transactions and bear no interest or collateral, repayable and renewable under normal business advancement terms.

[3] One of the directors of Federal Capital Investment Limited, Mr. Wu Ming Ding, has resigned as director of the Company effective February 20, 2016. The advances are related to ordinary business transactions and bear no interest or collateral, repayable and renewable under normal business advancement terms.

[4] One of the directors of Yorkshire Capital Limited, Mr. Lai Kui Shing, Andy, has resigned as director of CSB effective February 17, 2016. The advances are related to ordinary business transactions and bear no interest or collateral, repayable and renewable under normal business advancement terms.

XML

PROPERTY, PLANT AND EQUIPMENT - Summary of property and equipment (Details) - USD ($)	Mar. 31, 2018	Jun. 30, 2017
Property, Plant and Equipment [Line Items]
Accumulated depreciation	$ (2,473,401)	$ (2,211,246)
Property, plant and equipment, Net	9,442	23,388
Land and Building
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	1,017,702	915,962
Plant and Machinery
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	160,292	144,268
Office equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	20,378	18,340
Project equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	1,154,079	1,038,707
Computer
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	11,084	9,976
Motor Vehicle
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 119,308	$ 107,381

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PROPERTY, PLANT AND EQUIPMENT (Detail Textuals) - USD ($)	9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Property, Plant and Equipment [Abstract]
Depreciation expenses	$ 15,645	$ 100,899

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LOANS FROM BANKS (HIRE PURCHASE INSTALLMENT LOANS) - Loans from banks include long term and short term (Details) - USD ($)	Mar. 31, 2018		Jun. 30, 2017
Debt Disclosure [Abstract]
Loans from banks	$ 2,542		$ 4,645
Loans from banks(non-current)	861		2,466
Total	$ 3,403	[1]	$ 7,111

[1] Minimum payment reflected in the balance sheet as current and noncurrent obligations under hire purchases installment loans as at March 31, 2018.

XML

LOANS FROM BANKS (HIRE PURCHASE INSTALLMENT LOANS)- Summary of hire purchase installment loans (Details 1) - USD ($)		9 Months Ended
		Mar. 31, 2018	Jun. 30, 2017
Debt Instrument [Line Items]
Hire purchase loans payable to banks		$ 3,522	$ 7,533
Financial institution in Malaysia | Installment One
Debt Instrument [Line Items]
Interest Rate	[1]
Monthly Due		$ 1,514
Hire purchase loans payable to banks		$ 0	1,514
Financial institution in Malaysia | Installment Two
Debt Instrument [Line Items]
Interest Rate	[1]
Monthly Due		$ 266
Hire purchase loans payable to banks		$ 0	1,059
Financial institution in Malaysia | Installment Three
Debt Instrument [Line Items]
Interest Rate	[1]
Monthly Due		$ 221
Hire purchase loans payable to banks		$ 3,522	$ 4,960

[1] Hire purchase installment loans with Motor Vehicles as collateral. The financial institutions in Malaysia are Islamic banks and bear no interest in the installment agreement. However, there are certain imprest charges equivalent to interests which are being calculated at an average annual rate of approximate 3.50% for the entire loans life and periods.

XML

LOANS FROM BANKS (HIRE PURCHASE INSTALLMENT LOANS) - Summary of hire purchase installment loans (Parentheticals) (Details 1)	9 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Average annual rate of imprest charges equivalent to interests	3.50%

XML

LOANS FROM BANKS (HIRE PURCHASE INSTALLMENT LOANS) - Maturities of CSB's hire purchase installment loans (Details 2) - USD ($)	Mar. 31, 2018		Jun. 30, 2017
Debt Disclosure [Abstract]
2018	$ 2,652
2019	870
2020	0
2021	0
Later years	0
Total minimum hire purchase installment payment	3,522		$ 7,533
Less: Amount representing imprest charges equivalent to interest (current portion: $135 and non-current portion: $24)	(119)		(422)
Present value of net minimum lease payments	$ 3,403	[1]	$ 7,111

[1] Minimum payment reflected in the balance sheet as current and noncurrent obligations under hire purchases installment loans as at March 31, 2018.

XML

LOANS FROM BANKS (HIRE PURCHASE INSTALLMENT LOANS) - Maturities of CSB's hire purchase installment loans (Parentheticals) (Details 2)	Mar. 31, 2018 USD ($)
Debt Disclosure [Abstract]
Imprest charges equivalent to interest, current portion	$ 110
Imprest charges equivalent to interest, non - current portion	$ 9

XML

LOANS FROM BANKS (HIRE PURCHASE INSTALLMENT LOANS) (Detail Textuals) - USD ($)	Mar. 31, 2018		Jun. 30, 2017
Debt Disclosure [Abstract]
Hire purchase loans payable to banks	$ 3,522		$ 7,533
Loans from banks	3,403	[1]	7,111
Amount representing imprest charges equivalent to interest	$ 119		$ 422

[1] Minimum payment reflected in the balance sheet as current and noncurrent obligations under hire purchases installment loans as at March 31, 2018.

XML

INCOME TAX - Reconciliation between the income tax computed at the relevant statutory rate and provision for income tax (Details)	9 Months Ended	12 Months Ended
	Mar. 31, 2018	Jun. 30, 2017
Income Tax Disclosure [Abstract]
US Federal Income Tax Rate	34.00%	34.00%
Valuation allowance - US Rate	(34.00%)	(34.00%)
BVI Income Tax Rate	0.00%	0.00%
Valuation allowance - BVI Rate	(0.00%)	(0.00%)
Malaysia Income Tax Rate	25.00%	25.00%
Valuation allowance - Malaysia Rate	(25.00%)	(25.00%)
Provision for income tax	0.00%	0.00%

XML

INCOME TAX - Summary of net deferred tax liabilities and assets (Details 1) - USD ($)	Mar. 31, 2018	Jun. 30, 2017
Deferred tax assets:
Tax attribute carryforwards	$ 82,491	$ 114,774
Valuation allowances	(82,491)	(114,774)
Total	$ 0	$ 0

XML

INCOME TAX (Detail Textuals)	9 Months Ended	12 Months Ended
	Mar. 31, 2018	Jun. 30, 2017
Income Tax [Line Items]
Corporate income tax	25.00%	25.00%
US Federal Income Tax Rate	34.00%	34.00%
Latest
Income Tax [Line Items]
US Federal Income Tax Rate	21.00%

XML

EARNINGS/(LOSS) PER SHARE - Computation of basic and diluted earnings per share (Details) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Earnings Per Share [Abstract]
Net loss applicable to common shares	$ (289,510)	$ (89,964)	$ (229,774)	$ (305,681)
Weighted average common shares outstanding (Basic)	98,188,544	94,478,690	98,188,544	94,478,690
Options	0	0	0	0
Warrants	0	0	0	0
Weighted average common shares outstanding (Diluted)	98,188,544	94,478,690	98,188,544	94,478,690
Net loss per share (Basic and Diluted) (in dollars per share)	$ (0.003)	$ (0.001)	$ (0.002)	$ (0.003)

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CAPITAL STOCK (Detail Textuals)			1 Months Ended			9 Months Ended
	Mar. 01, 2018 USD ($) $ / shares shares	Mar. 10, 2014 USD ($) $ / shares shares	Sep. 29, 2016 $ / shares shares	Jan. 21, 2015 $ / shares shares	Jan. 29, 2014 USD ($) $ / shares shares	Mar. 31, 2018 USD ($) Director $ / shares shares	Feb. 02, 2018 shares	Jun. 30, 2017 $ / shares shares	Aug. 27, 2014 shares	Aug. 26, 2014 shares
Stockholders Equity [Line Items]
Common stock, shares authorized						10,000,000,000	10,000,000,000	250,000,000	250,000,000	100,000,000
Preferred stock, shares authorized						50,000,000		50,000,000
Common stock, par value (in dollars per share) | $ / shares	$ 0.02					$ 0.001		$ 0.001
Preferred stock, par value (in dollars per share) | $ / shares						$ 0.001		$ 0.001
Number of vote entitled to each common shareholder						one vote
Common stock, shares issued						115,038,909		96,038,909
Common stock, shares outstanding						115,038,909		96,038,909
Number of common stock issued for services (in shares)	10,000,000		4,750,000
Common stock issued, price per share (in dollars per share) | $ / shares			$ 0.04			$ 0.02
Number of director | Director						2
Stock-based compensation | $						$ 380,000
Selling, general and administrative expenses
Stockholders Equity [Line Items]
Stock-based compensation | $	$ 200,000
Vincent Lee Sen Min
Stockholders Equity [Line Items]
Number of common stock issued for services (in shares)			2,375,000
Reggie Abraham
Stockholders Equity [Line Items]
Number of common stock issued for services (in shares)			2,375,000
Balakrishnan B S Muthu
Stockholders Equity [Line Items]
Number of common stock issued for services (in shares)	5,000,000
Chen Ching
Stockholders Equity [Line Items]
Number of common stock issued for services (in shares)	5,000,000
Vincent Yong Tuck Seng
Stockholders Equity [Line Items]
Common stock, shares issued	5,000,000
Georgia Suzanne Lingam
Stockholders Equity [Line Items]
Common stock, shares issued	2,500,000
Liu Jiew Shin
Stockholders Equity [Line Items]
Common stock, shares issued	1,500,000
Sub-Contractor Agreement | Borneo Oil And Gas Corporation Sdn Bhd
Stockholders Equity [Line Items]
Number of common stock issued for services (in shares)		693,180		5,900,000	643,229
Value of stock issued for services | $		$ 609,756			$ 665,238
Common stock issued, price per share (in dollars per share) | $ / shares				$ 0.05
Sub-Contractor Agreement | Borneo Oil And Gas Corporation Sdn Bhd | US$1.25
Stockholders Equity [Line Items]
Number of common stock issued for services (in shares)					288,288
Common stock issued, price per share (in dollars per share) | $ / shares					$ 1.25
Sub-Contractor Agreement | Borneo Oil And Gas Corporation Sdn Bhd | US$0.83
Stockholders Equity [Line Items]
Number of common stock issued for services (in shares)					183,661
Common stock issued, price per share (in dollars per share) | $ / shares					$ 0.83
Sub-Contractor Agreement | Borneo Oil And Gas Corporation Sdn Bhd | US$0.85
Stockholders Equity [Line Items]
Number of common stock issued for services (in shares)		179,340
Common stock issued, price per share (in dollars per share) | $ / shares		$ 0.85
Sub-Contractor Agreement | Borneo Oil And Gas Corporation Sdn Bhd | US$0.89
Stockholders Equity [Line Items]
Number of common stock issued for services (in shares)		513,840			171,280
Common stock issued, price per share (in dollars per share) | $ / shares		$ 0.89			$ 0.89
Consultant agreements
Stockholders Equity [Line Items]
Number of common stock issued for services (in shares)	9,000,000
Common stock issued, price per share (in dollars per share) | $ / shares	$ 0.02
Consultant agreements | Selling, general and administrative expenses
Stockholders Equity [Line Items]
Stock-based compensation | $	$ 180,000

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RELATED PARTY TRANSACTIONS (Detail Textuals) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Jun. 30, 2017
Related Party Transaction [Line Items]
Advances made by five companies	$ 2,486,896		$ 2,486,896
Amount due from related parties	4,831		4,831		$ 4,088
Cost of revenue	$ 10,846	$ 231,953	56,925	$ 868,003
BOG
Related Party Transaction [Line Items]
Other income			69,034
Cost of revenue			$ 42,880

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GOING CONCERN AND LIQUIDITY CONSIDERATIONS (Detail Textuals) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Going Concern And Liquidity Considerations [Abstract]
Net loss	$ (278,488)	$ (101,887)	$ (211,180)	$ (329,229)
Working capital deficiency	$ 2,482,105		$ 2,482,105

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CONCENTRATIONS - Summary of major suppliers and customers (Details)	9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Supplier Concentration Risk | Company A | Subcontractors
Concentration Risk [Line Items]
Concentration risk, percentage	100.00%	100.00%
Supplier Concentration Risk | Company A | Accounts Payable
Concentration Risk [Line Items]
Concentration risk, percentage	0.00%	0.00%
Customer Concentration Risk | Company M | Sales
Concentration Risk [Line Items]
Concentration risk, percentage	0.00%	5.00%
Customer Concentration Risk | Company M | Accounts Receivable
Concentration Risk [Line Items]
Concentration risk, percentage	0.00%	0.00%
Customer Concentration Risk | Company N | Sales
Concentration Risk [Line Items]
Concentration risk, percentage	0.00%	1.00%
Customer Concentration Risk | Company N | Accounts Receivable
Concentration Risk [Line Items]
Concentration risk, percentage	0.00%	0.00%
Customer Concentration Risk | Company O | Sales
Concentration Risk [Line Items]
Concentration risk, percentage	100.00%	94.00%
Customer Concentration Risk | Company O | Accounts Receivable
Concentration Risk [Line Items]
Concentration risk, percentage	0.00%	0.00%