SHORT-TERM LOAN	12 Months Ended
Jan. 31, 2018
Notes to Financial Statements
NOTE 8. SHORT-TERM LOAN	There are no provisions in the Company’s bank borrowings that would accelerate repayment of debt as a result of a change in credit ratings or a material adverse change in the Company’s business. The Industrial and Commercial Bank of China is the lender of the loan. The interest rate is the interbank offered rate announced by the PRC authority on the business day just before the release of the loan, plus 51 basis point, which is 5.06% per annum. The term of borrowing is 1 year, which was renewed as at December 31, 2015. The amount is denominated in Renminbi of RMB20,000,000. The loan is secured by the personal guarantee of one of the shareholders, Yeung Po Kam, and of his wife in an unlimited amount. 25% of the principal of the loan is to be repaid in the eleventh month of the term. The remaining is to be repaid on the maturity of the loan. The loan agreement contains provisions requiring payment of default interest in the event of default, and without specific financial covenants. Management of the Company believes the Company is in material compliance with the terms of the loan agreement. During the year ended January 31, 2017, the Company fully repaid the loan of $3,080,000 (RMB 20,000,000). The Company also borrowed a loan from a money provider. The amount is denominated in Renminbi of RMB7,200,000. The interest rate is 0.5% per month. The loan is secured by 48.83% shares of Tieshan Oil held by Yang Baojin. The Loan was due on October 7, 2017 and is currently in default. During the year ended January 31, 2018 and 2017, the Company the Company repaid loan of $322,520 and $2,993,364 and incurred interest of $63,244 and $100,300, respectively. On January 31, 2018 and 2017, the Company had a short-term loan balance of $795,000 and 1,046,160, respectively.

SHORT-TERM LOAN

12 Months Ended

Jan. 31, 2018

There are no provisions in the Company’s bank borrowings that would accelerate repayment of debt as a result of a change in credit ratings or a material adverse change in the Company’s business.

The Industrial and Commercial Bank of China is the lender of the loan. The interest rate is the interbank offered rate announced by the PRC authority on the business day just before the release of the loan, plus 51 basis point, which is 5.06% per annum. The term of borrowing is 1 year, which was renewed as at December 31, 2015. The amount is denominated in Renminbi of RMB20,000,000. The loan is secured by the personal guarantee of one of the shareholders, Yeung Po Kam, and of his wife in an unlimited amount.

25% of the principal of the loan is to be repaid in the eleventh month of the term. The remaining is to be repaid on the maturity of the loan. The loan agreement contains provisions requiring payment of default interest in the event of default, and without specific financial covenants. Management of the Company believes the Company is in material compliance with the terms of the loan agreement.

During the year ended January 31, 2017, the Company fully repaid the loan of $3,080,000 (RMB 20,000,000). The Company also borrowed a loan from a money provider. The amount is denominated in Renminbi of RMB7,200,000. The interest rate is 0.5% per month. The loan is secured by 48.83% shares of Tieshan Oil held by Yang Baojin. The Loan was due on October 7, 2017 and is currently in default.

During the year ended January 31, 2018 and 2017, the Company the Company repaid loan of $322,520 and $2,993,364 and incurred interest of $63,244 and $100,300, respectively. On January 31, 2018 and 2017, the Company had a short-term loan balance of $795,000 and 1,046,160, respectively.