RELATED PARTY TRANSACTIONS

12 Months Ended

Jan. 31, 2018

Notes to Financial Statements

NOTE 10. RELATED PARTY TRANSACTIONS

Revenue, receivable and prepaid expenses

During the year ended January 31, 2018 and 2017, the Company generated revenue from two related parties of $0 and $21,128,105, respectively, which were related companies under common control with the Company.

At January 31, 2018 and 2017, the Company had amount due from related parties of $1,567,238 and $26,747,696, respectively. As of January 31, 2017, it consists of prepaid expenses of $1,567,238. As of January 31, 2017, it consists of a trade receivable past due within 1 month of $14,091,462 from a related company and a trade receivable past due within 1 year of $12,656,234 from another related company. All the related companies were customers of the Company and were under common control with the Company.

Accounts payable, other liabilities and loans

At January 31, 2018 and 2017, the Company had accounts payable and accrued liabilities of $17,514,842 and $63,270,068 to four related companies under common control with the Company, respectively.

In support of the Company’s efforts and cash requirements, it may rely on advances from related parties until such time that the Company can support its operations or attains adequate financing through sales of its equity or traditional debt financing. There is no formal written commitment for continued support by shareholders or directors. Amounts represent advances or amounts paid in satisfaction of liabilities. The advances were considered temporary in nature and were not formalized by a promissory note.

During the year ended January 31, 2018 and 2017, the Company received $116,704 and $96,899 advances from various directors and shareholders and repaid $80,955 and $49,693, respectively. At January 31, 2018 and 2017, the Company owed $12,695 and $12,695 to a director of the Company, $5,203 and $5,203 to a director of Xin Rui HK, $19,368 and $12,197 to directors of Huaxin, $141,931 and $208,700 to directors of Amuli and $50,948 and $46,558 to shareholders of Amuli, for vendor payments made by those directors.

The amounts and terms of the above transactions may not necessarily be indicative of the amounts and terms that would have been incurred had comparable transactions been entered into with independent third parties.

As of January 31, 2018 and 2017, Due to related parties consist of the follows;

	January 31,		January 31,
	2018		2017
Accounts payable	$	17,490,485	$	63,259,434
Accrued liabilities		24,357		10,634
Loan from related parties		230,145		285,353
	$	17,744,987	$	63,555,421

Employment

The Company does not have employment contracts with its key employees, including the controlling shareholders who are officers of the Company.

Contribution

During the years ended January 31, 2018 and 2017, related parties, who are shareholders of the Company, forgave debt, in the amount of $111,066 and $147,348, respectively for payments made on behalf of the Company for operating expenses. The amount has been recognized as a contribution to capital.