RELATED PARTY TRANSACTIONS

6 Months Ended

Sep. 30, 2018

NOTE 9 – RELATED PARTY TRANSACTIONS

The relationship and the nature of related party transactions are summarized as follow:

Name of Related Party	Relationship to the Company		Nature of Transactions
Ford Glory Holdings Limited (“FGH”)		Affiliate, former indirect parent of the Company		Working Capital Advances
Ford Glory International Limited, (“FGIL”)		Affiliate, subsidiary of FGH		Sales / Purchases
Value Plus (Macao Commercial Offshore) Limited (“VPMCO”)		Affiliate, subsidiary of FGH		Purchases
Yukwise Limited (“Yukwise”)		Common Shareholder		Consulting Services
Multi-Glory Corporation Limited (“Multi-Glory”)		Common Shareholder		Consulting Services

Pursuant to the terms of a sale and purchase agreement between one of the Company’s current individual shareholders and Victory City Investments Limited, the ultimate 51% shareholder of FGIL, dated July 13, 2016 (the “Sale and Purchase Agreement”), and effective since August 1, 2016, all rights, interests and benefits of any contracts that FGIL had at that time with any of the Company’s customers for products manufactured or to be manufactured by the Company, together with the costs and obligations relating to those contracts were transferred to the Company. Thereafter, the Company has been selling directly to the end-customers and no longer through its affiliate, FGIL.

Related party balances:

Accounts receivable – related party:

Accounts receivable from related party in connection with the collection of accounts receivable from end-customers on behalf of the Company due to the support arrangement during the transition period as described below (see a. Sales to related party) consisted of the following:

		As of September 30, 2018				As of March 31, 2018
FGIL		$	-			$	50,027

Related party transactions:

Sales to related party:

Pursuant to the Sale and Purchase Agreement, the Company has all rights, interests and benefits of the sales agreements signed with end-customers since August 2016, together with the costs and obligations of those agreements. During the transition period, the Company’s affiliate supported the Company to complete the transition with no additional fees charged. For the three months ended September 30, 2018 and 2017, $0 and $23,413,053, respectively, of sales were made with the support of FGIL. For the six months ended September 30, 2018 and 2017, $0 and $42,185,022, respectively, of sales were made with the support of FGIL.

Consulting agreements

On January 16, 2018, Treasure Success and Multi-Glory entered into a consulting agreement, pursuant to which Multi-Glory will provide high-level advisory, marketing and sales services to the Company for $300,000

per annum. The agreement renews automatically for one-month terms. The agreement became effective as of January 1, 2018. Total consulting fees under this agreement

were $75,000 for the three months ended September 30, 2018 and $150,000 for the six months ended September 30, 2018.

On January 12, 2018,

Treasure Success and Yukwise entered into a consulting agreement, pursuant to which Mr. Choi will serve as Chief Executive Officer and provide high-level advisory and general management services for

$300,000

per annum, with automatic renewal for one-month terms. This agreement became effective as of January 1, 2018. Total advisory and management expenses under this agreement

were $75,000 for the three months ended September 30, 2018 and $150,000 for the six months ended September 30, 2018.

Personal Guarantees

Borrowings under the Credit Facility, as defined below, with HSBC are collateralized by the personal guarantees by Mr. Choi and Mr. Ng Tsze Lun.