15. RELATED PARTY TRANSACTIONS AND BALANCES

1.Related Party Balances

1)Due from related parties

As of September 30, and March 31, 2020, balances due from related parties were $81,349 and $12,341, respectively, and represented operation costs of four related parties paid by the Company on their behalf, amounts received by the Company on behalf of a related party for refund of insurance claims, and amounts collected by a related party on behalf of the Company from the automobile purchasers, including certain installment payments and facilitation fees. In addition, another $14,726 and $14,120 represents advances to the non-controlling shareholders of Hunan Ruixi for operational purposes as of September 30, 2020 and March 31, 2020, respectively. The balances due from related parties were all non-interest bearing and due on demand.

2)Due to stockholders

This is comprised of amounts payable to two stockholders and are unsecured, interest free and due on demand.


	September 30,		March 31,
	2020		2020
	(Unaudited)
Jun Wang	$	47,084	$	73,384
Xiang Hu		—		108,711
Total due to stockholders	$	47,084	$	182,095
Total due to stockholders - discontinued operations		(47,084)		(182,095)
Total due to stockholders - continuing operations	$	—	$	—

3)Due to related parties and affiliates


	September 30,		March 31,
	2020		2020
	(Unaudited)
Loan payable to related parties (i)	$	271,751	$	202,487
Others (ii)		27,615		26,478
Total due to related parties and affiliates		299,366		228,965
Total due to related parties and affiliates - discontinued operations		—		(76,286)
Total due to related parties and affiliates - continuing operations	$	299,366	$	152,679

(i)

As of September 30, 2020 and March 31, 2020, the balances represented borrowings from three related parties, which are unsecured, interest free and due in the fiscal year of 2021.

(ii)

As of September 30, 2020 and March 31, 2020, the balances represented $27,615 and 26,478, respectively of payables to three other related parties for operational purposes. These balances are interest free and due on demand.

Interest expense for the three months ended September 30, 2020 and 2019 were $0 and $13,876, respectively. Interest expense for the six months ended September 30, 2020 and 2019 were $0 and $28,022, respectively.

2.Related Party Transactions

In December 2017, the Company entered into loan agreements with two stockholders, who agreed to grant lines of credit of approximating $955,000 and $159,000, respectively, to the Company for five years. The lines of credit are non-interest bearing, effective from January 2017. As of September 30, 2020, the outstanding balances due to these two stockholders in the discontinued operations were $47,084 and $0, respectively. As of March 31, 2020, the outstanding balances in the discontinued operations to these two stockholders were $73,384 and $108,711, respectively.

The Company entered into two office lease agreements which were set to expire on January 1, 2020. On April 1, 2020, the two office leases were amended with a leasing term from April 1, 2020 to March 31, 2023. As of September 30, 2020 and March 31, 2020, operating lease right-of-use assets of these leases in the continuing operations amounted to $259,018 and $105,432, respectively. As of September 30, 2020 and March 31, 2020, current leases liabilities of these leases in the continuing operations amounted to $105,869 and $78,482, respectively. Non-current lease liabilities of these leases in the continuing operation amounted to $134,328 and $0 as of September 30, 2020 and March 31, 2020, respectively . As of September 30, 2020 and March 31, 2020, current leases liabilities of these leases in the discontinued operations amounted to $0 and $53,899, respectively. For the three months ended September 30, 2020 and 2019, the Company incurred $28,086 and $27,578, respectively, in rental expenses to this related party. For the six months ended September 30, 2020 and 2019, the Company incurred $56,173 and $55,156, respectively, in rental expenses to this related party.

In November 2018, Hunan Ruixi entered into an office lease agreement with Hunan Dingchentai Investment Co., Ltd. ("Dingchentai"), a Company where one of our independent directors serves as legal representative and general manager. The term of the lease agreement was from November 1, 2018 to October 31, 2023 and the rent was approximately $44,250 per year, payable on a quarterly basis. The original lease agreement with Dingchentai was terminated on July 1, 2019. The Company entered into another lease with Dingchentai on substantially similar terms on September 27, 2019. As of September 30, 2020 and March 31, 2020, operating lease right-of-use assets of this lease in the continuing operations amounted $119,148 and $130,873, respectively. As of September 30, 2020, current leases liabilities and non-current leases liabilities of this lease in the continuing operations amounted $56,346 and $73,458, respectively. As of March 31, 2020, current leases liabilities and non-current leases liabilities of this lease in the continuing operations amounted $73,173 and $88,349, respectively. For the three months ended September 30, 2020 and 2019, the Company incurred expense of $10,655 and $10,455 in rent to Dingchentai, respectively. For the six months ended September 30, 2020 and 2019, the Company incurred $21,310 and $10,455, respectively, in rental expenses to this related party.

In June 2019 and January 2020, the Company entered into two automobile maintenance services contracts with Sichuan Qihuaxin Automobile Services Co., Ltd and Sichuan Yousen Automobile Maintenance Service Co., Ltd, which companies are controlled by one of the non-controlling shareholders of Sichuan Jinkailong. During the three months ended September 30, 2020, the Company paid automobile maintenance fees of $0 and $134,352 to those companies as mentioned above, respectively. During the six months ended September 30, 2020, the Company paid automobile maintenance fees of $28,931 and $164,069 to those companies as mentioned above, respectively.