INVENTORIES

6 Months Ended

Sep. 30, 2018

Inventory Disclosure [Abstract]

INVENTORIES

NOTE 4. INVENTORIES

Inventories are generally kept for a short period of time. The significant components of inventories are growing costs and harvesting costs.

Growing costs, also referred to as cultural costs, consist of seeds cultivation, fertilization and soil improvement, pest control and irrigation. Harvest costs are comprised of labor and equipment expenses incurred to harvest and deliver crops to the packinghouses.

Paddy is grown in Lvxin’s planting base. This crop has distinct growing, harvest, and selling periods, each of which lasts approximately four to six months. During the growing period, cultural costs are capitalized, as they are associated with benefiting and preparing the crops for the harvest and selling period. During the harvest and selling period, harvest costs and cultural costs are expensed when incurred and capitalized costs are amortized as cost of planting in accordance with LIFO recognition of historical costs.

Most cultural costs, including amortization of capitalized cultural costs and certain other costs, such as indirect labor including farm supervision and management and irrigation that benefit multiple crops are allocated to crops on a per-kilogram basis.

The cost of inventory includes all relevant expenditures incurred before and during the entire cultivation period and after harvesting, mainly including seed, fertilizer and other production materials, land rent, labor, and other related costs, subject to impairment if the cost of inventory exceeds market value.

At September 30, 2018 and March 31, 2018, inventories consisted of the following:

	September 30		March 31
	2018		2018
		(Unaudited)
Growing cost	$	869,759	$	633,607
Selenium enriched paddy		120,246		187,604
Rice		51,651		-
Packing and other materials		6,983		-
	$	1,048,639	$	821,211