CONTINGENCIES AND COMMITMENT

6 Months Ended

Sep. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

CONTINGENCIES AND COMMITMENT

NOTE 8. CONTINGENCIES AND COMMITMENT

Contingencies

Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company’s management and legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company’s legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought.

If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material would be disclosed.

Loss contingencies considered to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantee would be disclosed.

The Company was not subject to any material loss contingencies as of September 30, 2018 and March 31, 2018. 

Commitments

In November 2017, Tianci Liangtian leased new office space from November 20, 2017 to December 05, 2018 under an operating lease agreement (approximately 666 square feet). Under the terms of the lease, the period from November 20, 2017 to December 5, 2017 is a rent-free period. Tianci Liangtian paid approximately $1,592 in lease deposits and is committed to make annual lease payments. Annual rental is CNY￥290,000 (approximately US$42,000).

In April 2018, Lvxin leased office space of approximately176.86 square meters under a one year lease agreement. Lvxin paid approximately US$4,532 (RMB30,000) as rent and is committed to make annual lease payments of $4,532 (RMB30,000). The office address is the Fuyuanguandi, Pingshun Street, Baoqing County, Shuangyasha City, Heilongjiang Province. China 155600. The office contains our administrative functions, sales, e-commerce operations and marketing functions.

The Company recorded rent expense of $24,346 for six months ended September 30, 2018 and $11,724 for three months ended September 30, 2018.

The Company leases 497 hectares of cultivated land for cultivating pursuant to more than 300 lease agreements with individual farmers. Some of the leases are paid annually, some of the leases are paid in advance for periods from 12 to 22 years. The Company accounts for the land rental costs as a cost of production of the growing paddy annually. The Company recorded land rental costs of $nil and $nil for six months ended September 30, 2018 and 2017, and $nil and $nil for three months ended September 30, 2018 and 2017.

As of September 30, 2018, the Company had made $335,624 prepayments for cultivated land leases. Future annual minimum lease payments for non-cancellable operating leases are as follows:

Fiscal year end of March 31	Amount $
2019	$	372,726
2020		402,596
2021		357,460
2022		280,862
2023		201,073
thereafter		1,001,366
Total	$	2,616,083