NOTE 13 - CONCENTRATIONS AND CREDIT RISK

3 Months Ended

Jul. 31, 2021

Notes

NOTE 13 - CONCENTRATIONS AND CREDIT RISK

NOTE 13 - CONCENTRATIONS AND CREDIT RISK

(i)    Customer Concentrations

For the three months ended July 31, 2021 and 2020, customers accounting for 10% or more of the Company's revenue were as follows:

	Three Months Ended July 31,
Customer	2021	2020
A (1)	38.1%	24.9%
B	-	37.1%

(1) Qufu Shengwang Import and Export Co., Ltd is a related party. 

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(ii)    Vendor Concentrations

For the three months ended July 31, 2021 and 2020, suppliers accounting for 10% or more of the Company's purchase were as follows:

	Three Months Ended July 31,
Supplier	2021	2020
A	-	27.2%
B	-	18.0%
C	38.4%	10.1%
D	15.7%	-
E	-	10.8%

(iii)    Credit Risk

Financial instruments which potentially subject us to concentrations of credit risk consist principally of cash and trade accounts receivable. We place our cash with high credit quality financial institutions in the United States and the PRC. As of July 31, 2021 and April 30, 2021, we had $820,149 and $1,054,090 of cash balance held in PRC banks, respectively. PRC banks protect consumers against loss if their bank or thrift institution fails, and each of our PRC bank account is insured up to RMB500,000 (approximately $71,000). As a result, cash held in PRC financial institutions of $721,996 and $946,274 are not insured as of July 31, 2021 and April 30, 2021. We have not experienced any losses in such accounts through July 31, 2021. Our cash position by geographic area was as follows: 

Country:	July 31, 2021		April 30, 2021
United States	$181,353	27.1%	$161,860	10.3%
China	489,079	72.9%	1,403,969	89.7%
Total cash and cash equivalents	$670,432	100.00%	$1,565,829	100.00%

Almost all of our sales are credit sales which are primarily to customers whose ability to pay is dependent upon the industry economics prevailing in these areas; however, we believe that the concentration of credit risk with respect to trade accounts receivable is limited due to generally short payment terms. We also perform ongoing credit evaluations of our customers to help further reduce potential credit risk.