NOTE 12 - CONCENTRATIONS AND CREDIT RISK

9 Months Ended

Jan. 31, 2019

Notes

NOTE 12 - CONCENTRATIONS AND CREDIT RISK

NOTE 12 - CONCENTRATIONS AND CREDIT RISK

(i)    Customer Concentrations

For the three and nine months ended January 31, 2020 and 2019, customers accounting for 10% or more of the Company's revenue were as follows:

	For the three months ended January 31,		For the nine months ended January 31,
Customer	2020	2019	2020	2019
A (1)	34.3%	19.1%	30.6%	20.6%
B	11.4%	0	0	0
C	10.7%	0	0	0

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

(ii)    Vendor Concentrations

For the three and nine months ended January 31, 2020 and 2019, suppliers accounting for 10% or more of the Company's purchase were as follows:

	For the three months ended January 31,		For the nine months ended January 31,
Supplier	2020	2019	2020	2019
A	0	20.5%	10.9%	30.0%
B	15.5%	31.1%	17.0%	14.0%
C	0	0	10.6%	0
D	0	10.2%	0	0
E	40.7%	0	27.7%	0
F	12.1%	0	0	0

*  Less than 10%.

(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 January 31, 2020, we had $72,958 of cash balance held in PRC banks, where there is no equivalent of federal deposit insurance as in the United States. As a result, cash held in PRC financial institutions is not insured. We have not experienced any losses in such accounts through January 31, 2020. Our cash position by geographic area was as follows: 

Country:	January 31, 2020		April 30, 2019
United States	$       83,551	53.4%	$         88,506	30.1%
China	72,958	46.6%	205,693	69.9%
Total cash and cash equivalents	$     156,509	100.00%	$     294,199	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.