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Condensed financial information of the Company
 6 Months Ended
Sep. 30, 2024
Condensed Financial Information Disclosure [Abstract]  
Condensed financial information of the Company

22. Condensed financial information of the Company

 

The condensed financial information of the parent company has been prepared in accordance with SEC Regulation, using the same accounting policies as set out in the Group’s consolidated financial statements.

 

Condensed balance sheets

  

   September 30, 2024   March 31, 2024 
   As of 
   September 30, 2024   March 31, 2024 
   (Unaudited)   (Audited) 
ASSETS          
Current assets:          
Cash and cash equivalents  $95,454   $231,694 
Deferred expenses   16,375    49,125 
Prepayment and other current assets   —    70,000 
Amounts due from subsidiaries and VIE   3,792,600    3,791,734 
Investment in subsidiaries and VIE   15,466,740    17,358,111 
TOTAL ASSETS  $19,371,169   $21,500,664 
Amounts due to related parties   7,107    2,107 
Note payable   100,115    — 
Accrued expenses   70,000    — 
TOTAL LIABILITIES  $177,222   $2,107 
Shareholders’ equity          
Ordinary shares, par value $0.0002 per share, 500,000,000 shares authorized; 15,929,451 and 15,449,451 shares issued and outstanding as of September 30, 2024 and March 31, 2024, respectively   3,186    3,090 
Additional paid-in capital   19,492,001    19,055,297 
Statutory reserve   745,590    745,590 
Accumulated profits   453,320    3,389,754 
Accumulated other comprehensive loss   (1,500,150)   (1,695,174)
Total shareholders’ equity  $19,193,947   $21,498,557 

 

Condensed statements of income (unaudited)

  

   2024   2023 
   For the six months ended September 30, 
   2024   2023 
Revenue  $—   $— 
Cost of revenue   —    — 
Gross profit   —    — 
Operating expenses:          
General and administrative expenses  $(849,946)  $(658,803)
Share of profit in subsidiaries and VIE   (2,086,395)   289,289 
Others, net   (93)   2,541 
(Loss)/Income before income tax provision   (2,936,434)   (366,973)
Provision for income tax   —    — 
Net (loss)/profit  $(2,936,434)  $(366,973)

 

 

Condensed statements of comprehensive income (unaudited)

  

   2024   2023 
   For the six months ended September 30, 
   2024   2023 
Net loss  $(2,936,434)  $(366,973)
Other comprehensive loss   195,024    (981,042)
Total comprehensive loss  $(2,741,410)  $(1,348,015)

 

Condensed cash flow

  

   2024   2023 
   For the six months ended September 30, 
   2024   2023 
Net cash used in operating activities  $(236,355)  $(713,851)
Net cash used in investing activities   —    — 
Net cash provided by financing activities   100,115    — 
Net cash outflow  $(136,240)  $(713,851)

 

Basis of presentation

 

Condensed financial information is used for the presentation of the Company, or the parent company. The condensed financial information of the parent company has been prepared using the same accounting policies as set out in the Company’s consolidated financial statements except that the parent company used the equity method to account for investment in its subsidiaries and VIE.

 

The parent company records its investment in its subsidiaries and VIE under the equity method of accounting as prescribed in ASC 323, Investments-Equity Method and Joint Ventures. Such investments are presented on the condensed balance sheets as “Investment in subsidiaries and VIE” and their respective profit or loss as “Share of profit in subsidiaries and VIE” on the condensed statements of income. Equity method accounting ceases when the carrying amount of the investment, including any additional financial support, in subsidiaries and VIE is reduced to zero unless the parent company has guaranteed obligations of the subsidiary and VIE or is otherwise committed to provide further financial support. If the subsidiaries and VIE subsequently report net income, the parent company shall resume applying the equity method only after its share of that net income equals the share of net losses not recognized during the period the equity method was suspended.

 

The parent company’s condensed financial statements should be read in conjunction with the Company’s consolidated financial statements.