| Summary of significant accounting policies | 2. Summary of significant accounting policies Basis of Presentation The Company’s consolidated financial statements
have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). Use of Estimates The preparation of the Company’s consolidated
financial statements in conformity with the U.S. GAAP requires the Company to make certain estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements.
The reported amounts of revenues and expenses may be affected by the estimates that management is required to make. Actual results could
differ from those estimates. Changes in facts and circumstances may cause
the Company to revise its estimates. The Company bases its estimates on historical experience and on various other assumptions that are
believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.
The following are some of the areas requiring significant judgments and estimates as of March 31, 2024 and March 31, 2023: discount rate
used in calculation of right-of-use assets and lease liability, valuation assumptions in performing asset impairment tests of long-lived
assets, etc. Foreign Currency and Foreign Currency Translation The Company’s reporting currency is the
United States Dollar (“US$” or “$”). The Company’s operations are principally conducted in Hong Kong where
Hong Kong dollar is the functional currency. The functional currency of the Company’s two subsidiaries, Lutter Global Limited and
QDMI Software Group Limited, is the Euro. Transactions denominated in other than the functional
currencies are re-measured into the functional currency of the entity at the exchange rates prevailing on the transaction dates. Monetary
assets and liabilities denominated in currencies other than the applicable functional currencies are translated into the functional currency
at the prevailing rates of exchange at the balance sheet date. The resulting exchange differences are reported in the statements of operations
and comprehensive loss. The exchanges rates used for translation from
Hong Kong dollar to US$ was 7.8000, a pegged rate determined by the linked exchange rate system in Hong Kong. This pegged rate was used
to translate Company’s balance sheets, income statement items and cash flow items for both the years ended March 31, 2024 and 2023. The exchanges rates used for translation from
Euro to US$ are as follows:
October 4, March 31,
Year-end spot rate EUR 1 = US$1.0518 EUR 1 = US$1.0872
Average rate for the year EUR 1 = US$1.0877 EUR 1 = US$1.0414 Measurement of credit losses on financial instruments On April 1, 2022, the Company adopted ASU 2016-13,
“Financial Instruments — Credit Losses (Topic 326) — Measurement of Credit Losses on Financial Instruments,” for
financial assets at amortized cost including accounts receivable, refundable deposits, other receivables, and retention receivable. This
guidance replaced the “incurred loss” impairment methodology with an approach based on “expected losses” to estimate
credit losses on certain types of financial instruments and requires consideration of a broader range of reasonable and supportable information
to inform credit loss estimates. The guidance requires financial assets to be presented at the net amount expected to be collected. The
allowance for credit losses is a valuation account that is deducted from the cost of the financial asset to present the net carrying value
at the amount expected to be collected on the financial asset. Certain Risks and Concentration The Company’s financial instruments that
potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents and receivables,
and other assets. As of March 31, 2024, substantially all of the Company’s cash and cash equivalents were held in major financial
institutions located in Hong Kong, which management considers to being of high credit quality. During the year ended March 31, 2024, the largest customer accounted
for 97% of the Company’s total revenue. During the year ended March 31, 2023, the largest customer accounted for 91% of the Company’s
total revenue. During the year ended March 31, 2024, the three largest supplier (sub-broker)
accounted for 52%, 27% and 15% of the Company’s total costs of sale respectively. During the year ended March 31, 2023, the largest
supplier (sub-broker) accounted for 93% of the Company’s total costs of sale. Cash and Cash Equivalents Cash and cash equivalents consist of petty cash
on hand and cash held in banks, which are highly liquid and have original maturities of three months or less and are unrestricted as
to withdrawal or use. Accounts Receivable Accounts receivable represents trade receivable and are recognized
initially at fair value and subsequently adjusted for any allowance for expected credit loss. The Company evaluates the expected credit loss
of accounts receivable based on historical collection experience, the financial condition of its customers and assumptions for the future
movement of different economic drivers and how these drivers will affect each other. The Company writes off potentially uncollectible
accounts receivable against the allowance for credit losses if it is determined that the amounts will not be collected or if a settlement
with respect to a disputed receivable is reached for an amount that is less than the carrying value. The Company historically did not have material
bad debts in accounts receivable and management believed that there were no expected credit loss for doubtful accounts. There were no
provision for credit loss for doubtful accounts for the years ended March 31, 2024 and 2023 and there was no allowance for credit loss
as of March 31, 2024 and 2023. Revenue Recognition The Company generates revenue primarily by providing
insurance brokerage services in Hong Kong. The Company sells insurance products underwritten by insurance companies operating in Hong
Kong to its individual customers and is compensated for its services by commissions paid by insurance companies, typically based on a
percentage of the premium paid by the insured. ASC 606 provides for a five-step model for recognizing
revenue from contracts with customers. These five steps include:
(i) Identify the contract
(ii) Identify performance obligations
(iii) Determine transaction price
(iv) Allocate transaction price
(v) Recognize revenue The Company enters into insurance brokerage contracts
with customers (insurance companies). Performance obligation for these insurance brokerage contracts is to help insurance company customers
to promote, coordinate and complete subscriptions of insurance policies offered by customers. Under ASC 606, revenue is recognized when the
customer obtains control of a good or service. A customer obtains control of a good or service if it has the ability to direct the use
of and obtain substantially all of the remaining benefits from that good or service. The transfer of control of the Company’s brokerage
services generally occurs at a point in time on the effective date of the associated insurance contract when the policy transfers to
the customer. The insurance policy entered between the insurance company and the insured customer generally contains a cool-off period
of one to two months. When the cool-off period elapses and the insured customer does not withdraw from the insurance policy, the policy
becomes effective. Once the transfer of control of a service occurs, the Company has satisfied its insurance brokerage performance obligation
and recognizes revenue. Fair Value Measurement Fair value is the price that would be received
from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company
considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants
would use when pricing the asset or liability. The established fair value hierarchy requires
an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial
instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the
fair value measurement. The three levels of inputs that may be used to measure fair value as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets
or liabilities.
Level 2: Observable, market-based inputs, other than
quoted prices, in active markets for identical assets or liabilities.
Level 3: Unobservable inputs to the valuation methodology
that are significant to the measurement of the fair value of the assets or liabilities. The Company’s financial instruments include
cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, lease liabilities and due to related party.
The carrying amounts of these financial instruments approximate their fair values due to the short-term nature of these instruments. For
lease liabilities, fair value approximates their carrying value at the period end as the interest rates used to discount the host contracts
approximate market rates. The Company noted no transfers between levels
during any of the periods presented. The Company did not have any instruments that were measured at fair value on a recurring nor non-recurring
basis as of March 31, 2024 and March 31, 2023, respectively.. Property and Equipment Property and equipment are recorded at cost,
less accumulated depreciation and impairment. Depreciation of property and equipment is calculated on a straight-line basis, after consideration
of expected useful lives and estimated residual values. The estimated annual deprecation rate of these assets are generally as follows: Category Depreciation Estimated Office equipment 3 years Nil Leasehold improvements Shorter of lease term or 3 years Nil Expenditures for maintenance and repairs are
expensed as incurred. Gains and losses on disposals are the differences between net sales proceeds and carrying amount of the relevant
assets and are recognized in the statements of operations and comprehensive loss. Impairment of Long-Lived Assets The Company evaluates its long-lived assets for
impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability
is measured by comparison of the carrying amounts to the expected future undiscounted cash flows attributable to these assets. If it
is determined that an asset is not recoverable, an impairment loss is recorded in the amount by which the carrying amount of the assets
exceeds the expected discounted cash flows arising from those assets. There were no Leases Arrangements meeting the definition of a lease
are classified as operating or finance leases, and are recorded on the consolidated balance sheet as both a right of use asset and lease
liability, calculated by discounting fixed lease payments over the lease term at the rate implicit in the lease or the Company’s
incremental borrowing rate. Lease liabilities are increased by interest and reduced by payments each period, and the right of use asset
is amortized over the lease term. For operating leases, interest on the lease liability and the amortization of the right of use asset
result in straight-line rent expense over the lease term. In calculating the right of use asset and lease
liability, the Company elects to combine lease and non-lease components as permitted under ASC 842. The Company excludes short-term leases
having initial terms of 12 months or less from the new guidance as an accounting policy election and recognizes rent expense on a straight-line
basis over the lease term. Taxation Current income taxes are provided on the basis
of net profit for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income
tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred income taxes are recognized for temporary
differences between the tax bases of assets and liabilities and their reported amounts in the financial statements, net operating loss
carryforwards and credits. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely
than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided in accordance with
the laws of the relevant taxing authorities. Deferred tax assets and liabilities are measured using enacted rates expected to apply to
taxable income in which temporary differences are expected to be reversed or settled. The effect on deferred tax assets and liabilities
of changes in tax rates is recognized in the statement of operations and comprehensive income in the period of the enactment of the change. The Company considers positive and negative evidence
when determining whether a portion or all of its deferred tax assets will more likely than not be realized. This assessment considers,
among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration
of statutory carry-forward periods, its experience with tax attributes expiring unused, and its tax planning strategies. The ultimate
realization of deferred tax assets is dependent upon its ability to generate sufficient future taxable income within the carry-forward
periods provided for in the tax law and during the periods in which the temporary differences become deductible. When assessing the realization
of deferred tax assets, the Company has considered possible sources of taxable income including (i) future reversals of existing
taxable temporary differences, (ii) future taxable income exclusive of reversing temporary differences and carry-forwards, (iii) future
taxable income arising from implementing tax planning strategies, and (iv) specific known trend of profits expected to be reflected
within the industry. The Company recognizes a tax benefit associated
with an uncertain tax position when, in its judgment, it is more likely than not that the position will be sustained upon examination
by a taxing authority. For a tax position that meets the more-likely-than-not recognition threshold, the Company initially and subsequently
measures the tax benefit as the largest amount that the Company judges to have a greater than 50% likelihood of being realized upon ultimate
settlement with a taxing authority. The Company’s liability associated with unrecognized tax benefits is adjusted periodically
due to changing circumstances, such as the progress of tax audits, case law developments and new or emerging legislation. Such adjustments
are recognized entirely in the period in which they are identified. The Company’s effective tax rate includes the net impact of
changes in the liability for unrecognized tax benefits and subsequent adjustments as considered appropriate by management. The Company
classifies interest and penalties recognized on the liability for unrecognized tax benefits as income tax expense. Stock-Based Compensation The Company recognizes stock-based compensation
in accordance with FASB ASC 718, Stock Compensation. ASC 718 requires that the cost resulting from all share-based transactions be recorded
in the financial statements. It establishes fair value as the measurement objective in accounting for share-based payment arrangements
and requires all entities to apply a fair-value-based measurement in accounting for share-based payment transactions with employees.
ASC 718 also establishes fair value as the measurement objective for transactions in which an entity acquires goods or services from
non-employees in share-based payment transactions. Related party transactions In general, related parties exist when there
is a relationship that offers the potential for transactions at less than arm’s-length, favorable treatment, or the ability to
influence the outcome of events different from that which might result in the absence of that relationship. A related party may be any
of the following: a) an affiliate, which is a party that directly or indirectly controls, is controlled by, or is under common control
with another party; b) a principle owner, owner of record or known beneficial owner of more than 10% of the voting interest of an entity;
c) management, which are persons having responsibility for achieving objectives of the entity and requisite authority to make decision;
d) immediate family of management or principal owners; e) a parent company and its subsidiaries; and f) other parties that have ability
to significant influence the management or operating policies of the entity. Earnings per share Basic earnings per share is computed by dividing
net income attributable to holders of common stock by the weighted average number of shares of common stock outstanding during the period
using the two-class method. Under the two-class method, net income is allocated between shares of common stock and other participating
securities based on their participating rights. Net loss is not allocated to other participating securities if based on their contractual
terms they are not obligated to share in the losses. Diluted earnings per share is calculated by dividing net income attributable to
holders of common stock by the weighted average number of common and dilutive common equivalent shares outstanding during the period.
Common equivalent shares are not included in the denominator of the diluted loss per share calculation when inclusion of such shares
would be anti-dilutive. Recently Issued Accounting Standards The Company has reviewed all the recent accounting
pronouncements issued to date of the issuance of these financial statements, and does not believe any of these pronouncements will have
a material impact on the Company. |
