NOTES
TO THE FINANCIAL STATEMENTS
For the Nine
Months Ended April 30, 2016
1. NATURE AND CONTINUANCE
OF OPERATIONS
The Company is a development
stage company, which was incorporated in the State of Nevada, United States of America on August 23, 2006. The Company intends
to commence operations in health and beauty care through the utilization of the web.
These financial statements have
been prepared on a going concern basis. The Company has accumulated a deficit of $92,415 since inception and has yet to achieve
profitable operations and further losses are anticipated in the development of its business, raising substantial doubt about the
Company's ability to continue as a going concern. Its ability to continue as a going concern is dependent upon the ability of
the Company to generate profitable operations in the future and or to obtain the necessary financing to meet its obligations and
repay its liabilities arising from normal business operations when they come due. Management plans to continue to provide for
its working capital needs by seeking loans from its shareholder. These financial statements do not include any adjustments to
the recoverability and classification of assets, or the amount and classification of liabilities that may be necessary should
the Company be unable to continue as a going concern.
The company's year-end is July
31.
2. SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
The financial statements of the
Company have been prepared in accordance with accounting principles generally accepted in the United States of America. Because
a precise determination of many assets and liabilities is dependent upon future events, the preparation of financial statements
for a period necessarily involves the use of estimates, which have been made using careful judgment. Actual results may vary from
these estimates.
The financial statements have,
in management's opinion, been properly prepared within the framework of the significant accounting policies summarized below:
Cash and Cash Equivalents
Cash equivalents comprise certain
highly liquid instruments with maturities of three months or less when purchased. As at April 30, 2016, there were Cash and Cash
Equivalents equal to $0.
Development Stage Company
The Company complies with the
FASB Accounting Standards Codification (ASC) Topic 915 Development Stage Entities and the Securities and Exchange Commission Exchange
Act 7 for its characterization of the Company as development stage.
Impairment of Long Lived Assets
Long-lived assets are reviewed
for impairment in accordance with ASC Topic 360, "Accounting for the Impairment or Disposal of Long- lived Assets".
Under ASC Topic 360, long-lived assets are tested for recoverability whenever events or changes in circumstances indicate that
their carrying amounts may not be recoverable. An impairment charge is recognized or the amount, if any, which the carrying value
of the asset exceeds the fair value.
Foreign Currency Translation
The Company is located and operating
outside of the United States of America. It maintains its accounting records in U.S. Dollars, as follows:
At the transaction date, each
asset, liability, revenue, and expense is translated into U.S. dollars by the use of exchange rates in effect at that date. At
the period end, monetary assets and liabilities are remeasured by using the exchange rate in effect at that date. The resulting
foreign exchange gains and losses are included in operations.
The Company's currency exposure
is insignificant and immaterial and we do not use derivative instruments to reduce its potential exposure to foreign currency
risk.
Financial Instruments
The carrying value of the Company's
financial instruments consisting of cash equivalents and accounts payable and accrued liabilities approximates their fair value
because of the short maturity of these instruments. Unless otherwise noted, it is management's opinion that the Company is not
exposed to significant interest, currency or credit risks arising from these financial instruments.
Income Taxes
The Company uses the assets and
liability method of accounting for income taxes in accordance with FASB Topic 740 “Income Taxes". Under this
method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences
between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred
tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those
temporary differences are expected to be recovered or settled.
Basic and Diluted Net Loss
Per Share
In accordance with FASB Topic
260, "Earnings Per Share', the basic net loss per common share is computed by dividing net loss available to common stockholders
by the weighted average number of common shares outstanding. Diluted net loss per common share is computed similar to basic net
loss per common share except that the denominator is increased to include the number of additional common shares that would have
been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. As at April
30, 2016, diluted net loss per share is equivalent to basic net loss per share.
Stock Based Compensation
The Company accounts for stock
options and similar equity instruments issued in accordance with ASC Topic 718 Compensation-Stock Compensation. Accordingly,
compensation costs attributable to stock options or similar equity instruments granted are measured at the fair value at the grant
date, and expensed over the expected vesting period. Transactions in which goods or services are received in exchange for
the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of
the equity instruments issued, whichever is more reliably measurable. ASC Topic 718- Compensation requires excess tax benefits
be reported as a financing cash inflow rather than as a reduction of taxes paid.
The Company did not grant any
stock options during the period ended April 30, 2016.
Comprehensive Income
The Company adopted Statement
of Financial Accounting Standards No. 130 (SFAS 130), Reporting Comprehensive Income, which establishes standards for reporting
and display of comprehensive income, its components and accumulated balances. The Company is disclosing this information on its
Statement of Stockholders' Equity. Comprehensive income comprises equity except those resulting from investments by owners
and distributions to owners.
The Company has no elements of
"other comprehensive income" during the period ended April 30, 2016.
Advertising Expenses
There is no advertising expense
incurred by the company during the period ended April 30, 2016.
New Accounting Standards
Management does not believe that
any recently issued, but not yet effective accounting standards if currently adopted could have a material effect on the accompanying
financial statements.
3. CAPITAL STOCK
On July 15, 2007, the Company
issued 14,000,000 common shares at $0.001 per share to the sole director of the Company for total proceeds of $2,000.
In May 2008, the Company issued
21,000,000 common shares at $0.001 per share to subscribers for total proceeds of $30,000.
On February 25, 2010, the Company
amended its Articles of incorporation and authorized 125,000,000 shares of common stock, at $.001 par value of which 35,000,000
were issued and outstanding as of October 31, 2012.
On October 31, 2010, the Stockholder's
of the Company authorized the Forward Stock Split of our issued and outstanding Common Stock on a seven for one (7:1) basis. The
Forward Stock Split became effective on October 31, 2010. As a result of the Forward Stock Split, the Company increased its issued
and outstanding shares of the Common Stock to 35,000,000 from 5,000,000.
In May 2012, the Company subscribed
500,000 restricted common shares at $0.20 per share to a shareholder for a subscription receivable of $100,000.
In July 2012, the Company issued
500,000 common shares at &0.001 per share to subscribers for total receivable proceeds of $500.
The number of shares outstanding
of the Registrant's common stock, par value $.001 per share, at April 30, 2016 is 35,500,000.
4. RELATED PARTY TRANSACTIONS
A series of shareholder loans
were made from August 23, 2006 to October 31, 2015 totaling $13,425. A balance of $13,425 is still outstanding as of April
30, 2016, without interest and fixed term of repayment. The loan is due at demand.