Note 8 - Concentrations of Risk

9 Months Ended

Sep. 30, 2011

Concentration Risk Disclosure [Text Block]

NOTE－8                   CONCENTRATIONS OF RISK

The Company is exposed to the following concentrations of risk:

(a)         Major customers

For the three and nine months ended September 30, 2011, there was one single customer who accounted for 100% of the Company’s revenues with no outstanding accounts receivable at period-end date.

For the three months ended September 30, 2010, there was one single customer who accounted for 100% of the Company’s revenues with the accounts receivable of $3,867 at period-end date.

For the nine months ended September 30, 2010, there was one single customer who accounted for 81% of the Company’s revenues with the accounts receivable of $3,867 of at period-end date.

(b)         Major vendors

For the three and nine months ended September 30, 2011 and 2010, there was no single vendor who accounted for 10% or more of the Company’s purchases.

(c)         Credit risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and trade accounts receivable. The Company performs ongoing credit evaluations of its customers’ financial condition, but does not require collateral to support such receivables.

(d)         Exchange rate risk

The Company cannot guarantee that the current exchange rate will remain steady; therefore there is a possibility that the Company could post the same amount of profit for two comparable periods and because of the fluctuating exchange rate actually post higher or lower profit depending on exchange rate of HK$ converted to US$ on that date. The exchange rate could fluctuate depending on changes in political and economic environments without notice.