11. Concentrations of Risk

3 Months Ended

Jun. 30, 2020

NOTE—11 CONCENTRATIONS OF RISK

The Company is exposed to the following concentrations of risk:

(a) Major customers

For the three months ended June 30, 2020 and 2019, there is no individual customer exceeding 10% of the Company’s revenue.

The Company considers its business activities to constitute one single reportable segment. The Company’s chief operating decision makers use consolidated results to make operating and strategic decisions. The geographic distribution analysis of the Company’s revenues by region is as follows:

	Three months ended June 30,
	2020		2019

China	$	–	$	86,204
Singapore		114,816		3,553,755
Malaysia		4,360		3,246,494
Philippines		698		1,602,588
Thailand		1,438		751,798
United States		926		–
Indonesia		2,230		–
Other countries in Asia Pacific		5,770		631,791

	$	130,238	$	9,872,630

All of the Company’s long-lived assets are located in Singapore.

(b) Major vendors

For the three months ended June 30, 2020 and 2019, there are no vendors representing more than 10% of the Company’s purchase, respectively.

As the Company has no significant interest-bearing assets, the Company’s income and operating cash flows are substantially independent of changes in market interest rates.

The Company’s interest-rate risk arises from borrowings under finance lease. The Company manages interest rate risk by varying the issuance and maturity dates variable rate debt, limiting the amount of variable rate debt, and continually monitoring the effects of market changes in interest rates. As of June 30, 2020, borrowing under finance lease was at fixed rates.

(d) Economic and political risk

The Company’s major operations are conducted in Republic of Singapore. Accordingly, the political, economic, and legal environments in Singapore, as well as the general state of Singapore’s economy may influence the Company’s business, financial condition, and results of operations.

(e) 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 S$ converted to US$ on that date. The exchange rate could fluctuate depending on changes in political and economic environments without notice.

Noble Vici Group, Inc. 10-Q