EDGAR 10-K Filing

Company CIK: 1766267
Filing Year: 2023
Filename: 1766267_10-K_2023_0001493152-23-022704.json

---

ITEM 1. BUSINESS
ITEM 1. BUSINESS
Corporate History
Synergy Empire Limited, a Nevada corporation (“the Company”) was incorporated under the laws of the State of Nevada on October 17, 2018.
On October 17, 2018, Mr. Leong Will Liam was appointed as President, Secretary, Treasurer and a member of our Board of directors. Also, on October 17, 2018, Mr. Law Jia Ming was appointed as Chief Executive Officer and Chief Financial Officer of the Company.
On October 17, 2018, the Company sold and subsequently issued 900,000 shares of restricted common stock to Mr. Leong Will Liam, our Director, President, Secretary and Treasurer. The price paid per share was $0.30, for aggregate proceeds to the Company of $27,000. Proceed from the issuance of shares went to the Company to be used as working capital.
In regards to all of the above transactions we claim an exemption from registration afforded by Section 4(a)(2) and/or Regulation S of the Securities Act of 1933, as amended (“Regulation S”) for the above sales of the stock since the sales of the stock were made to non-U.S. persons (as defined under Rule 902 section (k)(2)(i) of Regulation S), pursuant to offshore transactions, and no directed selling efforts were made in the United States by the issuer, a distributor, any of their respective affiliates, or any person acting on behalf of any of the foregoing.
On December 31, 2018, SEHL acquired 100% of the equity interests of SEHK from our director, Leong Will Liam, in consideration of HK$1 (Equivalent to about $0.13).
On January 16, 2019, We, “Synergy Empire Limited”, acquired 100% of the equity interests of Synergy Empire Holding Limited, a company incorporated in republic of the Marshall Islands (“SEHL”), from our director, Mr. Leong Will Liam, in consideration of $1. SEHL owns 100% of Synergy Empire Limited, a company incorporated in Hong Kong (“SEHK”).
On February 21, 2019, SEHK acquired 100% of the equity interests of Lucky Star F&B Sdn. Bhd., (“Lucky Star”), a company incorporated in Malaysia on February 9, 2010, from CBA Capital Holdings Sdn. Bhd., a Company owned and controlled by our Director, Mr. Leong Will Liam.
Lucky Star is the owner of 100% of the equity interests of SH Dessert Sdn. Bhd. (“SH Dessert”), a company incorporated in Malaysia on February 19, 2016.
On December 26, 2019, the Company has submitted initial Form S-1 Registration Statement to S.E.C registering an offering by the Company amounted up to $1,500,000 and offering by selling shareholder amounted to $500,000 respectively to Securities & Exchange Commission (“S.E.C”), which was later declared effective on March 10, 2020.
On December 30, 2020, the Company resolved to close the public offering pursuant to Form S-1, resulting in 100,000 shares of common stock being sold at $5.00 per share for a total of $500,000. The proceed of $500,000 went directly to the Company and shall be utilized pursuant to the use of proceed stated in the Form S-1.
On February 26, 2021, the Company transferred the entire shareholding of Lucky Star F&B Sdn. Bhd. from SEHK to SEHL due to a corporate restricting reason.
On March 31, 2021, the Company dispose SEHK to Mr. Leong Will Liam, our director, at Hong Kong Dollar One (“HKD1”), equivalent to $0.13. The disposal was because of uncertain Hong Kong political and economic environment.
Synergy Empire Limited operates entirely through its wholly owned subsidiary of which involving production and sale of food products and sold our products through two restaurants that we operate in Malaysia.
The following chart shows the Group structure:
The Company’s executive office is located at No. 19 Jalan 12/118B, Desa Tun Razak, Kuala Lumpur, Malaysia, 56100.
Overview
We are engaging in the production and sale of food products, specifically dessert created and sold through various restaurants that we operate in Malaysia. We sell our goods under our brand name “Sweet Hut”. The Company originally through indirect subsidiary SH Dessert Sdn. Bhd. operates two restaurant outlets and one central kitchen in Malaysia.
On July 29, 2020, the Company decided to terminate two restaurant outlets in Setapak and Pandan Indah, 3-month notices were given to both landlords, effective on August 1, 2020 onwards. As such, both restaurant outlets tenancy agreement expired on October 31, 2020 and no longer carried any operation as of March 31, 2021.
On September 22, 2020, the Company decided to terminate restaurant outlets on Botanic and C180, 2-month notices were given to both landlords, effective on September 28, 2020 onwards. As such, both restaurant outlets tenancy agreement expired on November 30, 2020 and no longer carried any operation as of March 31, 2021.
On November 15, 2020, the Company entered into a new tenancy agreement with unrelated third party for a new shop located in C180, Cheras through indirect wholly owned subsidiary SH Dessert Sdn. Bhd. for a tenancy period of two years. SH Dessert Sdn. Bhd. were given a rent-free grace period of one month from November 15, 2020 to December 14, 2020, upon the expiration of rent-free grace period, the Company pays a rental of MYR 6,000 (approximately $1,441) on monthly basis. As of March 31, 2021, renovation was completed and the branch was in operation.
On December 1, 2020, the Company entered into another tenancy agreement with unrelated third party for a new shop located in Sri Petaling, through SH Dessert Sdn. Bhd. for a tenancy period of three years commencing on February 1, 2021 at a monthly rental of MYR 15,000 (approximately $3,602), expiring on January 31, 2024, with option to extend for another two years expiring on January 31, 2026 with a maximum increment of not more than 15%.
We started our business under the brand of “Sweet Hut” in 2010, the trademark for which registered and will remain valid until March 25, 2020. We established our first outlet in Kuchai Lama, Kuala Lumpur, Malaysia. We started to manufacture various traditional Chinese desserts such as black glutinous, almond, mango desserts and peanut butter.
The name “Sweet Hut” is derived from the word ‘Sweetheart’. Since food is known as the language of love, we’ve decided to use ‘Sweetheart’ as our business’s signature - a dessert hut filled with love, passion & integrity. Sweet Hut aims to please customers by serving creative and exquisite desserts.
In 2013, our company was awarded “SME100 Award” by SME & Entrepreneurship Magazine. SME100 Awards is an annual recognition programme organized by SME Magazine, naming the fastest moving businesses of the SME sector. To promote recognition of top businesses in a lucrative and dynamic market, the SME100 Awards has served as a symbol which is believed to distinguish the best among the great.
Since 2013, we have grown into a dessert manufacturer and dessert chain under our brand name of “Sweet Hut” in Malaysia. By the end of 2020, the Company decided to shut down all four restaurants operation and re-establish two new restaurants under new concept to strengthen the Company business branding and promoting, together with the launching of menu.
We operate one centralized kitchen and two restaurants located in Malaysia. We manufacture and process our own dessert and food in our centralized kitchen with standard procedures and recipes, in order to ensure the food quality and safety for distribution. Our suppliers, including raw material, ingredient, packaging material suppliers, are located in Malaysia.
Most of our centralized prepared dessert and food will be distributed to our restaurants through our logistic team delivery, via refrigerated trucks. Restaurant is owned and operated by the Company with an internal operational manual in order to comply with all laws applicable to operating a restaurant in Malaysia, which includes, but is not strictly limited to, the Food Act 1983, Food Regulations 1985 and Food Hygiene Regulations 2009.
In 2017, due to the increasing number of smartphone users and availability of online food delivery intermediaries, the Company decided to take advantage of such opportunities. On July 4, 2017 and September 18, 2017, the Company, through SH Dessert Sdn. Bhd., which is the restaurant operator, registered as a vendor to Honestbee food delivery and Foodpanda delivery. On November 22, 2018, the Company, through SH Dessert Sdn. Bhd., registered with Grabfood as a vendor. On July 22, 2019, Honestbee food delivery suspended its operation in Malaysia and we stopped our collaboration with Honestbee on the same day. The Company believes registering as a vendor to the aforementioned platforms enables the Company to expand the coverage of availability of all our restaurants despite these platforms charging approximately 30% commission on the total food bill on average.
On January 31, 2020, Lucky Star F&B Sdn. Bhd., which is the centralized kitchen operator, has acquired the halal certificate on the food process and production from JAKIM, also known as Department of Islamic Development Malaysia. According to the information from the Department of Statistics Malaysia, as of 2019, the population in Malaysia was approximately 32.6 million, and 69.3% of the population were Muslim adherents. With the halal certificate, we believe the Company can penetrate the Islamic food market in Malaysia, which may lead to improvement in the Company’s financial performance and position.
The Company has observed an increasingly competitive environment in the food and beverage industry due to the low barriers to entry and shift in the paradigm of consumer behaviour and preference which the Company believes it is crucial to implement strategic rebranding and marketing activities to cope with industry and consumer demand. For this purpose, in 2020, the Company has closed all of its four restaurants and re-establish two new outlets locating in C180, Cheras and Sri Petaling and engaged branding firm, to advise on our marketing approach including our brand new renovation outlook, dishes and menu with the funding from our public offering.
We strongly believe to excel in food and beverage industry, it is crucial to maintain the quality of food served to our customers, regardless of whether that is through food delivery or dine in. To grow our business and build brand awareness it is crucial to improve the Company’s exposure in terms of availability to different locations throughout different towns. Currently, the Company’s potential market is limited to the two towns in which our restaurant is located. Even with the availability of online food delivery platforms, we believe we are unable to attract customers located more than 20 kilometers away from our individual restaurants, which limits to our growth.
On October 31, 2022, the Company terminated all the tenancy agreements before the due date of the agreements.
On November 30, 2022, the Company has entered into a lease agreement with a third party, Sweet Bakery & Dessert Cafe Sdn Bhd to lease their assets to the third party. The leasing period is commencing from January 1, 2023 to December 31, 2023. The Company did not cease its business operation nor sell the operating assets. The Company is looking for a new strategic location to continue their business while leasing out their assets to the third party.
Marketing
The Company, through our subsidiary SH Dessert Sdn. Bhd. has been cooperating with online food delivery companies to have our desserts displayed on their platforms in order to promote that our desserts may be delivered by their companies, such as Foodpanda and Grabfood.
Our promotional materials are printed and placed on every table of our restaurants. We print new banners and update our promotional materials every month. On October 31, 2022, the Company terminated all the tenancy agreements before the due date of the agreements.
On November 30, 2022, the Company has entered into a lease agreement with a third party, Sweet Bakery & Dessert Cafe Sdn Bhd to lease their assets to the third party. The leasing period is commencing from January 1, 2023 to December 31, 2023. The Company did not cease its business operation nor sell the operating assets. The Company is looking for a new strategic location to continue their business while leasing out their assets to the third party.
Employees
We are required to contribute to the Employees Provident Fund (EPF) under a defined contribution pension plan for all eligible employees in Malaysia between the ages of eighteen and seventy. We are required to contribute a specified percentage of the participant’s income based on their ages and wage level. The participants are entitled to all of our contributions together with accrued returns regardless of their length of service with the Company.
The EPF is a social security institution formed according to the Laws of Malaysia, Employees Provident Fund Act 1991 (Act 452) which provides retirement benefits for members through management of their savings in an efficient and reliable manner. The EPF also provides a convenient framework for employers to meet their statutory and moral obligations to their employees.
We intend to hire more staff to assist in the development and execution of our business operations.
We do not presently have pension, health, annuity, insurance, stock options, profit sharing, or similar benefit plans; however, we may adopt plans in the future. There are presently no personal benefits available to our employee, Officer and/or Director.
Government Regulation
The Company’s operations are subject to several laws and regulations other than the aforementioned JAKIM regulation, enacted by the Malaysia government, which includes but is not limited to:
The Food Act 1983 is an Act to protect the public against health hazards and fraud in the preparation, sale and use of food, and for matters incidental thereto or connected therewith. It outlined the authority and procedure where officers authorized by the Minister are empowered to conduct routine checks and, if necessary, sample collection to determine whether the level of hygiene of restaurants is satisfactory and whether food prepared is fit for human consumption at the discretion of officer. Part of the Food Act 1983 regulates the operation of our restaurant including but not limited following:
Pursuant to section 11 of Food Act 1983, if in the opinion of officer, the premise fails to comply with sanitary and hygienic requirements, the officer may in writing order the closure of such premise where food is prepared.
Pursuant to section 12 of Food Act 1983, notification of the name and occupation of any person who has been convicted of any offence against this Act or any regulation made thereunder together with his place or places of business, the nature of the offence and the fine, forfeiture, or other penalty inflicted shall, if the court so orders, be published in any newspaper circulating in Malaysia.
Food Regulation 1985 outlined individual ingredients requirements in terms of labeling, including additive and nutrients supplements. Any person who contravenes or fails to comply with any provisions of these Regulations commits an offence and subject to a fine not exceeding Malaysia Ringgit Five Thousand (Approximately One Thousand Two Hundred and Ten United States Dollars) or imprisonment for a term not exceeding two years.
Food Hygiene Regulations 2009 is a regulation enacted according to Section 34 of the Food Act 1983 and was enacted by the Malaysia government on February 28, 2009. Two main matters that were introduced under this regulation are the registration of food premises by category and offenses which could be compounded. Offences made either by the proprietor, owner, the occupier of food premises, food handlers, caterers, food vending machines operators, as well as a person who transports food using the vehicle shall be liable for a fine not exceeding Malaysia Ringgit Ten Thousand (Approximately Two Thousand Four Hundred and Twenty United States Dollars) or to imprisonment not exceeding 2 years or to both. Meanwhile, some of the offenses are related to food handlers’ routines, design, building and equipment used.

---

ITEM 1A. RISK FACTORS
ITEM 1A. RISK FACTORS
We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

---

ITEM 1B. UNRESOLVED STAFF COMMENTS
ITEM 1B. UNRESOLVED STAFF COMMENTS
Nil.

---

ITEM 2. PROPERTIES
ITEM 2. PROPERTIES
Our principal executive office which is also our central kitchen is located at No. 19, Jalan 12/118B, Desa Tun Razak, 56100, Kuala Lumpur, Malaysia.
The following table outline the address of our two restaurants and central kitchen that we operate out of, the beginning and end date of the respective lease agreement for each location, the monthly lease payment to be paid for each location, and the party that entered into each lease agreement, as the lessee, for each location. All parties listed under “Tenant” are either subsidiaries of the Company or a related party of the Company.
Tenant Address Commencement Date Expiry Date Monthly Lease Payment
(Value in Malaysian Ringgit (“MYR”))
Lucky Star F&B Sdn. Bhd. No.19, Jalan 12/118B, Desa Tun Razak, 56100 Kuala Lumpur, Malaysia. March 1, 2022 February 28, 2025 *6,900.00
SH Dessert Sdn. Bhd. No. 125-G, Jalan Dataran Cheras 8, Dataran Perniagaan Cheras, Balakong, 43200, Selangor, Malaysia. November 15, 2020 November 14, 2022 **6,000.00
SH Dessert Sdn. Bhd. No. 65, Jalan Radin Tengah, Bandar Baru Sri Petaling, 57000, Kuala Lumpur, Malaysia. February 1, 2021 January 31, 2024 ***15,000.00
The exchange rate of US$1 to MYR is around MYR4.16.
*This tenancy agreement contained a renewal clause for the period from March 31, 2025 to February 28, 2028 with monthly rental of MYR7,950.
** This tenancy agreement contained a renewal clause for the period from November 15, 2022 to November 14, 2024.
*** This tenancy agreement contained a renewal clause for the period from February 1, 2024 to January 31, 2026 with monthly rental of not exceeding MYR16,500.
On October 31, 2022, the Company terminated all the tenancy agreements before the due date of the agreements.
On November 30, 2022, the Company has entered into a lease agreement with a third party, Sweet Bakery & Dessert Cafe Sdn Bhd to lease their assets to the third party. The leasing period is commencing from January 1, 2023 to December 31, 2023. The Company did not cease its business operation nor sell the operating assets. The Company is looking for a new strategic location to continue their business while leasing out their assets to the third party.

---

ITEM 3. LEGAL PROCEEDINGS
ITEM 3. LEGAL PROCEEDINGS
As of the date hereof, we know of no material pending legal proceedings against to which we or any of our subsidiaries is a party or of which any of our property is the subject. There are no proceedings in which any of our directors, executive officers or affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest. From time to time, we may be subject to various claims, legal actions and regulatory proceedings arising in the ordinary course of business.

---

ITEM 4. MINE SAFETY DISCLOSURE
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
PART II

---

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Market Information
The Company sole class of common equity is currently quoted under OTC Markets Pink Sheet under symbol SHMY since April 6, 2021. The Company believes that we do not have an established public trading market and we cannot assure you that there will be any liquidity for our common stock in the future and such quotation reflect inter-dealer prices, without retail mark-up, mark-down or commission and may not necessarily represent actual transactions.
Fiscal Year 2023 High Bid Low Bid
First Quarter $ 3.59 $ 3.59
Second Quarter $ 3.59 $ 3.59
Third Quarter $ 3.59 $ 3.59
Fourth Quarter $ 3.59 $ 3.00
Fiscal Year 2022 High Bid Low Bid
First Quarter $ 50.00 $ 50.00
Second Quarter $ 50.00 $ 5.00
Third Quarter $ 5.00 $ 5.00
Fourth Quarter $ 6.00 $ 5.05
Dividend
No cash dividends were paid on our shares of common stock during the fiscal year ended March 31, 2023 and 2022. We have not paid any cash dividends since our inception on October 17, 2018 and we currently have no plans to pay such dividends. Our board of directors currently intends to retain all earnings for use in the business for the foreseeable future.
Share Holders
As of March 31, 2023, the Company had 1,000,000 shares of our Common Stock par value, $0.0001 issued and outstanding which owned by 50 shareholders.
Transfer Agent and Registrar
The Company has appointed Globex Transfer, LLC as transfer agent, with address 780 Deltona Blvd., Suite 202 Deltona, FL 32725 and can be reached at (813) 344-4490.
Securities Authorized for Issuance under Equity Compensation Plans
We do not have in effect any compensation plans under which our equity securities are authorized for issuance.
Recent Sales of Unregistered Securities
No securities have been sold by the Company during the period covered by this Form 10-K.
Use of Proceeds from Registered Securities
Not applicable
Purchases of Equity Securities by the Registrant and Affiliated Purchasers
We have not repurchased any shares of our common stock during the fiscal year ended March 31, 2023.

---

ITEM 6. SELECTED FINANCIAL DATA
ITEM 6. SELECTED FINANCIAL DATA
We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

---

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion of our financial condition and results of operations should be read in conjunction with our audited consolidated financial statements and the notes to those financial statements appearing elsewhere in this Report.
Certain statements in this Report constitute forward-looking statements. These forward-looking statements include statements, which involve risks and uncertainties, regarding, among other things, (a) our projected sales, profitability, and cash flows, (b) our growth strategy, (c) anticipated trends in our industry, (d) our future financing plans, and € our anticipated needs for, and use of, working capital. They are generally identifiable by use of the words “may,” “will,” “should,” “anticipate,” “estimate,” “plan,” “potential,” “project,” “continuing,” “ongoing,” “expects,” “management believes,” “we believe,” “we intend,” or the negative of these words or other variations on these words or comparable terminology. In light of these risks and uncertainties, there can be no assurance that the forward-looking statements contained in this filing will in fact occur. You should not place undue reliance on these forward-looking statements.
The forward-looking statements speak only as of the date on which they are made, and, except to the extent required by federal securities laws, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date on which the statements are made or to reflect the occurrence of unanticipated events.
Overview
We share the same business plan as that of our subsidiaries. We are engaged in the production and sale of food products, specifically dessert created and sold through various restaurants that we operate in Malaysia. We sell our goods under our brand name “Sweet Hut.” We have two dessert restaurants chains and one central kitchen.
On October 31, 2022, the Company terminated all the tenancy agreements before the due date of the agreements.
On November 30, 2022, the Company has entered into a lease agreement with a third party, Sweet Bakery & Dessert Cafe Sdn Bhd to lease their assets to the third party. The leasing period is commencing from January 1, 2023 to December 31, 2023. The Company did not cease its business operation nor sell the operating assets. The Company is looking for a new strategic location to continue their business while leasing out their assets to the third party.
Results of Operations
Revenue
For the year ended March 31, 2023 and 2022, the Company has generated a revenue of $122,381 and $127,095. This is a decrease of 3.71%. The breakdown of revenue is as following:
Year ended March 31
Lease Revenue $ 8,078 $ -
Percentage towards Total Revenue 6.60 % 0 %
Dine-In Revenue $ 68,675 $ 74,407
Percentage towards Total Revenue 56.12 % 58.54 %
Delivery Revenue $ 45,628 $ 52,688
Percentage towards Total Revenue 37.28 % 41.46 %
Total Revenue $ 122,381 $ 127,095
Total Cost of Sales $ 69,417 $ 73,529
Total Gross Profit $ 52,964 $ 53,566
Gross Profit Margin 43.28 % 42.15 %
For the year ended March 31, 2023, the Company earned a lease revenue of $8,078 due to the Company has entered into a lease agreement with a third party, Sweet Bakery & Dessert Cafe Sdn Bhd to lease their assets to the third party.
Dine-in revenue declined from $74,407 for the year ended March 31, 2022 to $68,675 for the year ended March 31, 2023 for a decline rate of approximately 7.70%. The decline in dine-in revenue primarily due to recurrent movement control order imposed in Malaysia and the termination of all the tenancy agreements on October 31, 2022. Therefore, the Company do not generate any dine-in revenue from November 2022 to March 2023.
Delivery revenue declined from $52,688 for the year ended March 31, 2022 to $45,628 for the year ended March 31, 2023 for a decline rate of approximately 13.40%. The decline in delivery primarily due to the termination of all the tenancy agreements on October 31, 2022. Therefore, the Company do not generate any delivery revenue from November 2022 to March 2023.
Gross Profit
The Company gross profit margin has increased from 42.15% for the year ended March 31, 2022 to 43.28% for the year ended March 31, 2023. Due to the declining revenue, the Company gross profit has declined from $53,566 for the year ended March 31, 2022 to $52,964 for the year ended March 31, 2023, approximately a decline of 1.12%. The Company earned a gross profit of $44,886 through food and beverage business until October 31, 2022 and a gross profit of $8,078 through assets leasing business starting from November 1, 2022 to March 31, 2023.
General and Administrative Expenses
For the year ended March 31, 2023 and 2022, the Company incurred a general and administrative expenses of $587,642 and $531,993 respectively. This primarily consisted of salary, lease expenses, utilities, depreciation, professional fees, repair and maintenance, compliance expenses and advertising and promotion expenses. The miscellaneous expenses included the loss from disposal of plant and equipment which amounted to $183,606.
Year ended March 31
Primary expenses
Salary and salary related expenses $ 157,531 $ 233,566
Percentage towards general and administrative expenses 26.81 % 43.90 %
Lease and rent expenses $ 43,494 $ 76,955
Percentage towards general and administrative expenses 7.40 % 14.47 %
Utility expenses $ 21,270 $ 29,950
Percentage towards general and administrative expenses 3.62 % 5.63 %
Professional expenses $ 74,079 $ 59,947
Percentage towards general and administrative expenses 12.61 % 11.27 %
Depreciation expenses $ 40,670 $ 77,861
Percentage towards general and administrative expenses 6.92 % 14.64 %
Repair and maintenance expenses $ 6,838 $ 14,509
Percentage towards general and administrative expenses 1.16 % 2.73 %
Compliance expenses $ 9,703 $ 5,326
Percentage towards general and administrative expenses 1.65 % 1.00 %
Advertising and promotion expenses $ 7,725 $ 153
Percentage towards general and administrative expenses 1.31 % 0.03 %
Total primary expenses $ 361,310 $ 498,267
Percentage towards general and administrative expenses 61.48 % 93.66 %
Miscellaneous expenses $ 226,332 $ 33,726
Percentage towards general and administrative expenses 38.52 % 6.34 %
Net Loss
For the year ended March 31, 2023 and 2022, the Company incurred a net loss of $534,676 and $443,268 respectively.
Liquidity and Capital Resources
The Company’s cash and cash equivalent has decreased by $8,693, from $18,561 as of March 31, 2022 to $9,868 as of March 31, 2023. The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business.
Cash Used in Operating Activities
For the year ended March 31, 2023, the Company used $306,088 in operating activities primarily from net loss from operation, increase in account receivable, increase in inventory, decrease in accounts payable, decrease in accrued liabilities and other payables and repayment of lease liability, contra by depreciation and amortization, writing off of other receivables, write off of inventory, write off of plant and equipment and decrease in prepayment and deposits.
For the year ended March 31, 2022, the Company used $449,821 in operating activities primarily from net loss from operation, increase in account receivable, prepayment and deposits, decrease in accrued liabilities and other payables and repayment of lease liability, contra by depreciation and amortization, writing off of other receivable, decrease in inventory and increase in accounts payable.
Cash Used in Investing activities
For the year ended March 31, 2023, the Company spent $11,491 in investing activity, primarily in investment in plant, equipment.
For the year ended March 31, 2022, the Company spent $50,657 in investing activity, primarily in investment in plant, equipment.
Cash Provided by Financing Activities
For the year ended March 31, 2023, the Company had net proceed from financing activity $281,116 primarily from advance from director contra by bank loan repayment.
For the year ended March 31, 2022, the Company had net proceed from financing activity $168,299 primarily from advance from director contra by bank loan repayment.
Off-Balance Sheet Arrangement
We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to our stockholders as of March 31, 2023 and March 31, 2022.
Contractual Obligation
As a smaller reporting company, we are not required to provide the aforementioned information.

---

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

---

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The financial statements required by this item are located following the signature page of this Annual Report.

---

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.

---

ITEM 9A. CONTROLS AND PROCEDURES
ITEM 9A. CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
Disclosures Control and Procedures
We maintain disclosure controls and procedures, as defined in Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934 (the “Exchange Act”), that are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms and that such information is accumulated and communicated to our management, including our principal executive and principal financial officers, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure.
We carried out an evaluation, under the supervision and with the participation of our management, including our chief executive officer, of the effectiveness of our disclosure controls and procedures as of March 31, 2023. Based on the evaluation of these disclosure controls and procedures, and in light of the material weaknesses found in our internal controls over financial reporting, our chief executive officer concluded that our disclosure controls and procedures were not effective.
The matters involving internal controls and procedures that our management considered to be material weaknesses under the standards of the Public Company Accounting Oversight Board were: (1) lack of a functioning audit committee due to a lack of a majority of independent members and a lack of a majority of outside directors on our board of directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures; (2) inadequate segregation of duties and effective risk assessment; (3) insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and application of both US GAAP and SEC guidelines; and (4) lack of internal audit function due to the fact that the Company lacks qualified resources to perform the internal audit functions properly and that the scope and effectiveness of the internal audit function are yet to be developed. The aforementioned material weaknesses were identified by our chief executive officer in connection with the review of our financial statements as of March 31, 2023.
Internal Control over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Our internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. The internal controls for the Company are provided by executive management’s review and approval of all transactions. Our internal control over financial reporting also includes those policies and procedures that:
● Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company;
● Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States of America and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
● Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Management assessed the effectiveness of the Company’s internal control over financial reporting as of March 31, 2023. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control-Integrated Framework. Management’s assessment included an evaluation of the design of our internal control over financial reporting and testing of the operational effectiveness of these controls.
As of March 31, 2023, management assessed the effectiveness of our internal control over financial reporting based on the criteria for effective internal control over financial reporting established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in 2013 and SEC guidance on conducting such assessments. Based on such evaluation, the Company’s management concluded that, during the period covered by this Report, our internal control over financial reporting were not effective.
Identified Material Weaknesses
A material weakness in internal control over financial reporting is a control deficiency, or combination of control deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected.
Management identified the following material weaknesses during its assessment of internal controls over financial reporting as of March 31, 2023.
1. We do not have an Audit Committee - While not being legally obligated to have an audit committee, it is the management’s view that such a committee, including a financial expert member, is an utmost important entity level control over the Company’s financial statement. Currently the Chief Executive Officer and Director act in the capacity of the Audit Committee and does not include a member that is considered to be independent of management to provide the necessary oversight over management’s activities.
2. We do not have Written Policies & Procedures - Due to lack of written policies and procedures for accounting and financial reporting, the Company did not establish a formal process to close our books monthly and account for all transactions and thus failed to properly record the Private Placement or disclose such transactions in its SEC filings in a timely manner.
3. We did not implement appropriate information technology controls - As at March 31, 2023, the Company retains copies of all financial data and material agreements; however, there is no formal procedure or evidence of normal backup of the Company’s data or off-site storage of the data in the event of theft, misplacement, or loss due to unmitigated factors.
Accordingly, the Company concluded that these control deficiencies resulted in a reasonable possibility that a material misstatement of the annual or interim financial statements will not be prevented or detected on a timely basis by the company’s internal controls.
As a result of the material weaknesses described above, management has concluded that the Company did not maintain effective internal control over financial reporting as of March 31, 2023 based on criteria established in Internal Control-Integrated Framework issued by COSO.
Management’s Remediation Initiatives
Since 2021, we engaged Dude Business Consultants Limited as an external consultant to assist with the identification and address of complex and proper accounting issues.
In an effort to remediate the identified material weaknesses and other deficiencies and enhance our internal controls, we also plan to initiate the following series of measures to further strengthen the Company’s internal controls going forward:
1. hire a reporting manager (“Internal Finance Manager”) who has the requisite relevant U.S. GAAP and SEC reporting experience and qualifications;
2. make an overall assessment on the current finance and accounting resources and hire additional accounting members with appropriate levels of accounting knowledge and experience;
3. streamline our accounting department structure and enhance our staff’s U.S. GAAP and SEC reporting requirements on a continuous basis through internal training provided by the Internal Finance manager;
4. participate in trainings and seminars provided by professional services firms on a regular basis to gain knowledge on regular U.S. GAAP / SEC reporting requirements updates; and
5. engage an external “Sarbanes-Oxley 404” consulting firm to help us implement Sarbanes-Oxley 404 internal controls compliance together with the establishment of our internal audit function.
We anticipate that these initiatives will be at least partially, if not fully, implemented by the end of fiscal year 2023.
Changes in internal controls over financial reporting
There was no change in our internal controls over financial reporting that occurred during the period covered by this Report, which has materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting:
This annual report does not include an attestation report of the Company’s registered independent public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s registered independent public accounting firm pursuant to rules of the Securities and Exchange Commission that permit the Company to provide only management’s report in this Annual Report on Form 10-K.

---

ITEM 9B. OTHER INFORMATION
ITEM 9B. OTHER INFORMATION
None.

---

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
Biographical information regarding the officers and directors of the Company, who will continue to serve as officers and directors of the Company are provided below:
NAME
AGE
POSITION
Law Jia Ming
Chief Executive Officer, Chief Financial Officer
Leong Will Liam
Director, President, Secretary and Treasurer
Law Jia Ming - Chief Executive Officer (CEO), Chief Financial Officer (CFO)
Mr. Law Jia Ming has been our CEO and CFO since October 17, 2018. Mr. Law holds a bachelor’s degree of Business in Marketing from University of Queensland (Australia).
Mr. Law has been engaged in the food and beverage industry since February 2010. From February 2010, he has been the CEO of Lucky Star F&B Sdn. Bhd., our wholly owned subsidiary. After working for 6 years in food production, research and development, operational finance and logistic design of food and beverage wholesale industry in Malaysia, he founded our other wholly owned subsidiary, SH Dessert Sdn. Bhd. in February 2016, which is mainly focused on setting up dessert outlets and receiving franchising fees from the franchisees. He acts as the CEO of SH Dessert Sdn. Bhd. since February 2016 and his responsibility in the company is to oversee the operation of the company and develop businesses in Asia.
Mr. Law’s experience in corporate management and business development in food and beverage industry, has led the Board of directors to reach the conclusion that he should serve as CEO and CFO of the Company.
Leong Will Liam - Director, President, Secretary and Treasurer
Mr. Leong has been our director, president, secretary and treasurer since October 17, 2018. Mr. Leong graduated from University of London with a bachelor degree in banking and finance in 2000.
From 2000 to 2002, he worked as a banking officer in Citibank Berhad, a licensed commercial bank operating in Malaysia. His responsibilities were client repayment ability evaluation in a loan application, customer relationship maintenance and oversight of daily banking operation. From 2003 to 2004, he worked in HSBC Bank Malaysia Bhd as a manager in banking consumer product division. He was responsible for develop new products with the design and engineering team, promoting and marketing the products with the marketing team and outsourced vendors. Furthermore, he performed cost and profit analysis for those financial products with the financial analysis model, and presented the management team with his analysis. From 2005 to 2008, he worked at Diligent Aspect Sdn. Bhd. as a general manager, where his responsibilities consisted of overseeing daily operation of outsourced banking agents, coordinating key performance goals development, and ensuring the implementation and review of sale tactical programs. From 2009 to 2014, he worked as Chief Operating Officer at Caccina Sofa Manufacturer (M) Sdn. Bhd. and was mainly responsible for the implementation and evaluation of key investment opportunities in equipment and infrastructure across the Asia region. From 2015 to the present, he continues to act as the director of CBA Capital Holdings Sdn. Bhd. He is responsible for audit and internal control procedure of CBA Capital Holdings Sdn. Bhd. Furthermore, he develops corporate fundraising strategies and models for the company and ensures the correct implementation of fundraising strategies and models.
Mr. Leong’s experience in the financial industry and corporate management, has led the Board of directors to reach the conclusion that he should serve as a director, president, secretary and treasurer of the Company.
Corporate Governance
The Company promotes accountability for adherence to honest and ethical conduct; endeavors to provide full, fair, accurate, timely and understandable disclosure in reports and documents that the Company files with the Securities and Exchange Commission and in other public communications made by the Company; and strives to be compliant with applicable governmental laws, rules and regulations. The Company has not formally adopted a written code of business conduct and ethics that governs the Company’s employees, officers and Directors as the Company is not required to do so.
In lieu of an Audit Committee, the Company’s Board of Directors, is responsible for reviewing and making recommendations concerning the selection of outside auditors, reviewing the scope, results and effectiveness of the annual audit of the Company’s financial statements and other services provided by the Company’s independent public accountants. The Board of Directors, the Chief Executive Officer and the Chief Financial Officer of the Company review the Company’s internal accounting controls, practices and policies.
Committees of the Board
Our Company currently does not have nominating, compensation, or audit committees or committees performing similar functions nor does our Company have a written nominating, compensation or audit committee charter. Our Directors believes that it is not necessary to have such committees, at this time, because the Directors can adequately perform the functions of such committees.
Audit Committee Financial Expert
Our Board of Directors has determined that we do not have a board member that qualifies as an “audit committee financial expert” as defined in Item 407(D)(5) of Regulation S-K, nor do we have a Board member that qualifies as “independent” as the term is used in Item 7(d)(3)(iv)(B) of Schedule 14A under the Securities Exchange Act of 1934, as amended, and as defined by Rule 4200(a)(14) of the FINRA Rules.
We believe that our Director(s) are capable of analyzing and evaluating our financial statements and understanding internal controls and procedures for financial reporting. The Director(s) of our Company does not believe that it is necessary to have an audit committee because management believes that the Board of Directors can adequately perform the functions of an audit committee. In addition, we believe that retaining an independent Director who would qualify as an “audit committee financial expert” would be overly costly and burdensome and is not warranted in our circumstances given the stage of our development and the fact that we have not generated any positive cash flows from operations to date.
Involvement in Certain Legal Proceedings
Our Directors and our Executive officers have not been involved in any of the following events during the past ten years:
1. bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time;
2. any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other minor offenses);
3. being subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his/her involvement in any type of business, securities or banking activities; or
4. being found by a court of competent jurisdiction (in a civil action), the Commission or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated.
5. Such person was found by a court of competent jurisdiction in a civil action or by the Commission to have violated any Federal or State securities law, and the judgment in such civil action or finding by the Commission has not been subsequently reversed, suspended, or vacated;
6. Such person was found by a court of competent jurisdiction in a civil action or by the Commodity Futures Trading Commission to have violated any Federal commodities law, and the judgment in such civil action or finding by the Commodity Futures Trading Commission has not been subsequently reversed, suspended or vacated;
7. Such person was the subject of, or a party to, any Federal or State judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation of: (i) Any Federal or State securities or commodities law or regulation; or(ii) Any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal or prohibition order; or(iii) Any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or
8. Such person was the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act (15 U.S.C. 78c(a)(26))), any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act (7 U.S.C. 1(a)(29))), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member.
Independence of Directors
We are not required to have independent members of our Board of Directors, and do not anticipate having independent Directors until such time as we are required to do so.
Code of Ethics
We have not adopted a formal Code of Ethics. The Board of Directors evaluated the business of the Company and the number of employees and determined that since the business is operated by a small number of persons, general rules of fiduciary duty and federal and state criminal, business conduct and securities laws are adequate ethical guidelines. In the event our operations, employees and/or Directors expand in the future, we may take actions to adopt a formal Code of Ethics.
Shareholder Proposals
Our Company does not have any defined policy or procedural requirements for shareholders to submit recommendations or nominations for Directors. The Board of Directors believes that, given the stage of our development, a specific nominating policy would be premature and of little assistance until our business operations develop to a more advanced level. Our Company does not currently have any specific or minimum criteria for the election of nominees to the Board of Directors and we do not have any specific process or procedure for evaluating such nominees. The Board of Directors will assess all candidates, whether submitted by management or shareholders, and make recommendations for election or appointment.
A shareholder who wishes to communicate with our Board of Directors may do so by directing a written request addressed to our President, at the address appearing on the first page of this Information Statement.
SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE
Section 16(a) of the Securities Exchange Act requires our executive officers and directors, and persons who own more than 10% of our common stock, to file reports regarding ownership of, and transactions in, our securities with the Securities and Exchange Commission and to provide us with copies of those filings. Based solely on our review of the copies of such forms furnished to us and written representations by our officers and directors regarding their compliance with applicable reporting requirements under Section 16(a) of the Exchange Act, we believe that all Section 16(a) filing requirements for our executive officers, directors and 10% stockholders were met during the year ended March 31, 2023.

---

ITEM 11. EXECUTIVE COMPENSATION
ITEM 11. EXECUTIVE COMPENSATION
*The below figures are in relation to our most recent fiscal year end.
Summary Compensation Table
Name
and
principal
position
(a)
Year
ended
March 31
(b) Salary ($)
(c) Bonus ($)
(d) Stock Compensation ($)
(e) Option
Awards ($)
(f) Non-Equity
Incentive
Plan
Compensation ($)
(g) Nonqualified
Deferred
Compensation
Earnings ($)
(h) All Other
Compensation ($)
(i) Total ($)
(j)
Law Jia Ming, Chief Executive Officer, - - - - - - - $ -
Chief Financial Officer - - - - - - - $ -
Leong Will Liam, - - - - - - - $ -
Director - - - - - - - $ -
Summary of Compensation
Stock Option Grants
We have not granted any stock options to our executive officers since our incorporation.
Employment Agreements
We do not have an employment or consulting agreement with any officers or Directors.
Compensation Discussion and Analysis
Director Compensation
Our Board of Directors does not currently receive any consideration for their services as members of the Board of Directors. The Board of Directors reserves the right in the future to award the members of the Board of Directors cash or stock-based consideration for their services to the Company, which awards, if granted shall be in the sole determination of the Board of Directors.
Executive Compensation Philosophy
Our Board of Directors determines the compensation given to our executive officers in their sole determination. Our Board of Directors reserves the right to pay our executive or any future executives a salary, and/or issue them shares of common stock in consideration for services rendered and/or to award incentive bonuses which are linked to our performance, as well as to the individual executive officer’s performance. This package may also include long-term stock-based compensation to certain executives, which is intended to align the performance of our executives with our long-term business strategies. Additionally, while our Board of Directors has not granted any performance base stock options to date, the Board of Directors reserves the right to grant such options in the future, if the Board in its sole determination believes such grants would be in the best interests of the Company.
Incentive Bonus
The Board of Directors may grant incentive bonuses to our executive officer and/or future executive officers in its sole discretion, if the Board of Directors believes such bonuses are in the Company’s best interest, after analyzing our current business objectives and growth, if any, and the amount of revenue we are able to generate each month, which revenue is a direct result of the actions and ability of such executives.
Long-term, Stock Based Compensation
In order to attract, retain and motivate executive talent necessary to support the Company’s long-term business strategy we may award our executive and any future executives with long-term, stock-based compensation in the future, at the sole discretion of our Board of Directors, which we do not currently have any immediate plans to award.

---

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
As of March 31, 2023, the Company has 1,000,000 shares of common stock issued and outstanding, which number of issued and outstanding shares of common stock have been used throughout this report.
Name and Address of
Beneficial Owner Shares of
Common
Stock
Beneficially
Owned Common
Stock Voting
Percentage
Beneficially
Owned Voting
Shares of
Preferred
Stock Preferred
Stock Voting
Percentage
Beneficially
Owned Total Voting
Percentage
Beneficially
Owned
Executive Officers and Directors
Law Jia Ming, Chief Executive Officer, Chief Financial Officer - - - - -
Leong Will Liam, Director, President, Secretary and Treasurer 450,000 45 % - - 45 %
Officers and Directors as a Group (2 people) 450,000 45 %
45 %
5% Shareholders - - - - -
*Officers and or Directors who may hold a 5% or greater controlling interest in the Company are included above, but only under the subtitle, “Executive Officers and Directors.”
Beneficial ownership has been determined in accordance with Rule 13d-3 under the Exchange Act. Under this rule, certain shares may be deemed to be beneficially owned by more than one person (if, for example, persons share the power to vote or the power to dispose of the shares). In addition, shares are deemed to be beneficially owned by a person if the person has the right to acquire shares (for example, upon exercise of an option or warrant) within 60 days of the date as of which the information is provided. In computing the percentage ownership of any person, the amount of shares is deemed to include the amount of shares beneficially owned by such person by reason of such acquisition rights. As a result, the percentage of outstanding shares of any person as shown in the following table does not necessarily reflect the person’s actual voting power at any particular date.

---

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, DIRECTOR INDEPENDENCE
On October 17, 2018, the Company sold and subsequently issued 900,000 shares of restricted common stock to Mr. Leong Will Liam, our Director, President, Secretary and Treasurer. The price paid per share was $0.30, for aggregate proceeds to the Company of $27,000. Monies from the aforementioned sale of shares went to the Company to be used as working capital.
Regards to all of the above transactions we claim an exemption from registration afforded by Section 4(a)(2) and/or Regulation S of the Securities Act of 1933, as amended (“Regulation S”) for the above sales of the stock since the sales of the stock were made to non-U.S. persons (as defined under Rule 902 section (k)(2)(i) of Regulation S), pursuant to offshore transactions, and no directed selling efforts were made in the United States by the issuer, a distributor, any of their respective affiliates, or any person acting on behalf of any of the foregoing.
On January 16, 2019, We, “Synergy Empire Limited,” acquired 100% of the equity interests of Synergy Empire Holding Limited, a company incorporated in republic of the Marshall Islands (“SEHL”), from our director, Mr. Leong Will Liam, in consideration of $1.
SEHL owns 100% of Synergy Empire Limited, a company incorporated in Hong Kong (“SEHK”).
On December 31, 2018, SEHL acquired 100% of the equity interests of SEHK from our director, Leong Will Liam, in consideration of HK$1 (Equivalent to about $0.13).
On February 21, 2019, SEHK acquired 100% of the equity interests of Lucky Star F&B Sdn. Bhd., (“Lucky Star”), a company incorporated in Malaysia on February 9, 2010, from CBA Capital Holdings Sdn. Bhd., a Company owned and controlled by our Director, Mr. Leong Will Liam.
Lucky Star is the owner of 100% of the equity interests of SH Dessert Sdn. Bhd. (“SH Dessert”), a company incorporated in Malaysia on February 19, 2016.
As of March 31, 2019, the Company has an outstanding loan payable to our CEO, Mr. Law Jia Ming, in the amount of $216,911. For the year ended March 31, 2020, Mr. Law Jia Ming has advanced the Company an additional $77,487 to be used for working capital. The Company has a total outstanding loan payable to our CEO, in the amount of $280,180, the difference is caused by foreign currency translation for accounting purpose. For the year ended March 31, 2021, our CEO and CFO, Mr. Law Jia Ming decided to waive all outstanding loan payable.
Mr. Law Jia Ming was a director of our subsidiaries, Lucky Star F&B Sdn. Bhd. and SH Dessert Sdn. Bhd., until February 21, 2019 and July 1, 2019 respectively. He has been our CEO and CFO since October 17, 2018.
As of March 31, 2019, the Company has an outstanding loan payable to Mr. Leong Will Liam, our President and Director, in the amount of $499,261. This is inclusive of an amount due to CBA Capital Holdings Sdn. Bhd, a company owned and controlled solely by Mr. Leong Will Liam. The portion of the above total owed directly to CBA Capital Holdings Sdn. Bhd. is $24,822. For the year ended March 31, 2020, Mr. Leong Will Liam has advanced the Company an additional $173,862 to be used for working capital. As of March 31, 2020, the Company has an outstanding loan payable to our President and Director, in the amount of $644,072, the difference is caused by foreign currency translation for accounting purpose.
On February 26, 2021, Synergy Empire Marshall acquire 100% of Lucky Star F&B Sdn. Bhd. from Synergy Empire HK at a consideration of MYR 100,000, equivalent to HK$ 192,370 or US$ 24,822. Consideration has yet to settle between Synergy Empire Marshall and Synergy Empire HK, give rise to a receivable asset for Synergy Empire HK and a payable liability for Synergy Empire Marshall. On March 31, 2021, Mr. Leong Will Liam acquire Synergy Empire HK for HK$1, in exchange deficit book value of HK$19,918.
For the year ended March 31, 2023 and 2022, Mr. Leong Will Liam has further advanced $297,166 and $183,834 to the Company for working capital purpose.
As of March 31, 2023, the Company has an outstanding loan payable to Mr. Leong Will Liam amount $1,300,486 and an outstanding loan payable to Synergy Empire HK amount $24,822, totaled $1,325,308.
All aforementioned loans and advancement are non-interest bearing and payable on demand. The difference in aforementioned figures is caused by foreign translation difference.
On July 29, 2022, the Company approved the resignation of Mr. Leong Will Liam concurrently with the appointment of Mr. Vicknesya Naayaker A/L Punosamy as the director of Lucky Star F&B Sdn. Bhd.
On July 29, 2022, the Company approved the resignation of Mr. Leong Will Liam concurrently with the appointment of Mr. Praveen A/L Ravichandran as the director of SH Dessert Sdn. Bhd.
Review, Approval and Ratification of Related Party Transactions
Given our small size and limited financial resources, we have not adopted formal policies and procedures for the review, approval or ratification of transactions, such as those described above, with our executive officer(s), Director(s) and significant stockholders. We intend to establish formal policies and procedures in the future, once we have sufficient resources and have appointed additional Directors, so that such transactions will be subject to the review, approval or ratification of our Board of Directors, or an appropriate committee thereof. On a moving forward basis, our Directors will continue to approve any related party transaction.

---

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
Audit Fees
The following table sets forth the aggregate fees billed to the Company by its independent registered public accounting firms for the fiscal years ended March 31, 2023 and 2022.
We have engaged Total Asia Associates as our principal accountant since March 31, 2018. On July 21, 2021, the Board of Directors of the Company approved the resignation of Total Asia Associates PLT concurrently with the appointment of JP Centurion & Partners PLT as the Company’s independent registered public accounting firm. Form 8-K has been filed pertaining to this matter dated July 21, 2021.
ACCOUNTING FEES AND SERVICES
Audit fees $ 24,000 $ 24,000
Audit-related fees - -
Tax fees - -
All other fees - -
Total $ 24,000 $ 24,000
The category of “Audit fees” includes fees for our annual audit, quarterly reviews and services rendered in connection with regulatory filings with the SEC, such as the issuance of comfort letters and consents.
The category of “Audit-related fees” includes employee benefit plan audits, internal control reviews and accounting consultation.
All of the professional services rendered by principal accountants for the audit of our annual financial statements that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for last two fiscal years were approved by our board of directors.
PART IV

---

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES
ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
(a) Financial Statements
The following are filed as part of this report:
Financial Statements
The following financial statements of Synergy Empire Limited and Report of Independent Registered Public Accounting Firm are presented in the “F” pages of this Report:
Page
Audited Financial Statements
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
CONSOLIDATED STATEMENTS OF CASH FLOWS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -
(b) Exhibits
The following exhibits are filed herewith:
31.1 Rule 13(a)-14(a)/15(d)-14(a) Certification of principal executive officer* and principal financial officer*
32.1 Section 1350 Certification of principal executive officer and principal financial officer*
101.INS Inline XBRL Instance Document
101.SCH Inline XBRL Taxonomy Extension Schema Document
101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document
Cover Page Interactive Data File (embedded within the Inline XBRL document)
*Filed herewith