Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

SIGNIFICANT ACCOUNTING POLICIES (Tables)

v3.10.0.1
SIGNIFICANT ACCOUNTING POLICIES (Tables)
12 Months Ended
Sep. 30, 2018
Accounting Policies [Abstract]  
Schedule of Variable Interest Entities [Table Text Block] All inter-company transactions and balances have been eliminated upon consolidation.
 
Entity Name
 
Registered

Location
 
Background
 
Ownership as of the

issuance date of the report
ZK
International
 
BVI
 
• Incorporated on May 13, 2015
• Registered capital of USD 50,000, not paid
• A holding company with no operation activities itself for the years then ended
 
43.05% by HUANG Jian Cong
10.89% by WANG Ming Jie
10.89% by WANG Guo Lin
1.09% by WANG Jian Di
 
 
 
 
 
 
 
 
ZK Pipe
 
Hong Kong
 
• Incorporated on May 28, 2015
• Registered capital of HKD 1,000,000, not paid
• Have not commenced operations
 
100% by ZK International
 
 
 
 
 
 
 
 
Wenzhou Weijia
 
Wenzhou
 
• Incorporated on June 17, 2015
• Registered capital of USD 20,000,000, not paid
• Have not commenced operations
 
100% by ZK Pipe
 
 
 
 
 
 
 
 
 
Zhejiang Zhengkang
 
Wenzhou
 
• Incorporated on December 4, 2001
• Registered capital of RMB100,000,000, RMB30,000,000 paid
• Principally operated in manufacturing and sales of steel strip, steel pipe and fittings
 
99% by Wenzhou Weijia
1% by HUANG Jian Cong
 
 
 
 
 
 
 
 
 
Wenzhou Zhengfeng
 
 
Wenzhou
 
• Incorporated on December 24, 1999
• Registered capital of RMB 2,880,000, fully paid
• Principally operated in trading of steel strip, mainly purchased from Zhejiang Zhengkang
 
100% by Zhejiang Zhengkang
 
 
 
 
 
 
 
 
 
Zhenglong Ecommerce
 
Wenzhou
 
• Incorporated on March 15, 2018
• Registered capital of RMB5,000,000, RMB paid, not paid.
• Principally operated in online sales and promoting of steel strip, steel pipe and fittings
 
90% of Zhejiang Zhengkang
 
 
 
 
 
 
 
ZK Uganda
 
Uganda
 
• Incorporated on March 23, 2018
• Registered capital of 20 Million Uganda Shillings, not paid.
• Have not commenced operations
 
80% by ZK International
 
 
 
 
 
 
 
XSigma
 
BVI
 
• Incorporated on January 18, 2018
• Registered capital of USD 50,000, not paid
• Have not commenced operations
 
100% by ZK International
Schedule of Differences between Reported Amount and Reporting Currency Denominated Amount [Table Text Block]
The relevant exchange rates are listed below:
 
 
 
For the Fiscal Years

Ended September 30
 
 
 
2018
 
 
2017
 
 
2016
 
 
 
 
 
 
 
 
 
 
 
Period Ended RMB: USD exchange rate
 
 
6.8680
 
 
 
6.6545
 
 
 
6.6711
 
Period Average RMB: USD exchange rate
 
 
6.5368
 
 
 
6.8126
 
 
 
6.5333
 
Property, Plant And Equipment Useful Life [Table Text Block] Depreciation commences upon placing the asset in usage and is recognized on a straight-line basis over the estimated useful lives of the assets, as follows:
 
 
 
Useful lives
Buildings
 
40 years
Machinery
 
10 years
Furniture, fixtures, and equipment
 
10 years
Motor vehicles
 
10 years
Schedule Of Finite Lived Intangible Assets Useful Life [Table Text Block] These land use rights are sometimes referred to informally as “ownership.” Land use rights are stated at cost less accumulated amortization. Intangible assets are amortized using the straight-line method with the following estimated useful lives:
 
 
 
Useful lives
Land use rights
 
46 years
Software
 
5 years