| LEASES |
NOTE
13 - LEASES
Lessee
The
Group has entered into operating leases for hotels and offices with terms ranging from one1 to twenty years, and finance leases for certain
office equipment and vehicles, with terms ranging from one1 to seven years. The estimated effect of lease renewal and termination options,
as applicable, that are reasonably certain to be exercised in the determination of the lease term and initial measurement of right-of-use
assets and lease liabilities was included in the consolidated financials.
Operating
lease expenses for lease payments are recognized on a straight-line basis over the lease term.
The
following table presents supplemental information related to the Group’s leases:
SCHEDULE
OF SUPPLEMENTAL INFORMATION RELATED TO THE GROUP’S LEASES
| | |
2025 | | |
2024 | | |
2023 | |
| | |
Thousands of Yen | |
| | |
For the Fiscal Years Ended March 31, | |
| | |
2025 | | |
2024 | | |
2023 | |
| Finance lease costs | |
| | | |
| | | |
| | |
| Amortization of right-of-use assets | |
¥ | 8,793 | | |
¥ | 7,494 | | |
| 5,235 | |
| Interest on lease liabilities | |
| 467 | | |
| 303 | | |
| 207 | |
| Total finance lease costs | |
| 9,260 | | |
| 7,797 | | |
| 5,442 | |
| Operating lease costs | |
| 560,755 | | |
| 640,213 | | |
| 634,007 | |
| Cash paid for amounts included in the measurement of lease liabilities: | |
| | | |
| | | |
| | |
| Operating cash flows from operating leases | |
| 550,864 | | |
| 654,115 | | |
| 594,430 | |
| Financing cash flows from finance leases | |
| 9,132 | | |
| 7,505 | | |
| 5,277 | |
| Operating lease right-of-use assets obtained in exchange for operating lease liabilities | |
| 997,675 | | |
| - | | |
| 134,799 | |
| Finance lease right-of-use assets obtained in exchange for finance lease liabilities | |
¥ | 18,360 | | |
¥ | 5,154 | | |
| 16,634 | |
| Remeasurement of operating lease liabilities and right-of-use assets due to lease modification | |
| (281,403 | ) | |
| - | | |
| - | |
| | |
| | | |
| | | |
| | |
| Weighted average remaining lease term (years) | |
| | | |
| | | |
| | |
| Operating leases | |
| 11.0 | | |
| 10.8 | | |
| 11.5 | |
| Finance leases | |
| 3.6 | | |
| 3.5 | | |
| 4.0 | |
| Weighted-average discount rate (per annum) | |
| | | |
| | | |
| | |
| Operating leases | |
| 2.29 | % | |
| 2.23 | % | |
| 2.22 | % |
| Finance leases | |
| 1.66 | % | |
| 1.60 | % | |
| 1.57 | % |
As
of March 31, 2025, the future maturity of lease liabilities is as follows:
SCHEDULE
OF MATURITY OF LEASE LIABILITIES
| | |
Thousands of Yen | |
| Fiscal Years Ending March 31, | |
Finance Lease | | |
Operating Lease | |
| 2026 | |
¥ | 8,473 | | |
¥ | 557,856 | |
| 2027 | |
| 7,996 | | |
| 552,245 | |
| 2028 | |
| 6,513 | | |
| 547,100 | |
| 2029 | |
| 4,431 | | |
| 535,159 | |
| 2030 | |
| 907 | | |
| 419,559 | |
| Thereafter | |
| - | | |
| 2,546,563 | |
| Total lease payments | |
¥ | 28,320 | | |
¥ | 5,158,482 | |
| Less: imputed interest | |
| (858 | ) | |
| (604,420 | ) |
| Total lease liabilities | |
| 27,462 | | |
| 4,554,062 | |
| Less: current portion | |
| (8,400 | ) | |
| (463,129 | ) |
| Non-current lease liabilities | |
¥ | 19,062 | | |
¥ | 4,090,933 | |
Lessor
Lease
income related to operating leases included income from
leases on the consolidated statements of income and comprehensive income. The amounts of lease
income recognized on the consolidated statements of income and comprehensive income were as follows:
SCHEDULE
OF OPERATING LEASE INCOME
| | |
2025 | | |
2024 | | |
2023 | |
| | |
For the Fiscal Years Ended March 31, | |
| | |
2025 | | |
2024 | | |
2023 | |
| Fixed income from operating leases | |
¥ | 40,131 | | |
¥ | 47,663 | | |
¥ | 79,102 | |
|