NOTE 9 – OPERATING LEASES

On January 1, 2018, the Company entered into a lease agreement with its related party company to obtain the right of use for office and warehouse of 3,627 square meters for 10 years for free. The Company recorded right-of-use assets and lease expenses based on the fair value for the lease. As the leases do not provide an implicit rate, the Company used an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company’s lease agreements do not contain any material guarantees or restrictive covenants. The Company does not have any sublease activities.

Operating lease right-of-use assets as of March 31, 2025 and 2024 were as follows:

The Company recognized lease expenses for the operating lease right-of-use assets office and warehouse over the lease period which is 10 years. For the years ended March 31, 2025 and 2024, the operating lease expenses were $69,343 and $69,819, respectively.

Operating lease liabilities as of March 31, 2025 and 2024 consisted of the following:

Current portion and non-current portion of operating lease liabilities as of March 31, 2025 and 2024:

The discount rate used for the office and warehouse was 5.40%. The remaining lease term for the operating lease was 2.75 years.

Maturity analysis of operating lease liabilities as of March 31, 2025 is as follows:

The Company had no other operating or financing lease agreements or short-term leases, defined as leases with initial term of 12 months or less, for the years ended March 31, 2025 and 2024.