v3.25.2
LOAN PAYABLE
12 Months Ended
Mar. 31, 2025
Debt Disclosure [Abstract]  
LOAN PAYABLE

NOTE 6. LOAN PAYABLE

 

On October 5, 2023, the Company borrowed a 10-years term loan of $475,434 (HK$3,697,002) as working capital at an annual interest rate of Hong Kong Prime Lending Rate minus 2.25% per annum under the loan agreement with HSBC (Hong Kong) signed on October 13, 2023. Repayments are to be made on a monthly basis throughout the term of the loan. The loan was under the SME Financing Guarantee Scheme (“Scheme”), the Scheme was launched on January 1, 2011 by The Hong Kong Mortgage Corporation Limited (“HKMC”), to ease the cash flow problems of Enterprises adversely affected by the outbreak of COVID-19, a Special 100% Loan Guarantee would be introduced under the Scheme. The loans under the Special 100% Loan Guarantee are fully guaranteed by the Hong Kong Government at a concessionary low-interest rate.

 

On January 2, 2025, due to a general decline in the market lending rate, the applicable annual interest rate was automatically adjusted by the lender from 3.125% to 3.000% pursuant to the original loan agreement. As of March 31, 2025, a principal payment of $15,000 had been made, reducing the outstanding loan balance to $473,566.

 

Bank borrowings are as follows as of March 31, 2025 and 2024:

 

SCHEDULE OF BANK BORROWINGS

   Interest rate   March 31, 2025   March 31, 2024 
HSBC (Hong Kong) – 100% Guarantee Loan   3.000%  $473,566   $472,477 
                
Less: current portion of long-term bank borrowings        (378)   (18,645)
Non-current portion of long-term bank borrowings       $473,188   $453,832 

 

Interest expense pertaining to the above bank borrowings for the years ended March 31, 2025, 2024 and 2023 amounted to $16,298, $7,137 and nil, respectively.

 

Maturities of the loan payable were as follows:

 

 SCHEDULE OF MATURITIES OF LOAN PAYABLE

  

Year ended

March 31, 2025
 
2026  $21,971 
2027   47,317 
Thereafter   403,900 
Total loan payables  $473,188