6. PREPAYMENTS, OTHER RECEIVABLES AND OTHER CURRENT ASSETS, NET

As of June 30, 2025 and March 31, 2025, the prepayments, other receivables and other current assets, net were comprised of the following:

Movement of allowance for credit losses for the three months ended June 30, 2025 and for year ended March 31, 2025 are as follows:

The balance of Purchase contract termination refund represented the part of the purchase prepayments originally made for automobile purchase, which will be refunded before March 31, 2026 due to the termination of automobile purchase.

The balance of deposits mainly represented the security deposit made by the Company to various automobile leasing companies and Didi Chuxing Technology Co., Ltd., who runs an online ride-hailing platform. As of June 30, 2025 and March 31, 2025, the allowance for credit losses of $0 and $17,063 was recorded against the security deposits not returned for more than one year after the end of the cooperation. During the three months ended June 30, 2025, the Company wrote off the security deposits balance of $17,119.

The balance of prepaid expense represented automobile purchase prepayments, automobile liability insurance premium for automobiles for operating lease and other miscellaneous expense such as office lease, office remodel expense, etc. that will expire within one year.

The balance represented the amount of VAT, which resulted from historical purchasing activities and could be further used for deducting future VAT in PRC.