v3.25.2
Related Party Balance and Transactions
 12 Months Ended
Mar. 31, 2025
Related Party Balance and Transactions [Abstract]  
Related Party Balance and Transactions

13. Related Party Balance and Transactions

 

The following is a list of related parties which the Company has transactions with:

 

(a) Mr. Ngo Chiu Lam, a director of the Company.

 

(b) Kin Chiu Development Company Limited, controlled by Mr. Ngo Chiu Lam

 

(c) KC-CRFG JV, a joint venture

 

(d) KC-Glory JV, a joint venture

 

(e) KC-Geotech JV, a joint venture

 

a. Due to related parties

 

As of March 31, 2025 and 2024, the balances of due to related parties were as follows:

 

        2025   2024 
Due to related parties                
Mr. Ngo Chiu Lam (a)   (1)    $617,944   $203,990 
KC-CRFG JV (c)   (1)     184,019    91,719 
KC-Glory JV (d)   (1)     320,278    318,436 
KC-Geotech JV (e)   (1)     237,783    242,870 
         $1,360,024   $857,015 

 

(1)The balance represented the advances from the director. Amounts due to joint ventures are for operation purpose. All amounts were unsecured, interest-free and repayable on demand.

 

b. Accounts receivable, net

 

As of March 31, 2025 and 2024, the balances of accounts receivable, net from joint venture were as follows:

 

   2025   2024 
Accounts receivable, net        
KC-Glory JV (d)  $1,363,517   $1,493,591 
   $1,363,517   $1,493,591 

 

c. Contract assets, net

 

As of March 31, 2025 and 2024, the balances of contract assets, net from joint ventures were as follows:

 

   2025   2024 
Contract assets, net          
KC-CRFG JV (c)  $303,585   $257,698 
KC-Glory JV (d)   177,965    194,943 
KC-Geotech JV (e)   42,600    41,480 
   $524,150   $494,121 

 

d. Contract liabilities

 

As of March 31, 2025 and 2024, the balances of contract liabilities from joint ventures were as follows:

 

   2025   2024 
Contract liabilities        
KC-CRFG JV (c)  $359,629   $536,341 
   $359,629   $536,341 

e. Related party transactions

 

The Company’s related party transactions are measured at the exchange amount which is the amount of consideration established and agreed to by the related parties.

 

   2025   2024   2023 
Provision of construction services               
KC-CRFG JV (c)  $4,695,289   $6,884,950   $8,937,204 
KC-Glory JV (d)   
-
    338,800    2,888,169 
KC-Geotech JV (e)   622    2,301,097    3,939,946 
   $4,695,911   $9,524,847   $15,765,319 

 

   2025   2024   2023 
Consultancy fee income            
KC-CRFG JV (c)  $ 10   $ 35,736   $ 60,452 
KC-Geotech JV (e)   44,399    63,658    78,910 
   $44,409   $99,394   $139,362 

 

f. Financial guarantee

 

On December 20, 2024, the Company was released from a financial guarantee to Kin Chiu Development Company Limited for US$1,137,380, related to payment obligations under a bank loan issued to Kin Chiu Development Company Limited. This release followed the transfer of the bank loan, with an outstanding balance of US$812,442 as of March 31, 2025, to Kin Chiu. No amounts were claimed under the guarantee for the years ended March 31, 2025, 2024 and 2023.

 

g. Assignment of borrowing and transfer of insurance plan

 

On December 20, 2024, HSBC issued banking facilities as working capital for Kin Chiu’s account in an aggregate amount not to exceed US$848,158 (HK$6,638,838). There was addition of bank borrowing $851,718 transferred to the Company with the respective transfer of life insurance policy.

 

Two life insurance policies were purchased by Kin Chiu Development Company Limited for Mr. Ngo Chiu Lam (position with a director and CEO of the Company) and Mrs. Po Lok Sze (Mr. Ngo Chiu Lam’s wife). On March 20, 2025, total life insurance policies of US$1,381,153, at cash surrender value, were transferred from Kin Chiu Development Company Limited to the Company. Mr. Ngo Chiu Lam has undertaken to personally settle the shortfall of US$568,711 between cash surrender value of life insurance policy and the outstanding loan balance as of the date of transfer.

 

As of March 31, 2025, the outstanding of the loan, Universal Life Insurance (ULI) Loan (I) and Loan (II), is approximately US$812,442, as stated in Note 11. There is no material covenant stated in this borrowing. The interest rate for the SME financing guarantee scheme is HIBOR + 1% per annum. The loan is secured by the entire life insurance policy from Mr. Ngo Chiu Lam and Ms. Po Lok Sze. The loan contains a repayment on demand clause.