6. PREPAYMENTS, OTHER RECEIVABLES AND OTHER CURRENT ASSETS

As of March 31, 2026 and 2025, the prepayments, other receivables and other current assets were comprised of the following:

Movement of allowance for credit losses for the years ended March 31, 2026 and 2025 are as follows:

There were no recoveries of other receivables that had been written off in prior periods during the year ended March 31, 2026.

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.

In September 2022, the Company entered into an automobile purchase agreement with a third party to purchase a total of 100 automobiles while a termination agreement with the seller had been signed in March 2025. Pursuant to which, the prepayment with the amount of approximately $0.44 million should be refunded to the Company in installments before March 31, 2026. The balance of purchase contract termination refund represented the part of the purchase prepayments originally made for the automobile purchase, which were fully refunded due to the termination of automobile purchase.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 March 31, 2026 and 2025, no allowance for credit losses was recorded, as recoverability is deemed probable based on counterparty creditworthiness and historical experience.