v3.26.1
INCOME TAX (Tables)
 12 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
SCHEDULE OF INCOME TAX EXPENSES

For the years ended March 31, 2026, 2025 and 2024, the Group’s income tax expenses are as follows:

 

   2026   2025   2024 
   Thousands of Yen 
  

For the Fiscal Years Ended March 31,

 
   2026   2025   2024 
Current  ¥473,164   ¥302,713   ¥120,305 
Deferred   18,079    91,910    76,049 
Total  ¥491,243   ¥394,623   ¥196,354 
SCHEDULE OF RECONCILIATION OF THE EFFECTIVE INCOME TAX RATES

After the adoption of ASU 2023-09 on a prospective basis, a reconciliation of the effective income tax rates reflected in the accompanying consolidated statements of income and comprehensive income to the Japanese statutory tax rate for the years ended March 31, 2026 is as follows:

 

For the Fiscal Years Ended March 31, 2026  Thousands of Yen   Percent 
Japanese statutory tax rate  ¥432,782    34.59%
Special tax on retained earnings   49,226    3.92 
Entertainment expenses not deductible   15,630    1.25 
Effect of change in income tax rate for deferred tax assets        (0.92 
Change in valuation allowance   4,288    0.34 
Other adjustments   (10,683)   (0.84)
Effective tax rate  ¥491,243    39.26%

 

For the year ended March 31, 2025 and 2024, prior to the adoption of ASU 2023-09, a reconciliation of the effective income tax rate to the Japanese statutory income tax rate is as follows:

 

  

For the Fiscal Years Ended March 31,

 
   2025   2024 
Japanese statutory tax rate   34.59%   34.59%
Special tax on retained earnings   2.10    2.40 
Entertainment expenses not deductible   0.53    1.77 
Effect of change in income tax rate for deferred tax assets   (0.92)   0.35 
Change in valuation allowance   (0.64)   (0.76)
Other adjustments   (1.29)   (0.58)
Effective tax rate   34.37%   37.76%
SCHEDULE OF CASH PAID FOR INCOME TAXES, NET OF REFUNDS AND DISAGGREGATED BY JURISDICTION

Cash paid for income taxes, net of refunds and disaggregated by jurisdiction, during the years ended March 31, 2026 are as follows:

 

   Thousands of Yen 
Domestic  ¥403,684 
Foreign   1,456 
Total   405,140 
SCHEDULE OF TEMPORARY DIFFERENCE OF DEFERRED INCOME TAX ASSETS AND LIABILITIES

The tax effects of temporary differences that give rise to the deferred income tax assets and liabilities at March 31, 2026 and 2025 are presented below:

 

   March 31, 2026   March 31, 2025 
   Thousands of Yen 
   March 31, 2026   March 31, 2025 
Deferred income tax assets          
Operating lease liabilities  ¥1,402,681   ¥1,581,389 
Net operating losses carried forward   202,382    202,547 
Long term prepaid expenses   108,758    - 
Inventories   96,262    88,739 
Deferred listing expenses   -    84,835 
Other current liabilities   39,092    33,763 
Loss on valuation of shares of subsidiaries   33,737    32,390 
Enterprise taxes payables   19,656    30,858 
Other non-current liabilities   21,893    30,491 
Allowance for credit losses   29,999    27,407 
Property, plant and equipment   -    16,277 
Finance lease liabilities   6,540    9,730 
Stock-based compensation   5,642    - 
Others   72,541    65,083 
Subtotal   2,039,183    2,203,509 
Less: valuation allowance   (141,329)   (137,041)
Total deferred income tax assets  ¥1,897,854   ¥2,066,468 
           
Deferred income tax liabilities          
Operating lease right-of-use assets  ¥(1,372,248)  ¥(1,523,570)
Capitalized interest   (63,404)   (51,574)
Others   (21,514)   (32,557)
Total deferred income tax liabilities  ¥(1,457,166)  ¥(1,607,701)
           
Deferred income tax assets, net  ¥440,688   ¥458,767 
SCHEDULE OF FUTURE TAXABLE INCOME IN TAX JURISDICTION RAGE FROM FOUR TO TEN YEARS

As of March 31, 2026, the Group had net operating losses which can be carried forward for income tax purposes of ¥620,486 thousand to reduce future taxable income. Periods available to reduce future taxable income vary in each tax jurisdiction and generally range from four to ten years as follows:

 

   Thousands of Yen 
After two years through three years  ¥14,116 
After three years through four years   30,897 
After four years through five years   229,200 
After five years through six years   125,921 
After six years through seven years   83,805 
After seven years through eight years   26,896 
After eight years through nine years   109,651 
Total  ¥620,486