| LEASE |
NOTE 26 — LEASE
The Company primarily has operating leases for
warehouse, administrative offices and dormitories, through third-parties. A summary of supplemental balance sheet information related
to operating leases as of March 31, 2026 and 2025 was as follows:
| | | As at
March 31,
2026 | | | As of
March 31,
2025 | | | Lease right-of-use assets, net | | $ | 375,457 | | | $ | 482,489 | | | | | | | | | | | | | Lease liabilities, current | | | 314,985 | | | | 493,103 | | | Lease liabilities, non-current | | | 65,275 | | | | 6,412 | | | | | | | | | | | | | Total lease liabilities | | $ | 380,260 | | | $ | 499,515 | | | | | | | | | | | | | Weighted average remaining lease term | | | 16.3 months | | | | 10.7 months | | | | | | | | | | | | | Weighted average discount rate* | | | 3.33 | % | | | 3.48 | % |
| * | The discount rate is based on its incremental internal long-term bank loan borrowing rate. In addition, since all of the Company’s leases are warehouse lease which are all located in Hong Kong, which have similar nature and similar economic environment, the Company use the same discount rate for all of lease agreements. |
| | |
2026 | |
| Lease right-of-use assets, net as of March 31, 2025 | |
$ | 482,489 | |
| Addition during the fiscal year ended March 31, 2026 | |
| 503,561 | |
| Right-of-use assets modification | |
| (6,793 | ) |
| Right-of-use assets amortization | |
| (600,581 | ) |
| Foreign currency translation adjustments | |
$ | (3,219 | ) |
| Lease right-of-use assets, net as of March 31, 2026 | |
$ | 375,457 | |
| | |
2026 | |
| Total lease liabilities as of March 31, 2025 | |
$ | 499,515 | |
| Addition during the fiscal year ended March 31, 2026 | |
| 503,561 | |
| Total lease liabilities modification | |
| (6,793 | ) |
| Repayment | |
| (612,729 | ) |
| Foreign currency translation adjustments | |
$ | (3,294 | ) |
| Total lease liabilities as of March 31, 2026 | |
$ | 380,260 | |
A summary of lease expenses recognized in the
consolidated statement of income and comprehensive income(loss) for the years ended March 31, 2026 and 2025 and supplemental cash flow
information related to operating leases were as follows:
| | |
For the
year ended
March 31
2026 | | |
For the
year ended
March 31
2025 | |
| Operating lease expenses – short-term lease | |
$ | 13,936 | | |
$ | 46,695 | |
| | |
| | | |
| | |
| Interest for lease liability | |
| 22,562 | | |
| 34,775 | |
| | |
| | | |
| | |
| Right-of-use assets amortization | |
$ | 600,581 | | |
$ | 997,605 | |
Minimum future lease payments under non-cancellable
operating leases described above as of March 31, 2026 were as follows:
| | |
As at
March 31,
2026 | |
| By March 31, 2027 | |
$ | 322,704 | |
| By March 31, 2028 | |
| 61,224 | |
| By March 31, 2029 | |
| 5,102 | |
| Total future lease payments | |
| 389,030 | |
| Less: present value discount | |
| (8,770 | ) |
| | |
| | |
| Total operating lease liabilities | |
$ | 380,260 | |
|