7. LEASES

The finance lease mainly consists of tipper trucks and machinery and equipment. The total finance lease liability balance as of March 31, 2026 and 2025 amounted to US$1,756,106 and $3,023,548 respectively.

Early termination and disposal of several motor vehicles and machinery under finance lease arrangements.

During the fiscal year 2026, the Company early terminated finance lease agreements relating to several motor vehicles and machinery. Prior to disposal, the Company settled all remaining lease liabilities by paying the outstanding amounts to the lessor and exercised the purchase options. Upon settlement, the right-of-use assets were derecognized, and the underlying assets were reclassified to property, plant and equipment, at which point legal title transferred to the Company. The ROU – finance lease with carrying amount of approximately US$194,510 was terminated during the year ended March 31, 2026. The Company contemporaneously sold these assets to third-party buyers and the gain from termination of USD 327,403 was recognized. The ROU – finance lease with carrying amount of approximately US$44,247 was disposed during the year ended March 31, 2025 and the termination loss of USD 11,026 was recognized.

The Company leases office spaces for varying periods in Hong Kong. As the majority of the leases do not provide an implicit rate, the Company used an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company’s lease agreements do not contain any material guarantees or restrictive covenants. Short-term leases, defined as leases with initial term of 12 months or less, are not reflected on the Consolidated Balance Sheets. The most significant assets in the Company’s leasing portfolio relate to office. For purposes of calculating lease liabilities for such leases, the Company have combined lease and non-lease components.

The components of lease expenses are as follows:

 SCHEDULE OF COMPONENTS OF LEASE EXPENSES

The components of finance lease are as follows:

 SCHEDULE OF COMPONENTS OF FINANCE LEASE

Other information about the Company’s leases is as follows:

 SCHEDULE OF OTHER INFORMATION ABOUT LEASES

The following is a maturity analysis of the annual undiscounted cash flows for lease liabilities as of March 31, 2026:

 SCHEDULE OF MATURITY ANALYSIS OF LEASE LIABILITIES

The following is a maturity analysis of the annual undiscounted cash flows for lease liabilities as of March 31, 2025: