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Leases

3 Months Ended

Jun. 30, 2023

NOTE 7 – LEASES

The Company has 52 operating leases for manufacturing facilities, offices and staff dormitories. Some leases include one or more options to renew, which is typically at the Company’s sole discretion. The Company regularly evaluates the renewal options, and, when it is reasonably certain of exercise, it will include the renewal period in its lease term. New lease modifications result in measurement of the right of use (“ROU”) assets and lease liability. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. ROU assets and related lease obligations are recognized at commencement date based on the present value of remaining lease payments over the lease term.

All of the Company’s leases are classified as operating leases and primarily include office space and manufacturing facilities.

Supplemental balance sheet information related to operating leases was as follows:

	June 30, 2023		March 31, 2023
ROU assets	$	940,800	$	974,761

Operating lease liabilities – current	$	413,412	$	481,502
Operating lease liabilities – non-current		319,786		287,247
Total operating lease liabilities		733,198		768,749

The weighted average remaining lease terms and discount rates for all of operating leases were as follows:

Remaining lease term and discount rate:

	30 June, 2023			31 March, 2023
Weighted average remaining lease term (years)		1.7			1.6

Weighted average discount rate		6.1	%		6.1	%

During the three months ended June 30, 2023 and 2022, the Company incurred total operating lease expenses of $650,774 and $639,719, respectively.

The following is a schedule, by fiscal years, of maturities of lease liabilities as of June 30, 2023:

2024	$	544,239
2025		289,711
2026		154,723
2027		5,395
2028		-
Thereafter		-
Total lease payments		994,068
Less: imputed interest		(53,268	)
Less: prepayments		(207,602	)
Present value of lease liabilities	$	733,198