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RELATED PARTY TRANSACTIONS
 12 Months Ended
Mar. 31, 2025
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

12. RELATED PARTY TRANSACTIONS

 

Save as disclosed elsewhere in these consolidated financial statements, the Company had transactions or balance with the following related parties:

 

The Company’s relationship with related parties who had transactions with the Company are summarized as follows:

 

Related Party   Relationship to the Company
Mr. Man Siu Ming   General Manager
Chi Yip Eng. & (Trans.) Company Limited (“Chi Yip”)   A company owned as to 50% each by Ms. Wong Lai Ching and Mr. Man Chi Kwan, the parents of Mr. Man Siu Ming

 

Transactions with related parties

 

In 2023 and 2025, we offer soil and rock transportation services and management services to Chi Yip for utilization of our tipper trucks and drivers and our efficiency management on tipper trucks drivers while charging service fee based on terms and conditions mutually agreed between the relevant parties. Those related party transactions were conducted in the ordinary course of business of the Company. In 2024, we did not provide soil and rock transportation and site management services to Chi Yip and recorded no revenue from Chi Yip.

 

     2023     2024   2025 
   Year ended March 31, 
   2023     2024   2025 
   USD     USD   USD 
                 
Soil and rock transportation income charged to Chi Yip included in revenues    2,830,475      -    643,748 
Site management income charge to Chi Yip included in other income    39,184      -    33,030 
                   
Service fee charged by Chi Yip included in cost of sales    1,162,640      1,023,137    887,945 
                   
Finance lease:                  
Finance lease expenses fees paid for Chi Yip    55,988      29,307    56,135 
Initial payment of finance lease – related parties    -      (156,248)   - 
Principal payment of finance lease liabilities - related parties    (656,399 )    (322,807)   (301,979)
Operating expenses paid to Chi Yip    (769 )    -    - 
                   
Proceeds from Chi Yip    -      156,248    - 
                   
Proceeds from Director - Man Siu Ming   

258,337

      275,619    666,214 
Repayments to Director - Man Siu Ming    (147,948 )    (623,776)   (333,042)
Net (repayments) proceeds from Man Siu Ming    110,389      (348,157)   333,172

 

The transactions are based on the agreements entered into between the parties involved.

 

 

Balances with related parties

 

The amount due to a director is non-trade in nature and unsecured. The finance lease liabilities with related parties are non-trade in nature, unsecured and repayable on an agreed schedule. All finance leases with related parties were denominated in Hong Kong dollars and the interest rates of the Company’s obligations under finance leases are fixed at the contract date in the range of 0.96% to 7.42% per annum. And the remaining balances with a director and the related parties are unsecured, non-interest bearing and repayable on normal credit terms (typically 30 days, but may be longer due to our transaction history).

 

 

   As of March 31, 
   2024   2025 
   USD   USD 
Accounts receivable          
Chi Yip Eng. & (Trans.) Company Limited   392,686    445,573 
           
Accounts payable          
Chi Yip Eng. & (Trans.) Company Limited   279,498    - 
           
Finance lease liabilities          
Chi Yip Eng. & (Trans.) Company Limited   1,117,351    815,372 
           
Amount due to a related company          
Chi Yip Eng. & (Trans.) Company Limited   156,248    156,248 
           
Amount due to a director          
Mr. Man Siu Ming   196,906    530,078 

 

Save as disclosed above, the Company has ongoing relations with related party as noted below:

 

Chi Yip: The Company has 29 finance leases with Chi Yip. Finance leases entered with Chi Yip require monthly payments in the range of US$1,482 to US$4,308 and the last payment due in January 2029. The aggregate amount paid to Chi Yip amounted to US$301,979 and US$479,055 for the years ended March 31, 2025 and 2024, respectively.

 

Key terms of the Company’s leases with Chi Yip are as follows:

 

   As of March 31, 
   2024   2025 
   USD   USD 
Right-of-use assets obtained in exchange for new finance lease liabilities   798,551    - 
Weighted-average remaining lease term-finance   3.42 years    2.89 years 
Weighted average discount rate-finance   6.58%   6.85%

 

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

 

   USD 
Year ending March 31,     
2026   378,647 
2027   207,464 
2028   190,597 
2029   124,924 
2030 and thereafter   - 
Total undiscounted lease payments   901,632 
Less: imputed interest   (86,260)
Lease liabilities recognized in the Consolidated Balance Sheet   815,372