XML 29 R9.htm IDEA: XBRL DOCUMENT v3.25.2
ACCOUNTS RECEIVABLE, NET
 12 Months Ended
Mar. 31, 2025
Receivables [Abstract]  
ACCOUNTS RECEIVABLE, NET

3. ACCOUNTS RECEIVABLE, NET

 

Accounts receivable, net, consists of the following:

 

   2023   2024 
   As of March 31, 
   2024   2025 
   USD   USD 
         
Accounts receivable   5,079,381    7,666,472 
Less: allowance for expected credit loss   (168,179)   (873,327)
Accounts receivable, net   4,911,202    6,793,145 

 

The movements in the credit loss provision for doubtful accounts for the years ended March 31, 2024 and 2025 were as follows:

 

   2023   2024 
   As of March 31, 
   2024   2025 
   USD   USD 
         
Balance at beginning of the year   286,152    168,179 
Additions/ (reversal)   (11,563)   705,148
Less: write-off   (106,410)   -
Balance at end of the year   168,179    873,327 

 

Accounts receivable, net – related parties, consists of the following:

 

   2023   2024 
   As of March 31, 
   2024   2025 
   USD   USD 
         
Accounts receivable – related parties   416,249    445,573 
Less: allowance for expected credit loss   (23,563)   -
Accounts receivable, net – related parties   392,686    445,573 

 

 

The movements in the credit loss provision for doubtful accounts for the years ended March 31, 2024 and 2025 were as follows:

 

   2023   2024 
   As of March 31, 
   2024   2025 
   USD   USD 
         
Balance at beginning of the year   46,167    23,563 
Reversal   (22,604)   (23,563)
Balance at end of the year   23,563    - 

 

The expected credit loss on accounts receivables is calculated in probability of default and loss given default method by reference to past due status of the individual debtor and an analysis of the debtor’s current financial position, adjusted for factors that are specific to the debtor, future economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecast direction of conditions as of March 31, 2024 and 2025.

 

The Company classifies its accounts receivable portfolio based on the industry of customers as those receivables sharing similar risk characteristics. The credit assessment is subject to continual review by Finance & Accounting Department at least annually. This assessment includes procedures to estimate the allowance and test the adequacy of and appropriateness of the resulting balance. The level of the allowance is based upon management’s evaluation of payment history, historical default and loss experience, current and projected economic conditions in which the debtors operate.

 

The Company performed internal credit rating assessment on customers, based on quantitative and qualitative factors (e.g. listed companies or nor, type of collateral, relationship between creditor and debtor, historical information of the debtor in the market, historical payment behaviors, etc). Credit rating system is constructed with reference to Moody’s. Credit rating ranges from Aaa, Aa, A… to Ca-C, D. A credit rating is assigned to debtor on the initial date by using the above assessment methodology and subject to periodical reviews.

 

Internal credit ratings form a significant input to the model derived CECL PDs. The Company’s customers are mainly engaged in Transportation industry and Construction industry. For majority of customers. internal credit ratings are determined based on quantitative and qualitative factors (e.g.. type of collateral, relationship between creditor and debtor historically collection performance, historical information of the debtor in the market etc.) and conducted with reference to Moody’s rating methodology considering financial positions, business diversity, financial leverage, and financial policies of customers.

 

Irrespective of the outcome of the above assessment, the Company presumes that the credit risk has increased significantly for those outstanding balance aged over 1 year, unless the Company has reasonable and supportable information that demonstrates otherwise.

 

The Company writes off an account receivable when there is information indicating that the debtor is in server financial difficulty and there is no realistic prospect of recovery, e.g. when the debtor has been placed under liquidation or has entered into bankruptcy proceedings, or when the account receivables are no repayment for over two years, whichever occurs earlier.