LEASE

9 Months Ended

Dec. 31, 2025

15. LEASE

As a lessee

Right-of-use asset and lease liabilities

The Company recognized right-of-use asset as well as lease liability according to the ASC 842, Leases (with the exception of short-term leases). Lease liabilities are measured at present value of the sum of remaining rental payments as of December 31, 2025, with a discounted rate of 4.9%. A single lease cost is recognized over the lease term on a generally straight-line basis. All cash payments of operating lease cost are classified within operating activities in the statement of cash flows.

The Company leases its head office. The lease period is 5 years with an option to extend the lease. The Company leases its plant and dormitory for 4.5 years with an option to extend the lease. The Company leased several floors in a commercial building for its subleasing and property management services business for 16 years with an option to extend the lease.

The following table summarizes the components of lease expense:

SCHEDULE OF LEASE EXPENSES

	2025		2024		2025		2024
	Three months ended December 31,				Nine months ended December 31,
	2025		2024		2025		2024
Operating lease cost		-		238,245		339,428		763,220
Short-term lease cost		31,698		31,366		94,461		100,237
Lease Cost	$	31,698	$	269,611	$	433,889	$	863,457

The following table summarizes supplemental information related to leases:

	2025		2024			2025		2024
	Three months ended December 31,					Nine months ended December 31,
	2025		2024			2025		2024
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flow from operating leases	$	31,698	$	269,611			433,889		863,457
Right-of-use assets obtained in exchange for new operating leases liabilities		-		-			-		1,233,672
Weighted average remaining lease term - Operating leases (years)		-		13.8			-		13.8
Weighted average discount rate - Operating leases		-		4.90	%				4.90	%

There are no operating lease liabilities for the following five years and the years after due to disposal of the subsidiary, HX, on July 1, 2025.

As a lessor

The Company subleased its leased commercial building by entering into operating leases with third party garment wholesalers and retailers. These leases are negotiated for terms ranging from one to five years. All leases include the term to enable upward revision of the rental charge on an annual basis according to prevailing market conditions.

Rental income from subleasing is disclosed in Note 13 segment data.

There will be no future rental income as HX, the subsidiary conducting the subleasing and property management services business was disposed of on July 1, 2025.