LEASE

6 Months Ended

Sep. 30, 2024

Lease

LEASE

16. 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 September 30, 2024, with 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 sublease and property management services business for 16 years with an option to extend the lease.

The following table summarizes the components of lease expense:

	Three months ended September 30,				Six months ended September 30,
	2024		2023		2024		2023
Operating lease cost		265,894		31,363		524,976		74,801
Short-term lease cost		32,408		34,493		68,871		58,050
	$	298,302	$	65,856	$	593,847	$	132,851

The following table summarizes supplemental information related to leases:

	Three months ended September 30,						Six months ended September 30,
	2024			2023			2024			2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flow from operating leases	$	298,302		$	65,856			593,847			132,851
Right-of-use assets obtained in exchange for new operating leases liabilities		1,096,683			19,511,181			1,233,672			19,512,400
Weighted average remaining lease term - Operating leases (years)		13.9			14.9			13.9			14.9
Weighted average discount rate - Operating leases		4.90	%		4.90	%		4.90	%		4.90	%

The following table summarizes the maturity of operating lease liabilities:

Years ending September 30	Lease cost
2025	$	1,120,463
2026		1,023,446
2027		1,023,446
2028		2,029,793
2029 and there after		24,796,599
Total lease payments		29,993,747
Less: Interest		(9,699,440	)
Total	$	20,294,307

As a lessor

The Company subleased its leased commercial building by entering into operating leases to 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 14 segment data.

The future minimum rental receivable under non-cancellable operating leases contracted for the reporting period are as follows:

Years ending September 30	Lease income
2025	$	216,211
2026		286,740
2027		334,559
2028		89,745
2029 and there after		-
Total	$	927,255