Property, Plant, and Equipment, Net

12 Months Ended

Mar. 31, 2023

Property, Plant, and Equipment, Net [Abstract]

PROPERTY, PLANT, AND EQUIPMENT, NET

NOTE 8 – PROPERTY, PLANT, AND EQUIPMENT, NET

Property, plant, and equipment, net consisted of the following: 

	As of			As of
	March 31, 2023			March 31, 2022
Land(3)	$	2,200,334		$	1,831,192
Property and buildings(3)		9,308,426			1,911,818
Equipment and machinery		11,853,445			11,091,566
Office and electric equipment		992,735			915,686
Automobiles		871,756			802,399
Leasehold improvements		4,088,980			4,002,833
Subtotal		29,315,676			20,555,494
Construction in progress (1)(2)		7,182,367			2,098,323
Less: Accumulated depreciation and amortization		(14,142,469	)		(11,720,670	)
Property, plant, and equipment, net	$	22,355,574		$	10,933,147

(1) In January 2022, the Company commenced a construction project of an expansion of the Company’s own premises in Al Tajamouat Industrial City, Jordan. Through March 31, 2023, the Company had paid approximately JOD 803,000 (approximately $1,133,000) and the entire balance was recorded as construction in progress. The estimated construction cost is revised to approximately JOD 870,000 (approximately $1.2 million). The project is expected to be completed and ready to use in fiscal 2024.

(2) In April 2022, the Company commenced a construction project to build a dormitory for employees. The construction is built on a land of 4,516 square meters (approximately 48,608 square feet) in Al Tajamouat Industrial City, Jordan, which was acquired by the Company in 2020. The dormitory is expected to cost $8.8 million. Through March 31, 2023, the Company had spent approximately JOD 4.3 million (approximately $6.1 million) for the construction. The dormitory is expected to be completed and ready for use in fiscal 2024.

(3) In August 2022, the Company completed the acquisitions of Ever Winland and Kawkab Venus. Ever Winland holds office premises of HK$39.6 million (approximately $5.1 million), which are classified as property and buildings. Kawkab Venus holds land with factory premises, which are classified as land and property and buildings of approximately $370,000 and approximately $2.3 million, respectively. Ever Winland and Kawkab Venus only contain fixed assets (buildings and land) and neither of these two entities have any other assets or liabilities, operations, or employees as of the acquisition date, so the acquisitions of Ever Winland and Kawkab Venus were accounted as asset acquisitions.

For the fiscal year ended March 31, 2023 and 2022, depreciation expenses were $2,430,692 and $2,149,419, respectively.