PROPERTY, PLANT AND EQUIPMENT, NET

3 Months Ended

Jun. 30, 2019

NOTE 7 – PROPERTY, PLANT AND EQUIPMENT, NET

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


	As of		As of
	June 30, 2019		March 31, 2019
Land	$	61,078	$	61,078
Property and buildings		432,562		432,562
Equipment and machinery (1)		6,698,919		5,560,265
Office and electric equipment		653,122		550,738
Automobiles		453,399		367,332
Leasehold improvements		2,365,682		1,652,038
Subtotal		10,664,762		8,624,013
Construction in progress (2)		194,752		200,042
Less: Accumulated Depreciation and Amortization (3)		(6,806,448)		(6,467,793)
Property and Equipment, Net	$	4,053,066	$	2,356,262

(1)

On June 18, 2019, the Company closed on a transaction whereby it acquired all of the outstanding shares of Paramount, a contract manufacturer based in Amman, Jordan. As a result, Paramount became of subsidiary of Jerash Garments, and the Company assumed ownership of all of the machinery and equipment owned by Paramount. Paramount had no other significant assets or liabilities and no operating activities or employees at the time of acquisition, so this transaction was accounted for as an asset acquisition. $980,000 was paid in cash to acquire all of the machinery and equipment from Paramount and the machinery and equipment were transferred to the Company.

(2)

The construction in progress account represents costs incurred for constructing a dormitory, which was previously planned to be a sewing workshop. This dormitory is approximately 4,800 square feet, located in the Tafilah Governorate of Jordan, and is expected to be completed in September 2019.

(3)

Depreciation and amortization expense was $338,652 and $319,310 for the three months ended June 30, 2019 and 2018, respectively.