Jerash Holdings (US), Inc. Leases Disclosure

NOTE 7 – LEASES

 

The Company had 42 operating leases for manufacturing facilities and offices on March 31, 2025. Some leases include one or more options to renew, which is typically at the Company’s sole discretion. The Company regularly evaluates the renewal options, and, when it is reasonably certain of exercise, it will include the renewal period in its lease term. New lease modifications result in measurement of the right of use (“ROU”) assets and lease liability. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. ROU assets and related lease obligations are recognized at the commencement date based on the present value of remaining lease payments over the lease term.

 

All of the Company’s leases are classified as operating leases and primarily include office space and manufacturing facilities.

Supplemental balance sheet information related to operating leases was as follows:

 

		March 31, 2025
Operating lease right of use assets		$	850,172
Operating lease liabilities – current		$	339,699
Operating lease liabilities – non-current			287,527
Total operating lease liabilities		$	627,226

 

The weighted average remaining lease terms and discount rates for all of operating leases were as follows as of March 31, 2025:

 

Remaining lease term and discount rate:
Weighted average remaining lease term (years)			1.6
Weighted average discount rate			6.25	%

 

During the fiscal years ended March 31, 2025 and 2024, the Company incurred total operating lease expenses of $2,385,398 and $2,561,861, respectively.

 

The following is a schedule, by fiscal years, of maturities of lease liabilities as of March 31, 2025:

 

2026		$	573,970
2027			313,167
2028			9,282
2029			-
2030			-
Thereafter			-
Total lease payments			896,419
Less: imputed interest			(46,247	)
Less: prepayments			(222,946	)
Present value of lease liabilities		$	627,226