Company: GCL
Filing Date: 2025-09-04
Form Type: F-1
Source: 0001213900-25-084489
Chunk: 193

Company: GCL Global Holdings Ltd
Filing Date: 2025-09-04
Form: F-1
Chunk 193
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ASC”)
280, “Segment Reporting”, the Company considers itself to be operating within operating and reportable segments
as set forth in Note 25.

Cash and cash equivalents, and restricted cash

Cash is carried at cost
and represents cash on hand. Cash equivalents consist of time deposits placed with banks or other financial institutions and all highly
liquid investments with an original maturity of three months or less. In addition, cash equivalents also consist of funds received from
customers, which were held at the third-party platform’s account, and which are unrestricted and immediately available for withdrawal
and use.

Restricted cash consists
of fixed deposits being held as collateral to secure the banking facilities. As of March 31, 2025 and 2024, the Company had deposit
amounted to $ and $, respectively, held in the banks as collateral to secure the banking facilities which the Company
signed with HSBC Bank and Citibank (referred to Note 14).

F-11 GCL GLOBAL HOLDINGS LTD AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Accounts receivable, net

Accounts receivable are
recognized and carried at the original invoiced amount less an allowance for credit losses and do not bear interest. Customers who owed
accounts receivables, are granted credit terms based on their credit metrics. The Company measured the credit loss against its accounts
receivable and records the allowance for credit losses as an offset to accounts receivable, and the estimated credit losses charged to
the allowance is classified as “general and administrative” in the consolidated statements of operation and comprehensive
income (loss). The Company assesses collectability by reviewing accounts receivable on a collective basis where similar characteristics
exist, primarily based on similar business line, service or product offerings and on an individual basis when the Company identifies
specific customers with known disputes or collectability issues. In determining the amount of the allowance for credit losses, the Company
considers historical collectability based on past due status, the age of the accounts receivable balances, credit quality of the Company’s
customers based on ongoing credit evaluations, current economic conditions, reasonable and supportable forecast of future economic conditions
and other factors that may affect the Company’s ability to collect from customers. As of March 31, 2025 and 2024, the Company
provided allowance for credit loss of $ and $, respectively.

Inventories, net

Inventories are stated at the lower of cost or net realizable value.