Company: GCL
Filing Date: 2025-04-03
Form Type: F-1
Source: 0001213900-25-028608
Chunk: 347

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-03
Form: F-1
Chunk 347
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 management
believes that these financial institutions are of high credit quality, it also continually monitors their credit worthiness.

The Company
is also exposed to risk from accounts receivable and other receivables. These assets are subjected to credit evaluations. An allowance
has been made for estimated unrecoverable amounts which have been determined by reference to past default experience and the current economic
environment.

Note 17 — Leases

As of September 30,
2024 and March 31, 2024, the Company has engaged in multiple offices and warehouse leases which were classified as operating leases.
In addition, the Company engaged in a few automobiles leases under finance lease agreements.

The Company
occupies various offices under operating lease agreements with a term shorter than twelve months which it elected not to recognize lease
assets and lease liabilities under ASC 842. Instead, the Company recognized the lease payments in profit or loss on a straight-line basis
over the lease term and variable lease payments in the period in which the obligation for those payments is incurred.

<div align='center'>F-91

GCL GLOBAL LIMITED AND ITS SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</div>

The Company’s
lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The Company
recognized lease expense on a straight-line basis over the lease term for operating lease. Meanwhile, the Company recognized the finance
leases ROU assets and interest on an amortized cost basis.

The amortization
of finance ROU assets is recognized on straight-line basis as amortization expense, while the lease liability is increased to reflect
interest on the liability and decreased to reflect the lease payments made during the period.

The ROU assets
and lease liabilities are determined based on the present value of the future minimum rental payments of the lease using a weighted average
effective interest rate of 4.6% and 3.4% respectively for the six months ended September 30, 2024 and 2023, which is determined using
various incremental borrowing rate with similar term in Singapore, Hong Kong, Malaysia and Brazil.

As of September 30,
2024 and March 31, 2024, the weighted-average remaining operating lease term of its existing leases is approximately 1.3 and 1.6
years, respectively. As of September 30, 2024 and March 31, 2024, the weighted-average remaining financing lease term of