Company: JL
Filing Date: 2025-04-03
Form Type: 20-F/A
Source: 0001213900-25-028675
Chunk: 189

Company: J-Long Group Ltd
Filing Date: 2025-04-03
Form: 20-F/A
Chunk 189
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 generated by the asset. Examples of such triggering events include a significant disposal of a
portion of such assets, and adverse change in the market involving the business employing the related assets. If such assets are
determined not to be recoverable, the Company performs an analysis of the fair value of the asset group and will recognize an
impairment loss when the fair value is less than the carrying amounts of such assets. The fair value, based on reasonable and
supportable assumptions and projections, require subjective judgments. Depending on the assumptions and estimates used, the
appraised fair value projected in the evaluation of long-lived assets can vary within a range of outcomes. The Company considers the
likelihood of possible outcomes in determining the best estimate for the fair value of the assets. The Company did not record any
impairment charges for the years ended March 31, 2023 and 2024. There can be no assurance that future events will not have
impact on company revenue or financial position which could result in impairment in the future.

Contract liabilities

Contract liabilities were recognized
when the Company receives prepayment from customers resulting from purchase order. Contract liabilities will be recognized as revenue
when the products are shipped or delivered according to contract term. Contract liabilities were USD260,132 and USD360,475 as of March 31,
2023 and 2024, respectively. For the years ended March 31, 2023 and 2024, the beginning balance of contract liabilities of USD208,021
and USD226,761 were recognized as revenue.

Commitments and contingencies

In the normal course of business,
the Company is subject to contingencies, such as legal proceedings and claims arising out of its business, which cover a wide range of
matters. Liabilities for contingencies are recorded when it is probable that a liability has been incurred and the amount of the assessment
can be reasonably estimated.

If the assessment of a contingency
indicates that it is probable that a material loss is incurred and the amount of the liability can be estimated, then the estimated liability
is accrued in the Company’s financial statements. If the assessment indicates that a potentially material loss contingency is not
probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with
an estimate of the range of possible loss, if determinable and material, would be disclosed.

Loss contingencies considered
remote are generally not disclosed unless they involve guarantees, in which case the nature