Company: JL
Filing Date: 2025-05-20
Form Type: 20-F/A
Source: 0001213900-25-045507
Chunk: 195

Company: J-Long Group Ltd
Filing Date: 2025-05-20
Form: 20-F/A
Chunk 195
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 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 of the guarantee would be disclosed.

Revenue recognition

The Company complies with ASC
Topic 606, “Revenue from Contracts with Customers” (“ASC Topic 606”) for revenue recognition. Based on the requirements
of ASC Topic 606, revenue is recognized when control of the promised goods or services is transferred to the customers in an amount
that reflects the consideration the Company expects to be entitled to receive in exchange for those goods or services. The Company offer
a wide range of apparel solution services to cater to the customers’ needs for reflective and non-reflective garment trims, ranging
from market trend analysis, product design and development and production to quality control. Revenue is recognized when the following
5-step revenue recognition criteria are met:

| 1) | Identify the contract with a customer |

| 2) |