Company: GCL
Filing Date: 2025-09-09
Form Type: 424B3
Source: 0001213900-25-086274
Chunk: 168

Company: GCL Global Holdings Ltd
Filing Date: 2025-09-09
Form: 424B3
Chunk 168
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 in our markets.

Quantitative and Qualitative Disclosures About Market Risk

Our business and financial results are subject
to various market risks, including foreign currency risk, interest rate risk, credit risk, inventory price risk, and liquidity risk.
This discussion should be read together with “GCL Management’s Discussion and Analysis of Financial Condition and Results
of Operations” and our consolidated financial statements and related notes included elsewhere in this prospectus.

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Foreign Currency Risk

We operate in multiple countries and conduct
transactions in various currencies, primarily the Singapore dollar (SGD), Malaysian ringgit (MYR), Thai baht (THB), and U.S. dollar (USD).
Our reporting currency is the SGD.

Foreign currency risk arises from the translation
of foreign operations’ financial statements into SGD and from transactions denominated in currencies other than our functional
currency. Movements in exchange rates between the SGD and other currencies could adversely affect our results of operations and financial
position.

We manage foreign currency risk primarily through
natural hedging by matching revenue and expenses in the same currency and, where appropriate, by using forward foreign exchange contracts.

Sensitivity Analysis

Based on our net foreign currency exposure at
March 31, 2025, a hypothetical 3% appreciation of the SGD against the USD, MYR, and THB would have resulted in an estimated increase/(decrease)
in profit before tax of approximately S$158,797, (S$92,368) and (S$128,912) respectively , assuming all other variables remain constant.
A corresponding depreciation would have an equal but opposite effect.

Interest Rate Risk

Our exposure to interest rate risk is primarily
related to short-term trade financing facilities and bank borrowings, which generally bear floating interest rates. As of March 31, 2025,
total borrowings amounted to S$2.24 million, all of which mature within one year.

We monitor interest rate movements regularly
and may consider hedging instruments, such as interest rate swaps, if we expect significant exposure.

Sensitivity Analysis: A hypothetical 15
basis point increase in interest rates would have increased our annual interest expense by approximately S$2,792, based on the borrowings
outstanding as of March 31, 2025. A corresponding decrease in interest rates would have the opposite effect.

Credit Risk

We are exposed to credit risk from trade receivables,
deposits, and other financial assets. Our credit risk arises principally from sales