Company: GCL
Filing Date: 2025-08-27
Form Type: DRS
Source: 0001213900-25-080905
Chunk: 171

Company: GCL Global Holdings Ltd
Filing Date: 2025-08-27
Form: DRS
Chunk 171
---
 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 to customers on credit terms. As of March 31, 2025,
our trade receivables totalled S$22.69 million, with the majority due from established customers with whom we have long-standing relationships.

We manage credit risk through credit evaluations,
monitoring of customer payment history, and maintaining appropriate provisions for expected credit losses in accordance with ASC 326.
We do not have significant concentrations of credit risk with any single customer or group of related customers.

Inventory Price Risk

Our inventory primarily consists of IT accessories,
multimedia products, and data storage devices. These products are subject to price fluctuations driven by changes in technology, consumer
demand, and competitive pressures.

We mitigate inventory price risk by closely monitoring
market trends, managing procurement cycles, and adjusting pricing strategies as needed. Inventory is carried at