Company: JL
Filing Date: 2025-07-28
Form Type: 20-F
Source: 0001213900-25-068049
Chunk: 195

Company: J-Long Group Ltd
Filing Date: 2025-07-28
Form: 20-F
Item: Item 18
Chunk 195
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from the Company. These notes with two to three months maturity dates were issued by Shanghai Commercial Bank Limited to repay customer’s
balance to the Company which bears no interest and no discounted or transferred before maturity during the year ended March 31, 2024
and 2025. All notes receivable has been received subsequently.

Inventories

Inventories are valued using
the lower of cost or net realizable value. Cost is principally determined using the weighted-average method. The Company records adjustments
to inventory for excess quantities, obsolescence, or impairment, when appropriate, to reflect inventory at net realizable value. These
adjustments are based upon a combination of factors including current sales volume, market conditions, lower of cost or market analysis
and expected realizable value of the inventory.

Investment in marketable debt
securities

We have designated the Company’s
investments in certain marketable debt securities as available for sale. Available for sale securities are reported at fair
value with unrealized gains or losses recorded as a component of other comprehensive income. Interest income is recorded on an accrual
basis. Discounts and premiums to the face amount of debt securities are accreted and amortized using the effective interest rate method
over the lives of the respective debt securities.

In any case where fair value
might fall below amortized cost, we would consider whether that security is other than temporarily impaired using all available information
about the collectability of the security. We would not consider that an other than temporary impairment for a debt security has occurred
if (1) we do not intend to sell the debt security, (2) it is not more likely than not that we will be required to sell the
debt security before recovery of its amortized cost basis and (3) the present value of estimated cash flows will fully cover the
amortized cost of the security. We would consider that an other than temporary impairment has occurred if any of the above mentioned
three conditions are not met.

F-13

J-LONG GROUP LIMITED

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(cont.)

For a debt security for
which an other than temporary impairment is considered to have occurred, we would recognize the entire difference between the amortized
cost and the fair value in earnings if we intend to sell the debt security or it is more likely than not that we will be required to
sell the debt security before recovery of its amortized cost basis. If we do not intend to sell the debt