Company: GCL
Filing Date: 2025-08-27
Form Type: DRS
Source: 0001213900-25-080905
Chunk: 319

Company: GCL Global Holdings Ltd
Filing Date: 2025-08-27
Form: DRS
Chunk 319
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, and disclosure of commitments and contingencies. The Company records accruals for certain of its outstanding
legal proceedings or claims when it is probable that a liability will be incurred and the amount of loss can be reasonably estimated.
The Company evaluates, on a quarterly basis, developments in legal proceedings or claims that could affect the amount of any accrual,
as well as any developments that would make a loss contingency both probable and reasonably estimable. The Company discloses the amount
of the accrual if it is material.

<div align='center'>F-74

BAN LEONG TECHNOLOGIES LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in Singapore dollars (“$”)</div>

| 2. | Summary of significant accounting policies (continued) |

Contingencies (continued)

When a loss contingency is not both
probable and estimable, the Company does not record an accrued liability but discloses the nature and the amount of the claim, if material.
However, if the loss (or an additional loss in excess of the accrual) is at least reasonably possible, then the Company discloses an estimate
of the loss or range of loss, unless it is immaterial or an estimate cannot be made. The assessment of whether a loss is probable or reasonably
possible, and whether the loss or a range of loss is estimable, often involves complex judgments about future events. Management is often
unable to estimate the loss or a range of loss, particularly where (i) the damages sought are indeterminate, (ii) the proceedings are
in the early stages, or (iii) there is a lack of clear or consistent interpretation of laws specific to the industry-specific complaints
among different jurisdictions. In such cases, there is considerable uncertainty regarding the timing or ultimate resolution of such matters,
including eventual loss, fine, penalty or business impact, if any.

Concentration of credit risk

Assets that potentially subject the
Company to significant concentration of credit risk primarily consist of cash and cash equivalents and accounts receivable. The Company
expects that there is no significant credit risk associated with cash and cash equivalents, which were held by reputable financial institutions
in the jurisdictions where the Company and its subsidiaries are located. The Company believes that it is not exposed to unusual risks
as these financial institutions have high credit quality. Accounts receivables are typically unsecured and are derived from revenues earned
from reputable customers. As of March 31, 2025 and 2024, the Company had