Company: GCL
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001213900-25-024502
Chunk: 239

Company: GCL Global Holdings Ltd
Filing Date: 2025-03-17
Form: DRS
Chunk 239
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 for future demand and market conditions. When inventories
are written down to net realizable value, it is not marked up subsequently based on changes in underlying facts and circumstances. For
the years ended March 31, 2024 and 2023, $468,941and $288,604 of inventories write-down were recorded, respectively.

<div align='center'>F-25

GCL GLOBAL LIMITED AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</div>

Other receivables primarily include receivables
from the marketing expense related in promoting console game that the Company paid on behalf of vendors, and refundable deposit such as
rental deposit. Starting from April 1, 2021, the Company adopted ASC Topic 326 on its other receivables using the modified retrospective
approach. The new credit loss guidance replaces the old model for measuring the allowance for credit losses with a model that is based
on the expected losses rather than incurred losses. Under the new accounting guidance, the Company measures credit losses on its other
receivables using the current expected credit loss model under ASC 326. As of March 31, 2024 and 2023, the Company provided allowance
for credit loss of $52,949 and $3,747, respectively.

Prepayments are mainly cash deposited or advanced
to suppliers for future inventory purchases. These amounts are refundable if the purchases are not completed and bear no interest. For
any prepayments determined by management that such advances will not be in receipts of inventories, services, or refundable, the Company
will recognize an allowance account to reserve such balances. Management regularly reviews the aging of such balances and changes in payment
and realization trends and records allowances when management believes collection or realization of amounts due are at risk. Delinquent
account balances are written-off against allowance after management has determined that the likelihood of completion or collection is
not probable. As of March 31, 2024 and 2023, the Company provided allowance related to prepayment of $209,412 and $51,755, respectively.

Property and equipment are stated at cost less accumulated
depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets with no residual value.
The estimated useful lives are as follows:

|                                 |     | Expected useful lives                |
| Office equipment                |     | 3 years                              |
| Furniture & fitting             |