Company: JL
Filing Date: 2025-07-28
Form Type: 20-F
Source: 0001213900-25-068049
Chunk: 194

Company: J-Long Group Ltd
Filing Date: 2025-07-28
Form: 20-F
Item: Item 18
Chunk 194
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There were no transfers
of marketable debt securities between Level 1, Level 2, and Level 3 during the years ended March 31, 2024 and 2025.

Related Parties

The Company adopted ASC 850,
Related Party Disclosures, for the identification of related parties and disclosure of related party transactions.

F-12

J-LONG GROUP LIMITED

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(cont.)

Cash and Cash Equivalents

Cash and cash equivalents
consist of petty cash on hand and cash held in banks, which are highly liquid and have original maturities of three months or less and
are unrestricted as to withdrawal or use. The Company maintains bank accounts in Hong Kong and Vietnam. Cash balances in bank accounts
in Hong Kong are protected under Deposit Protection Scheme in accordance with the Deposit Protection Scheme Ordinance. The maximum protection
is up to HK$500,000per depositor per Scheme member, including both principal and interest.

Accounts Receivable Net

Accounts receivable represent
trade receivable and are recognized initially at fair value and subsequently adjusted for any allowance for expected credit loss. The
Company grant credit to customers, without collateral, under normal payment terms (typically0to30 daysafter invoicing). Generally,
invoicing occurs together with the products were delivered. The carrying value of such receivables, net of expected credit loss, represents
its estimated realizable value. The Company expect to collect the outstanding balance of current accounts receivables, net within one
year. The Company use loss-rate methods to estimate allowance for credit loss.

For those past due balances
over 1 year and other higher risk receivables identified by management are reviewed individually for collectability. In establishing
an allowance for credit losses, the Company use reasonable and supportable information, which is based on historical collection experience,
the financial condition of its customers and assumptions for the future movement of different economic drivers and how these drivers
will affect each other. Loss-rate approach is based on the historical loss rates and expectations of future conditions. The Company writes
off potentially uncollectible accounts receivable against the allowance for credit losses if it is determined that the amounts will not
be collected or if a settlement with respect to a disputed receivable is reached for an amount that is less than the carrying value.

Notes receivable

Notes receivable represents
bank or commercial drafts that have been arranged with third-party financial institutions by certain customers to settle their purchases