Company: GVH
Filing Date: 2025-02-12
Form Type: 20-F
Source: 0001493152-25-006117
Chunk: 233

Company: Globavend Holdings Ltd
Filing Date: 2025-02-12
Form: 20-F
Item: Item 19
Chunk 233
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-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. Balance of allowance for expected credit loss for accounts receivables
was $38,534and $42,932as of September 30, 2023 and 2024, respectively.

Related Party

In general, related parties exist when
there is a relationship that offers the potential for transactions at less than arm’s-length, favorable treatment, or the ability
to influence the outcome of events different from that which might result in the absence of that relationship. A related party may be
any of the following: a) an affiliate, which is a party that directly or indirectly controls, is controlled by, or is under common control
with another party; b) a principle owner, owner of record or known beneficial owner of more than 10% of the voting interest of an entity;
c) management, which are persons having responsibility for achieving objectives of the entity and requisite authority to make decision;
d) immediate family of management or principal owners; e) a parent Company and its subsidiaries; and f) other parties that have ability
to significant influence the management or operating policies of the entity. The Company discloses all significant related party transactions.

Contract Assets

Contract assets include billed and unbilled
amounts resulting from in-transit shipments, as the Company has an unconditional right to payment only when services have been completed
(i. e., shipments have been delivered). Amounts do not exceed their net realizable value. Contract assets are generally classified as
current and the full balance is converted within 90 days based on the short-term nature of the transactions.

Contract assets were $543,838and $897,409as of September 30, 2023 and 2024, respectively. Balance of allowance for expected credit loss for