Company: GCL
Filing Date: 2025-09-09
Form Type: 424B3
Source: 0001213900-25-086274
Chunk: 319

Company: GCL Global Holdings Ltd
Filing Date: 2025-09-09
Form: 424B3
Chunk 319
---
 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 no customer with a receivable balance exceeding 10% of
the total accounts receivable balance. The risk with respect to accounts receivable is mitigated by credit evaluations the Company performs
on its customers and its ongoing monitoring process of outstanding balances.

Interest rate risk

The Company is exposed to interest
rate risk on its interest-bearing liabilities. As of March 31, 2025 and 2024, a hypothetical 0.15% increase or decrease in annual interest
rates of SGD-denominated borrowings and MYR-denominated borrowings, in aggregate, would increase or decrease total interest expense by
approximately $2,792 (2024: $3,129).

Foreign currency risk

The Company has transactional currency
exposures arising from sales or purchases that are denominated in a currency other than the respective functional currencies of Company
entities, primarily Singapore Dollar (“SGD”), Malaysian Ringgit (“MYR”) and Thai Baht (“THB”). The
foreign currencies in which these transactions are denominated are mainly United States Dollar (“USD”). Approximately 13%
(2024: 14%) of the Company’s sales are denominated in foreign currencies whilst almost 20% (202