Company: JL
Filing Date: 2025-05-20
Form Type: 20-F/A
Source: 0001213900-25-045507
Chunk: 189

Company: J-Long Group Ltd
Filing Date: 2025-05-20
Form: 20-F/A
Chunk 189
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 not experienced any labor shortage to date, we have observed an overall tightening and increasingly competitive labor market. We have experienced, and expect to continue to experience, increases in labor costs due to increases in salary, social benefits and employee headcount. We compete with other companies in our industry and other labor-intensive industries for labor, and we may not be able to offer competitive remuneration and benefits compared to them. If we are unable to manage and control our labor costs, our business, financial condition and results of operations may be materially and adversely affected. Fair Value Measurement Accounting guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact, and it considers assumptions that market participants would use when pricing the asset or liability. F - 11 J-LONG GROUP LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED MARCH 31, 2024, 2023 AND 2022 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(cont.)

Accounting guidance establishes
a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when
measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of
input that is significant to the fair value measurement. Accounting guidance establishes three levels of inputs that may be used to measure
fair value:

| ● | Level 1: | Quoted prices in active markets for identical assets or liabilities. |

| ● | Level 2: | Observable, market-based inputs, other than quoted prices, in active markets for identical asset or. |

| ● | Level 3: | Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. |

The Company’s financial
instrument include cash and cash equivalents, restricted cash, accounts receivable, investment in marketable debt securities, other current
assets, notes receivable, accounts payable, accruals and other current liabilities, dividends payable, bank loans, lease liabilities
and due from and to related parties. The carrying amounts of these financial instruments approximate their fair values due to the short-term
nature of these instruments. For lease liabilities, fair value approximates