Company: GCL
Filing Date: 2025-04-03
Form Type: F-1
Source: 0001213900-25-028608
Chunk: 303

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-03
Form: F-1
Chunk 303
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2024 and 2023, $141,047 and $474,364 of inventories write-
down were recorded, respectively.

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 September 30,
2024 and March 31, 2024, the Company provided allowance for credit loss of $27,264 and $52,949, respectively.

<div align='center'>F-65

GCL GLOBAL LIMITED AND ITS SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</div>

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 September 30, 2024 and March 31, 2024, the Company provided allowance related
to prepayment of $20,113 and $209,412, 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             |     | 3 years                              |
| Office and warehouse renovation |     | Shorter of the lease term or 3 years |

The
cost and related accumulated depreciation of