Company: GCL
Filing Date: 2025-08-27
Form Type: DRS
Source: 0001213900-25-080905
Chunk: 311

Company: GCL Global Holdings Ltd
Filing Date: 2025-08-27
Form: DRS
Chunk 311
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ability issues. In determining the amount of the allowance for credit losses, the Company considers historical collectability based on past due status, the age of the accounts receivable balances, credit quality of the Company’s customers based on ongoing credit evaluations, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect the Company’s ability to collect from customers. As of March 31, 2025 and 2024, the Company provided allowance for credit losses of $200,029 and $182,690, respectively.

<div align='center'>F-68

BAN LEONG TECHNOLOGIES LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in Singapore dollars (“$”)</div>

| 2. | Summary of significant accounting policies (continued) |

Inventories

Inventories are stated at the lower
of cost or net realizable value. Weighted average method is the inventory valuation method applied to these inventories. Inventories mainly
include physical computer peripherals, accessories and other multimedia products which are purchased from the Company’s suppliers
as merchandized goods. Inventories are reviewed for potential write-down for estimated obsolete or unmarketable inventories to their estimated
net realizable value based upon forecasts for future demand and market conditions. For the years ended March 31, 2025 and 2024, $138,935
and $47,134 of inventories allowances were recorded, respectively.

Investment
in convertible note

The Company holds an investment in convertible
notes with a fair value of $3,502,200 as of March 31, 2025 and 2024, respectively. The investment is included in current Other receivables
and other assets, net and non-current Other receivables and other assets, net in the Consolidated Balance Sheets as of March 31, 2025
and 2024, respectively. The investment is recorded at fair value under the fair value option in accordance with ASC 825-10, Fair Value Option, and ASC 325-20, Investments-Other.

The convertible notes were issued by
an unrelated privately held company and earn fixed interest at 6% per annum. The convertible notes may be converted in part or in whole
at the Company’s discretion within 36 months from the issuance date. The notes mature on December 29, 2025. The Company is not obliged
to convert the convertible notes and may elect to redeem them upon