Company: GCL
Filing Date: 2025-08-27
Form Type: DRS
Source: 0001213900-25-080905
Chunk: 312

Company: GCL Global Holdings Ltd
Filing Date: 2025-08-27
Form: DRS
Chunk 312
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 maturity. As of March 31, 2025, no such conversion has taken place.
For the years ended March 31, 2025 and 2024, the Company recognised interest income of $82,800 and $82,220, respectively, based on the
interest rate of the convertible notes.

By electing the fair value option, the
embedded conversion feature is not separately bifurcated or accounted for as a derivative. Instead, the fair value of the instrument as
a whole captures the economic effect the embedded features.

Changes in fair value are recognized
in earnings in the period in which they occur. Changes in fair value were not material for the year ended March 31, 2025. For the year
ended March 31, 2024, the Company recognized net unrealized gains of $2,155,200 related to the convertible notes, which is included in
Other income, net in the Consolidated Statements of Comprehensive Income.

The Company believes this accounting
treatment best reflects the economic substance of the investment and aligns with the way the instrument is managed and evaluated internally.

The aggregate principal amount of the
convertible notes was $1,341,000 and $1,347,000 as of March 31, 2025 and 2024, respectively. The excess fair value over principal reflects
the estimated value of the embedded equity conversion feature.

<div align='center'>F-69

BAN LEONG TECHNOLOGIES LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

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

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

Fair value
measurements

Financial instruments of the Company
primarily include trade receivables, other receivables and deposits, investments in convertible notes, cash and cash equivalents, trade
payables, bills payable to banks (unsecured) and short-term loans, other payables and accruals. The Company applies ASC 820, Fair Value
Measurements and Disclosures (“ASC 820”), in measuring fair value. ASC 820 defines fair value, establishes a framework for
measuring fair value and requires disclosures to be provided on fair value measurement.

ASC 820 establishes a three-tier fair
value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level 1 — Observable inputs that
reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 — Include