Company: GINT
Filing Date: 2025-08-15
Form Type: F-1/A
Source: 0001213900-25-077286
Chunk: 199

Company: Gifts International Holdings Ltd
Filing Date: 2025-08-15
Form: F-1/A
Chunk 199
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 with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”). •Basis of Consolidation The financial statements include the accounts of the Company and its subsidiaries and Variable Interest Entity (“VIE”) in which the Company is the primary beneficiary. All significant inter -companybalances and transactions within the Company have been eliminated upon consolidation. The Company determines, under Accounting Standards Codification (“ASC”) Topic 810, Consolidation(“ASC 810”), whether an entity in which it has made an investment or in which it has other variable interest is considered a VIE. The Company consolidates a VIE when it is the primary beneficiary. The primary beneficiary of a VIE is the party that meets both of the following criteria: (i)has the power to direct the activities that most significantly affect the economic performance of the VIE; and (ii)has the obligation to absorb losses or the right to receive benefits that in either case could potentially be significant to the VIE. Periodically, the Company determines whether any changes in its interest or relationship with the entity impact the determination of whether the entity is still a VIE and, if so, whether the Company is the primary beneficiary. Currently, MGGB is deemed as a VIE, in which Mr. Wong owns 100% in equity interest and commonly controls as a related party to the Company. MGGB is acting as an operating unit to collect the sales receipts on behalf of the Company. Hence, the Company consolidates MGGB’s financial statements, when it is the primary beneficiary under ASC 810. For the years ended March 31, 2024 and 2025, MGGB contributed less than 1% of the Company’s total revenues, whose operation is considered not material. •Use of Estimates and Assumptions The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the years presented. Significant accounting estimates reflected in the Company’s financial statements include the useful lives of plant and equipment, impairment of long -livedassets, allowance for expected credit losses, provision for long service payments, revenue recognition, income tax provision, deferred taxes and uncertain tax position. The inputs into the management’s judgments and estimates consider the geopolitical tension, inflationary and relatively