Company: GCL
Filing Date: 2025-08-27
Form Type: DRS
Source: 0001213900-25-080905
Chunk: 317

Company: GCL Global Holdings Ltd
Filing Date: 2025-08-27
Form: DRS
Chunk 317
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 elected to exclude
sales taxes and other similar taxes from the measurement of the transaction price, and accordingly, recognized revenues are net of value
added taxes and surcharges.

Revenue from sales of computer accessories and other multimedia products including data storage devices

The Company recognized the revenue from
sales of computer peripherals, accessories and other multimedia products at a point in time when control of the product is passed to the
retailers, corporate and end customers, which is the point in time that the retailers, corporate and end customers are able to direct
the use of and obtain substantially all of the economic benefit of the goods after the retailers pick up the products or the Company delivers
the products to the retailers’ appointed forwarding agent. The transfer of control typically occurs at a point in time based on
consideration of when the retailers have the obligation to pay for the goods, and physical possession of, legal title to, and the risks
and rewards of ownership of the goods has been transferred, and the retailers and end users have accepted the goods. Revenue is recognized
net of estimates of variable consideration, including product returns, and customer discounts.

Product returns

Certain customers have the right to return the products sold within
180 days of sales. Customers remedies may include exchange of the returned products. As a result, the right of return assets and related
refund liabilities is estimated and recorded as reduction in revenue, if necessary. The Company uses its accumulated historical experience
to estimate the number of returns on a portfolio level using the expected value method.

Cost of
revenue

Cost of revenues consists mainly of
purchases, rental costs, depreciation of property and equipment, freight and handling charges, and other expenses directly attributable
to the sale of goods.

Employee benefit expenses

The Company maintains a government mandated
employee provident fund scheme to cover employees. The employee provident fund schemes are considered a defined contribution plan. Employer
and employee contributions are made based on various percentages of salaries and wages that vary based on employee age and other factors.
The Company has no further payment obligations once the contributions have been paid.

<div align='center'>F-73

BAN LEONG TECHNOLOGIES LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

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

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

Income taxes

The Company follows the liability method
of accounting for income taxes in accordance with ASC 740, Income Taxes (“ASC 740”). Under this method,