Company: JL
Filing Date: 2025-07-28
Form Type: 20-F
Source: 0001213900-25-068049
Chunk: 199

Company: J-Long Group Ltd
Filing Date: 2025-07-28
Form: 20-F
Item: Item 18
Chunk 199
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 loaded at the port of export. Under CNF/CFR, the control are transferred
to the buyer when the goods are handed over to the port of destination for the customer. Under CIF, the control are transferred to the
buyer at the time the goods reach the destination port. Under DAP, the control are transferred to the buyer when the goods arrive
at the specified destination.

In determining the transaction
price the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which the Company
expects to be entitled. As the Company’s standard payment terms are less than one year, the Company has elected the practical expedient
under ASC 606-10-32-18 to not assess whether a contract has a significant financing component.

The Company generally requests
customer to check the goods within 7 days upon receipt and do not accept shortage or claim beyond that period. Further, the Company’s
liability is limited to either a credit equal to the purchase price or replacement of the defective part. For the years ended March
31, 2025, 2024 and 2023, the Company was not aware of any material claims against the Company in relation to defective products, nor
any material product returns from the Company’s customers. As such, the Company does not record a specific warranty reserve or
consider activities related to such warranty, if any, to be a separate performance obligation.

The Company typically incurs
incremental costs to acquire customer contracts related to the Company’s sales in the form of sales commissions; however, because
the expected benefit from these contracts is less than one year, the Company follows the ASC Topic 606 practical expedient and expenses
these amounts as incurred.

F-16

J-LONG GROUP LIMITED

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(cont.)

Disaggregation of revenue

The Company disaggregates
its revenue by sales term, product categories, and geographic areas which the Company believes best depicts how the nature, amount, timing,
and uncertainty of the revenue and cash flows are affected by economic factors. The Company’s disaggregation of revenue for the years
ended March 31, 2025, 2024 and 2023 is as following:

Revenues by sales term

                      For the year ended                                                                      
                      March 31,                                                                               
                      2023                                    2024                      2025                  
                      USD                                     USD                       USD                   
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