Company: DTCK
Filing Date: 2025-12-23
Form Type: 6-K
Source: 0001683168-25-009327
Chunk: 11

Company: DAVIS COMMODITIES Ltd
Filing Date: 2025-12-23
Form: 6-K
Chunk 11
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 other current liabilities are financial assets and liabilities. As of June 30, 2025,
other than the unrealized losses on commodity future contracts measured at fair value (included in accruals and other current liabilities),
the carrying amount of these financial instruments are approximated to their respective fair values. The commodity future contracts are
derivative instruments that are marked to fair value and are accounted for as under Level 2.

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(g) Related parties

We adopted ASC 850, Related Party Disclosures,
for the identification of related parties and disclosure of related party transactions.

(h) Cash and cash equivalents

Cash and cash equivalents consist of cash on hand,
the Company’s demand deposit placed with financial institutions, which have original maturities of less than three months and unrestricted
as to withdrawal and use.

Periodically, the Company may carry cash
balances at financial institutions more than the respective subsidiaries’ government insured limits in Singapore of S$100,000
per institution. The amount in excess of government insurance as of June 30, 2025 and December 31, 2024, was approximately S$1,816,911
(approximately US$1,410,287) and S$576,798,
respectively. The Company has not experienced losses on these accounts and management believes, based upon the quality of the
financial institutions, that the credit risk with regard to these deposits is not significant.

(i) Accounts Receivable, net

Accounts receivable, net are stated at the original
amount less an allowance for credit loss on such receivables. The allowance for impairment loss is estimated based upon the Company’s
assessment of various factors including historical experience, the age of the accounts receivable balances, current general economic conditions,
future expectations and customer specific quantitative and qualitative factors that may affect the customers’ ability to pay. An
allowance is also made when there is objective evidence for the Company to reasonably estimate the amount of probable loss.

(j) Inventories

Inventories are measured at the lower of cost
and net realizable value. The cost of inventories is based on the first-in, first-out principle, and includes expenditure incurred in
acquiring the inventories, production or conversion costs and other costs incurred in bringing them to their existing location and condition.

(k) Property, plant and equipment, net

Property, plant and equipment are stated at cost
less accumulated depreciation and impairment, if any, and depreciated on a straight-line basis over the estimated useful lives