Company: OTSA
Filing Date: 2025-05-23
Form Type: DRS/A
Source: 0001213900-25-047247
Chunk: 343

Company: OTSAW Ltd
Filing Date: 2025-05-23
Form: DRS/A
Chunk 343
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 ECL. The ECL for trade receivables are estimated using an allowance matrix by reference to the historical credit loss experience of the customers for the last 3 years prior to the respective reporting dates for various customer groups that are assessed by geographical locations, product types and internal ratings, adjusted for forward looking factors specific to the debtors and the economic environment which could affect the ability of the debtors to settle the financial assets. In considering the impact of the economic environment on the ECL rates, the Group assesses, for example, the gross domestic production growth rates of the country and the growth rates of the major industries which its customers operate in. Trade receivables are written off when there is evidence to indicate that the customer is in severe financial difficulty such as being under liquidation or bankruptcy and there is no reasonable expectation for recovering the outstanding balances. As of October 31, 2024, the Group recognised a credit loss allowance of USD 156,692 (April 30, 2024: Nil) on trade receivables that were assessed to be uncollectible. Other receivables (Note 12) As of October 31, 2024, the Group recorded other receivables of USD 727,121 (April 30, 2024: USD 519,644). The Group assessed the loss allowance of these amounts on a 12 -monthECL basis consequent to their assessment. In its assessment of the credit risk of the subsidiaries, the Group considered amongst other factors, the financial position of F-77

OTSAW LIMITED AND ITS SUBSIDIARIES
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED OCTOBER 31, 2024 AND 2023 20.Financial instruments and financial risks (cont.) the subsidiaries as of October 31, 2024, the past financial performance and cashflow trends, adjusted for the outlook of the industry and economy in which the subsidiaries operate in. Using 12 -monthECL, the Group recognized an allowance loss of USD Nil (April 30, 2024: USD Nil) for other receivables. Market risks The Group’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates. The objective of market risk management is to manage and control market risk exposures within acceptance parameters, while optimising the return on risk. Foreign currency risk The Group is exposed to foreign currency risk on