Company: GRAN
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001213900-25-069627
Chunk: 150

Company: Grande Group Ltd/HK
Filing Date: 2025-07-31
Form: 20-F
Item: Item 11
Chunk 150
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Item
11. Quantitative and Qualitative Disclosures About Market Risk

Credit
risk

Accounts
receivable

In order to minimize the credit risk, the management
of the Company has delegated a team responsible for determination of credit limits and credit approvals. Other monitoring procedures are
in place to ensure that follow-up action is taken to recover overdue debts. Internal credit rating has been given to each category of
debtors after considering aging, historical observed default rates, repayment history and past due status of respective accounts receivable.
Estimated loss rates are based on probability of default and loss given default with reference to an external credit report and are adjusted
for reasonable and supportable forward-looking information that is available without undue costs or effort while credit-impaired trade
balances were assessed individually. In this regard, the directors consider that the Company’s credit risk is significantly reduced.
The maximum potential loss of accounts receivable for the years ended March 31, 2025 and March 31, 2024 is $1,187,465 and $633,875
respectively.

Bank
balances

The
Company is exposed to concentration of credit risk on liquid funds. The Company maintains the bank accounts in Hong Kong. Cash balances
in bank accounts in Hong Kong are insured under the Deposit Protection Scheme introduced by the Hong Kong Government for a
maximum amount of US$102,564 (HK$800,000). Cash balances in bank accounts in Hong Kong are not otherwise insured by the Federal Deposit
Insurance Corporation or other programs.

Other
current assets

The Company assessed the impairment for other
current assets individually based on internal credit rating and ageing of these debtors which, in the opinion of the directors, have
had no significant increase in credit risk since initial recognition. Based on the impairment assessment performed by the Company, the
directors consider the loss allowance for other current assets as of March 31, 2025, 2024 and 2023 is $166, $165 and $180, respectively.

Interest
rate risk

The
Company is exposed to cash flow interest rate risk through the changes in interest rates related mainly to the Company’s variable-rates
bank balances.

The
Company currently does not have any interest rate hedging policy in relation to fair value interest rate risk and cash flow interest
rate risk. The directors monitor the Company’s exposures on an ongoing basis and will consider hedging the interest rate should
the need arises.

Foreign
currency risk

Foreign
currency risk is the risk that the