Company: OTSA
Filing Date: 2025-01-28
Form Type: DRS
Source: 0001213900-25-007614
Chunk: 283

Company: OTSAW Ltd
Filing Date: 2025-01-28
Form: DRS
Chunk 283
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90 days past due; •It is becoming probable that the debtor will enter bankruptcy or other financial reorganisation; or •The disappearance of an active market for the financial asset because of financial difficulties. Note 4. Write off Generally, the Group writes off, partially or fully, the financial asset when it assesses that there is no realistic prospect of recovery of the amount as evidenced by, for example, the debtor’s lack of assets or income sources that could generate sufficient cashflows to repay the amounts subjected to the write -off. The Group performs ongoing credit evaluation of its counterparties’ financial condition and generally does not require collateral. The Group do not have any significant credit exposure to any single counterparty or any groups of counterparties having similar characteristics other than the geographical location of their operations. As at the end of the financial year, 66% (2023: 27%) of the trade receivable is concentrated in Singapore. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the statements of financial position. Trade receivables (Note 13) The Group uses the practical expedient under IFRS 9 in the form of allowance matrix to measure the ECL for trade receivables, where the loss allowance is equal to lifetime 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. No expected loss allowance is provided on the Group’s trade receivables as at 30 April, 2024 as all trade receivables of the Group are within the credit period according to the terms agreed with the customers. Other receivables (Note 13) As of April 30, 2024, the Group recorded other receivables of USD 519,644 (2023: