Company: GVH
Filing Date: 2025-02-12
Form Type: 20-F
Source: 0001493152-25-006117
Chunk: 231

Company: Globavend Holdings Ltd
Filing Date: 2025-02-12
Form: 20-F
Item: Item 19
Chunk 231
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 excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters.

Foreign Exchange Risk

The reporting currency of the Company
is U. S. Dollar. To date the majority of the revenues and costs are denominated in Hong Kong Dollar, Australian dollars and New Zealand.
Historically, our principal exposure to foreign currency fluctuations is mainly with respect to our expenses incurred denominated in
Australian dollars and New Zealand dollars. Foreign currency fluctuations had a slightly positive impact on net income for the years
ended September 30, 2022, 2023 and 2024. For the years ended September 30, 2022, 2023 and 2024, the foreign exchange gains were $72,974,
$118,508and $156,937, respectively. The Company has not maintained any hedging policy against foreign currency risk, as the management
believes that there was no significant exposure to foreign exchange rate fluctuations. The management will consider hedging significant
currency exposure should the need arise.

The following table presents the potential effects
on net foreign exchange gains or losses of a hypothetical change of +/- 5% in the exchange rate:

SCHEDULE OF FOREIGN EXCHANGE GAIN OR LOSSES

  For the year ended September 30, 2023                                                                                                                                                                     For the year ended September 30, 2024               
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Net Foreign exchange gains                              Impact on net foreign exchange gains/(losses) +5% (US$)                   Impact on net foreign exchange gains/(losses) -5% (US$)                 Net Foreign exchange gains                          
                                             118,508                                                                   ( 5,925                                                                   5,925                                                 156,937  

Fair Value of Financial Instruments

The Company applies the provisions of
ASC 820, Fair Value Measurements and Disclosures, to the financial instruments that are required to be carried at fair value.
Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most
advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The Company
uses a three-tier fair value hierarchy based upon observable and non-observable inputs that prioritizes the information used to develop
our assumptions regarding fair value. Fair value measurements are separately disclosed by level