Company: OTSA
Filing Date: 2025-05-23
Form Type: DRS/A
Source: 0001213900-25-047247
Chunk: 302

Company: OTSAW Ltd
Filing Date: 2025-05-23
Form: DRS/A
Chunk 302
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 using sensitivity analysis indicated below. Credit risk Credit risk refers to the risk that the counterparty will default on its contractual obligations resulting in a loss to the Group. The Group has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral where appropriate, as a means of mitigating the risk of financial loss from defaults. The Group’s credit risk arises from bank balances, trade and other receivables, other debt instruments carried at amortised cost as well as contract assets. Bank balances are mainly deposits with banks with high credit -ratingsassigned by international credit rating agencies and the Group does not expect the impairment loss from bank balances to be material, if any. To assess and manage its credit risk, the Group categorises the aforementioned financial assets and contract assets according to their risk of default. The Group defines default to have taken place when internal or/and external information indicates that the financial asset is unlikely to be received, which could include a breach of debt covenant, and/or where contractual payments are 90 days past due as per IFRS 9’s presumption. In their assessment, the management considers, amongst other factors, the latest relevant credit ratings from reputable external rating agencies where available and deemed appropriate, historical credit experiences, latest available financial information and latest applicable credit reputation of the debtor.

F-36

OTSAW LIMITED AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 APRIL 2024 22.Financial instruments and financial risks (cont.) The Group’s internal credit risk grading categories are as follows:

| Category |     | Description                                                                                                    |     | Basis of recognising ECL                                                                                                                                                         |
| 1        |     | Low credit riskNote 1                                                                                          |     | 12-months ECL                                                                                                                                                                    |
| 2        |     | Non-significant increase in credit risk since initial recognition and financial asset is ≤ 30 days past due    |     | 12-months ECL                                                                                                                                                                    |
| 3        |     | Significant increase in credit risk since initial recognitionNote 2 or financial asset is > 30 days past due   |     | Lifetime ECL                                                                                                                                                                     |
| 4        |     | Evidence indicates that financial asset is credit-impairedNote 3                                               |     | Difference between financial asset’s gross carrying amount and present value of estimated future cash flows discounted at the financial asset’s original effective interest rate |
| 5        |     |