Company: OTSA
Filing Date: 2025-07-16
Form Type: F-1/A
Source: 0001213900-25-064434
Chunk: 149

Company: OTSAW Ltd
Filing Date: 2025-07-16
Form: F-1/A
Chunk 149
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 translation adjustments are recorded as a component of other comprehensive income or loss in the consolidated statements of loss and other comprehensive loss, and the accumulated foreign currency translation adjustments are recorded in currency translation reserve as a component of consolidated statements of change in equity. 89 Our operating activities are mainly transacted in SGD, US$, and EUR, which are also the functional currencies of the respective subsidiaries. Foreign exchange risk arises from future commercial transactions, recognized assets and liabilities and net investments in foreign operations. We consider the foreign exchange risk in relation to transactions denominated in SGD with respect to US$ is not significant, as the SGD and US$ are pegged and the exchange rate between them tends to remain stable. At the same time, we are exposed to foreign exchange risk in relation to transactions denominated in EUR. If EUR depreciates against US$, it could have an impact on our consolidated financial statements. As of April 30, 2024, we had net EUR -denominatedliabilities of US$306,209. We estimate that a 10% depreciation of EUR against US$ based on the currency exchange rate on April 30, 2024 would result in an increase of US$30,621 against our shareholders’ equity whilst we estimate that a 10% appreciation of EUR against the US$ based on the currency exchange rate on April 30, 2024 would result in a decrease of US$30,621 against our shareholders’ equity accordingly. We consider that the overall foreign exchange risk is not significant, and we have not used any instruments or derivatives to manage or hedge the risk. Concentration of credit risk Financial instruments that potentially subject us to the credit risks consist of cash and cash equivalents, trade and other receivables. The maximum exposures of such assets to credit risk are their carrying amounts as of the balance sheet dates. We deposit our cash and cash equivalents in various commercial banks in the Singapore, United States and Germany. As of April 30, 2024, most of cash and cash equivalents was deposited with banks in Singapore. Balances maintained with banks in Singapore are insured under the Deposit Insurance Scheme introduced by the Singapore Deposit Insurance Corporation Limited. The maximum insured amount was SGD 75,000 (equivalent to US$55,098) until March 31, 2024, after which it was increased to SGD 100,000 (equivalent to $73,464) commenced from April 1, 2024, whilst the balances maintained by us may at times exceed the insured limits. Cash balances