Company: DTCK
Filing Date: 2025-12-23
Form Type: 6-K
Source: 0001683168-25-009327
Chunk: 29

Company: DAVIS COMMODITIES Ltd
Filing Date: 2025-12-23
Form: 6-K
Chunk 29
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 CREDIT FACILITIES

On February 19, 2025, the subsidiaries Davis Commodities
Pte. Ltd. and Maxwill (Asia) Pte. Ltd. have obtained trade financing facilities with an aggregate limit of S$3 million (approximately
U$2,233,000) from a financial institution. These facilities include Letters of Credit, Trust Receipts, and Invoice Financing, and may
be increased to an aggregate of S$5,000,000 (approximately US$3,722,000) upon satisfactory review of the borrowers’ audited financial
statements and fulfilment of the bank’s conditions.

The facilities are intended to provide trade financing
for the Borrowers’ trading of sugar and related products.Interest rates applicable to the facilities are based on US$ Term Secured Overnight Finance Rate (SOFR) + 2.10% per annum or S$ Compounded Reference Rate + 2.10% per annum, depending on the currency of the drawdown.

| F-25 |

The facilities are secured by a charge over goods
financed by the bank, a charge over the bank account maintained with the bank, an assignment of receivables over goods financed by the
bank, and a corporate guarantee executed by Davis Commodities Limited for all monies owing from time to time.

As of June 30, 2025, the Company had not drawn
down on this trade financing facilities.

As of June 30, 2025, the Company had available
but undrawn committed banking facilities of approximately US$4,131,857
(approximately S$5,323,072),
which were granted in the prior year and remained available for drawdown subject to compliance with the applicable terms and conditions
of the facilities (December 31, 2024: Nil).

16. RELATED PARTY TRANSACTIONS

Related parties are entities with common direct
or indirect shareholders and/or directors. Parties are considered to be related if one party has the ability to control the other party
or exercise significant influence over the other party in making financial and operating decisions.

Some of the Company’s transactions and arrangements
are with related parties and the effect of these on the basis determined between parties is reflected in these financial statements. The
balances are unsecured, interest-free and repayable on demand unless otherwise stated.

The following transactions took place between
the Company and its related parties during the periods:

| Schedule of related party transactions          |     | For the six-month period ended  June