Company: SPPL
Filing Date: 2025-04-08
Form Type: 20-F
Source: 0001641172-25-003217
Chunk: 105

Company: SIMPPLE LTD.
Filing Date: 2025-04-08
Form: 20-F
Item: Item 11
Chunk 105
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ITEM
11. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

Inflation
Risk

Inflationary
factors, such as increases in personnel and overhead costs, could impair our operating results. Although we do not believe that inflation
has had a material impact on our financial position or results of operations to date, a high rate of inflation in the future may have
an adverse effect on our ability to maintain current levels of gross margin and operating expenses as a percentage of sales revenue if
the revenues do not increase with such increased costs.

Interest
Rate Risk

We
are exposed to cash flow interest rate risk in relation to bank loans and bank overdrafts. It is the Group’s policy to keep its
borrowings at variable rates at a minimum so as to minimize the fair value interest rate risk.

The
Group’s cash flow interest rate risk is mainly concentrated on the fluctuation of the Singapore Overnight Rate Average (SORA) and
the prime lending rate of our lenders arising from the Group’s Singapore dollar denominated borrowings. Interest rates are subject
to change upon renewal.

Credit
Risk

Credit
risk is controlled by the application of credit approvals, limits and monitoring procedures. We manage credit risk through regularly
evaluating the collectability of financial assets, based on a combination of factors such as credit worthiness, past transaction history,
current economic industry trends and changes in payment patterns. We identify credit risk collectively based on industry and customer
type. In measuring the credit risk of our sales to our customers, we mainly reflect the “probability of default” by the customer
on its contractual obligations and consider the current financial position of the customer and the current and likely future exposures
to the customer.

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Liquidity
Risk

We
are also exposed to liquidity risk, which is risk that we will be unable to provide sufficient capital resources and liquidity to meet
our commitments and business needs. Liquidity risk is controlled by the application of financial position analysis and monitoring procedures.
To manage liquidity risk, the Group monitors and maintains a level of cash and cash equivalents deemed adequate by the management to
finance the Group’s operations and mitigate the effects of fluctuations in cash flows.

Foreign
Exchange Risk

While
our reporting currency is the U. S. dollar, almost all of our combined revenues and combined costs and expenses are denominated in Singapore
dollars. All of our assets are denominated in Singapore dollars. As a result,