Company: DLO
Filing Date: 2025-04-24
Form Type: 20-F
Source: 0000950170-25-058197
Chunk: 176

Company: dLocal Ltd
Filing Date: 2025-04-24
Form: 20-F
Item: Item 16K
Chunk 176
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 or fair value interest rate risk, and equity price risk), liquidity risk and fraud risk. The Group’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Group’s financial performance.
The Board of Directors (the “ Board”) has overall responsibility for the establishment and oversight of the Group’s risk management objectives and policies.
The Group’s risk management policies are established to identify and analyze the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities. The overall objective of the Board is to set policies that seek to reduce risk as much as possible without unduly affecting the Group’s competitiveness and flexibility. Further details of these policies are set out below.
(b)
Credit Risk
Credit risk is the risk that a merchant or a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. Credit risk arises from the group’s exposures to third parties, including cash and cash equivalents and financial instruments and from its operating activities, primarily related to trade and other receivables.
The carrying amount of financial assets represents the Group’s maximum credit exposure:
───────────────────────────────────────────────────────────────────────────────────────
Cash and Cash Equivalents 425,172 536,160
Financial Assets at Fair Value through Profit or Loss 129,319 104,387
Trade and Other Receivables 496,713 363,374
Derivative Financial Instrument 2,874 2,040
Other Assets 18,805 11,782
1,072,883 1,017,743
The table below discloses the external credit risk ratings for the Group’s current Trade and Other Receivables, based on the geographical regions in which the Trade and Other Receivables are held:
2024 2023
Risk rating Expected loss rate Expected loss rate
─────────────────────────────────────────────────────────────────────────────────────────────────────────────
A 0.02 24,896 0.05 42,618
AA 0.01 935 0.03 392
AAA 0.00 14,846 0.00 7,319
B 0.05 32,167 0.13 24,345
BB 0.04 182,475 0.10 172,833
BBB