Company: DTCK
Filing Date: 2025-12-23
Form Type: 6-K
Source: 0001683168-25-009327
Chunk: 9

Company: DAVIS COMMODITIES Ltd
Filing Date: 2025-12-23
Form: 6-K
Chunk 9
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, as well as by the general state of the economy in Singapore. The Company’s results
may be adversely affected by changes in the political, regulatory and social conditions in Singapore. Although the Company has not experienced
losses from these situations and believes that it is in compliance with existing laws and regulations including its organization and structure
disclosed in Note 1, such experience may not be indicative of future results.

The Company’s business, financial condition
and results of operations may also be negatively impacted by risks related to natural disasters, extreme weather conditions, health epidemics
and other catastrophic incidents, which could significantly disrupt the Company’s operations.

| F-9 |

(e) Foreign currency translation and transaction and Convenience translation

The accompanying unaudited interim condensed consolidated
financial statements are presented in U.S. dollar (“US$”), which is the reporting currency of the Company. The functional
currency of the Company and its subsidiaries, Maxwill (Asia) Pte. Ltd., LP Grace Pte. Ltd., Maxwill Pte. Ltd., Davis Commodities Pte.
Ltd., Davis Commodities Global Pte. Ltd., Davis Commodities SEA Pte. Ltd., and Davis Commodities Asia Pte. Ltd. are the U.S. dollar. Maxwill
Foodlink Pte. Ltd. uses the Singapore dollar as its functional currency.

Assets and liabilities denominated in currencies
other than the reporting currency are translated into the reporting currency at the rates of exchange prevailing at the balance sheet
date. Translation gains and losses are recognized in the unaudited interim condensed consolidated statements of operations and comprehensive
loss as other comprehensive income or loss. Transactions in currencies other than the reporting currency are measured and recorded in
the reporting currency at the exchange rate prevailing on the transaction date. The cumulative gain or loss from foreign currency transactions
is reflected in the unaudited interim condensed consolidated statements of income and comprehensive income as other income (other expenses).

The value of foreign currency including, the
Singapore dollar (“S$”), may fluctuate against the US$. Any significant variations of the aforementioned currency relative
to the Singapore dollar may materially affect the Company’s financial condition in terms of reporting in US$. The following table
outlines the currency exchange rates that were used in preparing the accompanying unaudited interim condensed consolidated financial
statements:

| Schedule of exchange rate |     |          |        |     |      |        |     |              |        |
|                           |     | June 30, |        |     |      |        |