Company: OTSA
Filing Date: 2025-07-16
Form Type: F-1/A
Source: 0001213900-25-064434
Chunk: 363

Company: OTSAW Ltd
Filing Date: 2025-07-16
Form: F-1/A
Chunk 363
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 the Group’s financial performance. The Board of Directors is responsible for setting the objectives and underlying principles of financial risk management for the Group. The management then establishes the detailed policies such as authority levels, oversight responsibilities, risk identification and measurement, exposure limits and hedging strategies, in accordance with the objectives and underlying principles approved by the Board of Directors. There have been no changes to the Group’s exposure to these financial risks or the manner in which it manages and measures the risk. Market risk exposures are measured using sensitivity analysis indicated below. Credit risk Credit risk refers to the risk that the counterparty will default on its contractual obligations resulting in a loss to the Group. The Group has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral where appropriate, as a means of mitigating the risk of financial loss from defaults. The Group’s credit risk arises from bank balances, trade and other receivables, other debt instruments carried at amortised cost as well as contract assets. Bank balances are mainly deposits with banks with high credit -ratingsassigned by international credit rating agencies and the Group does not expect the impairment loss from bank balances to be material, if any.

F-77

OTSAW LIMITED AND ITS SUBSIDIARIES
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED OCTOBER 31, 2024 AND 2023 20.Financial instruments and financial risks (cont.) To assess and manage its credit risk, the Group categorises the aforementioned financial assets and contract assets according to their risk of default. The Group defines default to have taken place when internal or/and external information indicates that the financial asset is unlikely to be received, which could include a breach of debt covenant, and/or where contractual payments are 90 days past due as per IFRS 9’s presumption. In their assessment, the management considers, amongst other factors, the latest relevant credit ratings from reputable external rating agencies where available and deemed appropriate, historical credit experiences, latest available financial information and latest applicable credit reputation of the debtor. The Group’s internal credit risk grading categories are as follows:

| Category |     | Description                                                                                                   |     | Basis of recognising ECL                                                                                                                                                         |
| 1        |     | Low credit riskNote1                                                                                          |     | 12-months ECL                                                                                                                                                                    |
| 2        |     | Non-significant increase in credit risk since initial recognition and financial asset is ≤ 30