Company: OTSA
Filing Date: 2025-03-26
Form Type: DRS/A
Source: 0001013762-25-002776
Chunk: 131

Company: OTSAW Ltd
Filing Date: 2025-03-26
Form: DRS/A
Chunk 131
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 Dollars (“US$”). The functional currency of our company and our subsidiaries incorporated in Cayman, and United States, is US$. The functional currency of our subsidiary incorporated in Germany is euro (“EUR”), and the functional currency of our Singapore subsidiaries is Singapore dollar (“SGD”). Transactions denominated in currencies other than the functional currency are remeasured into the functional currency at the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in a foreign currency are remeasured into the functional currency using the applicable exchange rate at the balance sheet date. The resulted exchange differences are recorded as general and administration expenses in the consolidated statements of loss and other comprehensive loss. The financial statements of our subsidiaries in Singapore and Germany are translated from their functional currency into US$. Assets and liabilities are translated into US$ using the applicable exchange rates at the balance sheet date. Equity accounts other than earnings or deficits generated in the current period are translated into US$ using the appropriate historical rates. Revenues, expenses, gains and losses are translated into US$ using the average exchange rates for the relevant period. The resulted foreign currency translation adjustments are recorded as a component of other comprehensive income or loss in the consolidated statements of loss and other comprehensive loss, and the accumulated foreign currency translation adjustments are recorded in currency translation reserve as a component of consolidated statements of change in equity. Our operating activities are mainly transacted in SGD, US$, and EUR, which are also the functional currencies of the respective subsidiaries. Foreign exchange risk arises from future commercial transactions, recognized assets and liabilities and net investments in foreign operations. We consider the foreign exchange risk in relation to transactions denominated in SGD with respect to US$ is not significant, as the SGD and US$ are pegged and the exchange rate between them tends to remain stable. At the same time, we are exposed to foreign exchange risk in relation to transactions denominated in EUR. If EUR depreciates against US$, it could have an impact on our consolidated financial statements. As of April 30, 2024, we had net EUR -denominatedliabilities of US$306,209. We estimate that a 10% depreciation of EUR against US$ based on the currency exchange rate on April 30, 2024 would result in an increase of US$30,621 against our shareholders’ equity whilst we estimate that a 10% appreciation of EUR against the US$ based on the currency exchange rate on April 30, 2024 would result in a decrease of US$30,621 against our shareholders