{"url_path":"/sec/fchl/10-k/2026/item-11","section_key":"item-11","section_title":"Item 11 Quantitative and Qualitative Disclosures About Market Risk**","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-05-15","source_url":"https://www.sec.gov/Archives/edgar/data/2023796/0001493152-26-023516-index.html","accession_number":"0001493152-26-023516","cik":"0002023796","ticker":"FCHL","issuer_name":"Fitness Champs Holdings Ltd","edgar_url":"https://www.sec.gov/Archives/edgar/data/2023796/0001493152-26-023516-index.html","primary_entity_key":"0002023796","primary_entity_name":"Fitness Champs Holdings Ltd"},"word_count":372,"has_tables":true,"body_markdown":"**Item\n11. Quantitative and Qualitative Disclosures About Market Risk**\n\n \n\n**Interest\nRate Risk**\n\n \n\nWe\nare exposed to interest rate risk while we have short-term bank loans outstanding. Although interest rates for our short-term loans are\ntypically fixed for the terms of the loans, the terms are typically twelve months and interest rates are subject to change upon renewal.\n\n \n\n**Credit\nRisk**\n\n \n\nCredit\nrisk is controlled by the application of credit approvals, limits and monitoring procedures. We manage credit risk through in-house research\nand analysis of the relevant economy and the underlying obligors and transaction structures. We identify credit risk collectively based\non industry, geography and customer type. In measuring the credit risk of our sales to our customers, we mainly reflect the “probability\nof default” by the customer on its contractual obligations and consider the current financial position of the customer and the\ncurrent and likely future exposures to the customer.\n\n \n\n**Liquidity\nRisk**\n\n \n\nWe\nare also exposed to liquidity risk, which is a risk that we will be unable to provide sufficient capital resources and liquidity to meet\nour commitments and business needs. Liquidity risk is controlled by the application of financial position analysis and monitoring procedures.\nWhen necessary, we will turn to financial institutions and related parties to obtain short-term funding to cover any liquidity shortage.\n\n \n\n**Foreign\nExchange Risk**\n\n \n\nOur\nreporting currency is the Singapore dollar, and almost all of our consolidated revenues and consolidated costs and expenses are in Singapore\ndollars.\n\n \n\n**Internal\nControl Over Financial Reporting**\n\n \n\nWe\ncurrently lack personnel adequately trained in and have appropriate knowledge of U.S. GAAP and SEC reporting requirements to properly\naddress complex U.S. GAAP accounting issues and related disclosures to fulfill U.S. GAAP and SEC financial reporting requirements. As\nsuch, we have implemented and plan to implement a number of measures to address this issue including: (i) engaging an external consulting\nfirm to assist us with our financial reporting in US GAAP; (ii) allocating additional resources to improve financial oversight function;\n(iii) introducing formal business performance review process, and preparing and reviewing the consolidated financial statements and related\ndisclosures in accordance with U.S. GAAP and SEC reporting requirements; and (iv) providing our relevant finance staff with appropriate\ntraining in connection with the requirements of U.S. GAAP."}