{"url_path":"/sec/tghl/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/2024114/0001493152-26-023959-index.html","accession_number":"0001493152-26-023959","cik":"0002024114","ticker":"TGHL","issuer_name":"GrowHub Ltd","edgar_url":"https://www.sec.gov/Archives/edgar/data/2024114/0001493152-26-023959-index.html","primary_entity_key":"0002024114","primary_entity_name":"GrowHub Ltd"},"word_count":600,"has_tables":true,"body_markdown":"**Item\n11. Quantitative and Qualitative Disclosures About Market Risk.**\n\n \n\nFor the year ended December 31, 2024, Customer A,\nB, C and D accounted for 40%, 17.1%, 18.2% and 11.1% of the Company’s total revenue and 68.5%, 29.4%, nil% and nil% of the Company’s\ntotal accounts receivable as of December 31, 2024, respectively. For the year ended December 31, 2025, Customer C accounted for 51.1% of the Company’s total revenue and nil% of the Company’s total accounts\nreceivables as of December 31, 2025.\n\n \n\nFor the year ended December 31, 2024, Vendor A\nand B accounted for 63.8% and 11.3% of the Company’s total purchases, and nil% and 11.1% of the accounts payable as of\nDecember 31, 2024, respectively. For the year ended December 31, 2025, Vendor C accounted for 14.8% of the Company’s total\npurchases, and nil% of the accounts payable as of December 31, 2025.\n\n \n\n**Inflation\nRisk**\n\n** **\n\nInflationary\nfactors, such as increases in personnel and overhead costs, could impair our operating results. Although we do not believe that inflation\nhas had a material impact on our financial position or results of operations to date, a high rate of inflation in the future may have\nan adverse effect on our ability to maintain current levels of gross margin and operating expenses as a percentage of sales revenue if\nthe revenues do not increase with such increased costs.\n\n \n\n**Interest\nRate Risk**\n\n** **\n\nWe\nare exposed to cash flow interest rate risk in relation to bank loans with variable interest rates which is partially offset by bank\nbalances held at variable rates. It is the Group’s policy to keep its borrowings at variable rates at a minimum so as to minimize\nthe fair value interest rate risk.\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 regularly\nevaluating the collectability of financial assets, based on a combination of factors such as credit worthiness, past transaction history,\ncurrent economic industry trends and changes in payment patterns. We identify credit risk collectively based on industry and customer\ntype. In measuring the credit risk of our sales to our customers, we mainly reflect the “probability of default” by the customer\non its contractual obligations and consider the current financial position of the customer and the current and likely future exposures\nto the customer.\n\n \n\n59\n\n \n\n \n\n**Liquidity\nRisk**\n\n** **\n\nWe\nare also exposed to liquidity risk, which is 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.\nTo manage liquidity risk, the Group monitors and maintains a level of cash and cash equivalents deemed adequate by the management to\nfinance the Group’s operations and mitigate the effects of fluctuations in cash flows.\n\n \n\nAs\nof December 31, 2025, the Group has an outstanding working capital loan due to a related party in the amount of S$3.15 million. We utilized\npart of the proceeds from our initial public offering to repay this loan. See “*Related Party Transactions”*and *“Use\nof Proceeds.”* Management monitors the Company’s liquidity position regularly.\n\n \n\n**Foreign\nCurrency Exchange Rate Risk**\n\n \n\nWhile\nour reporting currency and combined revenues are denominated in the U.S. dollar, most of our operating expenses are denominated in Singapore\nDollar. As a result, we are exposed to foreign exchange risk as our operating expense may be affected by fluctuations in the exchange\nrate between the U.S. dollar and the Singapore Dollar. We have not entered into any hedging transactions in an effort to reduce our exposure\nto foreign exchange risk."}