Company: KMRK
Filing Date: 2025-08-15
Form Type: 20-F
Source: 0001213900-25-077494
Chunk: 86

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-08-15
Form: 20-F
Item: Item 5
Chunk 86
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 March 31, 2024:

                        Payment due by period                                                                                
                        Less than                               1 to 3                   More than                           
  Borrowings                                       187,288                  434,140                     —           621,428  
  Lease obligation                                 110,513                  173,331                     15,242      299,086  

Off-balance Sheet Arrangement

We had not entered any material
off-balance sheet transactions and arrangements during the years ended March 31, 2024 and 2025.

Quantitative and Qualitative Disclosure About
Market Risk

Liquidity risk

We are exposed to liquidity
risk, which is the risk that we will be unable to provide sufficient capital resources and liquidity to meet our commitments and business
needs. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity
to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to
the Company’s reputation. When necessary, we will turn to other financial institutions to obtain short-term funding to meet the
liquidity shortage.

Interest rate risk

As of March 31, 2025 and March 31, 2024, we had outstanding
bank loans of approximately US$1.0 million and US$0.6 million, respectively, which are payable within one year and approximately
US$0.2 million, over one year. The bank loans bore effective interest rates between 7.56% and 9.22%. Our exposure to interest rate risk
primarily relates to the interest rate on our outstanding short-term loans which are payable within one year. Our deposited cash raised
by the IPO can earn income, on the other hand. We have not been exposed to material risks due to changes in interest rates. An increase,
however, may raise the cost of any debt we incur presently and, in the future, and result in an adverse impact on our income.

Foreign Exchange Risk

Foreign exchange risk is the risk that the value of financial assets
or liabilities will fluctuate due to changes in foreign exchange rates. We are exposed to foreign exchange risk from our business which
is denominated in currencies other than US$ (i. e., HKD). Consequently, the exchange rate to our currency relative to other foreign currencies
may change in a manner that has an adverse effect on the value of that portion of our assets or liabilities denominated in currencies
other than US