Company: KMRK
Filing Date: 2025-03-25
Form Type: DRS/A
Source: 0001013762-25-001825
Chunk: 106

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-03-25
Form: DRS/A
Chunk 106
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 loss rates and expectations of future conditions, and other factors that may affect our ability to collect from customers. Allowance for expected credit losses To measure impairment on accounts receivable, the Company adopted current expected credit losses model, which is established on management’s historical collection experience, age of the receivable, the economic environment, industry trend analysis, and the current credit profile and financial condition of the customers. The Company divided its customers into categories with similar risk characteristics. Each risk category is assigned a base loss rate, which is further adjusted upwards using an aging matrix. Management reviews its receivables on a regular basis to determine if the allowance for expected credit losses is adequate and adjusts the allowance, including the base loss rate and adjustment factors, when necessary. The Company believes the estimates utilized in preparing its CFS are reasonable and prudent. Actual results could differ from these estimates. To the extent that there are material differences between these estimates and the actual results, future financial statements will be affected. The Company had allowance for expected credit losses on accounts receivable of US$10,757 and US$8,821 as of September30, 2024 and 2023, respectively. The Company had allowance for expected credit losses on accounts receivable of US$9,830 and US$11,402 as of March 31, 2024 and 2023, respectively.

66 Quantitative and Qualitative Disclosures 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 -termfunding to meet the liquidity shortage. Interest rate risk As of September30, 2024 and March 31, 2024, we had outstanding bank loans of approximately US$0.2 million, which are payable within one year and approximately US$0.9million and US$0.4million, respectively, 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 -termloans which are payable within one year. Our deposited cash raised by this offering can earn