Company: KMRK
Filing Date: 2025-09-15
Form Type: F-1
Source: 0001213900-25-087627
Chunk: 65

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-09-15
Form: F-1
Chunk 65
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may from time to time be involved in disputes arising from contracts with customers, employees, or other third parties. Claims may
also arise from disputes with customers on matters relating to payment and/or contractual performance. Claims involving us could
result in time-consuming and costly litigations, arbitration, administrative proceedings or other legal procedures. Expenses we
incur in legal proceedings or arising from claims brought by or against us may materially and adversely affect our financial
performance.

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Actions brought
against us may result in settlements, awards, injunctions, fines, penalties and other results adverse to us. Moreover, liquidated damages,
legal proceedings resulting in unfavorable judgment may harm our reputation, cause financial losses and damage our prospects of being
awarded future contracts, thereby materially and adversely affecting our operations, financial performance and prospects.

We are dependent on external financing to support our business growth.

We rely on bank loans to finance our operations. Our total borrowings
were US$1,039,193 and US$621,428 as at March 31, 2025 and 2024, respectively.

Our ability to obtain
adequate financing on terms which are acceptable to us depends on a number of factors such as our financial strength, our creditworthiness
and our prospects, and other factors that are beyond our control, including general economic, industry, liquidity and political conditions,
the terms on which financial institutions are willing to extend credit to us, central bank’s policy rates and cash reserve requirements
for banks, and the availability of other sources of debt financing or equity financing. There may also be covenants that restrict our
ability to pay dividends and/or restrict our flexibility in utilizing working capital to react to changes in the business environment.
Additionally, our business requires significant amount of working capital to fund the payroll of workers before the corresponding progress
payments from clients, and inability to finance the payroll payment and temporary cash flow imbalance arising therefrom can adversely
affect our operation and curtail our business growth. If all or a substantial portion of our bank facilities are withdrawn, or we cannot
access additional banking facilities, our operations and financial performance will be adversely and materially affected.

In addition, our finance costs
were US$76,564 and US$55,550, or approximately 14.16% and 5.18% of our profit before income tax for the years ended March 31,
2025 and 2024, respectively. Since we rely on these facilities to finance our operations,