Company: GRAN
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001213900-25-069627
Chunk: 173

Company: Grande Group Ltd/HK
Filing Date: 2025-07-31
Form: 20-F
Item: Item 19
Chunk 173
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 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  
  FOR THE YEARS ENDED MARCH                   
  31, 2025, 2024 and 2023                     
                                              
  (Stated                                     
  in US Dollars)                              
 ──────────────────────────────────────────────

NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Following
the fact pattern provided, the sponsorship services does not meet criterion ASC 606-10-25-27 (a) because the listing applicant
does not simultaneously receive and consume the benefits provided by the sponsor’s performance during the IPO process. The listing
applicant only receives the benefits when the sponsor completes all of its services and the shares are successfully listed on the Hong Kong
Exchange or another outcome. Applying paragraph 3A.18 of the Main Board Listing Rules of Hong Kong, “for the avoidance of
doubt, a replacement sponsor shall not be regarded as having satisfied any of the obligations of a sponsor by virtue of work performed
by a predecessor sponsor”, thus the performance obligation does not meet the condition in ASC 606-10-55-6 to be considered
satisfied over time because a replacement sponsor would need to substantially re-perform all of the work performed by the existing sponsor,
including reperformance of the due diligence work and coordination with other professional parties. Even if some of the work done by
other professional parties (such as lawyers and auditors) has been completed, this work is not part of the role of the sponsor. The sponsor
will still need to coordinate with other professional parties and perform its own due diligence on the information provided by these
parties.

The
sponsorship services also do not meet criterion ASC 606-10-25-27 (b) because there is no asset controlled by the listing applicant
during the period.

The
agreements entered into prior to April 1, 2024 do not have a right to payment clause. The initial deposit normally only represents 20

As
a result, the services fee income is recognized at the point in time when the Company completes its sponsorship services.

For
an agreement entered into since April 1, 2024, it has a right to payment clause, meaning the Company has a contractual right to receive
payment pro-rata to its performance completed to date. Also, the Company’s performance does not create an asset with an alternative
use to the Company. Consequently, the Company has an enforceable right to payment for its performance completed