Company: KMRK
Filing Date: 2025-08-15
Form Type: 20-F
Source: 0001213900-25-077494
Chunk: 145

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-08-15
Form: 20-F
Item: Item 19
Chunk 145
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 a liability (an exit price) in the principal
or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date.
The Company uses a three-tier fair value hierarchy based upon observable and non-observable inputs that prioritizes the information used
to develop our assumptions regarding fair value. Fair value measurements are separately disclosed by level within the fair value hierarchy.

  Level 1 —      defined as observable inputs such as quoted prices in active markets for identical assets or liabilities;                               
  Level 2 —      defined as inputs other than quoted prices in active markets, that are either directly or indirectly observable; and                    
  Level 3 —      defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.  

The Company’s financial instruments include cash and cash equivalents,
accounts receivable, contract assets, accounts payables, accruals, due to related parties, bank loans and overdraft and lease liabilities.
The carrying amounts of these financial instruments approximate their fair values due to the short-term nature of these instruments. For
lease liabilities, fair value approximates their carrying value at the year end as the interest rates used to discount the host contracts
approximate market rates. The carrying amount of the bank loan and overdraft approximates its fair value due to the fact that the related
interest rate approximates the interest rates currently offered by financial institutions for similar debt instruments of comparable maturities.

F-9

K-TECH SOLUTIONS COMPANY LIMITED AND SUBSIDIARY

NOTE 2 - SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES(cont.)

The Company noted no transfers
between levels during any of the periods presented. The Company did not have any instruments that were measured at fair value on a recurring
nor non-recurring basis as of March 31, 2024 and 2025.

Property, Plant and Equipment

Property, plant and equipment
is stated at historical cost less accumulated depreciation and impairment losses. Historical cost includes expenditure that is directly
attributable to the acquisition of the items.

Major modifications or refurbishments
which extend the useful life of the assets are capitalized and depreciated over the adjusted remaining useful life of the assets.

The Property, plant and equipment
is calculated using the straight-line method over their estimated useful lives, as follows:

                              Estimated useful lives                       
  Leasehold improvement       Shorter of 5 years or remaining lease terms  
  Furniture and fixtures      5 years                                      
  Office equipment