Company: KMRK
Filing Date: 2025-08-15
Form Type: 20-F
Source: 0001213900-25-077494
Chunk: 143

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-08-15
Form: 20-F
Item: Item 19
Chunk 143
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 assets and realization of deferred tax assets. These estimates and assumptions are based on the Company’s
historical results and management’s future expectations. Actual results could differ from those estimates. Changes in facts and
circumstances may cause the Company to revise its estimates.

Foreign Currencies

Transactions denominated in currencies other than the functional currency
are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities
denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange
rates at balance sheet dates. The resulting exchange differences are recorded in the consolidated and combined statements of operations
and comprehensive income.

The reporting currency of the Company is United States Dollar (“ USD”)
and the accompanying consolidated and combined financial statements have been expressed in US$. However, the Company’s major operating
subsidiary operating in Hong Kong maintains its books and record in its local currency, Hong Kong Dollars (“ HKD”), which is
the functional currency as being the primary currency of the economic environment in which its operation is conducted. In general, for
consolidation purposes, assets and liabilities of its subsidiary whose functional currency is not US$ are translated into US$, in accordance
with Accounting Standards Codification (“ ASC”) Topic830-30, Translation of Financial Statement(“ ASC 830”),
using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the year. The
gains and losses resulting from translation of financial statements of foreign subsidiaries are recorded as a separate component of other
comprehensive income within the consolidated and combined statements of changes in shareholders’ equity.

The exchanges rates used for
translation from HKD to US$ are ranging from7.74and7.78, a pegged rate determined by the linked exchange rate system in Hong Kong. This pegged rate was used to translate Company’s balance sheets, income statement items and cash flow items for both 2025 and 2024.

                                           For the year ended                                                             
                                                    March 31,                                                             
                                                         2025                   2024                   2023               
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Year-end HKD: US$ exchange rate                                  7.74800                7.82418                7.84967  
  Year average HKD: US$ exchange rate                              7.77593                7.82381                7.83978  

Cash and