Company: KMRK
Filing Date: 2025-09-15
Form Type: F-1
Source: 0001213900-25-087627
Chunk: 67

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-09-15
Form: F-1
Chunk 67
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 not completed an assessment of the
effectiveness of our ICFR and our independent registered public accounting firm has not conducted an audit of our ICFR. However,
in connection with the audits of our CFS for the years ended March 31, 2025 and 2024, we and our independent registered public
accounting firm identified material weaknesses in our ICFR as well as other control deficiencies for the above mentioned periods. As defined
in the standards established by the PCAOB, a “material weakness” is a deficiency, or a combination of deficiencies, in ICFR. There
is a reasonable possibility that a material misstatement in our annual or interim financial statements may not be prevented or detected
on a timely basis. The material weakness identified is related to (i) inadequate segregation of duties for certain key functions
due to limited staff and resources; and (ii) a lack of qualified personnel who are knowledgeable in U.S. GAAP and pertinent
SEC reporting requirements; and (iii) a lack of well-established policies and procedures to ensure timely account reconciliations,
review and detection of errors or inaccuracies in the Company’s consolidated and combined financial statements.

We intend to implement measures
designed to improve our ICFR to address the underlying causes of these material weaknesses, including (i) hiring more qualified staff
to enable proper segregation of duties; (ii) establishing policies and procedures designed to prevent and/or detect unauthorized
transactions; and (iii) implementing procedures designed to strengthen our financial reporting process and ability to reduce the
risk of material misstatement in our CFS. We intend to implement the above measures prior to the listing and we expect the remediation
to be completed upon listing.

Effective ICFR is important
to prevent fraud. The market for and trading price of our Class A Shares may be materially and adversely affected if we do not have effective
internal controls. We may not be able to discover problems in a timely manner and our current and potential shareholders may lose confidence
in our financial reporting, which may harm our business and the trading price of our Class A Shares. The absence of ICFR may inhibit investors
from purchasing our Class A Shares and may make it more difficult for us to raise funds in debt or equity financing. Additional material
weaknesses or significant deficiencies may be identified in the future. If we identify such issues or if we are unable to produce accurate
and timely financial statements, our stock price may decline and we may be unable to maintain compliance with