Company: KMRK
Filing Date: 2025-03-07
Form Type: DRS/A
Source: 0001213900-25-021451
Chunk: 195

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-03-07
Form: DRS/A
Chunk 195
---
 approximate their fair values due to the short -termnature 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. 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 -recurringbasis as of September 30, 2024 and 2023.

F-29

K-TECH SOLUTIONS COMPANY LIMITED Notes to the unaudited INTERIM CONDENSED combined financial statements NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) 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 -linemethod 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       |     | 5 years                                     |
| Computer and equipment |     | 5 years                                     |
| Motor vehicles         |     | 5 years                                     |

The useful lives of the assets are reviewed, and adjusted if appropriate, at the end of each reporting period. Upon retirement or disposition of property, plant and equipment, the cost and related accumulated depreciation are removed any resulting gain or loss is recognized in combined statements of income and comprehensive income. The cost of maintenance and repairs is charged to expenses as incurred. Operating Lease The Company determines if an arrangement is a lease at inception. The Company enters into operating lease arrangements primarily for office and operation space. The Company determines whether a contract is or contains a lease at the inception of the contract. The Company records right -of -use(“ROU”) assets and lease obligations for its finance and operating leases, which are initially recognized based on the discounted future lease payments over the term of the lease. Lease term is defined as the