Company: KMRK
Filing Date: 2025-08-15
Form Type: 20-F
Source: 0001213900-25-077494
Chunk: 87

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-08-15
Form: 20-F
Item: Item 5
Chunk 87
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$. Our currency exposure is measured and monitored on a regular basis by the manager.

C. Research and Development, Patents and Licenses,
etc.

Please see Item 4. A. “ Information on the
Company - Business Overview” above.

D. Trend Information

See ITEM 5. A “operating results” above
for our trend information.

E. Critical Accounting Estimates

Our significant accounting
policies and their effect on our financial condition and results of operations are fully disclosed in our CFS included elsewhere in this
Annual Report. We prepared our CFS in conformity with U. S. GAAP, which requires management to make estimates and assumptions that
affect the amounts reported in our CFS and accompanying notes. These estimates are prepared using our best judgment, after considering
past and current events and economic conditions. While management believes the factors evaluated provide a meaningful basis for establishing
and applying sound accounting policies, management cannot guarantee that the estimates will always be consistent with actual results.
In addition, certain information relied upon by us in preparing such estimates includes internally generated financial and operating information
and external market information. Actual results may differ from these estimates.

We consider an accounting estimate
to be critical if: (1) it requires us to make assumptions because the information was not available at the time or it included matters
that were highly uncertain at the time we were making our estimate and (2) changes in the estimate could have a material impact on
our financial condition or results of operations. Despite the fact that the management determines there are no critical accounting estimates,
the most significant estimates relate to allowance for credit losses, for which we are required to estimate the collectability of accounts
receivable. The estimates were based on a number of factors including historical loss rates and expectations of future conditions, and
other factors that may affect our ability to collect from customers.

Allowance for expected credit losses

To measure impairment on accounts
receivable, the Company adopted current expected credit losses model, which is established on management’s historical collection
experience, age of the receivable, the economic environment, industry trend analysis, and the current credit profile and financial condition
of the customers. The Company divided its customers into categories with similar risk characteristics. Each risk category is assigned
a base loss rate, which is further adjusted upwards using an aging matrix. Management reviews its receivables on a regular basis to determine
if the allowance for expected credit losses is adequate and adjusts the allowance, including the base loss rate and adjustment factors,
when