Company: KMRK
Filing Date: 2025-05-19
Form Type: F-1
Source: 0001213900-25-045262
Chunk: 67

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-05-19
Form: F-1
Chunk 67
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 policy rates and cash reserve requirements for banks, and the availability of other sources of debt financing or equity financing. There may also be covenants that restrict our ability to pay dividends and/or restrict our flexibility in utilizing working capital to react to changes in the business environment. Additionally, our business requires significant amount of working capital to fund the payroll of workers before the corresponding progress payments from clients, and inability to finance the payroll payment and temporary cash flow imbalance arising therefrom can adversely affect our operation and curtail our business growth. If all or a substantial portion of our bank facilities are withdrawn, or we cannot access additional banking facilities, our operations and financial performance will be adversely and materially affected. In addition, our finance costs were US$38,823 and US$19,530, or approximately 3.89% and 2.79% of our profit before income tax for the six months ended September30, 2024 and 2023, respectively. our finance costs were US$55,550 and US$46,904, or approximately 5.18% and 17.85% of our profit before income tax for the years ended March 31, 2024 and 2023, respectively. Since we rely on these facilities to finance our operations, any increase in interest rates on facilities extended to us may have a material and adverse impact on our financial performance. We may default on our obligations under our credit facilities. We entered into banking facilities with a bank in Hong Kong which include an overdraft facility and revolving term loan. A failure to repay any of the indebtedness under our banking facilities as they become due or to otherwise comply with the covenants contained in any of such agreements could result in an event of default thereunder. If not cured or waived, an event of default under any of such agreements could enable the lender thereunder to declare all borrowings outstanding on such debt, together with accrued and unpaid interest and fees, to be due and payable. In such an event, we may not be able to pay dividends or have sufficient liquidity to meet operating and capital expenditure requirements. Any such acceleration could cause us to lose a substantial portion of our assets and will substantially adversely affect our ability to continue our operations. We are exposed to risks of infringement of our intellectual property rights and the unauthorized use of our trademarks by third parties. We have registered our trademark to protect our intellectual property rights in Hong Kong. Should our trademark be violated or infringed, there may be confusion by potential customers who have not previously worked with