Company: KMRK
Filing Date: 2025-08-15
Form Type: 20-F
Source: 0001213900-25-077494
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Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-08-15
Form: 20-F
Item: Item 19
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 variable-rate bank loans and is mainly concentrated on the fluctuation of Hong Kong Prime
Rate arising from the Company’s bank loan. The Company has not used any derivative instruments to mitigate its exposure associated
with interest rate risk.

Credit Risk

The carrying amounts of the cash and bank balances, trade receivables,
loan receivable and other receivables included in the consolidated and combined balance sheet represent the Company’s maximum exposure
to credit risk in relation to the Company’s financial assets.

The Company has no significant
concentrations of credit risk.

The credit risk on cash and
bank balances is limited because the counterparties are banks with high credit-rating assigned by international credit-rating agencies.

The Company considers whether
there has been a significant increase in credit risk of financial assets on an ongoing basis throughout each reporting period by comparing
the risk of a default occurring as at the reporting date with the risk of default as at the date of initial recognition. It considers
available reasonable and supportive forwarding looking information.

Recently Issued Accounting Pronouncements

The Company is an “emerging
growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups
Act of 2012 (the “ JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements
that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required
to comply with the independent registered public accounting firm attestation requirements of Section 404 of the Sarbanes-Oxley Act,
reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the
requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments
not previously approved.

Further, Section 102(b)(1) of
the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until
private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class
of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The
JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to
non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended
transition period which means that when a standard is issued