Company: GRAN
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001213900-25-069627
Chunk: 171

Company: Grande Group Ltd/HK
Filing Date: 2025-07-31
Form: 20-F
Item: Item 19
Chunk 171
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 receivables individually when specific receivables
no longer share those risk characteristics. The Company considers several factors in its estimate of the allowance, including knowledge
of a client’s financial condition, its historical collection experience, and other factors relevant to assessing the collectability
of such receivables. Bad debts are written off against allowances.

Leasehold
improvement and equipment, net

Leasehold
improvement and equipment are carried at cost less accumulated depreciation. Depreciation is provided over their estimated useful lives,
using the straight-line method. The Company typically applies a salvage value of 0 The estimated useful lives of leasehold improvement
and equipment are as follows:

  Leasehold improvement            the lesser of useful life or term of lease  
 ───────────────────────────────────────────────────────────────────────────────
  Office equipment and others      4 years                                     

The
cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts, and any gain or loss
are included in the Company’s results of operations. The costs of maintenance and repairs are recognized as incurred; significant
renewals and betterments are capitalized.

Deferred
initial public offering (“ IPO”) costs

Deferred IPO costs consist of costs incurred in
connection with the Company’s planned IPO in the United States. These costs, together with the underwriting discounts and commissions,
will be charged to additional paid-in capital upon completion of the planned IPO or charged to consolidated statements of operations if
the planned IPO is not completed. As of March 31, 2025 and 2024, the Company had deferred IPO costs of $883,293and $325,291, respectively.

F-10

  GRANDE                                      
  GROUP LIMITED                               
  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  
  FOR THE YEARS ENDED MARCH                   
  31, 2025, 2024 and 2023                     
                                              
  (Stated                                     
  in US Dollars)                              
 ──────────────────────────────────────────────

NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Revenue
recognition

Revenue
from contracts with customers

The
Company follows the rules and guidance set out under ASC 606, when recognizing revenue from contracts with customers. The core principle
of ASC 606 requires an entity to recognize revenues to depict the transfer of goods or services to customers in an amount that reflects
the consideration that it expects to be entitled to receive in exchange for those goods