Company: KMRK
Filing Date: 2025-01-02
Form Type: DRS
Source: 0001213900-25-000267
Chunk: 176

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-01-02
Form: DRS
Chunk 176
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 foreign currencies are initially recorded at the functional currency rate ruling at the date of transaction. Any differences between the initially recorded amount and the settlement amount are recorded as a gain or loss on foreign currency transaction in the combined statements of operations and comprehensive income. The exchanges rates used for translation from Hong Kong dollar to USD are ranging from 7.75 and 7.85, a pegged rate determined by the linked exchange rate system in Hong Kong. This pegged rate was used to translate Company’s balance sheets, income statement items and cash flow items for both 2024 and 2023.

|                                     |     | For the year ended March 31, 
                         2023 |     |    2024 |
|:------------------------------------|:----|-----------------------------:|:----|--------:|
| Year-end HKD: US$ exchange rate     |     |                      7.84967 |     | 7.82418 |
| Year average HKD: US$ exchange rate |     |                      7.83978 |     | 7.82381 |

Cash and Cash Equivalents Cash and cash equivalents consist of cash held in banks, which are highly liquid and have original maturities of three months or less and are unrestricted as to withdrawal or use. The Company maintains all bank accounts in Hong Kong. The Company maintains most of its bank account in Hong Kong.

F-8

K-TECH SOLUTIONS COMPANY LIMITED AND SUBSIDIARYNOTES TO COMBINED FINANCIAL STATEMENTS
(Currency expressed in United States Dollars (“US$”) NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) Accounts Receivable, net Accounts receivable represents an unconditional right to consideration arising from our performance under contracts with customers. The Company grant credits to customers, without collateral, under normal payment terms (typically within 30 days after invoicing). The carrying value of such receivable, net of allowance of expected credit loss, represents its estimated realizable value. The Company expect to collect the outstanding balance of current accounts receivable, net within the next 12 months. The Company use loss -ratemethods to estimate allowance for credit loss. For those past due balances over 1 year and other higher risk receivables identified by management are reviewed individually for collectability. In establishing an allowance for credit losses, the Company use reasonable and supportable information, which is based on historical collection experience, the financial condition of its customers and assumptions for the future movement of