Company: LHI
Filing Date: 2025-11-20
Form Type: F-1/A
Source: 0001213900-25-112807
Chunk: 249

Company: Living Homeopathy International Ltd.
Filing Date: 2025-11-20
Form: F-1/A
Chunk 249
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 one supplier accounted for approximately 89% and 90% of the Company’s accounts payable balance, respectively.

<div align='center'>F-14</div>

The assets that are potentially subject to credit
risk mainly consist of cash and cash equivalents.

The Company believes that there is no significant
credit risk associated with cash in Hong Kong, which were held by reputable financial institutions in the jurisdiction where Living HK
is located. As of March 31, 2025 and 2024, the Hong Kong Deposit Protection Board pays compensation up to a limit of HKD800,000 (approximately
US$102,829) and HKD500,000 (approximately US$63,890), respectively, if a bank, which an individual/a company deposits with, fails. As
of March 31, 2025 and 2024, cash balance of $2,441,802 and $2,240,676 was maintained at financial institutions in Hong Kong and approximately
$113,059 and $74,866 was insured by the Hong Kong Deposit Protection Board, respectively.

The Company is exposed to cash flow interest
rate risk through the changes in interest rates related mainly to the Company’s bank balances. The Company currently does not have
any interest rate hedging policy in relation to fair value interest rate risk and cash flow interest rate risk. The Company monitor its
exposures on an ongoing basis and will consider hedging the interest rate should the need arises.

The Company is exposed to foreign currency risk
primarily through purchases that are denominated in a currency other than the functional currency of the operations to which they relate.
The currencies giving rise to this risk are primarily US$. As HKD is currently pegged to US$, our exposure to foreign exchange fluctuations
is minimal.

Liquidity risk is the risk that the Company will
not be able to meet its financial obligations as they become due. The Company’s policy is to ensure that it has sufficient cash
to meet its liabilities when they become due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to the Company’s reputation. When necessary, the Company will turn to financial institutions and related parties to obtain
short-term funding to cover any liquidity shortage. The Company had discharged its bank borrowings during the year ended March 31, 2025.
The major remaining financial obligation is the settlement of operating lease liabilities as of March 31, 2025. The Company is not expected
to have financial difficulties in the repayment