Company: LHI
Filing Date: 2025-05-23
Form Type: F-1
Source: 0001213900-25-046955
Chunk: 257

Company: Living Homeopathy International Ltd.
Filing Date: 2025-05-23
Form: F-1
Chunk 257
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 or as a reduction of specific costs and expenses for which the subsidies are intended to compensate. Such amounts
are recognized in the consolidated statements of income and comprehensive income upon receipt and when all conditions attached to the
grants, such as companies are required to stay in the same level of employment, are fulfilled. Such subsidies are presented under other
income. During the years ended March 31, 2024 and 2023, the Company recognized government subsidies of nil and $46,273, respectively,
in the other income of consolidated statements of income and comprehensive income.

The Company is not subject to tax on income or capital gains under
the current laws of the Cayman Islands and British Virgin Islands.

The Company’s subsidiary in Hong Kong is
subject to the income tax of Hong Kong. No taxable income was generated outside Hong Kong for the years ended March 31, 2024 and 2023.
The Company accounts for income taxes in accordance with ASC 740, “Income Taxes”. ASC 740 requires an asset and liability
approach for financial accounting and reporting for income taxes and allows recognition and measurement of deferred tax assets based upon
the likelihood of realization of tax benefits in future. Under the asset and liability approach, deferred taxes are provided for the net
tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts
used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more likely than not that they will either
expire before the Company is able to realize the benefits, or future deductibility is uncertain.

<div align='center'>F-13</div>

ASC 740-10-25 prescribes a more-likely-than-not
threshold for financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. It also
provides guidance on the recognition of income tax assets and liabilities, classification accounting for interest and penalties associated
with tax positions, years open for tax examination, accounting for income taxes in interim periods and income tax disclosures. There were
no material uncertain tax positions as of March 31, 2024 and 2023.

The Company identifies related parties, accounts
for, and discloses related party transactions in accordance with ASC 850, “Related Party Disclosures” and other relevant ASC
standards.

The Company presents comprehensive income in accordance
with ASC Topic 220, Comprehensive Income, (“ASC 220”). ASC 220 states that all items that are required to