Company: LHI
Filing Date: 2025-05-23
Form Type: F-1
Source: 0001213900-25-046955
Chunk: 283

Company: Living Homeopathy International Ltd.
Filing Date: 2025-05-23
Form: F-1
Chunk 283
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 fee. Adjustments are recorded
to write down the cost of inventories to the estimated net realizable value for slow-moving merchandises and damaged goods, which are
dependent upon factors such as historical and forecasted consumer demand, and other market conditions. The Company takes ownership, risks
and rewards of its inventories, and has sole discretion in establishing prices for goods to be sold. Write downs are recorded in cost
of revenue in the unaudited interim condensed consolidated statements of (loss) income and comprehensive (loss) income. For the six months
ended September 30, 2024 and 2023, nil impairment for inventories was recognized.

Prepayments to suppliers consist of non-refundable
prepayments made to suppliers for materials and products that have not been received. The Company maintains provision and records impairment
as an offset to the prepayments. The impairment charged is classified as “Operating expenses” in the unaudited interim condensed
consolidated statements of (loss) income and comprehensive (loss) income. The Company assesses collectability by reviewing the prepayments
on a collective basis and on an individual basis when the Company identifies specific suppliers with known disputes or collectability
issues. Prepayments are written off after all collection efforts have ceased. As of September 30, 2024 and March 31, 2024, no impairment
for prepayments to suppliers was made.

Prepaid expenses consist of prepaid other
general and administrative expenses.

<div align='center'>F-31</div>

Property and equipment are stated at cost
less accumulated depreciation and impairment losses, if any. The cost of an asset comprises its purchase price and any directly attributable
costs of bringing the asset to its present working condition and location for its intended use.

Depreciation is computed on a straight-line
basis over the estimated useful lives of the related assets. The estimated useful lives for significant property and equipment are as
follows:

|                        |     | Useful   
 life     |
| Land and building      |     | 37 years |
| Leasehold improvements |     | 5 years  |
| Motor vehicles         |     | 5 years  |
| Furniture and fixtures |     | 5 years  |
| Office equipment       |     | 5 years  |

Expenditures for maintenance and repairs,
which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and
betterments which substantially extend the useful life