Company: LHI
Filing Date: 2025-02-14
Form Type: DRS/A
Source: 0001213900-25-014190
Chunk: 252

Company: Living Homeopathy International Ltd.
Filing Date: 2025-02-14
Form: DRS/A
Chunk 252
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 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 consolidated statements of income and comprehensive income. For the years ended March 31, 2024 and 2023, $19,212 and
$183 of impairment for inventories was recognized, respectively.

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 consolidated statements
of income and comprehensive 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 March 31, 2024 and 2023, no impairment for prepayments to suppliers was made.

Prepaid expenses consist of prepaid other general
and administrative expenses.

<div align='center'>F-9</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 of assets are capitalized.

The cost and related accumulated depreciation
of assets sold or otherwise retired are removed from the accounts and any gain or loss is included in the consolidated statements of income
and comprehensive income.

Long-lived assets are evaluated for impairment
periodically whenever events or changes in circumstances indicate that their related carrying amounts may not be recoverable in accordance