Company: LHI
Filing Date: 2025-08-08
Form Type: F-1/A
Source: 0001213900-25-073646
Chunk: 116

Company: Living Homeopathy International Ltd.
Filing Date: 2025-08-08
Form: F-1/A
Chunk 116
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 indicated.

|                              |     | For the years ended 
 March 31,           |    2025 |     |   |    2024 |
|:-----------------------------|:----|:--------------------|--------:|:----|:--|--------:|
| Current income tax provision |     | $                   | 217,396 |     | $ | 139,634 |
| Deferred income tax          |     |                     |  28,756 |     |   |   1,983 |
| Total income taxes expenses  |     | $                   | 246,152 |     | $ | 141,617 |

We generated substantially all of our taxable
income in Hong Kong and no taxable income. The deferred tax assets mainly represented temporary differences arising from acceleration
of depreciation on property and equipment and impairment for inventories. Our effective income tax rate was 23.3% and 15.8% for the years
ended March 31, 2025 and 2024, respectively. The increase in our effective income tax rate was due to (i) non-deductible expense relating
to IPO related expenses.

Liquidity and Capital Resources

Net current assets

The table below sets forth a breakdown of our current assets and liabilities as of the dates indicated.

| Current assets:                           |     | As of March 31, 
 2025            |           |     | 2024 |           |     | Variance 
 Amount   |            |   |     | % |       |    |
|:------------------------------------------|:----|:----------------|----------:|:----|:-----|----------:|:----|:---------|-----------:|:--|:----|:--|------:|:---|
| Cash and cash equivalents                 |     | $               | 2,494,226 |     | $    | 2,314,926 |     | $        |    179,300 |   |     |   |   7.7 | %  |
| Inventories, net                          |     |                 |   722,709 |     |      | 1,104,863 |     |          |   (382,154 | ) |     |   | (34.6 | )% |
| Prepayments to suppliers                  |     |                 |   530,136 |     |      |   345,698 |     |          |    184,438 |   |     |