Company: LHI
Filing Date: 2025-09-29
Form Type: F-1/A
Source: 0001213900-25-092499
Chunk: 251

Company: Living Homeopathy International Ltd.
Filing Date: 2025-09-29
Form: F-1/A
Chunk 251
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 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.

The Company’s major operations are conducted
in Hong Kong. Accordingly, the political, economic, and legal environments in Hong Kong, as well as the general state of Hong Kong’s
economy may influence the Company’s business, financial condition, and results of operations.

From time to time, new accounting pronouncements
are issued by the FASB or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise
discussed, the Company believes