Company: LHI
Filing Date: 2025-01-27
Form Type: DRS/A
Source: 0001213900-25-006939
Chunk: 238

Company: Living Homeopathy International Ltd.
Filing Date: 2025-01-27
Form: DRS/A
Chunk 238
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 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
with FASB ASC 360, “Property, Plant and Equipment”. In evaluating long-lived assets for recoverability, the Company uses
its best estimate of future cash flows expected to result from the use of the asset and eventual disposition in accordance with FASB ASC 360-10-15.
To the extent that estimated future undiscounted cash inflows attributable to the asset, less estimated future undiscounted cash