Company: LHI
Filing Date: 2025-02-14
Form Type: DRS/A
Source: 0001213900-25-014190
Chunk: 256

Company: Living Homeopathy International Ltd.
Filing Date: 2025-02-14
Form: DRS/A
Chunk 256
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,833).

During the years ended March 31, 2024 and 2023,
the total amount charged to the consolidated statements of income and comprehensive income in respect of the Company’s costs incurred
on the MPF scheme were approximately $20,819 and $24,028, respectively.

Other general and administrative expenses mainly
consist of legal and professional fee, repair and maintenance, consumables, system fees, travelling, property related expenses, office
expenses and other miscellaneous administrative expenses.

Interest income is mainly generated from savings
and time deposits which are less than one year, and is recognized on an accrual basis using the effective interest method. Interest income
is received from banks on a monthly basis.

Government subsidies are recognized as income
in other income, net or as a reduction of specific costs and expenses for which the subsidies are intended to compensate. Such amounts
are recognized in the consolidated statements of income and comprehensive income upon receipt and when all conditions attached to the
grants, such as companies are required to stay in the same level of employment, are fulfilled. Such subsidies are presented under other
income. During the years ended March 31, 2024 and 2023, the Company recognized government subsidies of nil and $46,273, respectively,
in the other income of consolidated statements of income and comprehensive income.

The Company is not subject to tax on income or capital gains under
the current laws of the Cayman Islands and British Virgin Islands.

The Company’s subsidiary in Hong Kong is
subject to the income tax of Hong Kong. No taxable income was generated outside Hong Kong for the years ended March 31, 2024 and 2023.
The Company accounts for income taxes in accordance with ASC 740, “Income Taxes”. ASC 740 requires an asset and liability
approach for financial accounting and reporting for income taxes and allows recognition and measurement of deferred tax assets based upon
the likelihood of realization of tax benefits in future. Under the asset and liability approach, deferred taxes are provided for the net
tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts
used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more likely than not that they will either
expire before the Company is able to realize the benefits, or future deductibility is uncertain.

<div align='center'>F-13</div>

ASC 740-10-25 prescribes a more-likely-than-not
threshold for financial statement recognition and