Company: LHI
Filing Date: 2025-11-20
Form Type: F-1/A
Source: 0001213900-25-112807
Chunk: 241

Company: Living Homeopathy International Ltd.
Filing Date: 2025-11-20
Form: F-1/A
Chunk 241
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 spot rate |     |                 | 7.7799 |     |      | 7.8259 |

<div align='center'>F-8</div>

In preparing the consolidated financial statements
in conformity with U.S. GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosures of contingent assets and liabilities at the dates of the consolidated financial statements, as well as the reported amounts
of revenues and expenses during the reporting year. The estimates and associated assumptions are based on historical experience and various
other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgements about
carrying values of assets and liabilities that are not readily apparent from other sources. Significant items subject to such estimates
and assumptions include, but are not limited to, the allowance for expected credit losses, obsolete impairment of inventories, useful
lives of property and equipment and provision of income taxes. Actual results could differ from those estimates.

Cash and cash equivalents represent cash at bank
and demand deposits which have original maturities less than three months and are unrestricted as to withdrawal or use. As of March 31,
2025 and 2024, the Company had no cash equivalent. The Company’s cash in banks is held at well capitalized financial institutions,
but they are not FDIC insured; however, management believes that the Company is not exposed to any significant credit risk on cash and
cash equivalents.

Inventories consist of raw materials and finished
goods and are stated at the lower of cost or net realizable value. The cost of inventories is calculated using the weighted average basis.
Cost of inventories sold is charged to cost of revenue, which also includes inbound freight cost and packaging fee. Adjustments are recorded
to write down the cost of inventories to the estimated net realizable value for slow-moving merchandises and damaged goods, which are
dependent upon factors such as historical and forecasted consumer demand, and other 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, 2025 and 2024, $48,160 and
$19,212 of impairment for inventories was recognized, respectively.

Prepayments to suppliers consist of non-refundable
prepayments made to suppliers for materials and products that