Company: LHI
Filing Date: 2025-05-23
Form Type: F-1
Source: 0001213900-25-046955
Chunk: 290

Company: Living Homeopathy International Ltd.
Filing Date: 2025-05-23
Form: F-1
Chunk 290
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 accounted for approximately 97% of the Company’s accounts payable balance. As ofMarch 31, 2024, one supplier accounted for approximately 90% of the Company’s accounts payable balance.

The assets that are potentially subject to
credit risk mainly consist of cash and cash equivalents.

The Company believes that there is no significant
credit risk associated with cash in Hong Kong, which were held by reputable financial institutions in the jurisdiction where Living HK
is located. The Hong Kong Deposit Protection Board pays compensation up to a limit of HKD500,000 (approximately US$64,356) if a bank,
which an individual/a company deposits with, fails. As of September 30, 2024 and March 31, 2024, cash balance of $2,290,247 and $2,240,676
was maintained at financial institutions in Hong Kong and approximately $74,851 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 borrowings and 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. As of September 30, 2024, the major financial obligation is repayment of
amount due to related parties, 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