Company: LHI
Filing Date: 2025-11-20
Form Type: F-1/A
Source: 0001213900-25-112807
Chunk: 123

Company: Living Homeopathy International Ltd.
Filing Date: 2025-11-20
Form: F-1/A
Chunk 123
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. Any lease with a term of 12 months or less is considered short-term.

Quantitative and Qualitative Disclosures about Market Risks

Credit risk

Our assets that are potentially subject to a significant concentration of credit risk mainly consist of cash and cash equivalents and other receivable and other current assets.

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 Homeopathy
Hong Kong is located. As of March 31, 2025 and 2024, the Hong Kong Deposit Protection Board pays compensation up to a limit of HKD800,000
(approximately $63,890) and HKD500,000 (approximately $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 $2,494,226 was maintained at financial institutions in Hong Kong
and approximately $113,059 and $74,498 was insured by the Hong Kong Deposit Protection Board, respectively.

Other receivable and other current assets are subject to credit evaluations. An allowance, where applicable, is made for estimated unrecoverable amounts that have been determined by reference to past default experience and the current economic environment.

Interest rate risk

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 directors monitor the Company’s exposures on an ongoing basis and will consider hedging the interest rate should the need arises.

Foreign currency risk

We are exposed to foreign currency risk primarily through sales 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

We are exposed to liquidity risk, which is the risk that we will be unable to provide sufficient capital resources and liquidity to meet our commitments and business needs. Liquidity risk is controlled by the application of financial position analysis and monitoring procedures. When necessary, we will turn to other financial institutions to obtain short-term funding to meet the liquidity shortage.

Recently Issued Accounting Pronouncements

We have reviewed all the recently issued, but not