Company: TOP
Filing Date: 2025-08-13
Form Type: 20-F
Source: 0001213900-25-075728
Chunk: 70

Company: TOP Financial Group Ltd
Filing Date: 2025-08-13
Form: 20-F
Item: Item 11
Chunk 70
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ivables from brokers and dealers, and amount due from a
related company. We consider the maximum exposure to credit risk equals to the carrying amount of these financial assets in the consolidated
statement of financial position.

For bank deposits and receivables from brokers
and dealers, the credit risk is limited as the counterparties are reputable financial institutions, brokers, dealers or clearing houses,
which are governed by regulators including the Hong Kong Monetary Authority, and the HKSFC. The credit risk exposure arising from the
amount due to a related company is considered to be minimal as the related company is owned by our major shareholder and under common
control.

Other than concentration of credit risk on liquid
funds which are deposited with several banks with high credit ratings, we do not have any other significant concentrations of credit risk.

To mitigate the credit risk from defaults, we
have adopted a credit policy of dealing with creditworthy counterparties only, which are also under continuous monitoring. Our credit
exposure is controlled by counterparty limits that are reviewed and approved by our senior management periodically.

Price risk

Price risk is the risk that the value of a financial
instrument will fluctuate as a result of changes in market prices, whether those changes are caused by factors specific to the individual
instrument or all instruments in the market. We are exposed to price risk in respect of financial instruments held for proprietary trading,
which comprises investments in certain equity securities. The exposure is limited to the carrying amount of the financial instruments.

Item
12. Description of Securities Other than Equity Securities