Company: TOP
Filing Date: 2025-03-14
Form Type: POS AM
Source: 0001213900-25-024160
Chunk: 10

Company: TOP Financial Group Ltd
Filing Date: 2025-03-14
Form: POS AM
Chunk 10
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 only make a distribution
out of profits available for distribution. Other than the above, we did not adopt or maintain any cash management policies and procedures
as of the date of this prospectus.

The following describes the dividends and
distributions made by our subsidiaries. TFGL has not made any dividends or distributions to U.S. investors as of the date of this prospectus.

On March 24, 2020, ZYSL and ZYCL declared
interim cash dividends of HK$3.9 million (approximately US$0.5 million) and HK$1.5 million (approximately US$0.2 million), respectively,
to the then sole shareholder, i.e. the Predecessor Parent Company, Zhong Yang Holdings Limited. As of March 31, 2020, the dividend declared
by ZYCL has been fully settled by directly deducting the dividend amount from the amount due from Zhong Yang Holdings Limited, and the
dividend declared by ZYSL was recorded as dividend payable. On June 19, 2020, ZYSL settled such dividend payable in cash.

On November 25, 2020, ZYSL declared an interim
cash dividend of HK$24.8 million (equivalent to $3.2 million) to its sole shareholder ZYSL (BVI), following which event ZYSL (BVI) declared
an interim cash dividend to its sole shareholder, TFGL, and TFGL declared an interim cash dividend to its shareholders for the same amount
on the same day. None of the shareholders of TFGL at the time was a U.S. person. Without any withholding tax levied on dividends in Hong
Kong, British Virgin Islands, and Cayman Islands, the interim cash dividends were settled with the shareholders in cash on November 25,
2020.

On January 19, 2021, ZYSL declared an interim
cash dividend of HK11.6 million (equivalent to US$1.5 million) to the then sole shareholder, the Predecessor Parent Company. The dividend
was settled with the Predecessor Parent Company in cash in three installments of US$0.5 million each on January 19, 2021, January 20,
2021 and March 3, 2021.

Under the current practice of the Inland Revenue
Department of Hong Kong, no tax is payable in Hong Kong in respect of dividends paid by us. The laws and regulations of