Company: TOP
Filing Date: 2025-08-13
Form Type: 20-F
Source: 0001213900-25-075728
Chunk: 28

Company: TOP Financial Group Ltd
Filing Date: 2025-08-13
Form: 20-F
Item: Item 4A
Chunk 28
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 million and US$0.1 million from the loan business.                      
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
            As of March 31, 2025, the loans receivables were                                                                                            
            comprised of principal of US$11.3 million and interest of US$0.7 million, respectively. As of March 31, 2024, the loans receivables were    
            comprised of principal of US$4.0 million and interest of US$0.1 million, respectively.                                                      
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Receivables from customers

Receivables from customers include the trading
solution services fees due from customers once the transactions have been executed and completed. As compared with the balance as of March
31, 2024, the receivables due from trading solution services decreased by 86% to US$0.5 million as of March 31, 2025. The decrease in
the balance as of March 31, 2025 was due to (i) the decrease in revenues from trading solution services during the year ended March 31,
2025, and (ii) provision of expected credit loss of approximately $2.6 million against receivable from customers during the year ended
March 31, 2025 as a result of long-aging receivable balance.

Receivables from broker-dealers and clearing
organizations

Receivables from broker-dealers and clearing organizations
arise from the business of dealing in futures or investment securities. Broker-dealers will require balances to be placed with them in
order to cover the positions taken by its customers, which are repayable on demand subsequent to settlement date. Clearing house receivables
typically represent proceeds receivable on trades that have yet to settle and are usually collected within two days. Generally, our receivables
from broker-dealers and clearing organizations change daily depending on various factors, including the trading volume in net buy/sell
transactions, futures contracts, long/short position and frequency of transactions on each specific day. Our receivables from broker-dealers
and clearing organizations increased by 200% from US$4.0 million as of March 31, 2024 to US$12.0 million as of March 31, 2025, mainly
due to such daily fluctuations.

Securities owned, at fair value

Securities owned, at fair value,