Company: TOP
Filing Date: 2025-08-13
Form Type: 20-F
Source: 0001213900-25-075728
Chunk: 106

Company: TOP Financial Group Ltd
Filing Date: 2025-08-13
Form: 20-F
Item: Item 19
Chunk 106
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 For issued or modified warrants that do not meet all the criteria for equity classification,
the warrants are required to be recorded at their initial fair value on the date of issuance, and each balance sheet date thereafter
with changes in fair value recognized in the statements of income in the period of change.

F-17

TOP
Financial Group Limited

Notes
to Consolidated Financial Statements

For
the Years Ended March 31, 2025, 2024 and 2023

2.
Summary of Significant Accounting Policies (Continued)

Earnings
(loss) per share

Basic
earnings (loss) per ordinary share is computed by dividing net income (loss) attributable to ordinary shareholders by the weighted-average
number of ordinary shares outstanding during the period. Diluted earnings (loss) per share is computed by dividing net income attributable
to ordinary shareholders by the sum of the weighted average number of ordinary share outstanding and of potential ordinary share (e. g.,
convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date,
if later. Potential ordinary shares that have an anti-dilutive effect (i. e., those that increase income per share or decrease loss per
share) are excluded from the calculation of diluted earnings per share. For the years ended March 31, 2025, 2024 and 2023, the Company
had no dilutive securities.

Translation
of foreign currencies

The
functional currency is the U. S. dollar for the Company’s Cayman Islands operations, Hong Kong dollar for Hong Kong
subsidiaries’ operations, Australian dollar for the Australian subsidiary’s operation and Singapore dollar for Singapore
subsidiaries’ operations. The Company’s reporting currency is the U. S. dollar. Assets and liabilities denominated in
foreign currencies are translated at year-end exchange rates, income statement accounts are translated at average rates of exchange
for the year and equity is translated at historical exchange rates. Any translation gains or losses are recorded in other
comprehensive income (loss). Gains or losses resulting from foreign currency transactions are included in net income.

The
following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report:

                                                                     As                                    
                                                           of March 31,                                    
                                                                   2025                  2024              
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────
  HKD exchange rate                                                          7.7799                7.8259