Company: TOP
Filing Date: 2025-08-13
Form Type: 20-F
Source: 0001213900-25-075728
Chunk: 96

Company: TOP Financial Group Ltd
Filing Date: 2025-08-13
Form: 20-F
Item: Item 19
Chunk 96
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GAAP”) requires the use of estimates and assumptions that affect both the reported amounts of assets and liabilities and the disclosure
of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses
during the reporting period. Actual results may differ from those estimates.

Cash
and cash equivalents

Cash
and cash equivalents consist of deposits with banks and all highly liquid investments with maturities of three months or less. The Company
maintains its cash in bank deposit accounts. The Company has not experienced any losses in such accounts. Management believes that the
Company is not exposed to any significant credit risk on cash and cash equivalents.

Restricted
cash

As
of March 31, 2025, the balance of restricted cash represents the bank balance the Company holds on behalf of customers. As of March 31,
2024, the balance of restricted cash represents the bank balance the Company holds on behalf of customers and bank deposits made to an
investment bank for OTC derivative business.

For
the bank balance the Company holds on behalf of customers, the Company maintains segregated bank accounts with authorized institutions
to hold clients’ monies arising from its normal course of business. The segregated clients’ account balance are restricted for client
transactions and governed by the Securities and Futures (Client Money) Rule under the Hong Kong Securities and Futures Ordinance (“ HKSFO”).
The Company has classified such segregated clients’ account balances as restricted cash.

Securities
owned, at fair value

Securities
owned, at fair value, mainly investment in common stocks, are recorded at fair value with the resulting realized and unrealized gains
and losses reflected in trading gains in the consolidated statements of operations and comprehensive income (loss). Realized gains and
losses from securities transactions are recorded on the identified cost basis. All securities transactions and transaction costs are
recorded on a trade date basis.

Foreign
currency forward contracts

Foreign
currency contracts are recorded at fair value in the Company’s consolidated balance sheets and are not designated as hedging instruments.
Gains or losses incurred on the remeasurement of the Company’s U. S. dollar denominated investments is recorded in the account of
trading gains.

F-9

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)

Receivables
from broker-dealers and clearing