Company: TOP
Filing Date: 2025-08-13
Form Type: 20-F
Source: 0001213900-25-075728
Chunk: 29

Company: TOP Financial Group Ltd
Filing Date: 2025-08-13
Form: 20-F
Item: Item 4A
Chunk 29
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 mainly represented
investments in both US stocks, all of which are on S& P500 index, and in HK stocks.

Payable to holders of structured notes

Payables to holders of structured notes arise
from the OTC derivatives business which was launched in the year ended March 31, 2024. The holders subscribed for structured notes by
depositing investment amount to the Company’s account. The payables to holders of structured note represent outstanding payables
due to the holders of structured notes, which was calculated by the principal amount plus gains or minus losses arising from the investments
in OTC derivatives business. The Company terminated investments in OTC derivative business and settled the outstanding payables to holders
of structure notes. As of March 31, 2025 and 2024, we had outstanding payables of US$nil and US$6.1 million due to holders of structured
notes, respectively.

Payables to customers

Payables to customers represent payables related
to the Company’s customer trading activities, which include the cash deposits received by the Company as requested by third party
broker-dealers to place with them in order to cover the positions taken by its customers, clearing house payables due on pending trades
and payable on demand, as well as the bank balances held on behalf of customers. Our payables to customers change daily depending on various
factors, including the trading volume, net buy/sell transactions, futures contracts, long/short position and frequency of transactions
on each specific day. The balances as of March 31, 2025 and 2024 kept stable at US$11.0 million and US$10.3 million, respectively.

5. B. Liquidity and Capital Resources

On June 3, 2022, the Company completed its initial
public offering on the National Association of Securities Dealers Automated Quotations (“ NASDAQ”). In this offering, 5,000,000 ordinary
shares were issued at a price of $5.00 per share. The gross proceeds received from the initial public offering totaled US$ 25.0 million.

On February 14, 2024, the Company closed a registered
direct offering registered under the Securities Act of 1933, as amended, pursuant to a prospectus supplement to the Company’s registration
statement on Form F-3 (File No. 333-273066), which was initially filed with the SEC on June 30, 2023 and declared effective
on September 29