Company: TOP
Filing Date: 2025-08-13
Form Type: 20-F
Source: 0001213900-25-075728
Chunk: 27

Company: TOP Financial Group Ltd
Filing Date: 2025-08-13
Form: 20-F
Item: Item 4A
Chunk 27
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 Company’s listing on NASDAQ in the United States.

Professional fees
 - Professional fees increased by 51.2% from US$1.2 million in the year ended March 31, 2023 to US$1.8 million in the
year ended March 31, 2024. The increase in professional fees was primarily more professional expenses, such as legal expenses and
consulting expenses, was expensed for the year ended March 31, 2024 because these expenses were capitalized before the closing of
IPO in June 2022.

Income before income taxes

We had an income before income taxes of US$1.0
million and US$3.4 million in the years ended March 31, 2024 and 2023, respectively. Our operating margin was 12.3% and 35.4% in the year
ended March 31, 2024 and 2023, respectively.

Income tax benefits (expense)

Our income tax benefits changed from income tax
benefits of $63,692 for the year ended March 31, 2024 to income tax expenses of US$31,520 in the year ended March 31, 2023, which was
primarily due to an increase in the onshore profit generated by ZYSL in the year ended March 31, 2024.

Net income

As a result of the foregoing, our net income decreased
by 69.1% from US$3.4 million in the year ended March 31, 2023 to US$1.1 million in the year ended March 31, 2024.

Discussion of Certain Balance Sheet Items

The following table sets forth selected information
from our consolidated balance sheets as of March 31, 2025 and 2024. This information should be read together with our consolidated financial
statements and related notes included elsewhere in this prospectus.

                                                                  As of March 31,                   
                                                                             2025             2024  
 ────────────────────────────────────────────────────────────────────────────────────────────────────
  Assets                                                                                            
  Cash and cash equivalents                                           $12,227,380      $25,919,945  
  Restricted cash                                                       2,947,556       12,777,148  
  Receivables from broker-dealers and clearing organizations           12,023,559        4,002,982  
  Receivables from customers                                              496,823        3,510