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

Company: TOP Financial Group Ltd
Filing Date: 2025-08-13
Form: 20-F
Item: Item 4A
Chunk 20
---
ations and technology

Communications and technology expenses represent
fees we paid for the use of third party electronic trading systems, including an online stock trading system, an online futures trading
system, and another futures trading system that was a one-time incidental cost pursuant to a customer’s special request, as well
as the outsourced trading solution support services. Communications and technology expenses accounted for 19.4%, 9.0% and 8.0% of our
revenues for the years ended March 31, 2025, 2024 and 2023, respectively.

Occupancy

Occupancy expenses are the rental expenses we
paid for our office premises, which accounted for around 3.9%, 1.7% and 1.3% of our revenues for the years ended March 31, 2025, 2024
and 2023, respectively.

Travel and business development, Professional
fees and Other administrative expenses

Travel and business development expenses include
overseas and local travelling, and the entertainment expenses. Professional fees are mainly the service fees for auditing, consulting,
legal, and other professional services which are needed during the ordinary course of our business operation. Other administrative expenses
primarily consist of fees paid to the Stock Exchange of Hong Kong and Chicago Mercantile Exchange, business entertainment expenses, exchange
difference, depreciation expense, finance costs and other miscellaneous expenses such as utilities. In the year ended March 31, 2025,
we also recorded the one-off expenses we compensated for the losses incurred by our OTC derivatives customers. All of these expenses accounted
for 66.0%, 31.2% and 15.9% of our revenues for the years ended March 31, 2025, 2024 and 2023, respectively.

Allowance for expected credit loss

For the year ended March 31, 2025, the
Company provided allowance for expected credit loss of approximately $2.6 million on receivables from customers and approximately
$0.2 million on loans receivables, respectively. For the year ended March 31, 2024, the Company provided allowance for expected
credit loss of approximately $0.2 million on loans receivable. For the year ended March 31, 2023, the Company did not
provide allowance for expected credit losses.

Impairment of long-term investment

For the year ended March 31, 2025, the Company
provided impairment of