Company: TOP
Filing Date: 2025-08-13
Form Type: 20-F
Source: 0001213900-25-075728
Chunk: 75

Company: TOP Financial Group Ltd
Filing Date: 2025-08-13
Form: 20-F
Item: Item 15
Chunk 75
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Item
15. Controls and Procedures

  (a)      Disclosure Controls and Procedures.  

Our management, with
the participation of our Chief Executive Officer and Chief Financial Officer, has performed an evaluation of the effectiveness of our
disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of the end of the period covered
by this report, as required by Rule 13a-15(b) under the Exchange Act.

Based upon that evaluation, our management has
concluded that, as of March 31, 2025, our disclosure controls and procedures were ineffective as our management has identified a material
weakness that has been identified related to our lack of sufficient financial reporting and accounting personnel with appropriate knowledge
of the generally accepted accounting principles in the United States (“ U. S. GAAP”) and SEC reporting requirements to properly
address complex U. S. GAAP accounting issues and to prepare and review our consolidated financial statements and related disclosures to
fulfill U. S. GAAP and SEC financial reporting requirements. The other material weakness that has been identified related to our lack of
formal policies and procedures for the CECL process, including insufficient
estimation and review process, inadequate support for key assumptions and documentation, and deficiencies in quantitative factor adjustments.

To remedy the identified material weaknesses,
we have implemented and will continue to implement several measures to improve our internal control over financial reporting, including:
(i) that we engaged experienced financial consultant who worked closely with our internal finance team to assist us in preparing our financial
statements and related disclosures in accordance with U. S. GAAP; (ii) that our Chief Financial Officer received additional training in
U. S. GAAP through self-study and webinar courses, and began to periodically review major accounting literature updates provided by a major
accounting firm which provide an overview of recent U. S. accounting pronouncements. (iii) conducting regular and continuous U. S. GAAP
training programs and webinars for our financial reporting and accounting personnel; (iv) improving financial oversight function for handling
complex accounting issues under U. S. GAAP. However, the implementation of these measures may not fully address the deficiencies in our
internal control over financial reporting. We are not able to estimate with reasonable certainty the costs that we will need to incur
to implement these and other measures designed to improve our internal control over financial reporting. See “ Risk Factors - Risks
Relating to Our Business and Industry -