Company: TOP
Filing Date: 2025-08-13
Form Type: 20-F
Source: 0001213900-25-075728
Chunk: 115

Company: TOP Financial Group Ltd
Filing Date: 2025-08-13
Form: 20-F
Item: Item 19
Chunk 115
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 March 31, 2025, 2024, and 2023.

F-23

TOP
Financial Group Limited

Notes
to Consolidated Financial Statements

For
the Years Ended March 31, 2025, 2024 and 2023

8.
Operating lease

As
of March 31, 2025, the Company had two non-cancelable office operating lease agreements with third-party lessors, with lease terms
ranging between two years and three years. The lease agreements mature from October 2026 through September 2027.
The Company considers the renewal or termination options that are reasonably certain to be exercised in the determination of the lease
term and initial measurement of right of use assets and lease liabilities. Lease expense for lease payment is recognized on a straight-line
basis over the lease term.

The
Company determines whether a contract is or contains a lease at inception of the contract and whether that lease meets the classification
criteria of a finance or operating lease. When available, the Company uses the rate implicit in the lease to discount lease payments
to present value; however, most of the Company’s leases do not provide a readily determinable implicit rate. Therefore, the Company
discount lease payments based on an estimate of its incremental borrowing rate. The Company’s lease agreements do not contain any
material residual value guarantees or material restrictive covenants.

The
table below presents the operating lease related assets and liabilities recorded on the balance sheets.

                           As                                               
                           of March 31,                                     
                           2025                           2024              
 ────────────────────────────────────────────────────────────────────────────
  Rights                   $                 269,664      $         59,689  
  Operating                $                 270,866      $         64,826  

The
weighted average remaining lease terms and discount rates for the above operating lease were as follows as of March 31, 2025 and 2024:

                                                     As of March 31,                                
                                                                2025                2024            
 ────────────────────────────────────────────────────────────────────────────────────────────────────
  Remaining lease term and discount rate                                                            
  Weighted average remaining lease term (years)                           2.24                0.61  
  Weighted average discount rate                                             5                   5  

During
the years ended March 31, 2025, 2024, and 2023, the Company incurred total operating lease expenses of $ 151,214