Company: TOP
Filing Date: 2025-08-13
Form Type: 20-F
Source: 0001213900-25-075728
Chunk: 24

Company: TOP Financial Group Ltd
Filing Date: 2025-08-13
Form: 20-F
Item: Item 4A
Chunk 24
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 ended March 31, 2024, the allowance for expected credit loss increased
by approximately $2.7 million, which was primarily due to allowance of approximately $2.6 million against receivable from customers due
to long aging.

Impairment of long-term investment - 
For the year ended March 31, 2025, the Company provided impairment of approximately $0.3 million against investment in a limited partnership.
During the year ended March 31, 2025, the limited partnership make investment in an investee which incurred significant loss for the year
of 2025 and presented accumulated loss as of March 31, 2025. The Company assessed that the decline in fair value of long-term investment
to be other-than-temporary and provided full impairment against the investment in the limited partnership. For the year ended March 31,
2024, the Company did not provide impairment against long-term investments.

Other administrative expenses - Other
administrative expenses increased by 294.3% from US$0.4 million in the year ended March 31, 2024 to US$1.6 million in the year ended March
31, 2025. The increase was primarily because we compensated losses of US$1.5 million incurred by our OTC derivatives customers when we
terminated the OTC derivative business.

Income (loss) before income taxes

We had a loss before income taxes of US$5.8 million
and an income before income taxes of US$1.0 million in the years ended March 31, 2025 and 2024, respectively. Our operating margin was
negative 174.9% and positive 12.3% in the year ended March 31, 2025 and 2024, respectively.

Income tax benefits (expense)

We had income tax expenses of approximately US$0.1
million and income tax benefits of US$63,692 for the year ended March 31, 2025 and 2024, respectively. The change in income tax benefits
(expenses) was primarily due to an increase in the onshore profit generated by ZYSL and Winrich Finance in the year ended March 31, 2025.

Net income (loss)

As a result of the foregoing, we reported net
loss of US$6.0 million and net income of US$1.1 million for the years ended March 31, 2025 and 2024, respectively.

Year ended March 31,