SUBSIDIARY ANALYSIS :

1. AR Digital Wealth Private Limited:

The Company ARDWPL – AR Digital Wealth Pvt Ltd aims to offer a packaged Investment solution for clients in the Mass affluent segment that are seeking to grow their Wealth. It seeks to build a Scalable and Profitable model by using a blend of Technology capabilities and Human interface. The Business has seen encouraging results in its attempt to build a Partner led distribution model through whom this packaged Investment solution is delivered. These Partners are AMFI registered Mutual Fund Distributors who are seeking to grow their business by taking the Anand Rathi brand, Product research, Selection and Investment Insights to their clients through an innovative easy-to- use Technology interface.

The operating revenue of ARDWPL for FY 2021 stood at Rs. 515.91 Lakhs as compared to previous year operating revenue of Rs. 463.16 Lakhs.

2. Freedom Intermediary Infrastructure Private Limited:

FIINFRA has built a digital Platform-as-a-Service (PAAS) model, “Omni Financial Advisor (OFA)”, for assisting independent financial advisors (IFAs) in their advisory business. It is now being used by more than 5,000 IFAs across the country. This web and mobile platform based solution allows independent financial advisors in execution, tracking and reporting of the investment made by their clients without any human involvement.

The operating revenue of FIINFRA for FY 2021 stood at Rs. 496.42 Lakhs as compared to previous year operating revenue of Rs. 455.37 Lakhs.

3. Freedom Wealth Solutions Private Limited:

SEBI has amended the SEBI (Investment Advisers) Regulations, 2013 via circular dated September 23, 2020, which inter alia provides that a non-individual investment adviser shall have client level segregation at group level for investment advisory and distribution services and the same client cannot be offered both advisory and distribution services within the group of the non-individual entity. Such changes have come into force on September 30, 2020 and from even date we have discontinued our operations under the SEBI (Investment Advisers) Regulations, 2013 though we continue hold Investment Advisory license.

The operating revenue of FWSPL for FY 2021 stood at Rs. 149.06 Lakhs as compared to previous year operating revenue of Rs. 128.85 Lakhs.

Revenues were adversely affected due to the sharp volatility and fall in markets due to the pandemic, which lead to lower fee incomes and trading losses. This was offset to some extent by the company by rationalisation of manpower and other costs during the course of the year, which have also created long term efficiency gains. There has been significant rebound in revenues in the last quarter and during first 2 months of the current financial year.

There is significant improvement in the working of subsidiaries during previous year helping improvement in consolidated results.