Cover
Cover - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Aug. 01, 2023 | |
Cover [Abstract] | ||
Document Type | 10-K | |
Document Annual Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Current Fiscal Year End Date | --03-31 | |
Document Transition Report | false | |
Entity File Number | 001-33034 | |
Entity Registrant Name | FREEDOM HOLDING CORP. | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 30-0233726 | |
Entity Address, Address Line One | “Esentai Tower” BC, Floor 7 | |
Entity Address, Address Line Two | 77/7 Al Farabi Ave | |
Entity Address, City or Town | Almaty | |
Entity Address, Country | KZ | |
Entity Address, Postal Zip Code | 050040 | |
City Area Code | +7 727 | |
Local Phone Number | 311 10 64 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | FRHC | |
Security Exchange Name | NASDAQ | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
ICFR Auditor Attestation Flag | true | |
Entity Shell Company | false | |
Entity Public Float | $ 791,519,572 | |
Entity Common Stock, Shares Outstanding | 59,659,191 | |
Entity Central Index Key | 0000924805 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | FY | |
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Auditor Information [Abstract] | ||
Auditor firm ID | 1056 | 374 |
Auditor name | Deloitte LLP | WSRP, LLC |
Auditor location | Almaty, Kazakhstan | Salt Lake City, Utah |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
ASSETS | ||
Cash and cash equivalents (including $35,549 and $22,787 from related parties) | $ 581,417 | $ 225,464 |
Restricted cash (including $114,885 and $222,651 from related parties) | 445,528 | 547,950 |
Trading securities | 2,412,556 | 1,158,377 |
Available-for-sale securities, at fair value | 239,053 | 161,364 |
Margin lending, brokerage and other receivables, net (including $294,985 and $107,649 from related parties) | 376,329 | 147,659 |
Loans issued (including $121,177 and $35,293 from related party) | 826,258 | 92,446 |
Fixed assets, net | 54,017 | 17,823 |
Intangible assets, net | 17,615 | 5,163 |
Goodwill | 14,192 | 5,898 |
Right-of-use asset | 30,345 | 7,431 |
Insurance contract assets | 13,785 | 5,712 |
Other assets, net (including $16,089 and $— from related party) | 73,463 | 29,641 |
Assets held for sale | 0 | 825,419 |
Total assets | 5,084,558 | 3,230,347 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Securities repurchase agreement obligations | 1,517,416 | 840,224 |
Customer liabilities (including $130,210 and $325,904 from related parties) | 1,925,247 | 765,628 |
Margin lending and trade payables (including $3,239 and $38,889 to related parties) | 122,900 | 45,083 |
Liabilities from insurance activity | 182,502 | 122,087 |
Current income tax liability | 4,547 | 14,556 |
Securities sold, not yet purchased - at fair value | 0 | 13,865 |
Debt securities issued | 60,025 | 34,390 |
Lease liability | 30,320 | 7,504 |
Payable for acquisition | 7,188 | 0 |
Liability arising from continuing involvement | 440,805 | 6,447 |
Other liabilities | 22,872 | 21,477 |
Liabilities held for sale | 0 | 812,478 |
Total liabilities | 4,313,822 | 2,683,739 |
Commitments and Contingent Liabilities (Note 31) | 0 | 0 |
SHAREHOLDERS' EQUITY | ||
Preferred stock - $0.001 par value; $20,000,000 shares authorized, no shares issued or outstanding | 0 | 0 |
Common stock - $0.001 par value; 500,000,000 shares authorized; 59,659,191 and 59,542,212 shares issued and outstanding as of March 31, 2023 and March 31, 2022, respectively | 59 | 59 |
Additional paid in capital | 164,162 | 174,745 |
Retained earnings | 647,064 | 441,924 |
Accumulated other comprehensive loss | (34,000) | (63,125) |
TOTAL FRHC SHAREHOLDERS’ EQUITY | 777,285 | 553,603 |
Non-controlling interest | (6,549) | (6,995) |
TOTAL SHAREHOLDERS' EQUITY | 770,736 | 546,608 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 5,084,558 | $ 3,230,347 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Restricted cash, related parties | $ 445,528 | $ 547,950 |
Margin lending, brokerage and other receivables, related parties | 376,329 | 147,659 |
Loans issued, related parties | 826,258 | 92,446 |
Other assets, related parties | 73,463 | 29,641 |
Deposit liabilities, related parties | 130,210 | 325,904 |
Margin lending and trade payables, related parties | $ 122,900 | $ 45,083 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, issued (in shares) | 59,659,191 | 59,542,212 |
Common stock, outstanding (in shares) | 59,659,191 | 59,542,212 |
Related party | ||
Cash and cash equivalents, related parties | $ 35,549 | $ 22,787 |
Margin lending, brokerage and other receivables, related parties | 294,985 | 107,649 |
Loans issued, related parties | 121,177 | 35,293 |
Other assets, related parties | 16,089 | 0 |
Margin lending and trade payables, related parties | $ 3,239 | $ 38,889 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND STATEMENTS OF OTHER COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue: | |||
Fee and commission income (including $199,235, $291,163 and $184,725 from related parties) | $ 327,215 | $ 335,211 | $ 216,008 |
Net gain on trading securities | 71,084 | 155,252 | 28,807 |
Interest income | 294,695 | 121,609 | 38,474 |
Insurance underwriting income | 115,371 | 72,981 | 62,951 |
Net gain on foreign exchange operations | 52,154 | 3,791 | 557 |
Total net (loss)/gain on derivatives | (64,826) | 946 | 86 |
TOTAL REVENUE, NET | 795,693 | 689,790 | 346,883 |
Expense: | |||
Fee and commission expense (including $2,988, $16,307 and $20,291 from related parties) | 65,660 | 85,909 | 70,537 |
Interest expense: | 208,947 | 76,947 | 22,444 |
Insurance claims incurred, net of reinsurance | 77,329 | 54,447 | 52,405 |
Payroll and bonuses | 81,819 | 46,288 | 23,435 |
Professional services | 17,006 | 12,682 | 4,430 |
Stock compensation expense | 9,293 | 7,859 | 114 |
Advertising expense | 14,059 | 11,916 | 6,971 |
General and administrative expense | 59,971 | 23,533 | 11,118 |
Provision for impairment losses | 29,119 | 2,502 | 1,590 |
Other (income)/expense, net | (3,448) | 4,014 | 2,034 |
TOTAL EXPENSE | 559,755 | 326,097 | 195,078 |
NET INCOME BEFORE INCOME TAX | 235,938 | 363,693 | 151,805 |
Income tax expense | (42,776) | (38,570) | (23,307) |
INCOME FROM CONTINUING OPERATIONS | 193,162 | 325,123 | 128,498 |
Income/(loss) before income tax (expense)/benefit of discontinued operations | 68,160 | (117,199) | 28,518 |
Reclassification of loss from cumulative translation adjustment of discontinued operations | (25,415) | 0 | 0 |
Loss from divestiture of discontinued operations | (26,118) | 0 | 0 |
Income tax benefit/(expense) of discontinued operations | (4,203) | 13,004 | (6,735) |
Income/(loss) from discontinued operations | 12,424 | (104,195) | 21,783 |
NET INCOME | 205,586 | 220,928 | 150,281 |
Less: Net income/(loss) attributable to non-controlling interest in subsidiary | 446 | (6,566) | 631 |
NET INCOME ATTRIBUTABLE TO CONTROLLING INTEREST | 205,140 | 227,494 | 149,650 |
OTHER COMPREHENSIVE INCOME | |||
Change in unrealized gain on investments available-for-sale, net of tax effect | 1,431 | (4,292) | (304) |
Reclassification adjustment relating to available-for-sale investments disposed of in the period, net of tax effect | (2,916) | 2,222 | 2,092 |
Reclassification of loss from cumulative translation adjustment of discontinued operations | 25,415 | 0 | 0 |
Foreign currency translation adjustments, net of tax effect | 5,195 | (20,622) | 2,787 |
OTHER COMPREHENSIVE INCOME/(LOSS) | 29,125 | (22,692) | 4,575 |
COMPREHENSIVE INCOME BEFORE NON-CONTROLLING INTERESTS | 234,711 | 198,236 | 154,856 |
Less: Comprehensive income/(loss) attributable to non-controlling interest in subsidiary | 446 | (6,566) | 631 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING INTEREST | $ 234,265 | $ 204,802 | $ 154,225 |
Earnings from continuing operations per common share - basic | $ 3.29 | $ 5.59 | $ 2.19 |
Earnings from continuing operations per common share - diluted | 3.24 | 5.59 | 2.19 |
Earnings/(loss) from discontinued operations per common share - basic | 0.21 | (1.75) | 0.37 |
Earnings/(loss) from discontinued operations per common share - diluted | 0.21 | (1.75) | 0.37 |
Earnings per common share - basic (USD per share) | 3.50 | 3.84 | 2.56 |
Earnings per common share - diluted (USD per share) | $ 3.45 | $ 3.84 | $ 2.56 |
Weighted average number of shares (basic) (in shares) | 58,629,580,000 | 59,378,207,000 | 58,388,445,000 |
Weighted average number of shares (diluted) (in shares) | 59,504,811,000 | 59,378,207,000 | 58,442,921,000 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND STATEMENTS OF OTHER COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Fee and commission income, related parties | $ 327,215 | $ 335,211 | $ 216,008 |
Interest income, related parties | 294,695 | 121,609 | 38,474 |
Fee and commission expense, related parties | 65,660 | 85,909 | 70,537 |
Related party | |||
Fee and commission income, related parties | 199,235 | 291,163 | 184,725 |
Interest income, related parties | 23,191 | 10,191 | 2,250 |
Fee and commission expense, related parties | $ 2,988 | $ 16,307 | $ 20,291 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional paid in capital | Retained earnings | Accumulated other comprehensive loss | Total equity attributable to the shareholders | Non-controlling interest |
Shares issued, beginning of period (in shares) at Mar. 31, 2020 | 58,358,212,000 | ||||||
Equity, beginning of period at Mar. 31, 2020 | $ 149,369 | $ 58 | $ 131,811 | $ 64,780 | $ (45,008) | $ 151,641 | $ (2,272) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock based compensation (in shares) | 15,000,000 | ||||||
Stock based compensation | 1,147 | 1,147 | 1,147 | ||||
Share based payment (in shares) | 10,000,000 | ||||||
Share based payment | 517 | 517 | 517 | ||||
Exercise of options (in shares) | 60,000,000 | ||||||
Exercise of options | 118 | 118 | 118 | ||||
Capital contribution of Shareholder | 1,667 | 1,667 | 1,667 | ||||
Other comprehensive reserve | 2,092 | ||||||
Other comprehensive reserve | 1,788 | 1,788 | 1,788 | ||||
Foreign currency translation adjustments, net of tax effect | 2,787 | 2,787 | 2,787 | ||||
Net income | 150,281 | 149,650 | 149,650 | 631 | |||
Shares issued, end of period (in shares) at Mar. 31, 2021 | 58,443,212,000 | ||||||
Equity, end of period at Mar. 31, 2021 | 307,674 | $ 58 | 135,260 | 214,430 | (40,433) | 309,315 | (1,641) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock based compensation (in shares) | 1,039,000,000 | ||||||
Stock based compensation | 15,746 | $ 1 | 15,745 | 15,746 | |||
Exercise of options (in shares) | 60,000,000 | ||||||
Exercise of options | 119 | 119 | 119 | ||||
Capital contribution of Shareholder | 24,417 | 24,417 | 24,417 | ||||
Other comprehensive reserve | 2,222 | ||||||
Sale of Freedom UA shares | 416 | (796) | (796) | 1,212 | |||
Other comprehensive reserve | (2,070) | (2,070) | (2,070) | ||||
Foreign currency translation adjustments, net of tax effect | (20,622) | (20,622) | (20,622) | ||||
Net income | 220,928 | 227,494 | 227,494 | (6,566) | |||
Shares issued, end of period (in shares) at Mar. 31, 2022 | 59,542,212,000 | ||||||
Equity, end of period at Mar. 31, 2022 | 546,608 | $ 59 | 174,745 | 441,924 | (63,125) | 553,603 | (6,995) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock based compensation (in shares) | 57,216,000 | ||||||
Stock based compensation | 11,038 | 11,038 | 11,038 | ||||
Exercise of options (in shares) | 59,763,000 | ||||||
Capital contribution of Shareholder | 677 | 677 | 677 | ||||
Other comprehensive reserve | (2,916) | ||||||
Issuance of shares of common stock | 4,290 | 4,290 | 4,290 | ||||
Acquisition of insurance companies | (26,588) | (26,588) | (26,588) | ||||
Other comprehensive reserve | (1,485) | (1,485) | (1,485) | ||||
Reclassification of loss from cumulative translation adjustment of discontinued operations | 25,415 | 0 | 25,415 | 25,415 | |||
Foreign currency translation adjustments, net of tax effect | 5,195 | 5,195 | 5,195 | ||||
Net income | 205,586 | ||||||
Net income | 205,586 | 205,140 | 205,140 | 446 | |||
Shares issued, end of period (in shares) at Mar. 31, 2023 | 59,659,191,000 | ||||||
Equity, end of period at Mar. 31, 2023 | $ 770,736 | $ 59 | $ 164,162 | $ 647,064 | $ (34,000) | $ 777,285 | $ (6,549) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Cash Flows From Operating Activities | |||
Net income | $ 205,586 | $ 220,928 | $ 150,281 |
Net income/(loss) from discontinued operations | 12,424 | (104,195) | 21,783 |
Net income from continuing operations | 193,162 | 325,123 | 128,498 |
Adjustments to reconcile net income used in operating activities: | |||
Depreciation and amortization | 5,138 | 3,416 | 2,688 |
Noncash lease expense | 5,113 | 3,546 | 2,573 |
Subsidiaries goodwill impairment | 0 | 832 | 0 |
Change in deferred taxes | (811) | (4,681) | 1,651 |
Stock compensation expense | 9,293 | 7,859 | 114 |
Share based payment | 0 | 0 | 517 |
Unrealized (gain)/loss on trading securities | (107,310) | 50,987 | (8,672) |
Unrealized (gain)/loss on derivatives | (12) | 0 | 0 |
Net realized (gain)/loss on available-for-sale securities | (2,934) | 2,222 | 2,092 |
Net change in accrued interest | (56,478) | (15,940) | (14,947) |
Change in insurance reserves | 50,671 | 37,087 | 52,712 |
Allowances for receivables | 29,119 | 2,502 | 1,590 |
Changes in operating assets and liabilities: | |||
Trading securities | (1,019,191) | (608,622) | (466,591) |
Margin lending, brokerage and other receivables (including $(187,336), $(97,783), and $54,973 changes from related parties) | (253,301) | (103,756) | 20,972 |
Insurance contract assets | 3,217 | (2,316) | (1,033) |
Other assets | (12,302) | (9,468) | (8,809) |
Securities sold, not yet purchased – at fair value | (13,865) | 5,296 | 8,508 |
Brokerage customer liabilities (including $(195,694), $90,444, and $224,173 changes from related parties) | 105,942 | (23,167) | 432,245 |
Current income tax liability | (10,019) | 357 | 11,571 |
Margin lending and trade payables (including $(35,650), $25,079, and $9,504 changes from related parties) | 163,763 | 26,062 | 16,506 |
Lease liabilities | (5,284) | (3,670) | (2,378) |
Liabilities from insurance activity | (10,769) | 1,982 | 760 |
Other liabilities | (730) | 10,484 | 1,813 |
Net cash flows used in operating activities from continuing operations | (927,588) | (293,865) | 182,380 |
Net cash flows from/(used in) operating activities from discontinued operations | (24,095) | (112,500) | 347,017 |
Net cash flows used in operating activities | (951,683) | (406,365) | 529,397 |
Cash Flows From/(Used by) Investing Activities | |||
Purchase of fixed assets | (38,542) | (5,623) | (1,518) |
Proceeds from sale of fixed assets | 0 | 0 | 15 |
Net change in loans issued to customers | (715,038) | (86,376) | (1,120) |
Purchase of available-for-sale securities, at fair value | (330,095) | (248,739) | (273,818) |
Proceeds from sale of available-for-sale securities, at fair value | 260,634 | 198,798 | 190,344 |
Cash received from divestiture of Russian subsidiaries | 51,506 | 0 | 0 |
Prepayment on acquisitions | (22,462) | 0 | 0 |
Consideration paid for LD Micro | (4,000) | 0 | 0 |
Consideration paid for Zerich | 0 | 0 | (7,110) |
Consideration paid for PrimeEx | 0 | 0 | (2,500) |
Consideration paid for Freedom Bank KZ | 0 | 0 | (53,097) |
Consideration paid for acquisition of London Almaty | (13,652) | 0 | 0 |
Consideration paid for acquisition of Freedom Life and Freedom Insurance | (26,588) | 0 | 0 |
Consideration paid for Paybox | (11,617) | 0 | 0 |
Cash, cash equivalents and restricted cash received from acquisitions | 16,348 | 0 | 157,382 |
Net cash flows used in investing activities from continuing operations | (833,506) | (141,940) | 8,578 |
Net cash flows used in investing activities from discontinued operations | (629,738) | (4,383) | (2,232) |
Net cash flows used in investing activities | (1,463,244) | (146,323) | 6,346 |
Cash Flows From Financing Activities | |||
Proceeds from securities repurchase agreement obligations | 637,392 | 427,619 | 383,346 |
Proceeds from issuance of debt securities | 45,946 | 13,200 | 3,626 |
Repurchase of debt securities | (23,387) | (9,988) | (8,350) |
Repurchase of mortgage loans under the State Program | (14,806) | (146) | 0 |
Funds received under state program for financing of mortgage loans | 435,713 | 7,022 | 0 |
Net change in bank customer deposits | 1,011,147 | 141,497 | 8,234 |
Proceeds from loans received | 0 | 0 | 3,300 |
Repayment of loans received | (4,867) | 0 | 0 |
Capital contributions | 677 | 0 | 1,667 |
Exercise of options | 0 | 119 | 118 |
Net cash flows from financing activities from continuing operations | 2,087,815 | 579,323 | 391,941 |
Net cash flows from financing activities from discontinued operations | 45,566 | 39,205 | 100,582 |
Net cash flows from financing activities | 2,133,381 | 618,528 | 492,523 |
Effect of changes in foreign exchange rates on cash and cash equivalents and restricted cash from continued operations | 43,689 | (14,132) | (477) |
Effect of changes in foreign exchange rates on cash and cash equivalents and restricted cash from discontinued operations | 34,502 | (40,288) | (5,652) |
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (203,355) | 11,420 | 1,022,137 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD FROM CONTINUING OPERATIONS | 773,414 | 659,495 | 86,382 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD FROM DISCONTINUED OPERATIONS | 456,886 | 559,385 | 110,361 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD | 1,230,300 | 1,218,880 | 196,743 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD FROM CONTINUING OPERATIONS | 1,026,945 | 773,414 | 659,495 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD FROM DISCONTINUED OPERATIONS | 0 | 456,886 | 559,385 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD | 1,026,945 | 1,230,300 | 1,218,880 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 199,371 | 37,851 | 19,098 |
Income taxes paid | 53,180 | 44,473 | 10,999 |
Supplemental non-cash disclosures: | |||
Operating lease right-of-use assets obtained in exchange for operating lease obligations on adoption of new lease standard | 0 | 0 | 0 |
Operating lease right-of-use assets obtained/disposed of in exchange for operating lease obligations during the period, net | 23,586 | 7,314 | 1,643 |
Cash and cash equivalents (including $35,549 and $22,787 from related parties) | 581,417 | 225,464 | 168,804 |
Restricted cash | 445,528 | 547,950 | 490,691 |
Total cash, cash and cash equivalents and restricted cash shown in the statement of cash flows | $ 1,026,945 | $ 773,414 | $ 659,495 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS - Parenthetical (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Cash Flows [Abstract] | |||
Increase (decrease) in margin lending, brokerage and other receivables, related parties | $ 187,336 | $ 97,783 | $ (54,973) |
Increase (decrease) in margin lending, brokerage and other payables, related parties | (35,650) | 25,079 | 9,504 |
Brokerage customer liabilities (including $(195,694), $90,444, and $224,173 changes from related parties) | 105,942 | (23,167) | 432,245 |
Increase (decrease) in derivative assets and liabilities, related parties | $ 195,694 | $ (90,444) | $ (224,173) |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 12 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS | DESCRIPTION OF BUSINESS Overview Freedom Holding Corp. (the "Company" or "FRHC") is a corporation organized in the United States under the laws of the State of Nevada that through its operating subsidiaries provides financial services including retail securities brokerage, research, investment counseling, securities trading, market making, retail banking, corporate investment banking, underwriting services, commercial banking, insurance products, a payment platform, a conference platform and an online ticket sale platform. The Company is headquartered in Almaty, Kazakhstan, with supporting administrative office locations in Cyprus and the United States. The Company has retail locations in Kazakhstan, Ukraine, Uzbekistan, Kyrgyzstan, Cyprus, Germany, the United Kingdom, Greece, Spain, France and Armenia. The Company also has subsidiaries in the United States which include a broker-dealer that is registered with the U.S. Securities and Exchange Commission ("SEC") and Financial Industry Regulatory Authority ("FINRA"). The Company's common stock trades on the Nasdaq Capital Market, Kazakhstan Stock Exchange (KASE) and Astana International Exchange (AIX). As of March 31, 2023, the Company owned directly, or through subsidiaries, the following companies: • Freedom Finance JSC, an Almaty, Kazakhstan-based securities broker-dealer ("Freedom KZ"); • Freedom Finance Global PLC, an Astana International Financial Centre-based securities broker-dealer ("Freedom Global"); • Bank Freedom Finance Kazakhstan JSC, an Almaty, Kazakhstan-based bank ("Freedom Bank KZ"); • Freedom Finance Life JSC, an Almaty, Kazakhstan-based life/health insurance company ("Freedom Life"); • Freedom Finance Insurance JSC, an Almaty, Kazakhstan-based general insurance company ("Freedom Insurance"); • Freedom Finance Special Purpose Company LTD, an Astana International Financial Centre-based special purpose company ("Freedom SPC"); • Freedom Finance Commercial LLP, a Kazakhstan-based sales consulting company ("Freedom Commercial"); • Freedom Finance Europe Limited, a Limassol, Cyprus-based broker-dealer ("Freedom EU"); • Freedom Finance Technologies Ltd, a Limassol, Cyprus-based IT development company ("Freedom Technologies"); • Freedom Finance Germany GmbH, a Berlin, Germany-based tied agent of Freedom EU ("Freedom GE"); • Freedom UK Prime Limited, a London, United Kingdom-based financial intermediary company ("Prime UK"); • Foreign Enterprise LLC Freedom Finance, a Tashkent, Uzbekistan-based broker-dealer ("Freedom UZ"); • Freedom Finance Azerbaijan LLC, an Azerbaijan-based financial educational center ("Freedom AZ"); • Freedom Finance Armenia LLC, an Armenia-based broker-dealer ("Freedom AR"); • Prime Executions, Inc., a New York City, New York-based NYSE institutional brokerage, that is also authorized to engage in certain capital markets and investment banking activities ("PrimeEx"); • FFIN Securities, Inc., a currently-dormant Nevada corporation ("FFIN"); • Freedom Finance Ltd., a Dubai, United Arab Emirates-based financial intermediary company ("Freedom UAE"); • ITS Tech Limited, an Astana International Financial Centre-based, IT-support company ("ITS Tech"); • Freedom Kazakhstan PC Ltd, an Almaty, Kazakhstan-based non-financial company ("Freedom Kazakhstan PC Ltd.") • Ticketon Events LLP, an Almaty, Kazakhstan-based online ticket sales company ("Ticketon"); • Freedom Finance Turkey LLC, an Istanbul, Turkey-based financial consulting company ("Freedom TR"); • Paybox Technologies LLP, an Almaty, Kazakhstan-based payment company ("Paybox"); • Freedom U.S. Market LLC, a New York City, New York-based management company of Freedom’s U.S. Operations ("FUSM"); and • LD Micro, a New York City, a pre-eminent event platform which hosts two premier small and micro-cap world conferences annually ("LD Micro"). The Company also owns a 9% interest in Freedom Finance Ukraine LLC, a Kiev, Ukraine-based broker-dealer ("Freedom UA"). The remaining 91% interest in Freedom UA is controlled by Askar Tashtitov, the Company's president. The Company has entered into a series of contractual arrangements with Freedom UA and Mr. Tashtitov, including a consulting services agreement, an operating agreement and an option agreement. Because such agreements obligate the Company to guarantee the performance of all Freedom UA obligations and provide Freedom UA sufficient funding to cover all Freedom UA operating losses and net capital requirements, enable the Company to receive 90% of the net profits of Freedom UA after tax, and require the Company to provide Freedom UA the management competence, operational support, and ongoing access to the Company's significant assets, necessary technology resources and expertise to conduct the business of Freedom UA, the Company determined that Freedom UA is a variable interest entity ("VIE") and that the Company is the primary beneficiary. Accordingly, the Company consolidated Freedom UA into the financial statements of the Company. Prior to July 2021, the Company owned approximately 32.9% of Freedom UA, but due to changes to Ukrainian regulations to restrict foreign ownership of registered Ukrainian broker-dealers, in July 2021, the Company was required to sell approximately 23.9% of its equity interest in Freedom UA to Mr. Tashtitov, reducing the Company's direct ownership interest in Freedom UA to approximately 9%. On October 17, 2022, the Company entered into an agreement with Maxim Povalishin for the divestiture of 100% of the share capital of the companies comprising its Russian securities brokerage and complementary banking operations in Russia. Maxim Povalishin, the purchaser, was at the time of the transaction the Deputy General Director and a member of the Board of Directors of Investment Company Freedom Finance LLC. The transaction was approved by the Central Bank of the Russian Federation on February 10, 2023, and the divestiture was completed on February 28, 2023. For financial information regarding the Company's Russian subsidiaries see Note 30 " Assets and Liabilities held for sale " in the notes to our consolidated financial statements. In July 2022, Investment Company Freedom Finance LLC established a Russian subsidiary Freedom Finance Auto LLC. In January 2023, Investment Company Freedom Finance LLC concluded an agreement with Maxim Povalishin to sell Freedom Finance Auto LLC for RUB 50 million (approximately $695 thousand based on the applicable currency exchange rate on the reporting date). On February 7, 2023, the sale of Freedom Finance Auto LLC was completed. Through its subsidiaries, the Company is a professional participant, with a license to provide one or more types of services, on a number of stock exchanges, including the Kazakhstan Stock Exchange (KASE), the Astana International Stock Exchange (AIX), the Moscow Exchange (MOEX) the Ukrainian Exchange (UX), the Republican Stock Exchange of Tashkent (UZSE) and the Uzbek Republican Currency Exchange (UZCE) and is a member of the New York Stock Exchange (NYSE) and the Nasdaq Stock Exchange (Nasdaq). The Company also owns a 24.3% interest in the UX. Freedom EU provides the Company's clients with operational support and access to investment opportunities in the U.S. and European securities markets. On October 19, 2022, Freedom UA's brokerage license was suspended for a period of five years and its assets were frozen by the Ukrainian authorities following its inclusion on a sanctions list of the Ukrainian government. The Company believes that the decision to include Freedom UA on such list was not justified and it is in the process of appealing such decision. Unless otherwise specifically or contextually indicated, the “Company” refers to FRHC, together with its consolidated subsidiaries. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting principles The Company's accounting policies and accompanying consolidated financial statements conform to accounting principles generally accepted in the United States of America (U.S. GAAP). Basis of presentation and principles of consolidation The consolidated financial statements present the consolidated accounts of FRHC and its consolidated subsidiaries. All inter-company balances and transactions have been eliminated from the consolidated financial statements. Consolidation of variable interest entities In accordance with accounting standards regarding consolidation of variable interest entities ("VIEs"), VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision making ability. VIEs must be evaluated to determine the primary beneficiary of the risks and rewards of the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes. As of March 31, 2023 and 2022 and for the years ended March 31, 2023, 2022 and 2021, the only VIE of the Company was Freedom UA. The carrying amounts of the VIE’s consolidated assets and liabilities are as follows: March 31, 2023 March 31, 2022 Cash and cash equivalents 26 134 Restricted cash 1,936 2,843 Trading securities 4,010 2,942 Margin lending, brokerage and other receivables, net 1,616 435 Fixed assets, net 782 1,043 Intangible assets, net 131 205 Right-of-use asset 135 905 Other assets 56 127 Total assets $ 8,692 8,634 Customer liabilities 5,837 8,439 Securities repurchase agreement obligations 12 3,267 Trade payables 25 35 Lease liability 159 914 Other liabilities 298 434 Total liabilities $ 6,331 13,089 Freedom Securities Trading Inc ("FST Belize") The Company has performed an analysis of Variable Interest Entities (VIEs) to determine if it should consolidate FST Belize in accordance with accounting principles generally accepted in the United States of America (US GAAP). As part of this analysis, the Company considered if FST Belize meets the definition of a variable interest entity, if the Company holds a variable interest in FST Belize and ultimately whether it has the power to control the most significant activities of FST Belize. The Company concluded that FST Belize is not a variable interest entity because it has sufficient equity at risk to finance its activities without additional financial support and the control over its significant activities is held by its sole shareholder, Mr. Timur Turlov who is also the Company's controlling shareholder, chairman and chief executive officer. In addition, the Company concluded that the only potential variable interest it holds in FST Belize is the margin lending provided by the Company and that this margin lending does not expose the Company to variability associated with the operations of FST Belize because it is fully collateralized by liquid marketable securities under the Company’s custody for which the contractual arrangements allow the Company to sell to cover any losses in the margin lending.. Lastly, the Company also considered that it does not have the power to control FST Belize because it does not own any of the voting shares or other contractual arrangements that allow it to control its operations. Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management believes that the estimates utilized in preparing the Company's financial statements are reasonable and prudent. Actual results could differ from those estimates. Revenue and expense recognition Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services promised to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. A significant portion of the Company's revenue-generating transactions are not subject to ASC Topic 606, including revenue generated from financial instruments, such as loans and investment securities, as these activities are subject to other U.S. GAAP guidance discussed elsewhere within these disclosures. Descriptions of the Company's revenue-generating activities that are within the scope of ASC Topic 606, which are presented in the Consolidated Statements of Operations and Statements of Other Comprehensive Income as components of total revenue, net are as follows: • Commissions on brokerage services; • Commissions on banking services (money transfers, foreign exchange operations and other); and • Commissions on investment banking services (underwriting, market making, and bondholders' representation services). Gross Versus Net Revenue ASC 606 provides guidance on proper recognition of principal versus agent considerations which is used to determine gross versus net revenue recognition. Under ASC 606, the core objective of the guidance on gross versus net revenue recognition is to help determine whether the Company is a principal or an agent in a transaction. In general, the primary difference between these two is the performance obligation being satisfied. The principal has a performance obligation to provide the desired goods or services to the end customer, whereas the agent arranges for the principal to provide the desired goods or services. Additionally, a fundamental characteristic of a principal in a transaction is control. A principal substantively controls the goods and services before they are transferred to the customer as well as controls the price of the good or service being provided. An agent normally receives a commission or fee for these activities. In addition to control, the level at which the Company controls the price of the good or service being transferred determines principal versus agent status. The more discretion over setting price a company has in providing the good or service, the more likely they are considered a principal rather than an agent. In certain cases, other parties are involved with providing products and services to our customers. If the Company is principal in the transaction (providing goods or services itself), revenues are reported based on the gross consideration received from the customer and any related expenses are reported gross in non interest expense. If the Company is an agent in the transaction (arranging for another party to provide goods or services), the Company reports its net fee or commission retained as revenue. Interest income Interest income on margin loans, loans issued, trading securities, available-for-sale securities, and reverse repurchase agreement obligations are recognized based on the contractual provisions of the underlying arrangements. Loan premiums and discounts are deferred and generally amortized into interest income as yield adjustments over the contractual life and/or commitment period using the effective interest method. Unamortized premiums, discounts and other basis adjustments on trading securities are generally recognized in interest income over the contractual lives of the securities using the effective interest method. Loans The Company's loan portfolio is divided into: mortgages, uncollateralized bank customer loans, collateralized bank customer loans, car loans, loans issued to policyholders and subordinated loans. Mortgage loans consist of loans provided to individuals to purchase residential homes, which is used as collateral for the loan. Uncollateralized bank customer loans consist of loans provided through credit cards to individuals and retail unsecured banking loans provided to individuals. Collateralized bank customer loans consist of retail collateralized loans provided to individuals. Subordinated loans consist of uncollateralized loans provided to the legal entities to support their businesses, that ranks below other, more senior loans or securities with respect to claims on assets or earnings. Margin loans are not classified as part of the Company's loan portfolio and are instead recorded on the Consolidated Balance Sheets under Margin lending, brokerage and other receivables, net. Loans issued to policyholders are represented by loans issued by insurer to its policyholders under an accumulative insurance contract. Policy loans are provided within the redemption amount, which is a security for the return of the received loan and covers the loans amount and interest. Car loans consists of loans provided to individuals to purchase new or used car. Derivative financial instruments In the normal course of business, the Company invests in various derivative financial contracts including futures. Derivatives are initially recognized at fair value at the date a derivative contract is entered into and are subsequently re-measured to their fair value at each reporting date. The fair values are estimated based on quoted market prices or pricing models that take into account the current market and contractual prices of the underlying instruments and other factors. Derivatives are carried as assets when their fair value is positive and as liabilities when it is negative. Functional currency Management has adopted ASC 830, Foreign Currency Translation Matters as it pertains to its foreign currency translation. The Company's functional currencies are the Kazakhstan tenge, the euro, the U.S. dollar, the Ukrainian hryvnia, the Uzbekistani som, the Kyrgyzstani som, the Azerbaijani manat, the British pound sterling, the Armenian dram, the United Arab Emirates dirham and the Turkish lira, and its reporting currency is the U.S. dollar. For financial reporting purposes, foreign currencies are translated into U.S. dollars as the reporting currency. Monetary assets and liabilities denominated in foreign currencies are translated into U.S. dollars using the exchange rate prevailing at the balance sheet date. Non-monetary assets and liabilities denominated in foreign currencies are translated at rates of exchange in effect at the date of the transaction. Average quarterly rates are used to translate revenues and expenses. Translation adjustments arising from the use of different exchange rates from period to period are included as a component of shareholders' equity as "Accumulated other comprehensive loss". The Company uses exchange rates from the National Bank of the Republic of Kazakhstan for foreign currency translation purposes. Cash and cash equivalents Cash and cash equivalents are generally comprised of certain highly liquid investments with original maturities of three months or less at the date of purchase. Cash and cash equivalents include those reverse repurchase agreements, where maturity is less than 90 days, and the credit risk of the counterparty is low, which are recorded at the amounts at which the securities were acquired plus accrued interest. Securities reverse repurchase and repurchase agreements A reverse repurchase agreement is a transaction in which the Company purchases financial instruments from a seller, typically in exchange for cash, and simultaneously enters into an agreement to resell the same or substantially the same financial instruments to the seller for an amount equal to the cash or other consideration exchanged plus interest at a future date. Securities purchased under reverse repurchase agreements are accounted for as collateralized financing transactions and are recorded at the contractual amount for which the securities will be resold, including accrued interest. Financial instruments purchased under reverse repurchase agreements are recorded in the financial statements as cash placed on deposit collateralized by securities and classified as cash and cash equivalents in the Consolidated Balance Sheets. A repurchase agreement is a transaction in which the Company sells financial instruments to another party, typically in exchange for cash, and simultaneously enters into an agreement to reacquire the same or substantially the same financial instruments from the buyer for an amount equal to the cash or other consideration exchanged plus interest at a future date. These agreements are accounted for as collateralized financing transactions. The Company retains the financial instruments sold under repurchase agreements and classifies them as trading securities in the Consolidated Balance Sheets. The consideration received under repurchase agreements is classified as securities repurchase agreement obligations in the Consolidated Balance Sheets. The Company enters into reverse repurchase agreements, repurchase agreements, securities borrowed and securities loaned transactions to, among other things, acquire securities to leverage and grow its proprietary trading portfolio, cover short positions and settle other securities obligations, to accommodate customers' needs and to finance its inventory positions. The Company enters into these transactions in accordance with normal market practice. Under standard terms for repurchase transactions, the recipient of collateral has the right to sell or repledge the collateral, subject to returning equivalent securities on settlement of the transaction. Restricted cash Restricted cash consists of cash equivalents that is held for specific reasons and not available for immediate use. They are generally comprised of certain investments with original maturities of more than three months. Mainly represented by customers' cash and guaranty deposits, which are restricted in use by the Company. Available-for-sale securities Financial assets categorized as available-for-sale ("AFS") are non-derivatives that are either designated as available-for-sale or not classified as (a) loans and receivables, (b) held to maturity investments or (c) trading securities. Gains and losses arising from changes in fair value are recognized in other comprehensive income and accumulated in the Accumulated other comprehensive loss, with the exception of other-than-temporary impairment losses, interest calculated using the effective interest method, and foreign exchange gains and losses are recognized in the Consolidated Statements of Operations and Statements of Other Comprehensive Income. When the investment is disposed of or is determined to be impaired, the cumulative gain or loss previously accumulated in the accumulated other comprehensive (loss)/income is then reclassified to net realized gain/(loss) on investments available-for-sale in the Consolidated Statements of Operations and Statements of Other Comprehensive Income. Trading securities Financial assets are classified as trading securities if the financial asset has been acquired principally for the purpose of selling it in the near term. Trading securities are stated at fair value, with any gains or losses arising on remeasurement recognized in revenue. Changes in fair value are recognized in the Consolidated Statements of Operations and Statements of Other Comprehensive Income and included in net gain on trading securities. Interest earned and dividend income are recognized in the Consolidated Statements of Operations and Statements of Other Comprehensive Income and included in interest income, according to the terms of the contract and when the right to receive the payment has been established. Investments in nonconsolidated managed funds are accounted for at fair value based on the net asset value of the funds provided by the fund managers with gains or losses included in net gain on trading securities in the Consolidated Statements of Operations and Statements of Other Comprehensive Income. Debt securities issued Debt securities issued are initially recognized at the fair value of the consideration received, less directly attributable transaction costs. Subsequently, amounts due are stated at amortized cost and any difference between net proceeds and the redemption value is recognized over the period of the borrowings using the effective interest method. If the Company purchases its own debt it is removed from the Consolidated Balance Sheets and the difference between the carrying amount of the liability and the consideration paid is recognized in the Consolidated Statements of Operations and Statements of Other Comprehensive Income. Margin lending, brokerage and other receivables The Company engages in securities financing transactions with and for clients through margin lending. In margin lending, the Company's customers borrow funds from the Company or sells securities the customer does not own against the value of their qualifying securities held in custody by the Company. Under these agreements, the Company is permitted to sell or repledge securities received as collateral. Furthermore, the contractual arrangements establish that the Company can use the pledged collateral by the customers for repurchase agreement operations, securities lending transactions or delivery to other counterparties to cover short positions. Margin lending, brokerage and other receivables comprise margin lending receivables, brokerage commissions and other receivables related to the securities brokerage and banking activity of the Company. At initial recognition, margin lending, brokerage and other receivables are recognized at fair value. Subsequently, margin lending, brokerage and other receivables are carried at cost net of any allowance for impairment losses. For both individual and institutional brokerage clients, we may enter into arrangements for securities financing transactions in respect of financial instruments held by us on behalf of the client or may use such financial instruments for our own account or the account of another client. We maintain omnibus brokerage accounts for certain institutional brokerage clients, in which transactions of the underlying clients of such institutional clients are combined in a single account with us. As noted above, we may use the assets within the omnibus accounts to finance, lend, provide credit or provide debt financing or otherwise use and direct the order or manner of assets for financing of other clients of ours. As of March 31, 2023, margin lending receivable balance from FST Belize was fully collateralized by its customer-owned cash and market securities held by the Company, including $37.1 million margin lending receivable collateralized by FRHC securities . Customers’ required margin levels and established credit limits are monitored continuously by risk management staff. Pursuant to the Company’s policy, customers are required to deposit additional collateral or reduce positions, when necessary, to avoid liquidation of their positions. Derecognition of financial assets A financial asset (or, where applicable a part of a financial asset or a part of a group of similar financial assets) is derecognized where all of the following conditions are met: • The transferred financial assets have been isolated from the Company - put presumptively beyond the reach of the Company and its creditors, even in bankruptcy or other receivership. • The transferee has rights to pledge or exchange financial assets. • The Company or its agents do not maintain effective control over the transferred financial assets or third-party beneficial interests related to those transferred assets. Where the Company has not met the asset derecognition conditions above, it continues to recognize the asset to the extent of its continuing involvement. Impairment of long-lived assets In accordance with the accounting guidance for the impairment or disposal of long-lived assets, the Company periodically evaluates the carrying value of long-lived assets to be held and used when events and circumstances warrant such a review. The carrying value of a long-lived asset is considered impaired when the fair value from such asset is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. Fair value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Losses on long-lived assets to be disposed of are determined in a similar manner, except that fair values are reduced for the cost of disposal. During the fiscal year ended March 31, 2022, 2022, and 2021 the Company had not recorded Impairment of goodwill Goodwill is allocated to reporting units, which are identified as the operating segments or one level below operating segments that generate separate financial information regularly reviewed by management. The assignment of goodwill to reporting units allows for the assessment of potential impairment at the appropriate level within the organization. The Company has identified its reporting units based on its organizational and operational structure, as well as the level at which internal financial information is reviewed by management to make strategic decisions. In line with this, the reporting units have been established as follows: Central Asia and Eastern Europe Reporting Unit: This reporting unit represents the Company's operations in Central Asia, which encompasses countries such as Kazakhstan, Uzbekistan, Kyrgyzstan and Ukraine. The management team responsible for the Central Asia and Eastern Europe region regularly reviews financial information specific to this reporting unit, including revenue, expenses, and key performance indicators. Europe excluding Eastern Europe Reporting Unit: This reporting unit comprises the Company's operations in various European countries, such as Cyprus, Germany and United Kingdom. The management team responsible for the Europe region reviews financial information related to this reporting unit, including revenue, expenses, and market trends. US Reporting Unit: This reporting unit comprises the Company's operations in USA. The management team responsible for the US region reviews financial information related to this reporting unit, including revenue, expenses, and market trends. Middle East/Caucasus Unit: This reporting unit comprises the Company's operations in Middle East/Causcasus. This reporting unit represents the Company's operations in Middle East/Caucasus, which encompasses countries such as Armenia, Azerbaijan, UAE and Turkiye. The management team responsible for the Middle East/Causcasus region reviews financial information related to this reporting unit, including revenue, expenses, and market trends. Goodwill has been allocated to each reporting unit based on its relative fair value at the time of acquisition or significant triggering events. The fair value allocation of goodwill to reporting units is periodically reassessed to ensure alignment with the Company's evolving organizational structure and operational dynamics. The Company conducts impairment testing on an annual basis or whenever indicators of potential impairment arise. The impairment testing involves comparing the carrying amount of each reporting unit, including its allocated goodwill, to its fair value. If the carrying amount exceeds the fair value, an impairment loss is recognized. Further details regarding the measurement of goodwill impairment and the results of impairment tests for each reporting unit are provided below. The Company discloses information about the reporting units, the carrying amounts of goodwill allocated to each reporting unit, and the impairment losses recognized. The allocation of goodwill to reporting units ensures a focused evaluation of each unit's financial performance and facilitates the identification of potential impairment, enhancing the transparency and reliability of our financial reporting. As of March 31, 2023 and 2022, goodwill recorded in the Company's Consolidated Balance Sheets totaled $14,192 and $5,898 respectively. The Company performs an impairment review at least annually unless indicators of impairment exist in interim periods. The Company compares the fair value of a reporting unit with its carrying amount. The goodwill impairment charge is recognized for the amount by which the reporting unit’s carrying amount exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. If fair value exceeds the carrying amount, no impairment is recorded. During the year ended March 31, 2023, the Company did not recognize an impairment loss related to goodwill. During the year ended March 31, 2022, the conflict between Russia and Ukraine escalated, and military operations began on the territory of Ukraine. The conflict resulted in sanctions being imposed on Russia. As a result of this conflict, the Company's subsidiaries operating in Russia and Ukraine, including Freedom Bank RU, Freedom UA, and Zerich, incurred significant losses. In its annual goodwill impairment test for the year ended March 31, 2022, the Company estimated the fair value of the reporting unit based on the income approach (also known as the discounted cash flow method) and determined the fair value of the Company’s goodwill previously recognized for Freedom Bank RU, Freedom UA and Zerich was below the carrying amount of the Company’s goodwill. As a result, as of March 31, 2022, the Company recognized impairment loss for the goodwill previously recognized for Freedom Bank RU, Freedom UA and Zerich in the amount of $2,300 through Other (income)/expense, net as presented on the Consolidated Statements of Operations and Statements of Other Comprehensive Income, and presented goodwill, net of impairment loss in the Company's Consolidated Balance Sheets. The current uncertainty surrounding the conflict between Russia and Ukraine makes it difficult to perform reasonable projections of future income and expenses of the Ukrainian subsidiary. The goodwill value at March 31, 2023 increased compared to March 31, 2022, due to acquisition of London Almaty, Ticketon, LD Micro and Paybox and as a result of foreign exchange currency translation. The changes in the carrying amount of goodwill for the years ended March 31, 2023 and March 31, 2022, were as follows: Central Asia and Eastern Europe Europe, excluding Eastern Europe US Held for Sale Middle East/ Caucasus Total Goodwill, gross Balance as of March 31, 2021 (Recasted) $ 5,261 $ — $ 1,626 $ 810 $ — $ 7,697 Foreign currency translation (157) — — 658 — 501 Acquired — — — — — — Balance as of March 31, 2022 (Recasted) 5,104 $ — $ 1,626 $ 1,468 $ — $ 8,198 Foreign currency translation (74) — — — — (74) Acquired 2,594 — 5,774 — — 8,368 Balance as of March 31, 2023 7,624 $ — $ 7,400 $ 1,468 $ — $ 16,492 Accumulated impairment Balance as of March 31, 2021 $ — $ — $ — $ — $ — $ — Impairment expense 832 — — 1,468 — 2,300 Balance as of March 31, 2022 $ 832 $ — $ — $ 1,468 $ — $ 2,300 Impairment expense — — — — — — Balance as of March 31, 2023 $ 832 $ — $ — $ 1,468 $ — $ 2,300 Goodwill, net of impairment Balance as of March 31, 2021 $ 5,261 $ — $ 1,626 $ 810 $ — $ 7,697 Balance as of March 31, 2022 $ 4,272 $ — $ 1,626 $ — $ — $ 5,898 Balance as of March 31, 2023 $ 6,792 $ — $ 7,400 $ — $ — $ 14,192 Business combinations and acquisitions Acquisitions of businesses not under common control are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of the assets transferred by the Company, liabilities incurred by the Company to the former owners of the acquiree and the equity interests issued by the Company in exchange for control of the acquiree. Acquisition-related costs are generally recognized in profit or loss as incurred . The assets and liabilities acquired are recognized, with certain exceptions such as deferred taxes, at their fair values at the acquisition date. Business combinations under common control are accounted for under the pooling of interests method which involves combining the financial statements of the acquiring and acquired entities as if they had been combined from the beginning of the common control relationship. The assets and liabilities are combined on a carry over basis and not restated to its fair values. This approach required the Company to recast its consolidated financial statements to reflect the assets, liabilities and operations of the acquired entities since the beginning of the earliest comparative period. Asset and Liabilities Held for Sale The Company classifies assets and liabilities ("the disposal group") as held for sale in the period when all of the relevant criteria to be classified as held for sale are met. Criteria include management commitment to divest the disposal group in its present condition and the divestiture being deemed probable of being completed within one year. Assets held for sale are reported at the lower of their carrying value or fair value less cost to divest. Any loss resulting from the measurement is recognized in the period the held for sale criteria are met. The Company assesses the fair value of a disposal group, less any costs to divest, each reporting period it remains classified as held for sale and reports any subsequent changes as an adjustment to the carrying value of the disposal group, as long as the new carrying value does not exceed the initial carrying value of the disposal group. Assets held for sale are not amortized or depreciated. During the year ended March 31, 2023, the Company incurred loss from divestiture of the disposal group in the amount of $26,118, and recognized it within the line item Net income from discontinued operation on the Consolidated Statements of Operations and Statements of Other Comprehensive Income. A disposal group that represents a strategic shift to the Company or is acquired with the intention to divest is reflected as a discontinued operation on the Consolidated Statements of Operation and Statements of Other Comprehensive Income. The Consolidated Financial Statements and related Notes reflect the securities brokerage and complementary banking operations in Russia as discontinued operations as the Company entered into an agreement to divest these operations. The divestiture of these operations was approved by the Central Bank of the Russian Federation on February 10, 2023, and the divestiture was completed on February 28, 2023. See Note 30 " Assets and Liabilities held for sale " in the notes to our consolidated financial statements contained in Part II Item 8 of this annual report, for more information on assets held for sale and discontinued operations. Income taxes The Company recognizes deferred tax liabilities and assets based on the difference between the financial statements and tax basis of assets and liabilities using the enacted tax rates in effect for the year in which the differences are expected to reverse. The measurement of deferred tax assets is reduced, if necessary, by the amount of any tax benefits that, based on available evidence, are not expected to be realized. Current income tax expenses are provided for in accordance with the laws of the relevant taxing authorities. As part of the process of preparing financial statements, the Company is required to estimate its income taxes in each of the jurisdictions in which it operates. The Company accounts for income taxes using the asset and liability approach. Under this method, deferred income taxes are recognized for tax consequences in future years based on differences between the tax bases of assets and liabilities and their reported amounts in the financial statements at each year-end and tax loss carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates applicable for the differences that are expected to affect taxable income. The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the |
RECAST
RECAST | 12 Months Ended |
Mar. 31, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Recast | RECAST When preparing the consolidated financial statements as of and for the year ended March 31, 2023, management determined that certain amounts included in the Company’s consolidated financial statements as of March 31, 2022 and 2021, required revision due to the closing on May 17, 2022, of the Company's acquisition of two insurance companies in Kazakhstan, a life insurance company, Freedom Life, and a direct insurance carrier, excluding life, health and medical, Freedom Insurance, which were deemed to be entities under common control with the Company since 2018. Prior to the Company's acquisition of these companies, each was wholly owned by the Company's controlling shareholder, chairman and chief executive officer, Timur Turlov, who had previously acquired Freedom Life and Freedom Insurance from a non-related party on February 28, 2018, and August 22, 2018, respectively. The two companies are under common control with the Company since the dates when they were acquired by Timur Turlov. The Company acquired these companies from Mr. Turlov at the historical cost paid by him plus amounts he had contributed as additional paid in capital since his purchase. The Company acquired the two companies to expand its presence in the insurance segment. The purchase price for 100% of the outstanding shares of Freedom Insurance was $13,977 and the purchase price for 100% of the outstanding shares of Freedom Life was $12,611. During the year ended March 31,2023 Freedom KZ has fully repaid the payable for acquisitions of Freedom Life and Freedom Insurance. The financial results of Freedom Life and Freedom Insurance have been consolidated in financial statements as of and for the year ended March 31, 2022, and in the corresponding periods of 2021 for comparative purposes, as if they had been acquired prior to such periods. The previously issued Consolidated Balance Sheet as of March 31, 2022, and Consolidated Statements of Operations and Statements of Other Comprehensive Income for the year ended March 31, 2022 and March 31, 2021, have been revised as follows: As of March 31, 2022 As previously reported FF Life acquisition Elimi-nations FF Insurance acquisition Elimi-nations As recasted ASSETS Cash and cash equivalents $ 224,663 $ 1,429 $ (917) $ 371 $ (82) $ 225,464 Restricted cash 547,950 — — — — 547,950 Trading securities 1,080,982 8,875 — 68,520 — 1,158,377 Available-for-sale securities, at fair value 1 161,363 — — — 161,364 Margin lending, brokerage and other receivables, net 147,480 172 (34) 61 (20) 147,659 Loans issued 92,403 43 — — — 92,446 Fixed assets, net 17,387 182 — 254 — 17,823 Intangible assets, net 3,512 1,490 — 161 — 5,163 Goodwill 5,388 359 — 151 — 5,898 Right-of-use asset 6,747 532 — 152 — 7,431 Insurance contract assets — 3,555 — 2,157 — 5,712 Other assets, net 19,351 9,863 — 427 — 29,641 Assets held for sale 825,419 — — — — 825,419 TOTAL ASSETS $ 2,971,283 $ 187,863 $ (951) $ 72,254 $ (102) $ 3,230,347 LIABILITIES AND SHAREHOLDERS’ EQUITY Securities repurchase agreement obligations $ 742,710 $ 47,690 $ — $ 49,824 $ — $ 840,224 Customer liabilities 766,627 — (917) — (82) 765,628 Margin lending and trade payables 45,082 — — 21 (20) 45,083 Liabilities from insurance activity — 108,925 — 13,162 — 122,087 Current income tax liability 14,556 — — — — 14,556 Securities sold, not yet purchased – at fair value 13,865 — — — — 13,865 Debt securities issued 34,390 — — — — 34,390 Lease liability 6,785 543 — 176 — 7,504 Liability arising from continuing involvement 6,447 — — — — 6,447 Other liabilities 20,668 551 (34) 292 — 21,477 Liabilities held for sale 812,478 — — — — 812,478 TOTAL LIABILITIES $ 2,463,608 $ 157,709 $ (951) $ 63,475 $ (102) $ 2,683,739 Commitments and Contingent Liabilities (Note 31) — — — — — — SHAREHOLDERS’ EQUITY Preferred stock - $0.001 par value; 20,000,000 shares authorized, no shares issued or outstanding — — — — — — Common stock - $0.001 par value; 500,000,000 shares authorized; 59,542,212 shares issued and outstanding as of March 31, 2022 59 9,465 (9,464) 15,576 (15,577) 59 Additional paid in capital 141,340 — 16,498 — 16,907 174,745 Retained earnings 426,563 28,132 (6,665) (4,812) (1,294) 441,924 Accumulated other comprehensive loss (53,291) (7,444) (369) (1,985) (36) (63,125) TOTAL FRHC SHAREHOLDERS’ EQUITY $ 514,671 $ 30,153 $ — $ 8,779 $ — $ 553,603 Non-controlling interest (6,996) 1 — — — (6,995) TOTAL SHAREHOLDERS’ EQUITY $ 507,675 $ 30,154 $ — $ 8,779 $ — $ 546,608 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 2,971,283 $ 187,863 $ (951) $ 72,254 $ (102) $ 3,230,347 Year ended March 31, 2022 As previously reported FF Life acquisition Elimi-nations FF Insurance acquisition Elimi-nations As recasted Revenue: Fee and commission income $ 335,444 $ — $ — $ 83 $ (316) $ 335,211 Net gain/(loss) on trading securities 156,345 (1,283) — 190 — 155,252 Interest income 90,153 23,027 — 8,429 — 121,609 Insurance underwriting income — 60,526 — 12,455 — 72,981 Net gain on foreign exchange operations 1,979 1,615 — 197 — 3,791 Net gain on derivatives 946 — — — — 946 TOTAL REVENUE, NET 584,867 83,885 — 21,354 (316) 689,790 Expense: Fee and commission expense 73,243 12,289 — 693 (316) 85,909 Interest expense 65,449 5,194 — 6,304 — 76,947 Insurance claims incurred, net of reinsurance — 42,606 — 11,841 — 54,447 Payroll and bonuses 39,779 3,624 — 2,885 — 46,288 Professional services 12,123 106 — 453 — 12,682 Stock compensation expense 7,859 — — — — 7,859 Advertising expense 10,059 — — 1,857 — 11,916 General and administrative expense 18,744 3,516 — 1,273 — 23,533 Provision for impairment losses 2,206 — — 296 — 2,502 Other expense/(income), net 1,312 2,708 — (6) — 4,014 TOTAL EXPENSE 230,774 70,043 — 25,596 (316) 326,097 NET INCOME/(LOSS) BEFORE INCOME TAX 354,093 13,842 — (4,242) — 363,693 Income tax (expense)/benefit (38,529) (54) — 13 — (38,570) INCOME/(LOSS) FROM CONTINUING OPERATIONS 315,564 13,788 — (4,229) — 325,123 Loss before income tax (expense)/benefit of discontinued operations (117,199) — — — — (117,199) Income tax benefit of discontinued operations 13,004 — — — — 13,004 Loss from discontinued operations (104,195) — — — — (104,195) NET INCOME/(LOSS) $ 211,369 $ 13,788 $ — $ (4,229) $ — $ 220,928 Less: Net loss attributable to non-controlling interest in subsidiary (6,566) — — — — (6,566) NET INCOME/(LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 217,935 $ 13,788 $ — $ (4,229) $ — $ 227,494 OTHER COMPREHENSIVE INCOME Change in unrealized gain on investments available-for-sale, net of tax effect — (4,292) — — — (4,292) Reclassification adjustment for net realized gain on available-for-sale investments disposed of in the period, net of tax effect — 2,222 — — — 2,222 Foreign currency translation adjustments (17,245) (2,014) — (1,363) — (20,622) OTHER COMPREHENSIVE (LOSS)/INCOME (17,245) (4,084) — (1,363) — (22,692) COMPREHENSIVE INCOME/(LOSS) BEFORE NON-CONTROLLING INTERESTS $ 194,124 $ 9,704 $ — $ (5,592) $ — $ 198,236 Less: Comprehensive loss attributable to non-controlling interest in subsidiary (6,566) — — — — (6,566) COMPREHENSIVE INCOME/(LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST $ 200,690 $ 9,704 $ — $ (5,592) $ — $ 204,802 For the year ended March 31, 2022, the Company’s EPS as reported was 5.43 for both basic and diluted EPS for continuing operations, (1.75) for both basic and diluted EPS for discontinued operations, and 3.67 for both basic and diluted total EPS. Due to the items noted above, the Company’s EPS has been recast to 5.59 for both basic and diluted EPS for continuing operations, to (1.75) for both basic and diluted EPS for discontinued operations, and to 3.84 for both basic and diluted total EPS. Year ended March 31, 2021 As previously reported FF Life acquisition Elimi-nations FF Insurance acquisition Elimi-nations As recasted Revenue: Fee and commission income $ 215,996 $ — $ — $ 188 $ (176) $ 216,008 Net gain on trading securities 25,911 966 — 1,930 — 28,807 Interest income 22,815 11,818 — 3,841 — 38,474 Insurance underwriting income — 54,412 — 8,539 — 62,951 Net gain/(loss) on foreign exchange operations 1,143 (443) — (143) — 557 Net gain on derivatives 86 — — — — 86 TOTAL REVENUE, NET 265,951 66,753 — 14,355 (176) 346,883 Expense: Fee and commission expense 65,978 4,383 — 352 (176) 70,537 Interest expense 18,606 1,605 — 2,233 — 22,444 Insurance claims incurred, net of reinsurance — 46,754 — 5,651 — 52,405 Payroll and bonuses 17,941 3,172 — 2,322 23,435 Professional services 3,980 148 — 302 4,430 Stock compensation expense 114 — — — 114 Advertising expense 5,027 119 — 1,944 6,971 General and administrative expense 8,391 1,304 — 1,314 (10) 11,118 Provision for impairment losses 1,517 73 — — — 1,590 Other (income)/expense, net (106) 2,359 — (229) 10 2,034 TOTAL EXPENSE 121,448 59,917 — 13,889 (176) 195,078 NET INCOME BEFORE INCOME TAX 144,503 6,836 — 466 — 151,805 Income tax (expense)/benefit (23,362) 8 — 47 — (23,307) INCOME FROM CONTINUING OPERATIONS 121,141 6,844 — 513 — 128,498 Income before income tax expense of discontinued operation 28,518 — — — — 28,518 Income tax expense of discontinued operations (6,735) — — — — (6,735) Income from discontinued operations 21,783 — — — — 21,783 NET INCOME $ 142,924 $ 6,844 $ — $ 513 $ — $ 150,281 Less: Net income attributable to non-controlling interest in subsidiary 631 — — — — 631 NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 142,293 $ 6,844 $ — $ 513 $ — $ 149,650 OTHER COMPREHENSIVE INCOME Change in unrealized gain on investments available-for-sale, net of tax effect — (304) — — — (304) Reclassification adjustment for net realized gain on available-for-sale investments disposed of in the period, net of tax effect 71 2,021 — — — 2,092 Foreign currency translation adjustments, net of tax effect 1,857 10,866 — (9,936) — 2,787 OTHER COMPREHENSIVE INCOME/(LOSS) 1,928 12,583 — (9,936) — 4,575 COMPREHENSIVE INCOME/(LOSS) BEFORE NON-CONTROLLING INTERESTS $ 144,852 $ 19,427 $ — $ (9,423) $ — $ 154,856 Less: Comprehensive income attributable to non-controlling interest in subsidiary 631 — — — — 631 COMPREHENSIVE INCOME/(LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST $ 144,221 $ 19,427 $ — $ (9,423) $ — $ 154,225 For the year ended March 31, 2021, the Company’s EPS as reported was 2.06 for both basic and diluted EPS for continuing operations, 0.37 for both basic and diluted EPS for discontinued operations, 2.44 for basic total EPS, and 2.43 for diluted total EPS. Due to the items noted above, the Company’s EPS has been recast to 2.19 for both basic and diluted EPS for continuing operations, to 0.37 for both basic and diluted EPS for discontinued operations, and to 2.56 for both basic and diluted total EPS, respectively. |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 12 Months Ended |
Mar. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | |
CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS March 31, 2023 March 31, 2022 (Recasted) Short term deposits in National Bank (Kazakhstan) $ 357,454 $ 42,517 Short term deposits in commercial banks 83,755 70,156 Short term deposits on brokerage accounts 37,417 71,060 Petty cash in bank vault and on hand 35,998 18,607 Short term deposits in stock exchanges 31,691 2,828 Securities purchased under reverse repurchase agreements 29,812 19,947 Cash in transit 3,364 35 Overnight deposits 1,926 — Short term deposits in the Central Depository (Kazakhstan) — 314 $ 581,417 $ 225,464 As of March 31, 2023 and 2022, cash and cash equivalents were not insured. As of March 31, 2023 and 2022, the cash and cash equivalents balance included short-term collateralized securities received under reverse repurchase agreements on the terms presented below: March 31, 2023 Interest rates and remaining contractual maturity of the agreements Average Up to 30 30-90 Total Securities purchased under reverse repurchase agreements US sovereign debt 2.06 % $ 17,102 $ — $ 17,102 Corporate equity 17.17 % 6,963 — 6,963 Non-US sovereign debt 6.12 % 3,483 — 3,483 Corporate debt 2.52 % 2,079 185 2,264 Total $ 29,627 $ 185 $ 29,812 March 31, 2022 (Recasted) Interest rates and remaining contractual maturity of the agreements Average Up to 30 30-90 Total Securities purchased under reverse repurchase agreements US sovereign debt 16.38 % $ 9,952 $ 9,952 Non-US sovereign debt 12.51 % 9,786 — 9,786 Corporate equity 16.90 % 152 — 152 Corporate debt 11.88 % 57 — 57 Total $ 19,947 $ — $ 19,947 The securities received by the Company as collateral under reverse repurchase agreements are liquid trading securities with market quotes and significant trading volume. The fair value of collateral received by the Company under reverse repurchase agreements as of March 31, 2023 and 2022, was $31,165 and $19,911 respectively. |
RESTRICTED CASH
RESTRICTED CASH | 12 Months Ended |
Mar. 31, 2023 | |
Restricted Cash [Abstract] | |
RESTRICTED CASH | RESTRICTED CASH Restricted cash for the periods ended March 31, 2023 and 2022, consisted of: March 31, 2023 March 31, 2022 (Recasted) Brokerage customers' cash $ 328,435 $ 531,032 Guaranty deposits 116,628 5,540 Restricted bank accounts 10,436 2,844 Deferred distribution payment 23 8,534 Allowance for restricted cash (9,994) — Total restricted cash $ 445,528 $ 547,950 As of March 31, 2023, and March 31, 2022, the Company’s restricted cash included the cash portion of the funds segregated in a special custody account for the exclusive benefit of its brokerage customers. As of March 31, 2023 and March 31, 2022 guarantee deposits in the amount of $115,828 and $3,260 respectively included the minimum requirements on stock exchanges for conducting transactions (MOEX, KASE). Guaranty deposits are required to be placed by every stock exchange participant. In addition to the guaranty deposits, the Freedom Bank KZ also maintains the required margin security on a regular basis depending on the size of the positions held in the treasury, as well as current volatility. As of March 31, 2022, restricted cash included a deferred distribution payment amount of $8,534, representing cash held for distribution to shareholders who have not yet claimed their distributions from the 2011 sale of the Company’s legacy oil and gas exploration and production operations which is the subject of the Estate of Toleush Tolmakov litigation. As a result of disputes between a shareholder’s putative heirs, no party has yet established legal and beneficial ownership of the distribution payment. The Company did not claim an ownership interest in the distribution payment. During the year ended March 31, 2023, $8,378 of this amount was deposited with the court registry in accordance with a court order and was written off by the Company. Interest on such amount in the amount of $23 continues to be recorded as restricted cash. |
TRADING AND AVAILABLE-FOR-SALE
TRADING AND AVAILABLE-FOR-SALE SECURITIES AT FAIR VALUE | 12 Months Ended |
Mar. 31, 2023 | |
Debt Securities, Trading, and Equity Securities, FV-NI [Abstract] | |
TRADING AND AVAILABLE-FOR-SALE SECURITIES AT FAIR VALUE | TRADING AND AVAILABLE-FOR-SALE SECURITIES AT FAIR VALUE As of March 31, 2023 and 2022, trading and available-for-sale securities consisted of: March 31, 2023 March 31, 2022 (Recasted) Corporate debt $ 1,269,879 $ 712,134 Non-US sovereign debt 1,029,857 360,570 Corporate equity 65,741 72,354 US sovereign debt 45,022 10,435 Exchange traded notes 2,057 2,884 Total trading securities $ 2,412,556 $ 1,158,377 Corporate equity — 1 Corporate debt 191,082 145,836 Non-US sovereign debt 40,162 12,997 US sovereign debt 7,809 2,530 Total available-for-sale securities, at fair value $ 239,053 $ 161,364 The following tables present maturity analysis for available-for-sale securities as of March 31, 2023 and 2022: March 31, 2023 Remaining contractual maturity of the agreements Up to 1 year 1-5 years 5-10 years More than 10 years Total Corporate debt 77,006 82,579 31,486 11 191,082 Non-US sovereign debt — 33,143 820 6,199 40,162 US sovereign debt 1,947 2,805 1,725 1,332 7,809 Total available-for-sale securities, at fair value $ 78,953 $ 118,527 $ 34,031 $ 7,542 $ 239,053 March 31, 2022 Remaining contractual maturity of the agreements Up to 1 year 1-5 years 5-10 years More than 10 years Total Corporate debt 69,364 50,155 26,284 33 145,836 Non-US sovereign debt 1,692 864 1,086 9,355 12,997 US sovereign debt — — — 2,530 2,530 Corporate equity — — — 1 1 Total available-for-sale securities, at fair value $ 71,056 $ 51,019 $ 27,370 $ 11,919 $ 161,364 As of March 31, 2023, the Company held debt securities of two issuers which individually exceeded 10% of the Company's total trading securities - Kazakhstan Sustainability Fund JSC (Fitch: BBB credit rating) in the amount of $834,917 and the Ministry of Finance of the Republic of Kazakhstan ( S&P Global: BBB- credit rating) in the amount of $1,015,161. As of March 31, 2022, the Company held debt securities of two issuers which individually exceeded 10% of the Company's total trading securities - the Ministry of Finance of the Republic of Kazakhstan and the Kazakhstan Sustainability Fund JSC in the amounts of $357,343 and $488,560, respectively. The Company recognized no other than temporary impairment in accumulated other comprehensive loss. The fair value of securities is determined using observable market data based on recent trading activity. Where observable market data is unavailable due to a lack of trading activity, the Company utilizes internally developed models to estimate fair value and independent third parties to validate assumptions, when appropriate. Estimating fair value requires significant management judgment, including benchmarking to similar instruments with observable market data and applying appropriate discounts that reflect differences between the securities that the Company is valuing and the selected benchmark. Depending on the type of securities owned by the Company, other valuation methodologies may be required. Measurement of fair value is classified within a hierarchy based upon the transparency of inputs used in the valuation of an asset or liability. Classification within the hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The valuation hierarchy contains three levels: • Level 1 - Valuation inputs are unadjusted quoted market prices for identical assets or liabilities in active markets. • Level 2 - Valuation inputs are quoted market prices for identical assets or liabilities in markets that are not active, quoted market prices for similar assets and liabilities in active markets, and other observable inputs directly or indirectly related to the asset or liability being measured. • Level 3 - Valuation inputs are unobservable and significant to the fair value measurement. The following tables present trading securities assets in the Consolidated Financial Statements or disclosed in the Notes to the Consolidated Financial Statements at fair value on a recurring basis as of March 31, 2023 and 2022: Weighted average interest rate Total Fair Value Measurements at March 31, 2023 using Quoted Prices in Active Significant Other Significant unobservable Corporate debt 15.62 % $ 1,269,879 $ 1,106,584 $ 162,895 $ 400 Non-U.S. sovereign debt 12.04 % 1,029,857 971,762 54,319 3,776 Corporate equity — 65,741 62,971 1,808 962 U.S. sovereign debt 4.22 % 45,022 45,022 — — Exchange traded notes — 2,057 447 1,610 — Total trading securities $ 2,412,556 $ 2,186,786 $ 220,632 $ 5,138 Corporate debt 15.78 % 191,082 129,504 61,578 — Non-U.S. sovereign debt 13.64 % 40,162 39,624 538 — U.S. sovereign debt 4.24 % 7,809 7,809 — — Total available-for-sale securities, at fair value $ 239,053 $ 176,937 $ 62,116 $ — Weighted average interest rate Total Fair Value Measurements at March 31, 2022 (Recasted) using Quoted Prices in Active Significant Other Significant unobservable Corporate debt 9.09 % $ 712,134 $ 711,539 $ — $ 595 Non-U.S. sovereign debt 13.15 % 360,570 352,274 — 8,296 Corporate equity — 72,354 71,827 276 251 U.S. sovereign debt 2.35 % 10,435 10,435 — — Exchange traded notes — 2,884 2,884 — — Total trading securities $ 1,158,377 $ 1,148,959 $ 276 $ 9,142 Corporate equity — $ 1 — — 1 Corporate debt 11.09 % 145,836 145,836 — — Non-U.S. sovereign debt 5.51 % 12,997 12,997 — — U.S. sovereign debt 2.17 % 2,530 2,530 — — Total available-for-sale securities, at fair value $ 161,364 $ 161,363 $ — $ 1 The table below presents the Valuation Techniques and Significant Level 3 Inputs used in the valuation as of March 31, 2023 and 2022. The table is not intended to be all inclusive, but instead captures the significant unobservable inputs relevant to determination of fair value. Type Valuation Technique FV as of March 31, 2023 Significant Unobservable Inputs % Corporate equity DCF $ 961 Discount rate 58.8% Estimated number of years 9 years Corporate debt DCF $ 399 Discount rate 74.0% Estimated number of years 3 months Non-US sovereign debt DCF $ 3,778 Discount rate 48.8% Estimated number of years 11 years $ 5,138 Type Valuation Technique FV as of March 31, 2022 Significant Unobservable Inputs % Corporate equity DCF $ 251 Discount rate 20.0% Estimated number of years 9 years Corporate debt DCF $ 595 Discount rate 45.0% Estimated number of years 3 months Non-US sovereign debt DCF $ 7,524 Discount rate 69.0% Estimated number of years 11 years Non-US sovereign debt DCF $ 772 Discount rate 13.9% Estimated number of years 1 year $ 9,142 The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the year ended March 31, 2023: Trading Balance as of March 31, 2021 (Recasted) $ 19,033 Reclassification to level 3 682 Reclassification to level 1 (18,371) Purchase of investments that use Level 3 inputs 10,812 Revaluation of investments that use Level 3 inputs (3,014) Balance as of March 31, 2022 (Recasted) $ 9,142 Reclassification to level 2 (1,339) Sale of investments that use Level 3 inputs (5,213) Purchase of investments that use Level 3 inputs 2,604 Revaluation of investments that use Level 3 inputs (56) Balance as of March 31, 2023 $ 5,138 The table below presents the amortized cost, unrealized gains and losses accumulated in other comprehensive income, and fair value of available-for-sale securities as of March 31, 2023 and 2022: March 31, 2023 Assets measured at amortized cost Recognized impairment loss in Income Statement Unrealized gain/(loss) accumulated in other comprehensive Assets Maturity Date Corporate debt $ 192,167 $ (402) $ (683) $ 191,082 2023 - 2035 Non-US sovereign debt 42,456 — (2,294) 40,162 2024 - indefinite U.S. sovereign debt 8,391 — (582) 7,809 2023 - 2044 Total available-for-sale securities, at fair value $ 243,014 $ (402) $ (3,559) $ 239,053 March 31, 2022 (Recasted) Assets measured at amortized cost Unrealized gain/(loss) accumulated in other comprehensive Assets Maturity Date Corporate debt $ 146,111 $ (275) $ 145,836 2022 - 2035 Non-US sovereign debt 13,784 (787) 12,997 2022 - indefinite U.S. sovereign debt 2,912 (382) 2,530 2044 Corporate equity 1 — 1 not applicable Total available-for-sale securities, at fair value $ 162,808 $ (1,444) $ 161,364 |
MARGIN LENDING, BROKERAGE AND O
MARGIN LENDING, BROKERAGE AND OTHER RECEIVABLES, NET | 12 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
MARGIN LENDING, BROKERAGE AND OTHER RECEIVABLES, NET | MARGIN LENDING, BROKERAGE AND OTHER RECEIVABLES, NET Margin lending, brokerage and other receivables, net of the Company are comprised of the following: March 31, 2023 March 31, 2022 (Recasted) Margin lending receivables $ 361,684 $ 138,983 Receivables from brokerage clients 7,302 4,386 Bank commissions receivable 6,035 598 Receivable for underwriting and market-making services 2,317 296 Long-term installments receivables 895 1,367 Dividends accrued 486 45 Receivable from sale of securities 613 884 Other receivables 9,504 3,207 Allowance for receivables (12,507) (2,107) Total margin lending, brokerage and other receivables, net $ 376,329 $ 147,659 Margin lending receivables are amounts owed to the Company from customers as a result of borrowings by such customers against the value of qualifying securities, primarily for the purpose of purchasing additional securities. Amounts may fluctuate from period to period as overall client balances change as a result of market levels, client positioning and leverage. Credit exposures arising from margin lending activities are generally mitigated by their short-term nature, the value of collateral held and our right to call for margin when collateral values decline. The fair value of collateral received by the Company under margin loans as of March 31, 2023, and March 31, 2022 was $1,418,129 and $4,432,621, respectively . As of March 31, 2023 and March 31, 2022, amounts due from a single related party customer were $290,195 and $102,669, respectively or 78% and 73% respectively, of total margin lending, brokerage and other receivables, net. Approximately 98% and 95% of these balances were due from Freedom Securities Trading Inc. (formerly known as FFIN Brokerage Services, Inc.) (“FST Belize”), a company owned by the Company's controlling shareholder, chairman and chief executive officer, Timur Turlov. Based on historical data, the Company considers receivables due from related parties fully collectible. For both individual and institutional brokerage clients, we may enter into arrangements for securities financing transactions in respect of financial instruments held by us on behalf of the client or may use such financial instruments for our own account or the account of another client. We maintain omnibus brokerage accounts for certain institutional brokerage clients, in which transactions of the underlying clients of such institutional clients are combined in a single account with us. As noted above, we may use the assets within the omnibus accounts to finance, lend, provide credit or provide debt financing or otherwise use and direct the order or manner of assets for financing of other clients of ours. As of March 31, 2023, margin lending receivable balance from FST Belize was fully collateralized by its customer-owned cash and market securities held by the Company, including $37.1 million margin lending receivable collateralized by FRHC securities . Customers’ required margin levels and established credit limits are monitored continuously by risk management staff. Pursuant to the Company’s policy, customers are required to deposit additional collateral or reduce positions, when necessary, to avoid liquidation of their positions. As of March 31, 2023 and March 31, 2022 using historical and statistical data, the Comp any recorded an allowance for brokerage receivables in the amounts of $12,507, $2,107 respectively. |
LOANS ISSUED
LOANS ISSUED | 12 Months Ended |
Mar. 31, 2023 | |
Loans and Leases Receivable Disclosure [Abstract] | |
LOANS ISSUED | LOANS ISSUED Loans issued as of March 31, 2023, consisted of the following: Amount Outstanding Due Dates Average Interest Rate Fair Value of Loan Currency Mortgage loans* $ 534,154 April, 2023 - March, 2048 9.00 % $ 534,154 KZT Right of claims for purchased retail loans 121,177 January, 2023 - March, 2027 15.00 % 121,177 KZT Uncollateralized bank customer loans $ 46,970 January, 2023 - March, 2043 25.00 % KZT Collateralized Bank customer loans 17,653 May, 2023 - March, 2028 2.00 % 17,636 KZT/RUB Car loans $ 102,269 April, 2023 - April, 2030 25.00 % $ 102,247 KZT Subordinated loan 5,039 December, 2025 3.00 % — USD Loans issued to policyholders $ 1,488 June, 2023 - February, 2024 15.00 % $ 1,752 KZT Other 300 March, 2024 - September, 2029 2.00 % — EUR Allowance for loans issued (2,792) Total loans issued $ 826,258 *Fair value of collateral for the mortgage loans is the minimum amount of market value of the pledged immovable property and outstanding loan amount. Freedom Bank KZ provides mortgage loans to borrowers on behalf of the JSC Kazakhstan Sustainability Fund ("Program Operator") related to the state mortgage program "7-20-25" and transfers the rights of claim on the loans to the Program Operator. Under this program, borrowers can receive a mortgage at an interest rate of 7%, for 20 years. In accordance with the program and trust management agreement, Freedom Bank KZ carries out trust management of transferred mortgage loans, and transfers all repayments of principal amounts of mortgages plus 4% of the 7% interest to the Program Operator and is recognized as interest expense. The remaining 3% of the 7% interest is retained by Freedom Bank KZ as interest income. Under the program and trust management agreement, Freedom Bank KZ is required to repurchase the rights of claims on transferred mortgage loans, when the loan principal amount and interest payments are overdue 90 days or more. The repurchase of overdue loans is performed at the loan nominal value. Since the Freedom Bank KZ transfers the right of claim of those loans with recourse for uncollectible amounts due at maturity, retains part of interest from those loans, and agrees to service those loans after the sale, Freedom Bank KZ has determined that it retains control over the mortgage loans transferred and continues recognizing the loans. As Freedom Bank KZ continues to recognize the loans, it also recognizes the associated liability in the amount of $440,805 as of March 31, 2023, which is presented separately as liability arising from continuing involvement in the Consolidated Balance Sheets. As of March 31, 2022 the corresponding liability amounted to $6,447. As of March 31, 2023 and March 31, 2022, mortgage loans include the state mortgage program "7-20-25" with a principal amount of $463,114 and $21,310, respectively . Freedom Bank KZ has an agreement with FFIN Credit, a start-up created and controlled by the Company's controlling shareholder, chairman and chief executive officer, Timur Turlov, to purchase uncollateralized retail loans. FFIN Credit is a non-bank credit institution that issues loans in Kazakhstan under simplified lending procedures. FFIN Credit was created as a pilot project to test and improve the scoring models used for qualifying and issuing loans. The principal operation of FFIN Credit is to provide loans to customers online using biometric identification and its proprietary scoring process. After completion of the pilot launch, it is anticipated that the ownership of FFIN Credit will be sold by Mr. Turlov to the Company. The Bank has legal ownership over purchase from FFIN Credit uncollateralized bank customer loans. However, in accordance with U.S. GAAP requirements, the Company does not recognize those loans as uncollateralized bank customer loans, since effective control over the transferred loans is maintained by FFIN Credit. Instead, the Company recognizes the loans as right of claims for purchased retail loans from FFIN Credit presented on the consolidated balance sheets within loans issued. As of March 31, 2023 and March 31, 2022, right of claims for purchased retail loans in the amount of $121,177 and $35,293, respectively. Loans issued as of March 31, 2022, consisted of the following: Amount Outstanding Due Dates Average Interest Rate Fair Value of Loan Currency Mortgage loans 52,227 April 2022 - March 2047 11.86 % 52,134 KZT Right of claims for purchased retail loans 35,293 April 2022 - March 2026 15.00 % 35,293 KZT Uncollateralized bank customer loans 100 April 2022 - March 2047 10.00 % — KZT Subordinated loan 5,033 December 2022-April 2024 4.89 % — USD Subordinated loan 1,256 December 2022-April 2024 7.00 % — UAH Other 123 February 2022-Febraury 2027 2.50 % — USD Loans to policyholders 43 July 2022 - March 2023 12.02 % 284 KZT Allowance for loans issued $ (1,629) Total loans issued (recasted) $ 92,446 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company is subject to taxation in the Unites States of America, Russia, Kazakhstan, Azerbaijan, Kyrgyzstan, Germany, Cyprus, Ukraine, United Kingdom, Armenia and Uzbekistan. The tax rates used for deferred tax assets and liabilities for the years ended March 31, 2023 and March 31, 2022, were 21% for the U.S., 20% for Russia, Kazakhstan, 20% for Azerbaijan, 10% for Kyrgyzstan, 31% for Germany, 12.5% for Cyprus, 18% for Ukraine, 25% for United Kingdom, 18% for Armenia and 15% for Uzbekistan. This note is presented excluding the discontinued operations, which is presented separately in Note 30 "Assets and Liabilities Held for Sale". As of March 31, 2023 and March 31, 2022, deferred tax assets and liabilities of the Company were comprised of the following: March 31, 2023 March 31, 2022 (recast) Deferred tax assets: Revaluation on trading securities Tax losses carryforward $ 1,548 $ 679 Accrued liabilities 933 828 Provision for impairment losses 2,079 — Stock compensation expenses — — Deferred tax assets $ 4,560 $ 1,507 Deferred tax liabilities: Revaluation on trading securities $ 29 $ 210 Fixed and Intangible Assets 2,457 — Other liabilities 326 388 Deferred tax liabilities $ 2,812 $ 598 Net deferred tax assets $ 2,442 $ 909 Net deferred tax liabilities $ 694 $ — The Company is subject to the U.S. federal income taxes at a rate of 21%. The reconciliation of of the amount computed by multiplying income before provision for income taxes at the 21% income tax rate compared to the Company's income tax expense as reported is as follows: Year ended March 31, 2023 Year ended March 31, 2022 Year ended March 31, 2021 (recast) (recast) Income before income tax at 21% $ 49,547 $ 76,376 $ 31,879 Global intangible low taxed income 39,139 31,194 18,451 Permanent differences 14,096 (2,567) (2,160) Subpart F Income 4,732 — — Stock based compensation 2,039 3,090 348 Provision for impairment losses — (13) 113 Valuation allowance — (316) (361) Foreign tax rate differential (13,089) (18,544) (9,491) Foreign tax credit (18,423) (16,200) (10,155) Nontaxable gains (35,265) (34,450) (5,317) Income tax expense $ 42,776 $ 38,570 $ 23,307 As of March 31, 2023, 2022 and 2021, income tax expense was comprised of the following: Year ended March 31, 2023 Year ended March 31, 2022 Year ended March 31, 2021 (recast) (recast) Current income tax charge Federal 22,387 15,184 7,771 Foreign 21,406 27,381 14,040 43,793 42,565 21,811 Deferred income tax charge Federal (2,606) (2,191) 1,752 Foreign 1,589 (1,804) (256) (1,017) (3,995) 1,496 Income tax expense $ 42,776 $ 38,570 $ 23,307 |
FIXED ASSETS, NET
FIXED ASSETS, NET | 12 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
FIXED ASSETS, NET | FIXED ASSETS, NET As of March 31, 2023 and 2022, fixed assets, net of the Company included the following: March 31, 2023 March 31, 2022 (Recasted) Buildings $ 19,569 $ 7,770 Office equipment 11,004 4,633 Processing and storage data centers 10,793 3,729 Land 9,106 1,564 Furniture 6,633 2,759 Capital expenditures on leasehold improvements 3,288 1,239 Vehicles 1,516 643 Other 1,428 722 Less: Accumulated depreciation (9,320) (5,236) Total fixed assets, net $ 54,017 $ 17,823 Depreciation expense totaled $4,083, $2,270 and $2,118 for the years ended March 31, 2023, 2022 and 2021 respectively. |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | INTANGIBLE ASSETS, NET As of March 31, 2023 and 2022, intangible assets, net of the Company included the following: March 31, 2023 March 31, 2022 (Recasted) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortized intangible assets Client base $ 5,264 $ (1,707) $ 1,843 $ (1,504) Software 6,140 (992) 1,898 (572) Value added business 5,058 (2,355) 3,643 (2,257) Licenses 4,977 (489) 2,574 (509) Other intangible assets 2,074 (355) 49 (2) Total $ 23,513 $ (5,898) $ 10,007 $ (4,844) Total intangible assets, net $ 17,615 $ 5,163 Aggregate Amortization Expense For year ended 31.03.2023 $ 1,054 Estimated Amortization Expense For year ended 31.03.2024 $ 2,115 For year ended 31.03.2025 $ 1,809 For year ended 31.03.2026 $ 1,555 For year ended 31.03.2027 $ 1,194 For year ended 31.03.2028 $ 1,118 Amortization expense totaled $1,054, $1,146 and $570 for the years ended March 31, 2023, 2022 and 2021 respectively. |
OTHER ASSETS, NET
OTHER ASSETS, NET | 12 Months Ended |
Mar. 31, 2023 | |
Other Assets [Abstract] | |
OTHER ASSETS, NET | OTHER ASSETS, NET As of March 31, 2023 and 2022, other assets, net of the Company included the following: March 31, 2023 March 31, 2022 (Recasted) Prepayments on future acquisitions $ 23,428 $ 4,069 Deferred acquisition costs 17,495 9,617 Advances paid 12,553 4,340 Taxes other than income taxes 5,908 1,697 Investments in joint ventures and associated companies 4,000 — Deferred tax assets 2,442 909 Current income tax asset 1,529 2,497 Rent guarantee deposit 363 759 Due from financial institutions — 4,763 Other 5,745 990 Total other assets 73,463 29,641 Allowance for other assets — — Other assets, net $ 73,463 $ 29,641 |
SECURITIES REPURCHASE AGREEMENT
SECURITIES REPURCHASE AGREEMENT OBLIGATIONS | 12 Months Ended |
Mar. 31, 2023 | |
Securities Sold under Agreements to Repurchase [Abstract] | |
SECURITIES REPURCHASE AGREEMENT OBLIGATIONS | SECURITIES REPURCHASE AGREEMENT OBLIGATIONS As of March 31, 2023 and 2022, trading securities included collateralized securities subject to repurchase agreements as described in the following table: March 31, 2023 Interest rates and remaining contractual maturity of the agreements Average Up to 30-90 Over 90 Total Securities sold under repurchase agreements Non-US sovereign debt 15.98 % $ 826,196 $ 55,265 $ — $ 881,461 Corporate debt 16.07 % 597,559 5,375 — 602,934 US sovereign debt 1.52 % 17,637 — — 17,637 Corporate equity 12.24 % 15,384 — — 15,384 Total securities sold under repurchase agreements $ 1,456,776 $ 60,640 $ — $ 1,517,416 March 31, 2022 (Recasted) Interest rates and remaining contractual maturity of the agreements Average Up to 30 30-90 Over 90 Total Securities sold under repurchase agreements Corporate debt 11.96 % $ 609,405 $ 142 $ — $ 609,547 Non-US sovereign debt 10.85 % 222,893 — — 222,893 US sovereign debt 0.77 % 7,396 — — 7,396 Corporate equity 14.00 % 388 — — 388 Total securities sold under repurchase agreements $ 840,082 $ 142 $ — $ 840,224 The fair value of collateral pledged under repurchase agreements as of March 31, 2023 and 2022, was $1,519,926 and $834,751, respectively. Securities pledged as collateral by the Company under repurchase agreements are liquid trading securities with market quotes and significant trading volume. |
CUSTOMER LIABILITIES
CUSTOMER LIABILITIES | 12 Months Ended |
Mar. 31, 2023 | |
Contract with Customer, Liability [Abstract] | |
CUSTOMER LIABILITIES | CUSTOMER LIABILITIES The Company recognizes customer liabilities associated with funds held by our brokerage and bank customers. Customer liabilities consist of: March 31, 2023 March 31, 2022 (Recasted) Amount Interest rate Amount Interest rate Interest-bearing deposits: Term deposits $ 832,751 0.1% -16.9% 164,837 0.01%-14.3% Total Interest-bearing deposits $ 832,751 $ 164,837 Non-interest-bearing deposits: Current customer accounts $ 458,954 $ 81,447 Brokerage customers $ 633,542 $ 519,344 Total non-interest-bearing deposits $ 1,092,496 $ 600,791 Total customer liabilities 1,925,247 765,628 In accordance with Kazakhstan local law requirements, commercial banks conclude agreements with JSC Kazakhstan Deposit Insurance Fund ("KDIF"), under which banks have to pay commissions to KDIF on a recurring basis, the amount of which depends on the term and demand deposits received by banks from the customers. Under the regulatory agreement, KDIF insures the term and demand deposits up to $44 to each customer. As at March 31, 2023 and March 31, 2022, respectively, Freedom Bank KZ had a total amounts in excess of insured bank time deposits in amounts of $539,411 and $51,818 for all customers. |
MARGIN LENDING AND TRADE PAYABL
MARGIN LENDING AND TRADE PAYABLES | 12 Months Ended |
Mar. 31, 2023 | |
Accounts Payable [Abstract] | |
MARGIN LENDING AND TRADE PAYABLES | MARGIN LENDING AND TRADE PAYABLES As of March 31, 2023 and 2022, margin lending and trade payables of the Company included the following: March 31, 2023 March 31, 2022 (Recasted) Margin lending payable $ 117,144 $ 39,250 Payables to suppliers of goods and services 2,965 4,463 Trade payable for securities purchased 482 462 Other 2,309 908 Total margin lending and trades payables $ 122,900 $ 45,083 As of March 31, 2023 and 2022, margin lending payable due to a single related party $3,239 or 3% and $38,889 or 86% of margin lending payable, respectively. The fair value of collateral by the Company under margin loans as of March 31, 2023, and 2022 was $164,861 and $403,543 , respectively. |
SECURITIES SOLD, NOT YET PURCHA
SECURITIES SOLD, NOT YET PURCHASED AT FAIR VALUE | 12 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES SOLD, NOT YET PURCHASED - AT FAIR VALUE | SECURITIES SOLD, NOT YET PURCHASED - AT FAIR VALUE The following table provides a reconciliation of the beginning and ending balances for securities sold, not yet purchased - at fair value by the Company, as of March 31, 2023 and 2022: Total Balance as of March 31, 2021 (Recasted) $ 8,569 Short sales 7,055 Repurchase (346) Net gain on trading securities (1,413) Balance as of March 31, 2022 (Recasted) $ 13,865 Balance as of March 31, 2022 (Recasted) $ 13,865 Short sales 394 Repurchase (15,650) Net loss on trading securities 1,391 Balance as of March 31, 2023 $ — A short sale involves the sale of a security that is not owned with the expectation of purchasing the same security (or a security exchangeable) at a later date at a lower price. A short sale involves the risk of a theoretically unlimited increase in the market price of the security that would result in a theoretically unlimited loss. |
DEBT SECURITIES ISSUED
DEBT SECURITIES ISSUED | 12 Months Ended |
Mar. 31, 2023 | |
Debt Securities [Abstract] | |
DEBT SECURITIES ISSUED | DEBT SECURITIES ISSUED As of March 31, 2023 and 2022, outstanding debt securities of the Company included the following: Debt securities issued by March 31, 2023 March 31, 2022 (Recasted) Freedom SPC $ 58,582 $ 13,200 Freedom Holding Corp. — 20,500 Accrued interest 1,443 690 Total debt securities issued $ 60,025 $ 34,390 As of March 31, 2023, the Company's outstanding debt securities had fixed annual coupon rates of 5.5% and maturity date in October 2026. As of March 31, 2022, the Company’s outstanding debt securities had fixed annual coupon rates ranging from 5.5% to 7% and maturity dates ranging from December 2022 to October 2026. As of December 31, 2022, the Company fully redeemed FRHC notes, which were issued from December 2019 to February 2020. The FRHC notes denominated in U.S. dollars, bear interest at an annual rate of 7% and were due in December 2022. The FRHC notes were issued under Astana International Financial Centre law and traded on the AIX. The Company’s debt securities as of March 31, 2023, include $58,582 of Freedom SPC bonds issued in October 2021. The Freedom SPC bonds are denominated in U.S. dollars, bear interest at an annual rate of 5.5% and are due in October 2026. The Freedom SPC bonds were issued under Astana International Financial Centre law and trade on the AIX. FRHC is a guarantor of the Freedom SPC bonds. The proceeds from the issuance of the Freedom SPC bonds were loaned to FRHC pursuant to a loan agreement dated November 22, 2021. The interest rate under the loan agreement is 5.5% per annum. Interest payments are duly semi-annually in April and October. Repayment of the loan is due October 2026. Debt securities issued are initially recognized at the fair value of the consideration received, less directly attributable transaction costs. The group has no covenants to comply with. |
INSURANCE CONTRACTS ASSETS AND
INSURANCE CONTRACTS ASSETS AND LIABILITIES FROM INSURANCE ACTIVITIES | 12 Months Ended |
Mar. 31, 2023 | |
Insurance [Abstract] | |
INSURANCE CONTRACTS ASSETS AND LIABILITIES FROM INSURANCE ACTIVITIES | INSURANCE CONTRACTS ASSETS AND LIABILITIES FROM INSURANCE ACTIVITIES As of March 31, 2023, and March 31, 2022, insurance and reinsurance receivables of the Company was comprised of the following: March 31, 2023 March 31, 2022 Assets: (Recasted) Amounts due from policyholders $ 9,699 $ 3,500 Claims receivable from reinsurance 1,087 769 Amounts due from reinsured 555 23 Less provision for impairment losses (1,325) (343) Insurance and reinsurance receivables: 10,016 3,949 Unearned premium reserve, reinsurers’ share 2,379 143 Reserves for claims and claims’ adjustment expenses, reinsurers’ share 1,390 1,620 Total $ 13,785 $ 5,712 As of March 31, 2023, and March 31, 2022, the premium receivables from policyholders increased due to the expansion of operations. As of March 31, 2023, and March 31, 2022, insurance and reinsurance payable of the Company was comprised of the following: March 31, 2023 March 31, 2022 Liabilities: (Recasted) Amounts payable to agents and brokers $ 2,466 $ 1,981 Amounts payable to reinsurers 2,002 402 Amounts payable to insured 1,807 685 Insurance and reinsurance payables: 6,275 3,068 Unearned premium reserve 43,082 17,985 Reserves for claims and claims’ adjustment expenses 133,145 101,034 Total $ 182,502 $ 122,087 As of March 31, 2023, and March 31, 2022, liabilities from insurance activity mainly changed due to the increase of reserves for claims and claim's adjustment expenses, unearned premium reserve and the amount payable to agents and brokers as a result of the expansion of operations. |
OTHER LIABILITIES
OTHER LIABILITIES | 12 Months Ended |
Mar. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
OTHER LIABILITIES | OTHER LIABILITIES As of March 31, 2023 and 2022, other liabilities of the Company included the following: March 31, 2023 March 31, 2022 (Recasted) Salaries and other employee benefits $ 4,970 $ 2,120 Payable to suppliers 3,623 3,308 Vacation reserve 3,261 1,400 Taxes payable other than income tax 2,782 567 Deferred income tax liabilities 694 — Deferred distribution payments 156 8,534 Loans received 1 3,538 Outstanding settlements operations — 292 Other 7,385 1,718 Total other liabilities $ 22,872 $ 21,477 |
FEE AND COMMISSION INCOME
FEE AND COMMISSION INCOME | 12 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
FEE AND COMMISSION INCOME | FEE AND COMMISSION INCOME Fee and commission income is recognized when, or as, the Company satisfies its performance obligations by transferring the promised services to the customers. A service is transferred to a customer when, or as, the customer obtains control of that service. A performance obligation may be satisfied at a point in time or over time. Revenue from a performance obligation satisfied at a point in time is recognized at the point in time that the Company determines the customer obtains control over the promised service. Revenue from a performance obligation satisfied over time is recognized by measuring the Company’s progress in satisfying the performance obligation in a manner that depicts the transfer of the services to the customer. The amount of revenue recognized reflects the consideration the Company expects to receive in exchange for those promised services (i.e., the “transaction price”). In determining the transaction price, the Company considers multiple factors, including the effects of variable consideration, if any. The Company’s revenues from contracts with customers are recognized when the performance obligations are satisfied at an amount that reflects the consideration expected to be received in exchange for such services. The majority of the Company’s performance obligations are satisfied at a point in time and are typically collected from customers by debiting their brokerage account with the Company. Brokerage Services and Bank services Commissions from brokerage services — The Company earns commission revenue by executing, settling and clearing transactions with clients primarily in exchange-traded and over-the-counter corporate equity and debt securities, money market instruments and exchange-traded options and futures contracts. Commissions from bank services — The Company earns bank commissions by executing client order for money transfer, purchase and sale of foreign currency, and other bank services. A substantial portion of the Company's revenue is derived from commissions from private clients through accounts with transaction-based pricing. Trade execution and clearing services, when provided together, represent a single performance obligation, as the services are not separately identifiable in the context of the contract. Commission revenue associated with combined trade execution and clearing services, as well as trade execution services on a standalone basis, are recognized at a point in time on trade date when the performance obligation is satisfied. Commission revenue is generally paid on settlement date, which is generally two business days after trade date for equity securities and corporate bond transactions and one day for government securities, options and commodities transactions. The Company records a receivable on the trade date and receives a payment on the settlement date. Investment Banking The Company earns underwriting revenues by providing capital raising solutions for corporate clients through initial public offerings, follow-on offerings, equity-linked offerings, private investments in public entities, and private placements. Underwriting revenues are recognized at a point in time on placement date, as the client obtains the control and benefit of the capital markets offering at that point. These fees are generally received within 90 days after the placement date. Transaction-related expenses, primarily consisting of legal, travel and other costs directly associated with the transaction, are included in underwriting revenues. These costs are deferred and recognized in the same period as the related investment banking transaction revenue. However, if the transaction is abandoned and does not close, the accounting treatment for the transaction-related costs may differ. In such cases, the accounting principles typically require the immediate recognition of the transaction-related expenses as an expense in the period in which the decision to abandon the transaction is made. This ensures that the costs associated with the abandoned transaction are recognized and reflected accurately in the financial statements of the entity. Receivables and Contract Balances Receivables arise when the Company has an unconditional right to receive payment under a contract with a customer and are derecognized when the cash is received. Margin lending, brokerage and other receivables are disclosed in Note 7 in the notes to consolidated financial statements. Contract assets arise when the revenue associated with the contract is recognized before the Company’s unconditional right to receive payment under a contract with a customer (i.e., unbilled receivable) and are derecognized when either it becomes a receivable or the cash is received. As of March 31, 2023 and March 31, 2022, contract asset balances were not material. Contract liabilities arise when customers remit contractual cash payments in advance of the Company satisfying its performance obligations under the contract and are derecognized when the revenue associated with the contract is recognized either when a milestone is met triggering the contractual right to bill the customer or when the performance obligation is satisfied. As of March 31, 2023 and March 31, 2022, contract liability balances were not material. During the year ended March 31, 2023, March 31, 2022 and March 31, 2021, fee and commission income was comprised of: Year ended March 31, 2023 Central Asia and Eastern Europe Europe, excluding Eastern Europe U.S. Total Brokerage services 68,224 214,093 4,415 286,732 Bank services 17,964 — — 17,964 Underwriting and market-making services 11,538 — 410 11,948 Other fee and commission income 9,256 1,315 — 10,571 Total fee and commission income 106,982 215,408 4,825 327,215 Year ended March 31, 2022 (Recasted) Central Asia and Eastern Europe Europe, excluding Eastern Europe U.S. Total Brokerage services 7,908 306,245 4,545 318,698 Bank services 6,727 — — 6,727 Underwriting and market-making services 5,963 — — 5,963 Other fee and commission income 3,054 769 — 3,823 Total fee and commission income 23,652 307,014 4,545 335,211 Year ended March 31, 2021 (Recasted) Central Asia and Eastern Europe Europe, excluding Eastern Europe U.S. Total Brokerage services 8,803 194,311 1,130 204,244 Bank services 523 — — 523 Underwriting and market-making services 6,451 — — 6,451 Other fee and commission income 4,790 — — 4,790 Total fee and commission income 20,567 194,311 1,130 216,008 |
NET GAIN ON TRADING SECURITIES
NET GAIN ON TRADING SECURITIES | 12 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
NET GAIN ON TRADING SECURITIES | NET GAIN ON TRADING SECURITIES For year ended March 31, 2023, 2022 and 2021, net gain on trading securities included the following: Year ended March 31, 2023 Year ended March 31, 2022 Year ended March 31, 2021 (Recasted) (Recasted) Net unrealized gain/(loss) recognized during the reporting period on trading securities still held at the reporting date $ 107,310 $ (50,987) $ 8,672 Net (loss)/gain recognized during the period on trading securities sold during the period (36,226) 206,239 20,135 Net gain recognized during the period on trading securities $ 71,084 $ 155,252 $ 28,807 The Company held SPB Exchange shares and SPB Exchange ETF units in its proprietary account as of March 31, 2023, March 31, 2022 and March 31, 2021 at fair value of $478, $18,408, and $11,259, respectively. During the year ended March 31, 2023, the Company sold 7,500,000 SPB Exchange shares and realized loss from sale in the amount of $73,384, which included $50,785 of unrealized net loss recognized during previous periods that was reclassified to realized net loss during the year ended March 31, 2023. As a result, during the year ended March 31, 2023, the Company recognized net gain on trading securities of $71,084, which included $36,226 of realized net loss and $107,310 of unrealized net gain. |
NET INTEREST INCOME_ (EXPENSE)
NET INTEREST INCOME/ (EXPENSE) | 12 Months Ended |
Mar. 31, 2023 | |
Interest Income (Expense), Net [Abstract] | |
NET INTEREST INCOME/ (EXPENSE) | NET INTEREST INCOME/EXPENSE Net interest income/expense includes: Year ended March 31, 2023 Year ended March 31, 2022 Year ended March 31, 2021 Interest income: (Recasted) (Recasted) Interest income on trading securities $ 178,288 $ 78,327 $ 21,913 Interest income on margin lending 34,558 14,164 3,163 Interest income on loans issued 43,486 4,617 384 Interest income on available-for-sale securities 27,003 22,437 11,238 Interest income on cash and cash equivalents and restricted cash 9,836 1,658 1,630 Interest income from dividends 1,524 406 146 Total interest income $ 294,695 $ 121,609 $ 38,474 Interest expense: Interest expense on securities repurchase agreement obligations $ 158,595 $ 58,229 $ 10,915 Interest expense on customer liabilities 40,335 16,336 7,335 Interest expense on margin lending payable 6,635 — — Interest expense on debt securities issued 3,085 1,822 4,034 Interest expense on loans received 290 539 151 Other interest expense 7 21 9 Total interest expense $ 208,947 $ 76,947 $ 22,444 Net interest income $ 85,748 $ 44,662 $ 16,030 |
NET GAIN_(LOSS) ON FOREIGN EXCH
NET GAIN/(LOSS) ON FOREIGN EXCHANGE OPERATIONS | 12 Months Ended |
Mar. 31, 2023 | |
Research and Development [Abstract] | |
NET GAIN/(LOSS) ON FOREIGN EXCHANGE OPERATIONS | NET GAIN/(LOSS) ON FOREIGN EXCHANGE OPERATIONS Net gain on foreign exchange operations includes: Year ended March 31, 2023 Year ended March 31, 2022 Year ended March 31, 2021 (Recasted) (Recasted) Sales and purchases of foreign currency, dealing $ 45,963 $ (4,057) $ 609 Translation of financial assets and financial liabilities 6,191 7,848 (52) Total net gain on foreign exchange operations $ 52,154 $ 3,791 $ 557 |
NET (LOSS)_GAIN ON DERIVATIVES
NET (LOSS)/GAIN ON DERIVATIVES | 12 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
NET (LOSS)/GAIN ON DERIVATIVES | NET (LOSS)/GAIN ON DERIVATIVES For years ended March 31, 2023, 2022 and 2021, net (loss)/gain on derivatives included the following: Year ended March 31, 2023 Year ended March 31, 2022 Year ended March 31, 2021 (Recasted) (Recasted) Net realized (loss)/gain on derivatives (64,838) 946 86 Net unrealized loss/(gain) on derivatives 12 — — Total net (loss)/gain on derivatives $ (64,826) $ 946 $ 86 During the year ended March 31, 2023, Freedom Bank KZ realized loss on derivatives in the amount of $65,303 as a result of engaging in currency swaps mostly on the Kazakhstan Stock Exchange ("KASE") and Moscow Stock Exchange (“MOEX”). |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS During the years ended March 31, 2023, 2022 and 2021, the Company engaged in various related party transactions, a substantial amount of which were conducted with Freedom Securities Trading Inc. (formerly known as FST Belize Services, Inc.) (“FST Belize”), a Belize company which is wholly owned personally by the Company’s chief executive officer, chairman and majority shareholder, Timur Turlov, and is not part of the FRHC group of companies. FST Belize has its own brokerage customers, which include individuals and market-maker institutions and conducts business with the Company through a client omnibus account at Freedom EU. Fee and commission income earned from related parties is comprised primarily of brokerage commissions principally FST Belize. Fee and commission income earned from FST Belize principally consists of fees and commissions paid by FST Belize to Freedom EU to execute trades requested by brokerage customers of FST Belize, as well as commissions paid by FST Belize for order flow, which is net compensation received from firms to which our broker-dealer subsidiaries send equity and options orders, and fees for outstanding short sale positions. During the years ended March 31, 2023, 2022 and 2021, the Company earned fee and commission income from related parties in the amounts of $199,235, $291,163 and $184,725, respectively. Fee and commission income generated from FST Belize accounted for approximately 99% of the Company's total related party fee and commission income for the year ended March 31, 2023, as compared to approximately 94% and 36% of the Company's total related party fee and commission income for the years ended March 31, 2022 and 2021. Interest income earned from related parties is comprised entirely of interest income from FST Belize, principally interest income from margin lending. During the years ended March 31, 2023, 2022 and 2021, the Company earned interest income from related parties in the amounts of $23,191, $10,191 and $2,250, respectively. Interest income generated from FST Belize accounted for approximately 100% of the Company's total related party interest income for the year ended March 31, 2023, as compared to approximately 100% and 97% of the Company's total related party interest income for the years ended March 31, 2022 and 2021. During the years ended March 31, 2023, 2022 and 2021, the Company paid fee and commission expense for brokerage services to Wisdompoint Capital LTD and FST Belize in the amount of $2,988, $16,307 and $20,291, respectively. Margin lending, brokerage and other receivables from related parties result principally from borrowings made under margin loans by related parties, principally FST Belize. As of March 31, 2023 and March 31, 2022, the Company had margin lending receivables with related parties totaling $294,985 and $107,649, respectively. 98% and 95% of these balances were due from FST Belize. Margin lending receivables from FST Belize principally represent margin loans granted by Freedom EU to FST Belize. As of March 31, 2023, and March 31, 2022, the Company had bank commission receivables and receivables from brokerage clients from related parties totaling $626 and $244, respectively. As of March 31, 2023, and March 31, 2022, the Company had margin lending payables to related parties, totaling $3,239 and $38,889, respectively. 100% of these balances were due to Wisdompoint Capital LTD, as of March 31, 2023 and March 31, 2022, respectively. Wisdompoint Capital LTD (formerly Tradernet Limited) is a Cyprus company related to Freedom EU through common management. Wisdompoint Capital LTD provides brokerage services to the Company. As of March 31, 2022, the Company had amounts due to Timur Turlov related to the purchase price for the acquisition by the Company from Timur Turlov of two insurance companies, Freedom Life and Freedom Insurance, totaling $21,477. During the year ended March 31,2023 the amount is fully repaid. As of March 31, 2023 the Company had the prepayment on acquisition of Internet Tourism LLP and Aviata LLP, companies outside of the FRHC group where Timur Turlov has significant influence acquired after the reporting date, in the amount of $16,089. As of March 31, 2023, and March 31, 2022, the Company had customer liabilities to related parties totaling $130,210 and $325,904, respectively. As of March 31, 2023, and March 31, 2022, 18% and 75%, respectively, of these balances were deposits from FST Belize held by Freedom EU related to brokerage services provided by Freedom EU to FST Belize, whereas 36% and 17%, respectively, were from Fresh Start Trading, a company outside of the FRHC group which is primarily owned by Denis Matafonov, and 25% and 6%, respectively, from Wisdompoint Capital LTD.. As of March 31, 2023, and March 31, 2022, the Company had restricted customer cash deposited in current and brokerage accounts with related parties in the amounts of $114,885 and $222,651. As of March 31, 2023, and March 31, 2022, 40% and 78%, respectively, of these balances were from FST Belize, 60% and 22%, respectively, were from Wisdompoint Capital LTD. As of March 31, 2023, and March 31, 2022 the Company had loans issued which includes uncollateralized bank customer loans purchased from a related party, microfinance organization Freedom Finance Credit (“FFIN Credit”) a company outside of the FRHC group which is controlled by Timur Turlov, in the amount of $121,177 and $35,293, respectively. As of March 31, 2023, and March 31, 2022 the Company had cash and cash equivalents held in brokerage accounts of related parties totaling $35,549 and $22,787 respectively. 100% of these balances were due to Wisdompoint Capital LTD. In July 2021 the Company sold 23.88% of its outstanding equity interest in Freedom UA for $415 to Askar Tashtitov, the Company’s president, reducing the Company's direct ownership interest in Freedom UA to approximately 9%. Margin lending, brokerage and related banking services were provided to related parties pursuant to standard client account agreements and at standard market rates. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | STOCKHOLDERS' EQUITYOn October 6, 2022, the Company awarded a restricted stock grant totaling 20,000 shares of its common stock to key employees of the Company. Of the 20,000 shares awarded pursuant to the restricted stock grant awards, 4,000 shares vested on the date of the award, 4,000 shares vest on May 18, 2023, 4,000 shares vest on May 18, 2024, 4,000 shares vest on May 18, 2025 and 4,000 shares vest on May 18, 2026. On March 10, 2023 and on October 11, 2022, the Company awarded a stock grant totaling 18,974 and 18,242 shares of its common stock, respectively, to key employees of the Company's subsidiary, which vested on the date of the award, and on October 20, 2022, the Company awarded a stock grant totaling 8,000 shares of its common stock to a consultant of the Company, which vested on the date of the award. In May 2022, Freedom KZ completed the acquisition of two insurance companies, Freedom Life and Freedom Insurance. Prior to being acquired by the Company, these two companies were 100% controlled by Timur Turlov. The consideration for the purchase was $26,588. The Company was required to pay the purchase price to Timur Turlov by no later than December 31, 2022. As at March 31,2023 Freedom KZ has repaid the payable for acquisition of Freedom Life and of Freedom Insurance. During the years ended March 31, 2023 and 2022, Timur Turlov made a capital contribution to the Company in the amount of $677 and $24,417, respectively. During the year ended March 31,2023 the Company completed a placement of 59,763 shares of its common stock. The shares of common stock were used for purchase of LD Micro. On March 30, 2022, the Company awarded a restricted stock grant totaling 7,500 shares of its common stock to one executive officer of the Company. Of the 7,500 shares awarded pursuant to the restricted stock grant awards, 3,000 shares vest on May 18, 2023, 1,500 shares vest on May 18, 2024, 1,500 shares vest on May 18, 2025 and 1,500 shares vest on May 18, 2026. On May 18, 2021, the Company awarded restricted stock grants totaling 1,031,500 shares of its common stock to 56 employees and consultants of the Company, including two executive officers of the Company. Of the 1,031,500 shares awarded pursuant to the restricted stock grant awards, 200,942 shares are subject to one-year vesting, 211,658 shares are subject to two-year vesting and 206,300 shares per year are subject to three four The Company recorded stock-based compensation expense for restricted stock grants in the amount of $11,038 during the year ended March 31, 2023. The Company recorded stock-based compensation expense for restricted stock grants and stock options in the amount of $15,745 and $1,147 during the year ended March 31, 2022 and March 31, 2021, respectively. |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 12 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
STOCK BASED COMPENSATION | STOCK BASED COMPENSATION On October 6, 2022, the Company awarded 20,000 shares of its common stock to key employees of the Company. Of the 20,000 shares 4,000 shares vested on the date of the award, 4,000 shares vested on May 18, 2023, 4,000 shares will vest on May 18, 2024, 4,000 shares will vest on May 18, 2025 and 4,000 shares will vest on May 18, 2026. On March 10, 2023 and on October 11, 2022, the Company awarded 18,974 and 18,242 shares of its common stock, respectively to key employees of the Company's subsidiary, which vested on the date of the award. Additionally on October 20, 2022, the Company awarded 8,000 shares of its common stock to a consultant of the Company, which vested on the date of the award. The compensation expense related to restricted stock awards was $8,158 during the year ended March 31, 2023, and $15,745 during the year ended March 31, 2022. As of March 31, 2023, there was $8,133 of total unrecognized compensation cost related to non-vested shares of stock awarded. The cost is expected to be recognized over a weighted average period of 3.07 years. The compensation expense related to stock awards, which vested on the date of the award was $2,880 during the year ended March 31, 2023, and $0 during the year ended March 31, 2022. The Company has determined the fair value of shares awarded during the year ended March 31, 2023, using the Monte Carlo valuation model based on the following key assumptions: Term (years) 3.62 Volatility 35.1 % Risk-free rate 4.18 % The table below summarizes the activity for the Company's stock awards outstanding during the year ended March 31, 2023: Shares Weighted Outstanding, March 31, 2022 1,049,500 40,303 Granted 65,216 3,506 Vested (274,158) (11,484) Forfeited/cancelled/expired (373,500) (14,290) Outstanding, March 31, 2023 467,058 18,035 |
LEASES
LEASES | 12 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
LEASES | LEASES At March 31, 2023, the Company was obligated under a number of noncancellable leases, predominantly operating leases of office space, which expire at various dates through 2033. Our primary involvement with leases is in the capacity as a lessee where we lease premises to support our business. 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. Operating lease liabilities and ROU assets are recognized at the lease commencement date based on the present value of the future minimum lease payments over the lease term. The future lease payments are discounted at a rate that estimates the Company’s collateralized borrowing rate for financing instruments of a similar term and are included in accounts payable and other liabilities. The operating lease ROU asset, included in premises and equipment, also includes any lease prepayments made, plus initial direct costs incurred, less any lease incentives received. Rental expense associated with operating leases is recognized on a straight-line basis over the lease term, and generally included in occupancy expense in the Consolidated Statements of Operations. Certain of these leases also have extension or termination options, and we assess the likelihood of exercising such options. If it is reasonably certain that we will exercise the options to extend, then we include the impact in the measurement of our right-of-use assets and lease liabilities. When readily determinable, the Company uses the rate implicit in the lease to discount lease payments to present value; however, the rate implicit on most of the Company's leases are not readily determinable. Therefore, the Company must discount lease payments based on an estimate of its incremental borrowing rate. The table below presents the lease related assets and liabilities recorded on the Company's consolidated balance sheets as of March 31, 2023: Classification on Balance Sheet March 31, 2023 Assets Operating lease assets Right-of-use assets $ 30,345 Total lease assets $ 30,345 Liabilities Operating lease liability Operating lease obligations $ 30,320 Total lease liability $ 30,320 The following table presents as of March 31, 2023, the annual maturities of the lease liabilities: Twelve months ending March 31, 2024 $ 9,413 2025 7,971 2026 7,543 2027 6,629 2028 4,766 Thereafter 4,199 Total payments 40,521 Less: amounts representing interest (10,201) Lease liability $ 30,320 Weighted average remaining lease term (in months) 21 Weighted average discount rate 13 % Lease commitments for short-term operating leases as of March 31, 2023 was approximately $457. The Company's rent expense for office space was $2,038 for the year ended March 31, 2023, $1,026 for the year ended March 31, 2022 and $624 for the year ended March 31, 2021 respectively. The company has leases that involve variable payments tied to an index, which are considered in the measurement of operating lease right-of-use (ROU) assets and operating lease liabilities. |
ACQUISITIONS OF SUBSIDIARIES
ACQUISITIONS OF SUBSIDIARIES | 12 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS OF SUBSIDIARIES | ACQUISITIONS OF SUBSIDIARIES On May 17, 2022, the Company acquired two insurance companies in Kazakhstan, a life insurance company, Freedom Life, and a direct insurance carrier, Freedom Insurance, which provides compulsory insurance, medical insurance, apartment insurance, and auto insurance. Prior to acquiring these companies, each was wholly owned by controlling shareholder, chairman and chief executive officer, Timur Turlov, who acquired Freedom Finance Life on March 14, 2018 and Freedom Finance Insurance on August 22, 2018 from a non-related party. The Company acquired these companies from him at the historical cost paid by him plus amounts he has contributed as additional paid in capital since his purchase. These companies were not initially acquired directly by the Company because at the time they were put on the market for sale by their prior owner they did not have audit reports conforming to U.S. GAAP standards and had not demonstrated sustained profitability. The purchase price for Freedom Insurance was $13,977 and the purchase price for Freedom Life was $12,611. Acquisition of Freedom Life When preparing the consolidated financial statements for the year ended March 31, 2023, management determined that this acquisition should be accounted for under the pooling of interest method and as a result recasted the comparative financial information. The acquisition from Timur Turlov was deemed to be under common control with the Company since it was acquired on February 28, 2018. The transaction has been accounted for as a restructuring transaction and all the assets and liabilities of Freedom Life were transferred to the Company at their respective carrying amounts on the date of transaction. As of the acquisition date by Timur Turlov, the fair value of Freedom Life was $12,076. The total purchase price was allocated as follows: Purchase price allocation ASSETS Cash and cash equivalents $ 3,494 Due from banks 2,514 Loans issued 2 Other assets 1,671 Assets from insurance activity 3,729 Deferred acquisition costs 542 Available-for-sale securities, at fair value 15,842 Fixed assets 171 Intangible assets 5,823 Deferred tax assets 141 TOTAL ASSETS 33,929 Deferred income tax liabilities 47 Other liabilities 139 Liabilities from insurance activity 21,667 TOTAL LIABILITIES 21,853 Net assets acquired 12,076 Goodwill 526 Total purchase price 7,009 Fair value of non-controlling interest at acquisition 5,593 For more information on how the acquisition impacted the Company's consolidated financial statements for the comparative years, please refer to Note 3 "Recast" to these consolidated financial statements. Acquisition of Freedom Insurance When preparing the consolidated financial statements for the year ended March 31, 2023, management determined that this acquisition should be accounted for under the pooling of interest method and as a result recasted the comparative financial information. The acquisition from Timur Turlov was deemed to be an entity under common control with the Company since it was acquired on August 22, 2018. The transaction has been accounted for as a restructuring transaction and all the assets and liabilities of Freedom Insurance were transferred to the Company at their respective carrying amounts on the date of transaction. As of the acquisition date by Timur Turlov, the fair value of Freedom Insurance was $4,101. The total purchase price was allocated as follows: Purchase price allocation ASSETS: Cash and cash equivalents $ 1,224 Due from banks 1,041 Other assets 17 Assets from insurance activity 45 Current income tax asset 5 Available-for-sale securities, at fair value 1,846 Fixed assets 2 Intangible assets 207 Deferred tax assets 2 TOTAL ASSETS 4,389 Other liabilities 214 Liabilities from insurance activity 74 TOTAL LIABILITIES 288 Net assets acquired 4,101 Goodwill 187 Total purchase price 4,288 For more information on how the acquisition impacted the Company's consolidated financial statements for the comparative years, please refer to Note 3 "Recast" to these consolidated financial statements. Acquisition of London-Almaty On September 1, 2022, the Company completed the acquisition of Insurance Company IC "London-Almaty", following receipt of the approval from the Agency of the Republic of Kazakhstan for Regulation and Development of Financial Market, by purchasing 100% of its outstanding shares. The Company acquired IC "London-Almaty" to expand its presence in the insurance sector. This acquisition was accounted for under the purchase accounting method as it was not an acquisition of entities under common control. As of September 1, 2022, the date of the acquisition of IC "London-Almaty", the fair value of IC "London-Almaty" was $15,858. The total purchase price was allocated as follows: As of September 1, 2022 ASSETS Cash and cash equivalents $ 8,077 Due from banks 2,176 Trading securities 6,178 Value of business acquired 1,677 Assets from insurance activities 3,401 Fixed assets 806 Intangible assets 127 Other assets 1,505 TOTAL ASSETS 23,947 Insurance reserves 6,380 Liabilities from insurance activity 1,429 Other liabilities 280 TOTAL LIABILITIES 8,089 Net assets acquired 15,858 Goodwill 485 Total purchase price $ 16,343 On December 15, 2022, IC "London-Almaty" was merged into Freedom Insurance and its separate legal existence was terminated. The assets and liabilities of IC "London-Almaty" were transferred to Freedom Insurance at their respective carrying amounts on the date of the merger was completed. Acquisition of Ticketon As of September 30, 2022, the date of the acquisition of Ticketon by purchasing 100% of its authorized capital. The Company acquired Ticketon to accelerate its growth in fintech sector. This acquisition was accounted for under the purchase accounting method as it was not an acquisition of entities under common control. The fair value of Ticketon on the date of the acquisition was $1,233. The total purchase price was allocated as follows: ASSETS Cash and cash equivalents $ 3,079 Brokerage and other receivables 175 Fixed assets 47 Intangible assets 1,424 Right-of-use asset 63 Other assets 627 TOTAL ASSETS 5,415 Deferred income tax liabilities 36 Lease liability 79 Other liabilities 4,067 TOTAL LIABILITIES 4,182 Net assets acquired 1,233 Goodwill 1,771 Total purchase price $ 3,004 Acquisition of Paybox On February 10, 2023, the Company completed the acquisition Kazakhstan company Paybox Technologies LLP and its subsidiaries ("Paybox") in order to expand activities in the field of financial technologies. The purchase price for the acquisition of Paybox was $11,659. This acquisition was accounted for under the purchase accounting method as it was not an acquisition of entities under common control. As of February 10, 2023, at the date of the acquisition the fair value of Paybox Technologies LLP and its subsidiaries was $11,659. The total purchase price was allocated as follows: ASSETS Cash and cash equivalents 5,429 Trading securities 3,838 Brokerage and other receivables 1,726 Fixed assets 1,080 Intangible assets 3,288 Right-of-use asset 341 Goodwill 932 Other assets 454 TOTAL ASSETS 17,088 Securities repurchase agreement obligations 3,037 Trade payables 799 Lease liability 993 Other liabilities 600 TOTAL LIABILITIES 5,429 Net assets acquired 11,659 Goodwill — Total purchase price 11,659 Acquisition of LD Micro As of March 2, 2023, the date of acquisition, the fair value of LD Micro comprised $2,526. This acquisition was accounted for under the purchase accounting method as it was not an acquisition of entities under common control. The total purchase price was allocated as follows: As of March 2, 2023 ASSETS Intangible assets 2,540 TOTAL ASSETS 2,540 Trade payables 14 TOTAL LIABILITIES 14 Net assets acquired 2,526 Goodwill 5,774 Total purchase price 8,300 |
ASSETS AND LIABILITIES HELD FOR
ASSETS AND LIABILITIES HELD FOR SALE | Oct. 17, 2022 |
Discontinued Operations and Disposal Groups [Abstract] | |
ASSETS AND LIABILITIES HELD FOR SALE | ASSETS AND LIABILITIES HELD FOR SALE In the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2022, the Company announced its plans to divest its interests in its Russian securities brokerage and complementary banking operations in Russia (the "Russia Segment"). On October 17, 2022, the Company entered into an agreement with Maxim Povalishin for the divestiture of 100% of the share capital of the companies comprising the Russia Segment. Maxim Povalishin, the purchaser, was at the time of the transaction the Deputy General Director and a member of the Board of Directors of Freedom RU. The transaction was approved by the Central Bank of the Russian Federation on February 10, 2023, and the divestiture was completed on February 28, 2023 (disposal date). The consideration for the purchase of the Russian Subsidiaries consists of the following: • Mr. Povalishin was assigned the Company’s obligation to Freedom RU under an outstanding deferred payment in the amount of approximately RUB 6.6 billion (approximately $88.5 million) (the “Deferred Payment Obligation”) which resulted from the purchase by the Company of 90.43% of the share capital of Freedom RU’s Kazakhstan subsidiary Freedom Finance JSC (“Freedom KZ”) (with its subsidiaries) from Freedom RU as part of a corporate restructuring, as a result of which the Company has become the 100% direct owner of Freedom KZ. The agreement for the purchase of Freedom KZ was entered on September 13, 2022, that was approved by regulatory body and finalized during November 2022; and • Mr. Povalishin paid cash in an amount equal to (x) $140 million less (y) the amount of the Deferred Payment Obligation as translated into U.S. dollars at the official exchange rate on the closing date. In addition, in July 2022, Freedom RU established a Russian subsidiary Freedom Finance Auto LLC. In January 2023, Freedom RU concluded an agreement to divest this new subsidiary to Mr. Povalishin for RUB 50 million (approximately $695 based on the applicable currency exchange rate on the reporting date). On February 7, 2023, the sale of Freedom Finance Auto LLC was completed. The Company has classified the Russia Segment as discontinued operations as of March 31, 2022 and for the years ended March 31, 2023, 2022 and 2021, because the subsidiaries sold in this transaction met the held for sale criteria as of March 31, 2022. In accordance with US GAAP, the cumulative translation adjustment attributable to the Russia Segment of $25,415 was reclassified from Accumulated Other Comprehensive Loss within the Consolidated Balance Sheet as of disposal date to Loss from Disposal of Discontinued Operations within Consolidated Statements of Operations and Other Comprehensive Income. In accordance with US GAAP, the Company has reported separately the discontinued operations in the consolidated financial statements. As of disposal date and March 31, 2022, the major classes of assets and liabilities from discontinued operations included the following: February 28, 2023 March 31, 2022 Cash and cash equivalents 593,953 428,480 Restricted cash 6,033 28,406 Trading securities 113,845 122,497 Margin lending, brokerage and other receivables, net 257,184 210,087 Loans issued 23,169 2,395 Other assets 32,398 33,554 Total assets held for sale 1,026,582 825,419 Customer liabilities 776,425 701,584 Securities repurchase agreement obligations 33,275 32,469 Debt securities issued 34,379 64,637 Other liabilities 16,385 13,788 Total liabilities held for sale 860,464 812,478 The results of operations for discontinued operations for the eleven months ended February 28, 2023 and for the years ended March 31, 2022 and 2021, consist of the following: For The Eleven Months Ended February 28, 2023 For The Year Ended March 31, 2022 For The Year Ended March 31, 2021 Fee and commission income 77,109 69,742 52,780 Net gain/(loss) on trading securities 22,045 (78,674) 20,275 Net loss on derivative (44) — 39 Interest income 53,410 28,399 11,221 Net gain/(loss) on foreign exchange operations 45,859 (39,672) 2,285 TOTAL REVENUE, NET 198,379 (20,205) 86,600 Payroll and bonuses 58,971 39,114 24,827 Professional services 620 467 239 Stock compensation expense 1,743 7,887 1,033 Advertising expense 14,945 7,085 1,881 General and administrative expense 26,031 18,476 14,001 Interest expense 15,051 10,450 8,760 Fee and commission expense 10,467 7,988 7,122 Provision for impairment losses 1,566 779 45 Other (income)/expense, net 825 4,748 174 TOTAL EXPENSE 130,219 96,994 58,082 INCOME/(LOSS) BEFORE INCOME TAX 68,160 $ (117,199) $ 28,518 The net cash flows used in operating and investing activities for discontinued operations for the eleven months ended February 28, 2023 and for the years ended March 31, 2022 and 2021, consist of the following: For The Eleven Months Ended February 28, 2023 For The Year Ended March 31, 2022 For The Year Ended March 31, 2021 (Recasted) (Recasted) Cash Flows From Operating Activities Net income/(loss) from discontinued operations $ 12,424 $ (104,195) $ 21,783 Adjustments to reconcile net income used in operating activities: Depreciation and amortization 2,103 2,035 1,745 Noncash lease expense 5,772 4,932 3,826 Change in deferred taxes 8,203 (12,634) 1,170 Impairment of FFIN Bank goodwill — 723 — Impairment of Zerich goodwill — 810 — Stock compensation expense 1,743 7,887 1,033 Unrealized loss/(gain) on trading securities (35,244) 51,652 (425) Net change in accrued interest (276) 354 (1,921) Client base write-off — 3,125 — Allowances for receivables 1,871 771 41 Loss from divestiture of Russian subsidiaries 51,533 — — Changes in operating assets and liabilities: Trading securities 62,100 (39,354) (100,133) Margin lending, brokerage and other receivables (23,325) (218,852) 28,845 Other assets (2,684) (3,684) (1,292) Securities sold, not yet purchased – at fair value 182 239 23 Customer liabilities (106,396) 198,608 392,855 Current income tax liability 1 (637) 658 Margin lending and trade payables (15) (370) 230 Lease liabilities (5,763) (5,166) (3,854) Other liabilities 3,676 1,256 2,433 Net cash flows from/(used in) operating activities from discontinued operations (24,095) (112,500) 347,017 Cash Flows Used In Investing Activities Purchase of fixed assets (4,421) (3,438) (2,137) Proceeds from sale of fixed assets — — 76 Net change in loans issued to customers (25,331) (945) (171) Cash, cash equivalents and restricted cash disposed from divestiture of Russia segment (599,986) — — Net cash flows used in investing activities from discontinued operations (629,738) (4,383) (2,232) The following table presents reconciliation of loss from disposal of discontinued operations as of disposal date: February 28, 2023 Cash and cash equivalents 593,953 Restricted cash 6,033 Trading securities 113,845 Margin lending, brokerage and other receivables, net 257,184 Loans issued 23,169 Other assets 32,398 Total assets of discontinued operations $ 1,026,582 Customer liabilities 776,425 Securities repurchase agreement obligations 33,275 Debt securities issued 34,379 Other liabilities 16,385 Total liabilities of discontinued operations $ 860,464 Net assets of discontinued operations $ 166,118 Reclassification of unrealized loss from cumulative translation adjustment 25,415 Adjusted net assets of discontinued operations $ 191,533 Consideration received 140,000 Loss from divestiture of discontinued operations $ (51,533) |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Freedom Bank KZ is a party to certain off-balance sheet financial instruments. These financial instruments include guarantees and unfunded commitments under existing lines of credit. These commitments expose the Company to varying degrees of credit and market risk which are essentially the same as those involved in extending loans to customers, and are subject to the same credit policies used in underwriting loans. Collateral may be obtained based on the Company's credit evaluation of the counterparty. The Company's maximum exposure to credit loss is represented by the contractual amount of these commitments. Unfunded commitments under lines of credit Unfunded commitments under lines of credit include commercial, commercial real estate, home equity and consumer lines of credit to existing customers. These commitments may mature without being fully funded. Unfunded commitments under lines of guarantees Unfunded commitments under lines of guarantees are conditional commitments issued by Freedom Bank KZ to provide bank guarantees to customers. These commitments may mature without being fully funded. Bank guarantees Bank guarantees are conditional commitments issued by Freedom Bank KZ to guarantee the performance of a customer to a third party. These guarantees are primarily issued to support trade transactions or guarantee arrangements. The credit risk involved in issuing guarantees is essentially the same as that involved in extending loan facilities to customers. A significant portion of the issued guarantees are collateralized by cash. Total lending related commitments outstanding at March 31, 2023 and 2022, were as follows: As of March 31, 2023 As of March 31, 2022 (Recasted) Unfunded commitments under lines of credit $ 20,617 $ 11,292 Bank guarantees 7,001 6,384 Total $ 27,618 $ 17,676 |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING We have historically operated as a single operating segment. With the restructuring of our operations and the divestiture of our Russian subsidiaries, coupled with our continued expansion, during the fourth quarter of fiscal 2022 we elected to reorganize our operations geographically into five regional segments: Central Asia and Eastern Europe, Europe, excluding Eastern Europe, United States, Russia and Middle East/Caucasus As a result of the divestiture of our Russian subsidiaries, which was completed in February 2023, we now have four regional segments. These operating segments are based on how our CODM is making decisions about allocating resources and assessing performance. The total revenue, net associated with our segments is summarized in the following table: The following tables summarize the Company's Statement of operation by its geographic segments. There are no revenues from transactions between the segments and intercompany balances were eliminated for separate: Year ended March 31, 2023 STATEMENTS OF OPERATIONS Central Asia and Eastern Europe Europe, excluding Eastern Europe US Middle East/Caucasus Total Fee and commission income (1) $ 106,982 $ 215,408 $ 4,825 $ — $ 327,215 Net gain/(loss) on trading securities 92,330 (22,693) 1,447 — 71,084 Interest income 257,285 26,090 11,289 31 294,695 Insurance underwriting income 115,371 — — — 115,371 Net gain/(loss) on foreign exchange operations 58,908 (2,287) (4,479) 12 52,154 Net loss on derivative (64,826) — — — (64,826) TOTAL REVENUE, NET 566,050 216,518 13,082 43 795,693 Fee and commission expense $ 34,939 $ 29,426 $ 1,238 $ 57 $ 65,660 Interest expense 172,326 22,042 14,579 — 208,947 Insurance claims incurred, net of reinsurance 77,329 — — — 77,329 Payroll and bonuses 56,774 16,090 7,818 1,137 81,819 Professional services 1,594 7,397 7,875 140 17,006 Stock compensation expense 6,582 550 2,161 — 9,293 Advertising expense 7,847 5,900 186 126 14,059 General and administrative expense 34,754 20,496 4,095 626 59,971 Provision for impairment losses 12,522 15,070 1,527 — 29,119 Other (income)/expense, net (4,485) 1,101 (14) (50) (3,448) TOTAL EXPENSE 400,182 118,072 39,465 2,036 559,755 INCOME/(LOSS) BEFORE INCOME TAX FROM CONTINUING OPERATIONS $ 165,868 $ 98,446 $ (26,383) (1,993) $ 235,938 Income tax expense (625) (21,813) (20,278) (60) (42,776) NET INCOME/(LOSS) FROM CONTINUING OPERATIONS $ 165,243 $ 76,633 $ (46,661) (2,053) $ 193,162 Year ended March 31, 2022 (Recasted) STATEMENTS OF OPERATIONS Central Asia and Eastern Europe Europe, excluding Eastern Europe US Middle East/Caucasus Total Fee and commission income (1) $ 23,652 $ 307,014 $ 4,545 $ — $ 335,211 Net gain on trading securities 10,511 142,195 2,546 — 155,252 Interest income 107,075 14,051 483 — 121,609 Insurance underwriting income 72,981 — — — 72,981 Net gain/(loss) on foreign exchange operations 7,824 (5,598) 1,565 — 3,791 Net gain on derivative 946 — — — 946 TOTAL REVENUE, NET 222,989 457,662 9,139 — 689,790 Fee and commission expense 20,610 64,519 780 — 85,909 Interest expense 66,392 8,747 1,808 — 76,947 Insurance claims incurred, net of reinsurance 54,447 — — — 54,447 Payroll and bonuses 32,562 9,419 4,224 83 46,288 Professional services 1,773 5,540 5,295 74 12,682 Stock compensation expense 4,768 677 2,414 — 7,859 Advertising expense 4,684 7,217 9 6 11,916 General and administrative expense 16,770 4,894 1,749 120 23,533 Provision for impairment losses 2,441 61 — — 2,502 Other expense/(income), net 3,138 7 872 (3) 4,014 TOTAL EXPENSE 207,585 101,081 17,151 280 326,097 INCOME/(LOSS) BEFORE INCOME TAX FROM CONTINUING OPERATIONS $ 15,404 $ 356,581 $ (8,012) (280) $ 363,693 Income tax (expense)/benefit 1,195 (26,786) (12,988) 9 (38,570) NET INCOME/(LOSS) FROM CONTINUING OPERATIONS $ 16,599 $ 329,795 $ (21,000) (271) $ 325,123 Year ended March 31, 2021 (Recasted) STATEMENTS OF OPERATIONS Central Asia and Eastern Europe Europe, excluding Eastern Europe US Middle East/Caucasus Total Fee and commission income (1) $ 20,567 $ 194,311 $ 1,130 $ — $ 216,008 Net gain on trading securities 21,310 8 7,489 — 28,807 Interest income 34,158 3,634 682 — 38,474 Insurance underwriting income 62,951 — — — 62,951 Net gain/(loss) on foreign exchange operations 1,072 (300) (215) — 557 Net gain on derivative 86 — — — 86 TOTAL REVENUE, NET 140,144 197,653 9,086 — 346,883 Fee and commission expense 7,412 62,430 695 — 70,537 Interest expense 16,608 3,663 2,173 — 22,444 Insurance claims incurred, net of reinsurance 52,405 — — — 52,405 Payroll and bonuses 16,878 5,398 1,156 3 23,435 Professional services 685 769 2,975 1 4,430 Stock compensation expense — 56 58 — 114 Advertising expense 3,566 3,386 19 — 6,971 General and administrative expense 8,036 2,518 553 11 11,118 Provision for impairment losses 1,086 108 396 — 1,590 Other expense/(income), net 2,052 (3) (15) — 2,034 TOTAL EXPENSE 108,728 78,325 8,010 15 195,078 INCOME/(LOSS) BEFORE INCOME TAX FROM CONTINUING OPERATIONS $ 31,416 $ 119,328 $ 1,076 (15) $ 151,805 Income tax (expense)/benefit 111 (13,859) (9,559) — (23,307) NET INCOME/(LOSS) FROM CONTINUING OPERATIONS $ 31,527 $ 105,469 $ (8,483) (15) $ 128,498 (1) All trading of U.S. and European exchange traded and OTC securities by all Freedom securities brokerage firms, excluding PrimeEx, are routed to and executed through Freedom EU and all fee and commission income for those transactions is recognized at subsidiary received the initial order from external client. The following tables summarize the Company's total asset and total liabilities by its geographic segments. Intercompany balances were eliminated for separate disclosure: March 31, 2023 Central Asia and Eastern Europe Europe, excluding Eastern Europe US Middle East/ Caucasus Held for sale Total Total assets $ 4,303,126 $ 677,425 $ 101,365 $ 2,642 $ 5,084,558 Total liabilities 3,868,326 384,921 60,198 377 4,313,822 Net assets $ 434,800 $ 292,504 $ 41,167 $ 2,265 $ 770,736 March 31, 2022 (Recasted) Central Asia and Eastern Europe Europe, excluding Eastern Europe US Middle East/ Caucasus Held for sale Total Total assets $ 1,466,214 $ 765,698 $ 172,661 $ 355 $ 825,419 $ 3,230,347 Total liabilities 1,206,084 489,884 175,121 172 812,478 2,683,739 Net assets $ 260,130 $ 275,814 $ (2,460) $ 183 $ 12,941 $ 546,608 Central Asia and Eastern Europe Segment Operations in Kazakhstan, Kyrgyzstan, Uzbekistan, and Ukraine, along with our headquarters in Kazakhstan, form our Central Asia and Eastern Europe segment. Within this segment, the Company conduct business under different securities licenses as required by the respective jurisdictions in the Central Asia and Eastern Europe region. Central Asia and Eastern Europe segment provides comprehensive financial solutions, including lending such as digital auto loans ad digital mortgage loans, payments, asset management products, bank guarantees, on demand and time deposits, various types of insurance coverage to meet the needs of our customers and small businesses. Our insurance offerings include life insurance, obligatory insurance, tourist medical health insurance and auto insurance. These insurance products are designed to offer comprehensive coverage and tailored solutions to protect individuals, property, auto and businesses in the event of unforeseen events or risks. Europe excluding Eastern Europe Segment Europe excluding Eastern Europe offers a broad suite of market-making, prime brokerage, lending, and treasury and securities products and services to a global client base of corporations, investors, financial institutions, merchants, government and municipal entities. It caters to clients from the European Union by offering comprehensive solutions to support their investment needs. Our services encompass direct access to the world's largest stock exchanges, providing our clients with a gateway to global investment opportunities. Additionally, our offerings include professional securities analytics, empowering clients with valuable insights and market intelligence to make informed investment decisions. To ensure a seamless experience, it provides user-friendly trading applications that offer convenience and flexibility. US segment US segment provides a wide range of services to meet the needs of its clients. The segment offers a full array of investment banking and capital markets advisory services, including initial public offerings, mergers, and acquisitions, debt and equity financing, corporate banking, trading, hedging, and research, equity research, delivering in-depth analysis, insights into individual stocks and sectors. It provides macro-economic strategy research to help clients navigate the broader economic landscape and make informed investment decisions. To ensure clients are well-informed, the segment offers a daily morning note that covers key market updates, trends, and potential opportunities. It also provides technical research, focusing on chart patterns and technical indicators to assist clients in identifying potential entry and exit points in the market. In addition, the US segment conducts research in specific sectors such as energy and consumer, offering valuable insights into industry trends and company analysis. It facilitates corporate access research, enabling clients to gain access to top management and industry experts for a deeper understanding of specific companies or sectors. Middle East/ Caucasus segment Middle East/Caucasus segment offers securities broker- dealer services, financials educational center services, financial intermediary center services and financial consulting services. The segment is currently in the developmental stage and does not generate profit at the moment. As a developing segment, the focus is on establishing a strong presence, building strategic relationships, and expanding client base in the region. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS The Company has performed an evaluation of subsequent events through the time of filing this annual report on Form 10-K with the SEC. Other than as disclosed below, during this period the Company did not have any additional material recognizable subsequent events. On April 26, 2023, the Company acquired Kazakhstan company Arbuz Group LLP for $16,509. On June 14, 2023, the Company acquired two Kazakhstan companies Aviata LLP and Internet-Tourism LLP, the purchase price for the acquisitions of Aviata LLP and Internet-Tourism LLP were $30,411 and $1,896, respectively. On July 26, 2023, the Company acquired Kazakhstan company ReKassa PCI Reader for $2,500. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Accounting principles | Accounting principles The Company's accounting policies and accompanying consolidated financial statements conform to accounting principles generally accepted in the United States of America (U.S. GAAP). |
Basis of presentation and principles of consolidation | Basis of presentation and principles of consolidation The consolidated financial statements present the consolidated accounts of FRHC and its consolidated subsidiaries. All inter-company balances and transactions have been eliminated from the consolidated financial statements. |
Consolidation of variable interest entities | Consolidation of variable interest entities In accordance with accounting standards regarding consolidation of variable interest entities ("VIEs"), VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision making ability. VIEs must be evaluated to determine the primary beneficiary of the risks and rewards of the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes. As of March 31, 2023 and 2022 and for the years ended March 31, 2023, 2022 and 2021, the only VIE of the Company was Freedom UA. The carrying amounts of the VIE’s consolidated assets and liabilities are as follows: March 31, 2023 March 31, 2022 Cash and cash equivalents 26 134 Restricted cash 1,936 2,843 Trading securities 4,010 2,942 Margin lending, brokerage and other receivables, net 1,616 435 Fixed assets, net 782 1,043 Intangible assets, net 131 205 Right-of-use asset 135 905 Other assets 56 127 Total assets $ 8,692 8,634 Customer liabilities 5,837 8,439 Securities repurchase agreement obligations 12 3,267 Trade payables 25 35 Lease liability 159 914 Other liabilities 298 434 Total liabilities $ 6,331 13,089 Freedom Securities Trading Inc ("FST Belize") The Company has performed an analysis of Variable Interest Entities (VIEs) to determine if it should consolidate FST Belize in accordance with accounting principles generally accepted in the United States of America (US GAAP). As part of this analysis, the Company considered if FST Belize meets the definition of a variable interest entity, if the Company holds a variable interest in FST Belize and ultimately whether it has the power to control the most significant activities of FST Belize. The Company concluded that FST Belize is not a variable interest entity because it has sufficient equity at risk to finance its activities without additional financial support and the control over its significant activities is held by its sole shareholder, Mr. Timur Turlov who is also the Company's controlling shareholder, chairman and chief executive officer. In addition, the Company concluded that the only potential variable interest it holds in FST Belize is the margin lending provided by the Company and that this margin lending does not expose the Company to variability associated with the operations of FST Belize because it is fully collateralized by liquid marketable securities under the Company’s custody for which the contractual arrangements allow the Company to sell to cover any losses in the margin lending.. Lastly, the Company also considered that it does not have the power to control FST Belize because it does not own any of the voting shares or other contractual arrangements that allow it to control its operations. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management believes that the estimates utilized in preparing the Company's financial statements are reasonable and prudent. Actual results could differ from those estimates. |
Revenue and expense recognition | Revenue and expense recognition Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services promised to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. A significant portion of the Company's revenue-generating transactions are not subject to ASC Topic 606, including revenue generated from financial instruments, such as loans and investment securities, as these activities are subject to other U.S. GAAP guidance discussed elsewhere within these disclosures. Descriptions of the Company's revenue-generating activities that are within the scope of ASC Topic 606, which are presented in the Consolidated Statements of Operations and Statements of Other Comprehensive Income as components of total revenue, net are as follows: • Commissions on brokerage services; • Commissions on banking services (money transfers, foreign exchange operations and other); and • Commissions on investment banking services (underwriting, market making, and bondholders' representation services). Gross Versus Net Revenue ASC 606 provides guidance on proper recognition of principal versus agent considerations which is used to determine gross versus net revenue recognition. Under ASC 606, the core objective of the guidance on gross versus net revenue recognition is to help determine whether the Company is a principal or an agent in a transaction. In general, the primary difference between these two is the performance obligation being satisfied. The principal has a performance obligation to provide the desired goods or services to the end customer, whereas the agent arranges for the principal to provide the desired goods or services. Additionally, a fundamental characteristic of a principal in a transaction is control. A principal substantively controls the goods and services before they are transferred to the customer as well as controls the price of the good or service being provided. An agent normally receives a commission or fee for these activities. In addition to control, the level at which the Company controls the price of the good or service being transferred determines principal versus agent status. The more discretion over setting price a company has in providing the good or service, the more likely they are considered a principal rather than an agent. In certain cases, other parties are involved with providing products and services to our customers. If the Company is principal in the transaction (providing goods or services itself), revenues are reported based on the gross consideration received from the customer and any related expenses are reported gross in non interest expense. If the Company is an agent in the transaction (arranging for another party to provide goods or services), the Company reports its net fee or commission retained as revenue. |
Interest income | Interest income Interest income on margin loans, loans issued, trading securities, available-for-sale securities, and reverse repurchase agreement obligations are recognized based on the contractual provisions of the underlying arrangements. Loan premiums and discounts are deferred and generally amortized into interest income as yield adjustments over the contractual life and/or commitment period using the effective interest method. Unamortized premiums, discounts and other basis adjustments on trading securities are generally recognized in interest income over the contractual lives of the securities using the effective interest method. |
Loans | Loans The Company's loan portfolio is divided into: mortgages, uncollateralized bank customer loans, collateralized bank customer loans, car loans, loans issued to policyholders and subordinated loans. Mortgage loans consist of loans provided to individuals to purchase residential homes, which is used as collateral for the loan. Uncollateralized bank customer loans consist of loans provided through credit cards to individuals and retail unsecured banking loans provided to individuals. Collateralized bank customer loans consist of retail collateralized loans provided to individuals. Subordinated loans consist of uncollateralized loans provided to the legal entities to support their businesses, that ranks below other, more senior loans |
Derivative financial instruments | Derivative financial instruments In the normal course of business, the Company invests in various derivative financial contracts including futures. Derivatives are initially recognized at fair value at the date a derivative contract is entered into and are subsequently re-measured to their fair value at each reporting date. The fair values are estimated based on quoted market prices or pricing models that take into account the current market and contractual prices of the underlying instruments and other factors. Derivatives are carried as assets when their fair value is positive and as liabilities when it is negative. |
Functional currency | Functional currency Management has adopted ASC 830, Foreign Currency Translation Matters as it pertains to its foreign currency translation. The Company's functional currencies are the Kazakhstan tenge, the euro, the U.S. dollar, the Ukrainian hryvnia, the Uzbekistani som, the Kyrgyzstani som, the Azerbaijani manat, the British pound sterling, the Armenian dram, the United Arab Emirates dirham and the Turkish lira, and its reporting currency is the U.S. dollar. For financial reporting purposes, foreign currencies are translated into U.S. dollars as the reporting currency. Monetary assets and liabilities denominated in foreign currencies are translated into U.S. dollars using the exchange rate prevailing at the balance sheet date. Non-monetary assets and liabilities denominated in foreign currencies are translated at rates of exchange in effect at the date of the transaction. Average quarterly rates are used to translate revenues and expenses. Translation adjustments arising from the use of different exchange rates from period to period are included as a component of shareholders' equity as "Accumulated other comprehensive loss". The Company uses exchange rates from the National Bank of the Republic of Kazakhstan for foreign currency translation purposes. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents are generally comprised of certain highly liquid investments with original maturities of three months or less at the date of purchase. Cash and cash equivalents include those reverse repurchase agreements, where maturity is less than 90 days, and the credit risk of the counterparty is low, which are recorded at the amounts at which the securities were acquired plus accrued interest. |
Securities reverse repurchase and repurchase agreements | Securities reverse repurchase and repurchase agreements A reverse repurchase agreement is a transaction in which the Company purchases financial instruments from a seller, typically in exchange for cash, and simultaneously enters into an agreement to resell the same or substantially the same financial instruments to the seller for an amount equal to the cash or other consideration exchanged plus interest at a future date. Securities purchased under reverse repurchase agreements are accounted for as collateralized financing transactions and are recorded at the contractual amount for which the securities will be resold, including accrued interest. Financial instruments purchased under reverse repurchase agreements are recorded in the financial statements as cash placed on deposit collateralized by securities and classified as cash and cash equivalents in the Consolidated Balance Sheets. A repurchase agreement is a transaction in which the Company sells financial instruments to another party, typically in exchange for cash, and simultaneously enters into an agreement to reacquire the same or substantially the same financial instruments from the buyer for an amount equal to the cash or other consideration exchanged plus interest at a future date. These agreements are accounted for as collateralized financing transactions. The Company retains the financial instruments sold under repurchase agreements and classifies them as trading securities in the Consolidated Balance Sheets. The consideration received under repurchase agreements is classified as securities repurchase agreement obligations in the Consolidated Balance Sheets. |
Restricted cash | Restricted cashRestricted cash consists of cash equivalents that is held for specific reasons and not available for immediate use. They are generally comprised of certain investments with original maturities of more than three months. Mainly represented by customers' cash and guaranty deposits, which are restricted in use by the Company. |
Available-for-sale securities | Available-for-sale securities Financial assets categorized as available-for-sale ("AFS") are non-derivatives that are either designated as available-for-sale or not classified as (a) loans and receivables, (b) held to maturity investments or (c) trading securities. Gains and losses arising from changes in fair value are recognized in other comprehensive income and accumulated in the Accumulated other comprehensive loss, with the exception of other-than-temporary impairment losses, interest calculated using the effective interest method, and foreign exchange gains and losses are recognized in the Consolidated Statements of Operations and Statements of Other Comprehensive Income. When the investment is disposed of or is determined to be impaired, the cumulative gain or loss previously accumulated in the accumulated other comprehensive (loss)/income is then reclassified to net realized gain/(loss) on investments available-for-sale in the Consolidated Statements of Operations and Statements of Other Comprehensive Income. |
Trading securities | Trading securities Financial assets are classified as trading securities if the financial asset has been acquired principally for the purpose of selling it in the near term. Trading securities are stated at fair value, with any gains or losses arising on remeasurement recognized in revenue. Changes in fair value are recognized in the Consolidated Statements of Operations and Statements of Other Comprehensive Income and included in net gain on trading securities. Interest earned and dividend income are recognized in the Consolidated Statements of Operations and Statements of Other Comprehensive Income and included in interest income, according to the terms of the contract and when the right to receive the payment has been established. Investments in nonconsolidated managed funds are accounted for at fair value based on the net asset value of the funds provided by the fund managers with gains or losses included in net gain on trading securities in the Consolidated Statements of Operations and Statements of Other Comprehensive Income. |
Debt securities issued | Debt securities issued Debt securities issued are initially recognized at the fair value of the consideration received, less directly attributable transaction costs. Subsequently, amounts due are stated at amortized cost and any difference between net proceeds and the redemption value is recognized over the period of the borrowings using the effective interest method. If the Company purchases its own debt it is removed from the Consolidated Balance Sheets and the difference between the carrying amount of the liability and the consideration paid is recognized in the Consolidated Statements of Operations and Statements of Other Comprehensive Income. |
Margin lending, brokerage and other receivables | Margin lending, brokerage and other receivables The Company engages in securities financing transactions with and for clients through margin lending. In margin lending, the Company's customers borrow funds from the Company or sells securities the customer does not own against the value of their qualifying securities held in custody by the Company. Under these agreements, the Company is permitted to sell or repledge securities received as collateral. Furthermore, the contractual arrangements establish that the Company can use the pledged collateral by the customers for repurchase agreement operations, securities lending transactions or delivery to other counterparties to cover short positions. Margin lending, brokerage and other receivables comprise margin lending receivables, brokerage commissions and other receivables related to the securities brokerage and banking activity of the Company. At initial recognition, margin lending, brokerage and other receivables are recognized at fair value. Subsequently, margin lending, brokerage and other receivables are carried at cost net of any allowance for impairment losses. For both individual and institutional brokerage clients, we may enter into arrangements for securities financing transactions in respect of financial instruments held by us on behalf of the client or may use such financial instruments for our own account or the account of another client. We maintain omnibus brokerage accounts for certain institutional brokerage clients, in which transactions of the underlying clients of such institutional clients are combined in a single account with us. As noted above, we may use the assets within the omnibus accounts to finance, lend, provide credit or provide debt financing or otherwise use and direct the order or manner of assets for financing of other clients of ours. As of March 31, 2023, margin lending receivable balance from FST Belize was fully collateralized by its customer-owned cash and market securities held by the Company, including $37.1 million margin lending receivable collateralized by FRHC securities . Customers’ required margin levels and established credit limits are monitored continuously by risk management staff. Pursuant to the Company’s policy, customers are required to deposit additional collateral or reduce positions, when necessary, to avoid liquidation of their positions. |
Derecognition of financial assets | Derecognition of financial assets A financial asset (or, where applicable a part of a financial asset or a part of a group of similar financial assets) is derecognized where all of the following conditions are met: • The transferred financial assets have been isolated from the Company - put presumptively beyond the reach of the Company and its creditors, even in bankruptcy or other receivership. • The transferee has rights to pledge or exchange financial assets. • The Company or its agents do not maintain effective control over the transferred financial assets or third-party beneficial interests related to those transferred assets. Where the Company has not met the asset derecognition conditions above, it continues to recognize the asset to the extent of its continuing involvement. |
Impairment of long-lived assets | Impairment of long-lived assets In accordance with the accounting guidance for the impairment or disposal of long-lived assets, the Company periodically evaluates the carrying value of long-lived assets to be held and used when events and circumstances warrant such a review. The carrying value of a long-lived asset is considered impaired when the fair value from such asset is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. Fair value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Losses on long-lived assets to be disposed of are determined in a similar manner, except that fair values are reduced for the cost of disposal. During the fiscal year ended March 31, 2022, 2022, and 2021 the Company had not recorded |
Impairment of goodwill | Impairment of goodwill Goodwill is allocated to reporting units, which are identified as the operating segments or one level below operating segments that generate separate financial information regularly reviewed by management. The assignment of goodwill to reporting units allows for the assessment of potential impairment at the appropriate level within the organization. The Company has identified its reporting units based on its organizational and operational structure, as well as the level at which internal financial information is reviewed by management to make strategic decisions. In line with this, the reporting units have been established as follows: Central Asia and Eastern Europe Reporting Unit: This reporting unit represents the Company's operations in Central Asia, which encompasses countries such as Kazakhstan, Uzbekistan, Kyrgyzstan and Ukraine. The management team responsible for the Central Asia and Eastern Europe region regularly reviews financial information specific to this reporting unit, including revenue, expenses, and key performance indicators. Europe excluding Eastern Europe Reporting Unit: This reporting unit comprises the Company's operations in various European countries, such as Cyprus, Germany and United Kingdom. The management team responsible for the Europe region reviews financial information related to this reporting unit, including revenue, expenses, and market trends. US Reporting Unit: This reporting unit comprises the Company's operations in USA. The management team responsible for the US region reviews financial information related to this reporting unit, including revenue, expenses, and market trends. Middle East/Caucasus Unit: This reporting unit comprises the Company's operations in Middle East/Causcasus. This reporting unit represents the Company's operations in Middle East/Caucasus, which encompasses countries such as Armenia, Azerbaijan, UAE and Turkiye. The management team responsible for the Middle East/Causcasus region reviews financial information related to this reporting unit, including revenue, expenses, and market trends. Goodwill has been allocated to each reporting unit based on its relative fair value at the time of acquisition or significant triggering events. The fair value allocation of goodwill to reporting units is periodically reassessed to ensure alignment with the Company's evolving organizational structure and operational dynamics. The Company conducts impairment testing on an annual basis or whenever indicators of potential impairment arise. The impairment testing involves comparing the carrying amount of each reporting unit, including its allocated goodwill, to its fair value. If the carrying amount exceeds the fair value, an impairment loss is recognized. Further details regarding the measurement of goodwill impairment and the results of impairment tests for each reporting unit are provided below. The Company discloses information about the reporting units, the carrying amounts of goodwill allocated to each reporting unit, and the impairment losses recognized. The allocation of goodwill to reporting units ensures a focused evaluation of each unit's financial performance and facilitates the identification of potential impairment, enhancing the transparency and reliability of our financial reporting. As of March 31, 2023 and 2022, goodwill recorded in the Company's Consolidated Balance Sheets totaled $14,192 and $5,898 respectively. The Company performs an impairment review at least annually unless indicators of impairment exist in interim periods. The Company compares the fair value of a reporting unit with its carrying amount. The goodwill impairment charge is recognized for the amount by which the reporting unit’s carrying amount exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. If fair value exceeds the carrying amount, no impairment is recorded. During the year ended March 31, 2023, the Company did not recognize an impairment loss related to goodwill. During the year ended March 31, 2022, the conflict between Russia and Ukraine escalated, and military operations began on the territory of Ukraine. The conflict resulted in sanctions being imposed on Russia. As a result of this conflict, the Company's subsidiaries operating in Russia and Ukraine, including Freedom Bank RU, Freedom UA, and Zerich, incurred significant losses. In its annual goodwill impairment test for the year ended March 31, 2022, the Company estimated the fair value of the reporting unit based on the income approach (also known as the discounted cash flow method) and determined the fair value of the Company’s goodwill previously recognized for Freedom Bank RU, Freedom UA and Zerich was below the carrying amount of the Company’s goodwill. As a result, as of March 31, 2022, the Company recognized impairment loss for the goodwill previously recognized for Freedom Bank RU, Freedom UA and Zerich in the amount of $2,300 through Other (income)/expense, net as presented on the Consolidated Statements of Operations and Statements of Other Comprehensive Income, and presented goodwill, net of impairment loss in the Company's Consolidated Balance Sheets. The current uncertainty surrounding the conflict between Russia and Ukraine makes it difficult to perform reasonable projections of future income and expenses of the Ukrainian subsidiary. The goodwill value at March 31, 2023 increased compared to March 31, 2022, due to acquisition of London Almaty, Ticketon, LD Micro and Paybox and as a result of foreign exchange currency translation. |
Asset and Liabilities Held for Sale | Asset and Liabilities Held for Sale The Company classifies assets and liabilities ("the disposal group") as held for sale in the period when all of the relevant criteria to be classified as held for sale are met. Criteria include management commitment to divest the disposal group in its present condition and the divestiture being deemed probable of being completed within one year. Assets held for sale are reported at the lower of their carrying value or fair value less cost to divest. Any loss resulting from the measurement is recognized in the period the held for sale criteria are met. The Company assesses the fair value of a disposal group, less any costs to divest, each reporting period it remains classified as held for sale and reports any subsequent changes as an adjustment to the carrying value of the disposal group, as long as the new carrying value does not exceed the initial carrying value of the disposal group. Assets held for sale are not amortized or depreciated. During the year ended March 31, 2023, the Company incurred loss from divestiture of the disposal group in the amount of $26,118, and recognized it within the line item Net income from discontinued operation on the Consolidated Statements of Operations and Statements of Other Comprehensive Income. A disposal group that represents a strategic shift to the Company or is acquired with the intention to divest is reflected as a discontinued operation on the Consolidated Statements of Operation and Statements of Other Comprehensive Income. The Consolidated Financial Statements and related Notes reflect the securities brokerage and complementary banking operations in Russia as discontinued operations as the Company entered into an agreement to divest these operations. The divestiture of these operations was approved by the Central Bank of the Russian Federation on February 10, 2023, and the divestiture was completed on February 28, 2023. See Note 30 " Assets and Liabilities held for sale " in the notes to our consolidated financial statements contained in Part II Item 8 of this annual report, for more information on assets held for sale and discontinued operations. |
Income taxes | Income taxes The Company recognizes deferred tax liabilities and assets based on the difference between the financial statements and tax basis of assets and liabilities using the enacted tax rates in effect for the year in which the differences are expected to reverse. The measurement of deferred tax assets is reduced, if necessary, by the amount of any tax benefits that, based on available evidence, are not expected to be realized. Current income tax expenses are provided for in accordance with the laws of the relevant taxing authorities. As part of the process of preparing financial statements, the Company is required to estimate its income taxes in each of the jurisdictions in which it operates. The Company accounts for income taxes using the asset and liability approach. Under this method, deferred income taxes are recognized for tax consequences in future years based on differences between the tax bases of assets and liabilities and their reported amounts in the financial statements at each year-end and tax loss carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates applicable for the differences that are expected to affect taxable income. The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company will include interest and fines arising from the underpayment of income taxes in the provision for income taxes (if anticipated). As of March 31, 2023 and 2022, the Company had no accrued interest or fines related to uncertain tax positions. The Global Intangible Low-Taxed Income ("GILTI") provisions of the Tax Cuts and Jobs Act require the Company to include in its U.S. income tax return foreign subsidiary earnings in excess of an allowable return on the foreign subsidiary's tangible assets. The Company has presented the deferred tax impacts of GILTI tax in its consolidated financial statements as of March 31, 2023 and 2022. |
Financial instruments | Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability, or in the absence of a principal market, in the most advantageous market for the asset or liability. Fair value is the current bid price for financial assets, current ask price for financial liabilities and the average of current bid and ask prices when the Company is both in short and long positions for the financial instrument. A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange or other institution and those prices represent actual and regularly occurring market transactions on an arm's length basis. |
Leases | Leases The Company follows ASU No. 2016-02, "Leases (Topic 842)," upon adoption of ASC 842, the Company elected not to recognize leases with terms of one-year or less on the balance sheet. Operating lease assets and corresponding lease liabilities were recognized on the Company's Consolidated Balance Sheets. Refer to Note 28 " Leases ", in the notes to our consolidated financial statements in Part II Item 8 of this annual report for additional disclosure and significant accounting policies affecting leases. |
Fixed assets | Fixed assets Fixed assets are carried at cost, net of accumulated depreciation. Maintenance, repairs, and minor renewals are expensed as incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which range between three |
Insurance and reinsurance receivable | Insurance and reinsurance receivable Insurance and reinsurance receivable is recognized when related income is earned and measured on initial recognition at the fair value of the consideration receivable. Subsequent to initial recognition, any insurance and reinsurance receivable is measured at cost net of any allowance for impairment losses. Deferred acquisition costs Deferred acquisition costs are commissions, premium taxes, and other incremental direct costs of contract acquisition that results directly from and are essential to the contract transaction(s) and would not have been incurred by the Company had the contract transaction(s) not occurred. The deferred amounts are recorded as an asset on the balance sheet and amortized to expense in a systematic manner. Traditional life insurance and long-duration health insurance deferred policy acquisition costs are amortized over the estimated premium-paying period of the related policies using assumptions consistent with those used in computing the related liability for policy benefit reserves. Deferred acquisition costs for property and casualty insurance and short-duration health insurance are amortized over the effective period of the related insurance policies. Deferred policy acquisition costs are expensed when such costs are deemed not to be recoverable from future premiums (for traditional life and long-duration health insurance) and from the related unearned premiums and investment income (for property and casualty and short-duration health insurance). Assessments of recoverability for property and casualty |
Insurance and reinsurance payable | Insurance and reinsurance payable Payables on insurance business comprise advances received, amounts payable to insured (claims and premium refund payable) and amounts payable to agents and brokers, and advances received from insurers and reinsurers. Payables on reinsurance business comprise net amounts payable to reinsurers. Amounts payable to reinsurers include ceded reinsurance premiums, assumed premium refunds and claims on assumed reinsurance. Insurance and reinsurance payable are accounted for at amortized cost. |
Unearned premium reserve and claims | Unearned premium reserve and claims Unearned premium is determined by the method of proportion for each contract, as the product of the insurance premium under the contract for the ratio of the expiration of the insurance cover (in days) to the balance sheet date (in days) from the date of recognition of the insurance premium in accounting as income until the end of the insurance coverage. The reinsurer's share in the unearned premium reserve is calculated separately for each insurance (reinsurance) contract and is determined as the ratio of the insurance premium under the reinsurance contract to the insurance premium under the insurance contract multiplied by the unearned premium reserve. Results of insurance activity includes net written insurance premiums reduced by the net change in the unearned premium reserve, commissions recognized from assumed insurance and reinsurance contracts, claims paid net and net change in the loss reserves. Net written insurance premiums represent gross written premiums less premiums ceded to reinsurers. Upon inception of a contract (except for classes of life and annuity insurance), premiums are recorded as written and are earned on a pro rata basis over the term of the related contract coverage. The unearned premium reserve represents the portion of the premiums written relating to the unexpired terms of coverage and is included in the accompanying statement of Consolidated Balance Sheets. Unearned premium reserve relates to non-life insurance products and non-annuity insurance products. Claims and other insurance expenses are expensed to th e Consolidated Statements of Operations and Statements of Other Comprehensive Income as incurred. Loss reserves Premium Deficiency Reserve Premium deficiency reserve is a liability balance based on actuarial estimates for anticipated losses on value-based-care contracts reassessed by management when it becomes probable that future losses will be incurred. The reserve balance is the sum of expected future costs, claims adjustment expenses, and maintenance costs that exceed future premiums under contracts excluding consideration from investment income. Losses or gains from these reassessments are recorded in the period in which such losses were identified and reflected within the Consolidated Statement of Operations and Other Comprehensive Loss. If a premium deficiency occur, future changes in the liability is based on the revised assumptions. No loss is reported if it results in creating future income. The liability for future policy benefits using revised assumptions based on actual and anticipated experience is estimated periodically for comparison with the liability for future policy benefits (reduced by unamortized acquisition costs) at the valuation date. Premium deficiency reserves are amortized over the period in which loses are expected to be incurred and expected to have an offsetting impact on operating losses in that period. Premium deficiency reserve process is applicable for both life and non-life insurance policies. Use of Estimates in Premium Deficiency Reserves. Our Premium deficiency reserve may fluctuate from period to period as a percentage of total revenue and value-based care revenue. This is due to the significant uncertainty and varying nature of key inputs into the measurement of the reserves, driving the income or expense in the period. These key inputs include the contractual rates within value-based care contracts, forecasted benefit and member population changes, contractual periods, risk adjustments and claims costs forecasts associated with our member populations and allocation of operating costs to these contracts. Non-life and general insurance Loss reserves are a summary of estimates of ultimate losses, and include both claims reported but not settled (RBNS) and claims incurred but not reported (IBNR). RBNS is created for existing reported claims not settled at the reporting date. Estimates are made on the basis of information received by the Company during its investigation of insured events. IBNR is estimated by the Company based on its previous history of reported/settled claims using actuarial methods of calculation, which include claim development triangles. Reinsurance assets in IBNR are estimated applying the same actuarial method used in IBNR estimation. Life insurance Not incurred claims reserves (NIC) on life insurance contracts equal the NIC amount for all life insurance contracts valid as at the reporting date. NIC reserve on a separate contract of life insurance is equal to the maximum value of the net level premium reserve and gross-premium reserve. Net level premium reserve is the present value of future benefits (excluding survival benefits) less present value of future net premiums. Gross-premium reserve is present value of benefits, expenses of the Company that are directly related to consideration, settlement, and determination of the benefit amount, operating expenses of the Company related to conducting of the business, less present value of future gross-premiums. The Company excludes terminations of the contracts from the statistics which is then used for NIC reserves, given the inclusion of terminations will result lower level of NIC reserves which may not be sufficient. Annuity insurance NIC reserve on annuity contracts is the sum of the present value of future benefits, the claims for annuity insurance and administrative expenses on annuity insurance contracts maintenance, less the present value of insurance contributions (in case of lump sum - insurance premium), which the Company is due to receive after the settlement date. The reserves are either based on current assumptions or calculated using the assumptions established at the time the contract was issued, in which case a margin for risk and adverse deviation is generally included. |
Segment information | Segment information The Company used management approaches to identify its reportable segments, as required by ASC 280. The management approach is based on the way the Company's management organizes and evaluates its operations, and based on the way the Company's operations are managed and reported in its internal financial reporting system. The company identified the following segments: 1. Central Asia and Eastern Europe 2. Europe, excluding Eastern Europe 3. U.S. 4. Middle east/Caucasus The Company evaluated whether its segments met the quantitative thresholds to be reportable separately. The quantitative thresholds require that a segment's revenue is 10% or more of the combined revenue of all segments, or its absolute profit or loss is 10% or more of the greater of the combined absolute profit of all segments that have a positive profit or the combined absolute loss of all segments that have a loss. The Company's Central Asia and Eastern Europe and Europe segments were identified under the quantitative thresholds. Under the management approach, the Company identified its US and Middle East/Caucasus region as its reportable segments as they are managed separately from other regions. Both regions are led by a separate management team that are responsible for its operations, and its performance is regularly reviewed by the CODM. The Company determined that its US and Middle East/Caucasus regions met the qualitative threshold of being managed separately and did not need to rely on the quantitative thresholds. Factors Used in Determining Reportable Segments The Company considered several factors when determining its reportable segments. These factors include similarities and differences among its products, services, and geographical locations, economic factors, and internal reporting. The Company considered the similarities and differences among its products, services, and geographical locations to determine whether they should be aggregated or reported separately. Each region was determined to be sufficiently different from other regions and therefore should be reported separately. The Company also considered the economic factors that affect its operating segments, such as the regulatory environment, competitive landscape, and market conditions, to determine whether they should be reported separately. Reportable regions were determined to have unique economic factors that warranted separate reporting. The information that is regularly reviewed by the CODM, including but not limited to the revenue, profit or loss, and assets, was also considered by the Company when determining its reportable segments. Each reportable segment was determined to be regularly reviewed by the CODM and therefore should be reported separately. |
Advertising expense | Advertising expense For the years ended March 31 2023, 2022 and 2021 the Company had expenses related to advertising in the amount of $14,059, $11,916 and $6,971 respectively. All costs associated with advertising are expensed in the period incurred. |
Recent accounting pronouncements | Recent accounting pronouncements In June 2016 the FASB issued Accounting Standards Update No. 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", which introduced an expected credit loss methodology for the impairment of financial assets measured at amortized cost basis. That methodology replaces the probable, incurred loss model for those assets. In November 2019, the FASB issued ASU 2019-10 "Financial Instruments-Credit Losses (Topic 326). The Board developed a philosophy to extend and simplify how effective dates are staggered between larger public companies (bucket one) and all other entities (bucket two). Those other entities include private companies, smaller public companies, not-for-profit organizations, and employee benefit plans. Under this philosophy, a major update would first be effective for bucket-one entities, that is, public business entities that are SEC filers, excluding entities eligible to be smaller reporting companies (SRCs) under the SEC's definition. The Master Glossary of the Codification defines public business entities and SEC filers. All other entities, including SRCs, other public business entities, and nonpublic business entities (private companies, not-for-profit organizations, and employee benefit plans) would compose bucket two. For those entities, the Board considered requiring an effective date staggered at least two years after bucket one for major updates. When ASU 2019-10 was issued, it provided SRCs with the option to defer the implementation of the standard. As the Company qualified as an SRC at the time of the standard's release, we chose not to adopt the update on January 1, 2020. The Company from March 31, 2022 has grown and become as a Larger Public Company and according to ASU 2019-10, qualifies for bucket one. Accordingly, ASU 2016-13 is effective for fiscal years beginning after December 15, 2022. The Company evaluated the impact that ASU 2016-13 will have on its consolidated financial statements and related disclosures. The Company is going to adopt ASC 326 using the modified retrospective transition approach for its financial assets. The Company analyzed all financial assets and expect the significant effect only for its loans issued. We expect the effect to be an adjustment to the allowance for credit losses for loans issued of approximately USD10 million upon adoption of ASU 2016-13 as of April 1, 2023. The Company does not expect a significant impact from the transition to this standard on other financial assets at amortized costs. As a result, the Company will adopt Topic 326 starting from April 1, 2023. In November 2019, the FASB issued ASU 2019-10 "Financial Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842)". In August 2021 the FASB issued Accounting Standard Update No 2021-06 "Presentation of Financial Statements (Topic 205), Financial Services — Depository and Lending (Topic 942), and Financial Services — Investment Companies (Topic 946)" which amends various SEC paragraphs pursuant to the issuance of SEC Release No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses. SEC issued Final Rulemaking Release No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses, which modified the disclosure and presentation requirements concerning acquisitions and disposals of businesses. Primarily, the new rules amended (1) Rule 1-02(w) of Regulation S-X, Definition of Terms Used in Regulation S-X, Significant Subsidiary, (2) Rule 3-05 of Regulation S-X, Financial Statements of Businesses Acquired or to Be Acquired, (3) Rule 8-05 of Regulation S-X, Pro Forma Financial Information (which covers smaller reporting companies), and (4) Article 11 of Regulation S-X, Pro Forma Financial Information. In addition, new Rule 6-11 of Regulation S-X, Financial Statements of Funds Acquired or to Be Acquired, covering acquisitions specific to investment companies, was added. Corresponding changes were made to other Regulation S-X rules, various Securities Act and Securities Exchange Act rules, and Forms 8-K and 10-K. Compliance with the amended rules is required from the beginning of a registrant's fiscal year commencing after December 31, 2020 (i.e., the mandatory compliance date). Acquisitions and dispositions that are probable or consummated after the mandatory compliance date are required to be evaluated for significance pursuant to the amended rules. Early compliance is permitted, provided that all the amended rules are applied in their entirety from the early compliance date. ASU No. 2021-06 amends SEC material in the Codification to give effect to Release No. 33-10786. The new rules apply to fiscal years ending on or after December 15, 2021 (i.e., calendar-year 2021). Early voluntary compliance is allowed. Note that the rescission of Industry Guide 3 is effective on January 1, 2023. ASU No. 2021-06 amends SEC material in the Codification to give effect to Release No. 33-10835. The Company does not expect the impact that ASU 2021-06 will have a significant impact on its consolidated financial statements and related disclosures. In October 2021, The SEC issued the amendment of Business Combinations (Topic 805), No. 2021-08, which related to Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The main amendments were concentrated in paragraphs 805-20-25-16 through 25-17 and add paragraph 805-20-25-28C and its related heading, with a link to transition paragraph 805-20-65-3, where the topic provides limited exceptions to the recognition and measurement principles applicable to business combinations. Moreover, the topic amends paragraphs 805-20-30-10 through 30-12 and add paragraphs 805-20-30-27 through 30-30 and their related heading, with a link to transition paragraph 805-20-65-3. Paragraph 805-20-25-16 notes that the Business Combinations Topic provides limited exceptions to the recognition and measurement principles applicable to business combinations. In the topic has been added paragraph 805-20-65-3, in which the following represents the transition and effective date information related to Accounting Standards Update No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. For public business entities, the pending content that links to this paragraph shall be effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2022. The Company does not expect that ASU 2021-08 will have an impact on the Company's consolidated financial statements and related disclosures. In March 2022 the FASB issued Accounting Standards Update No. 2022-01, "Derivatives and Hedging (Topic 815): Fair Value Hedging-Portfolio Layer Method", which introduces the amendments, which targeted on improvements to the optional hedge accounting model with the objective of improving hedge accounting to better portray the economic results of an entity's risk management activities in its financial statements. The amendments in this Update apply to the Company that elect to apply the portfolio layer method of hedge accounting in accordance with Table of Contents Topic 815. For a closed portfolio of prepayable financial assets or one or more beneficial interests secured by a portfolio of prepayable financial instruments, the last-of-layer method allows an entity to hedge a stated amount of the asset or assets in the closed portfolio that is anticipated to be outstanding for the designated hedge period. If the requirements for the last-of-layer method are met, prepayment risk is not incorporated into the measurement of the hedged item. Accordingly, ASU 2022-01 is effective for fiscal years beginning after December 15, 2022. The Company does not expect that ASU 2022-01 will have an impact on the Company's consolidated financial statements and related disclosures. In March 2022 the FASB issued Accounting Standards Update No. 2022-02, "Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures", which introduces the amendments on solving two issues of creditors related to troubled debt restructurings and gross writeoffs of vintage debt disclosures. The amendments in Update 2016-13 require that an entity measure and record the lifetime expected credit losses on an asset that is within the scope of the Update upon origination or acquisition, and, as a result, credit losses from loans modified as troubled debt restructurings (TDRs) have been incorporated into the allowance for credit losses. Investors and preparers observed that the additional designation of a loan modification as a TDR and the related accounting are unnecessarily complex and no longer provide decision-useful information. Moreover, Investors and other financial statement users observed that disclosing gross writeoffs by year of origination provides important information that allows them to better understand changes in the credit quality of an entity's loan portfolio and underwriting performance. Accordingly, ASU 2022-02 is effective for fiscal years beginning after December 15, 2022. The Company is currently evaluating the impact that ASU 2022-02 will have on its consolidated financial statements and related disclosures. In June 2022, FASB Issued Accounting Standard Updated No. 2022-03 “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions”. The FASB has issued this standard to (1) clarify the guidance in Topic 820 – Fair Value Measurement, when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security, (2) to amend a related illustrative example, and (3) to introduce new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with Topic 820. The amendments in this update affects all entities that have investments in equity securities measured at fair value that are subject to a contractual sale restriction. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. The Company is currently evaluating the impact that ASU 2022-03 will have on its consolidated financial statements and related disclosures. In September 2022, the FASB issued Accounting Standards Update No. 2022-04 “Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations” to enhance the transparency of supplier finance programs. This requires all entities, which apply those programs in connection with the purchase of goods and services (buyer party), to disclose qualitative and quantitative information about the use of the finance programs to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. Accordingly, ASU 2022-04 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. The Company is currently evaluating the impact that ASU 2022-04 will have on its consolidated financial statements and related disclosures. In December 2022, FASB Issued Accounting Standard Updated No. 2022-05 “Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts (LDTI)”. The amendments in Update 2018-12 require that an insurance entity apply a retrospective transition method as of the beginning of the earliest period presented or the beginning of the prior fiscal year if early application is elected. It amends in this Update the LDTI transition guidance to allow an insurance entity to make an accounting policy election on a transaction-by-transaction basis. The Board is issuing this Update to reduce implementation costs and complexity associated with the adoption of LDTI for contracts that have been derecognized in accordance with the amendments in this Update before the LDTI effective date. Without the amendments an insurance entity would be required to reclassify a portion of the previously recognized gains or losses to the LDTI transition adjustment because of the adoption of a new accounting standard. This Update affects insurance entities that have derecognized contracts before the LDTI effective date. For public business entities that meet the definition of a U.S. Securities and Exchange Commission (SEC) filer and are not smaller reporting companies, LDTI is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. Early application is permitted. The Company is currently evaluating the impact that ASU 2022-05 will have on its consolidated financial statements and related disclosures. In December 2022, the FASB issued Accounting Standards Update No. 2022-06 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting”, which provides optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The objective of the guidance in Topic 848 is to provide temporary relief during the transition period. The Board included a sunset provision within Topic 848 based on expectations of when the London Interbank Offered Rate (LIBOR) would cease being published. At the time that Update 2020-04 was issued, the UK Financial Conduct Authority (FCA) had established its intent that it would no longer be necessary to persuade, or compel, banks to submit to LIBOR after December 31, 2021. As a result, the sunset provision was set for December 31, 2022—12 months after the expected cessation date of all currencies and tenors of LIBOR. The amendments in this Update apply to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments in this Update are effective for all entities upon issuance of this Update. The Company has evaluated that the Update No. 2022-06 did not have an impact on its consolidated financial statements and related disclosures. In March 2023, FASB Issued Accounting Standard Updated No. 2023-01 “Lease (Topic 842)”. Topic 842 requires that entities determine whether a related party arrangement between entities under common control (hereinafter referred to as a common control arrangement) is a lease. If the arrangement is determined to be a lease, an entity must classify and account for the lease on the same basis as an arrangement with an unrelated party (on the basis of legally enforceable terms and conditions).That represents a change from the requirements of Topic 840, Leases, which required that an entity classify and account for an arrangement on the basis of economic substance when those terms and conditions were affected by the related party nature of the arrangement. The amendments in this Update affect all lessees that are a party to a lease between entities under common control in which there are leasehold improvements. The amendments apply to all entities (that is, public business entities, private companies, not-for-profit entities, and employee benefit plans). The amendments in this Update for both Issue 1 and Issue 2 are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted for all entities in any interim period. If an entity adopts the amendments in an interim period, it shall adopt them as of the beginning of the fiscal year that includes that interim period. The Company considers that ASU No. 2023-01 did not have an impact on its consolidated financial statements and related disclosures. In March 2023, the FASB issued Accounting Standards Update No. 2023-02 “Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects”, which amended Subtopic 323-740, Investments—Equity Method and Joint Ventures—Income Taxes, introduced the option to apply the proportional amortization method to account for investments made primarily for the purpose of receiving income tax credits and other |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Variable Interest Entities | The carrying amounts of the VIE’s consolidated assets and liabilities are as follows: March 31, 2023 March 31, 2022 Cash and cash equivalents 26 134 Restricted cash 1,936 2,843 Trading securities 4,010 2,942 Margin lending, brokerage and other receivables, net 1,616 435 Fixed assets, net 782 1,043 Intangible assets, net 131 205 Right-of-use asset 135 905 Other assets 56 127 Total assets $ 8,692 8,634 Customer liabilities 5,837 8,439 Securities repurchase agreement obligations 12 3,267 Trade payables 25 35 Lease liability 159 914 Other liabilities 298 434 Total liabilities $ 6,331 13,089 |
Schedule of changes in the carrying amount of goodwill | The changes in the carrying amount of goodwill for the years ended March 31, 2023 and March 31, 2022, were as follows: Central Asia and Eastern Europe Europe, excluding Eastern Europe US Held for Sale Middle East/ Caucasus Total Goodwill, gross Balance as of March 31, 2021 (Recasted) $ 5,261 $ — $ 1,626 $ 810 $ — $ 7,697 Foreign currency translation (157) — — 658 — 501 Acquired — — — — — — Balance as of March 31, 2022 (Recasted) 5,104 $ — $ 1,626 $ 1,468 $ — $ 8,198 Foreign currency translation (74) — — — — (74) Acquired 2,594 — 5,774 — — 8,368 Balance as of March 31, 2023 7,624 $ — $ 7,400 $ 1,468 $ — $ 16,492 Accumulated impairment Balance as of March 31, 2021 $ — $ — $ — $ — $ — $ — Impairment expense 832 — — 1,468 — 2,300 Balance as of March 31, 2022 $ 832 $ — $ — $ 1,468 $ — $ 2,300 Impairment expense — — — — — — Balance as of March 31, 2023 $ 832 $ — $ — $ 1,468 $ — $ 2,300 Goodwill, net of impairment Balance as of March 31, 2021 $ 5,261 $ — $ 1,626 $ 810 $ — $ 7,697 Balance as of March 31, 2022 $ 4,272 $ — $ 1,626 $ — $ — $ 5,898 Balance as of March 31, 2023 $ 6,792 $ — $ 7,400 $ — $ — $ 14,192 |
RECAST (Tables)
RECAST (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Revision of prior period statements | The previously issued Consolidated Balance Sheet as of March 31, 2022, and Consolidated Statements of Operations and Statements of Other Comprehensive Income for the year ended March 31, 2022 and March 31, 2021, have been revised as follows: As of March 31, 2022 As previously reported FF Life acquisition Elimi-nations FF Insurance acquisition Elimi-nations As recasted ASSETS Cash and cash equivalents $ 224,663 $ 1,429 $ (917) $ 371 $ (82) $ 225,464 Restricted cash 547,950 — — — — 547,950 Trading securities 1,080,982 8,875 — 68,520 — 1,158,377 Available-for-sale securities, at fair value 1 161,363 — — — 161,364 Margin lending, brokerage and other receivables, net 147,480 172 (34) 61 (20) 147,659 Loans issued 92,403 43 — — — 92,446 Fixed assets, net 17,387 182 — 254 — 17,823 Intangible assets, net 3,512 1,490 — 161 — 5,163 Goodwill 5,388 359 — 151 — 5,898 Right-of-use asset 6,747 532 — 152 — 7,431 Insurance contract assets — 3,555 — 2,157 — 5,712 Other assets, net 19,351 9,863 — 427 — 29,641 Assets held for sale 825,419 — — — — 825,419 TOTAL ASSETS $ 2,971,283 $ 187,863 $ (951) $ 72,254 $ (102) $ 3,230,347 LIABILITIES AND SHAREHOLDERS’ EQUITY Securities repurchase agreement obligations $ 742,710 $ 47,690 $ — $ 49,824 $ — $ 840,224 Customer liabilities 766,627 — (917) — (82) 765,628 Margin lending and trade payables 45,082 — — 21 (20) 45,083 Liabilities from insurance activity — 108,925 — 13,162 — 122,087 Current income tax liability 14,556 — — — — 14,556 Securities sold, not yet purchased – at fair value 13,865 — — — — 13,865 Debt securities issued 34,390 — — — — 34,390 Lease liability 6,785 543 — 176 — 7,504 Liability arising from continuing involvement 6,447 — — — — 6,447 Other liabilities 20,668 551 (34) 292 — 21,477 Liabilities held for sale 812,478 — — — — 812,478 TOTAL LIABILITIES $ 2,463,608 $ 157,709 $ (951) $ 63,475 $ (102) $ 2,683,739 Commitments and Contingent Liabilities (Note 31) — — — — — — SHAREHOLDERS’ EQUITY Preferred stock - $0.001 par value; 20,000,000 shares authorized, no shares issued or outstanding — — — — — — Common stock - $0.001 par value; 500,000,000 shares authorized; 59,542,212 shares issued and outstanding as of March 31, 2022 59 9,465 (9,464) 15,576 (15,577) 59 Additional paid in capital 141,340 — 16,498 — 16,907 174,745 Retained earnings 426,563 28,132 (6,665) (4,812) (1,294) 441,924 Accumulated other comprehensive loss (53,291) (7,444) (369) (1,985) (36) (63,125) TOTAL FRHC SHAREHOLDERS’ EQUITY $ 514,671 $ 30,153 $ — $ 8,779 $ — $ 553,603 Non-controlling interest (6,996) 1 — — — (6,995) TOTAL SHAREHOLDERS’ EQUITY $ 507,675 $ 30,154 $ — $ 8,779 $ — $ 546,608 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 2,971,283 $ 187,863 $ (951) $ 72,254 $ (102) $ 3,230,347 Year ended March 31, 2022 As previously reported FF Life acquisition Elimi-nations FF Insurance acquisition Elimi-nations As recasted Revenue: Fee and commission income $ 335,444 $ — $ — $ 83 $ (316) $ 335,211 Net gain/(loss) on trading securities 156,345 (1,283) — 190 — 155,252 Interest income 90,153 23,027 — 8,429 — 121,609 Insurance underwriting income — 60,526 — 12,455 — 72,981 Net gain on foreign exchange operations 1,979 1,615 — 197 — 3,791 Net gain on derivatives 946 — — — — 946 TOTAL REVENUE, NET 584,867 83,885 — 21,354 (316) 689,790 Expense: Fee and commission expense 73,243 12,289 — 693 (316) 85,909 Interest expense 65,449 5,194 — 6,304 — 76,947 Insurance claims incurred, net of reinsurance — 42,606 — 11,841 — 54,447 Payroll and bonuses 39,779 3,624 — 2,885 — 46,288 Professional services 12,123 106 — 453 — 12,682 Stock compensation expense 7,859 — — — — 7,859 Advertising expense 10,059 — — 1,857 — 11,916 General and administrative expense 18,744 3,516 — 1,273 — 23,533 Provision for impairment losses 2,206 — — 296 — 2,502 Other expense/(income), net 1,312 2,708 — (6) — 4,014 TOTAL EXPENSE 230,774 70,043 — 25,596 (316) 326,097 NET INCOME/(LOSS) BEFORE INCOME TAX 354,093 13,842 — (4,242) — 363,693 Income tax (expense)/benefit (38,529) (54) — 13 — (38,570) INCOME/(LOSS) FROM CONTINUING OPERATIONS 315,564 13,788 — (4,229) — 325,123 Loss before income tax (expense)/benefit of discontinued operations (117,199) — — — — (117,199) Income tax benefit of discontinued operations 13,004 — — — — 13,004 Loss from discontinued operations (104,195) — — — — (104,195) NET INCOME/(LOSS) $ 211,369 $ 13,788 $ — $ (4,229) $ — $ 220,928 Less: Net loss attributable to non-controlling interest in subsidiary (6,566) — — — — (6,566) NET INCOME/(LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 217,935 $ 13,788 $ — $ (4,229) $ — $ 227,494 OTHER COMPREHENSIVE INCOME Change in unrealized gain on investments available-for-sale, net of tax effect — (4,292) — — — (4,292) Reclassification adjustment for net realized gain on available-for-sale investments disposed of in the period, net of tax effect — 2,222 — — — 2,222 Foreign currency translation adjustments (17,245) (2,014) — (1,363) — (20,622) OTHER COMPREHENSIVE (LOSS)/INCOME (17,245) (4,084) — (1,363) — (22,692) COMPREHENSIVE INCOME/(LOSS) BEFORE NON-CONTROLLING INTERESTS $ 194,124 $ 9,704 $ — $ (5,592) $ — $ 198,236 Less: Comprehensive loss attributable to non-controlling interest in subsidiary (6,566) — — — — (6,566) COMPREHENSIVE INCOME/(LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST $ 200,690 $ 9,704 $ — $ (5,592) $ — $ 204,802 For the year ended March 31, 2022, the Company’s EPS as reported was 5.43 for both basic and diluted EPS for continuing operations, (1.75) for both basic and diluted EPS for discontinued operations, and 3.67 for both basic and diluted total EPS. Due to the items noted above, the Company’s EPS has been recast to 5.59 for both basic and diluted EPS for continuing operations, to (1.75) for both basic and diluted EPS for discontinued operations, and to 3.84 for both basic and diluted total EPS. Year ended March 31, 2021 As previously reported FF Life acquisition Elimi-nations FF Insurance acquisition Elimi-nations As recasted Revenue: Fee and commission income $ 215,996 $ — $ — $ 188 $ (176) $ 216,008 Net gain on trading securities 25,911 966 — 1,930 — 28,807 Interest income 22,815 11,818 — 3,841 — 38,474 Insurance underwriting income — 54,412 — 8,539 — 62,951 Net gain/(loss) on foreign exchange operations 1,143 (443) — (143) — 557 Net gain on derivatives 86 — — — — 86 TOTAL REVENUE, NET 265,951 66,753 — 14,355 (176) 346,883 Expense: Fee and commission expense 65,978 4,383 — 352 (176) 70,537 Interest expense 18,606 1,605 — 2,233 — 22,444 Insurance claims incurred, net of reinsurance — 46,754 — 5,651 — 52,405 Payroll and bonuses 17,941 3,172 — 2,322 23,435 Professional services 3,980 148 — 302 4,430 Stock compensation expense 114 — — — 114 Advertising expense 5,027 119 — 1,944 6,971 General and administrative expense 8,391 1,304 — 1,314 (10) 11,118 Provision for impairment losses 1,517 73 — — — 1,590 Other (income)/expense, net (106) 2,359 — (229) 10 2,034 TOTAL EXPENSE 121,448 59,917 — 13,889 (176) 195,078 NET INCOME BEFORE INCOME TAX 144,503 6,836 — 466 — 151,805 Income tax (expense)/benefit (23,362) 8 — 47 — (23,307) INCOME FROM CONTINUING OPERATIONS 121,141 6,844 — 513 — 128,498 Income before income tax expense of discontinued operation 28,518 — — — — 28,518 Income tax expense of discontinued operations (6,735) — — — — (6,735) Income from discontinued operations 21,783 — — — — 21,783 NET INCOME $ 142,924 $ 6,844 $ — $ 513 $ — $ 150,281 Less: Net income attributable to non-controlling interest in subsidiary 631 — — — — 631 NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 142,293 $ 6,844 $ — $ 513 $ — $ 149,650 OTHER COMPREHENSIVE INCOME Change in unrealized gain on investments available-for-sale, net of tax effect — (304) — — — (304) Reclassification adjustment for net realized gain on available-for-sale investments disposed of in the period, net of tax effect 71 2,021 — — — 2,092 Foreign currency translation adjustments, net of tax effect 1,857 10,866 — (9,936) — 2,787 OTHER COMPREHENSIVE INCOME/(LOSS) 1,928 12,583 — (9,936) — 4,575 COMPREHENSIVE INCOME/(LOSS) BEFORE NON-CONTROLLING INTERESTS $ 144,852 $ 19,427 $ — $ (9,423) $ — $ 154,856 Less: Comprehensive income attributable to non-controlling interest in subsidiary 631 — — — — 631 COMPREHENSIVE INCOME/(LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST $ 144,221 $ 19,427 $ — $ (9,423) $ — $ 154,225 For the year ended March 31, 2021, the Company’s EPS as reported was 2.06 for both basic and diluted EPS for continuing operations, 0.37 for both basic and diluted EPS for discontinued operations, 2.44 for basic total EPS, and 2.43 for diluted total EPS. Due to the items noted above, the Company’s EPS has been recast to 2.19 for both basic and diluted EPS for continuing operations, to 0.37 for both basic and diluted EPS for discontinued operations, and to 2.56 for both basic and diluted total EPS, respectively. |
CASH AND CASH EQUIVALENTS (Tabl
CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of cash and cash equivalents | March 31, 2023 March 31, 2022 (Recasted) Short term deposits in National Bank (Kazakhstan) $ 357,454 $ 42,517 Short term deposits in commercial banks 83,755 70,156 Short term deposits on brokerage accounts 37,417 71,060 Petty cash in bank vault and on hand 35,998 18,607 Short term deposits in stock exchanges 31,691 2,828 Securities purchased under reverse repurchase agreements 29,812 19,947 Cash in transit 3,364 35 Overnight deposits 1,926 — Short term deposits in the Central Depository (Kazakhstan) — 314 $ 581,417 $ 225,464 |
Schedule of repurchase agreements | As of March 31, 2023 and 2022, cash and cash equivalents were not insured. As of March 31, 2023 and 2022, the cash and cash equivalents balance included short-term collateralized securities received under reverse repurchase agreements on the terms presented below: March 31, 2023 Interest rates and remaining contractual maturity of the agreements Average Up to 30 30-90 Total Securities purchased under reverse repurchase agreements US sovereign debt 2.06 % $ 17,102 $ — $ 17,102 Corporate equity 17.17 % 6,963 — 6,963 Non-US sovereign debt 6.12 % 3,483 — 3,483 Corporate debt 2.52 % 2,079 185 2,264 Total $ 29,627 $ 185 $ 29,812 March 31, 2022 (Recasted) Interest rates and remaining contractual maturity of the agreements Average Up to 30 30-90 Total Securities purchased under reverse repurchase agreements US sovereign debt 16.38 % $ 9,952 $ 9,952 Non-US sovereign debt 12.51 % 9,786 — 9,786 Corporate equity 16.90 % 152 — 152 Corporate debt 11.88 % 57 — 57 Total $ 19,947 $ — $ 19,947 |
RESTRICTED CASH (Tables)
RESTRICTED CASH (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Restricted Cash [Abstract] | |
Schedule of restricted cash | Restricted cash for the periods ended March 31, 2023 and 2022, consisted of: March 31, 2023 March 31, 2022 (Recasted) Brokerage customers' cash $ 328,435 $ 531,032 Guaranty deposits 116,628 5,540 Restricted bank accounts 10,436 2,844 Deferred distribution payment 23 8,534 Allowance for restricted cash (9,994) — Total restricted cash $ 445,528 $ 547,950 |
TRADING AND AVAILABLE-FOR-SAL_2
TRADING AND AVAILABLE-FOR-SALE SECURITIES AT FAIR VALUE (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Debt Securities, Trading, and Equity Securities, FV-NI [Abstract] | |
Schedule of trading and available-for-sale securities | As of March 31, 2023 and 2022, trading and available-for-sale securities consisted of: March 31, 2023 March 31, 2022 (Recasted) Corporate debt $ 1,269,879 $ 712,134 Non-US sovereign debt 1,029,857 360,570 Corporate equity 65,741 72,354 US sovereign debt 45,022 10,435 Exchange traded notes 2,057 2,884 Total trading securities $ 2,412,556 $ 1,158,377 Corporate equity — 1 Corporate debt 191,082 145,836 Non-US sovereign debt 40,162 12,997 US sovereign debt 7,809 2,530 Total available-for-sale securities, at fair value $ 239,053 $ 161,364 The following tables present maturity analysis for available-for-sale securities as of March 31, 2023 and 2022: March 31, 2023 Remaining contractual maturity of the agreements Up to 1 year 1-5 years 5-10 years More than 10 years Total Corporate debt 77,006 82,579 31,486 11 191,082 Non-US sovereign debt — 33,143 820 6,199 40,162 US sovereign debt 1,947 2,805 1,725 1,332 7,809 Total available-for-sale securities, at fair value $ 78,953 $ 118,527 $ 34,031 $ 7,542 $ 239,053 March 31, 2022 Remaining contractual maturity of the agreements Up to 1 year 1-5 years 5-10 years More than 10 years Total Corporate debt 69,364 50,155 26,284 33 145,836 Non-US sovereign debt 1,692 864 1,086 9,355 12,997 US sovereign debt — — — 2,530 2,530 Corporate equity — — — 1 1 Total available-for-sale securities, at fair value $ 71,056 $ 51,019 $ 27,370 $ 11,919 $ 161,364 |
Schedule of present securities assets at fair value | The following tables present trading securities assets in the Consolidated Financial Statements or disclosed in the Notes to the Consolidated Financial Statements at fair value on a recurring basis as of March 31, 2023 and 2022: Weighted average interest rate Total Fair Value Measurements at March 31, 2023 using Quoted Prices in Active Significant Other Significant unobservable Corporate debt 15.62 % $ 1,269,879 $ 1,106,584 $ 162,895 $ 400 Non-U.S. sovereign debt 12.04 % 1,029,857 971,762 54,319 3,776 Corporate equity — 65,741 62,971 1,808 962 U.S. sovereign debt 4.22 % 45,022 45,022 — — Exchange traded notes — 2,057 447 1,610 — Total trading securities $ 2,412,556 $ 2,186,786 $ 220,632 $ 5,138 Corporate debt 15.78 % 191,082 129,504 61,578 — Non-U.S. sovereign debt 13.64 % 40,162 39,624 538 — U.S. sovereign debt 4.24 % 7,809 7,809 — — Total available-for-sale securities, at fair value $ 239,053 $ 176,937 $ 62,116 $ — Weighted average interest rate Total Fair Value Measurements at March 31, 2022 (Recasted) using Quoted Prices in Active Significant Other Significant unobservable Corporate debt 9.09 % $ 712,134 $ 711,539 $ — $ 595 Non-U.S. sovereign debt 13.15 % 360,570 352,274 — 8,296 Corporate equity — 72,354 71,827 276 251 U.S. sovereign debt 2.35 % 10,435 10,435 — — Exchange traded notes — 2,884 2,884 — — Total trading securities $ 1,158,377 $ 1,148,959 $ 276 $ 9,142 Corporate equity — $ 1 — — 1 Corporate debt 11.09 % 145,836 145,836 — — Non-U.S. sovereign debt 5.51 % 12,997 12,997 — — U.S. sovereign debt 2.17 % 2,530 2,530 — — Total available-for-sale securities, at fair value $ 161,364 $ 161,363 $ — $ 1 |
Schedule of valuation techniques and significant level 3 inputs | The table below presents the Valuation Techniques and Significant Level 3 Inputs used in the valuation as of March 31, 2023 and 2022. The table is not intended to be all inclusive, but instead captures the significant unobservable inputs relevant to determination of fair value. Type Valuation Technique FV as of March 31, 2023 Significant Unobservable Inputs % Corporate equity DCF $ 961 Discount rate 58.8% Estimated number of years 9 years Corporate debt DCF $ 399 Discount rate 74.0% Estimated number of years 3 months Non-US sovereign debt DCF $ 3,778 Discount rate 48.8% Estimated number of years 11 years $ 5,138 Type Valuation Technique FV as of March 31, 2022 Significant Unobservable Inputs % Corporate equity DCF $ 251 Discount rate 20.0% Estimated number of years 9 years Corporate debt DCF $ 595 Discount rate 45.0% Estimated number of years 3 months Non-US sovereign debt DCF $ 7,524 Discount rate 69.0% Estimated number of years 11 years Non-US sovereign debt DCF $ 772 Discount rate 13.9% Estimated number of years 1 year $ 9,142 The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the year ended March 31, 2023: Trading Balance as of March 31, 2021 (Recasted) $ 19,033 Reclassification to level 3 682 Reclassification to level 1 (18,371) Purchase of investments that use Level 3 inputs 10,812 Revaluation of investments that use Level 3 inputs (3,014) Balance as of March 31, 2022 (Recasted) $ 9,142 Reclassification to level 2 (1,339) Sale of investments that use Level 3 inputs (5,213) Purchase of investments that use Level 3 inputs 2,604 Revaluation of investments that use Level 3 inputs (56) Balance as of March 31, 2023 $ 5,138 |
Schedule of amortized cost, unrealized gains and losses accumulated in other comprehensive income, and fair value of available-for-sale securities | The table below presents the amortized cost, unrealized gains and losses accumulated in other comprehensive income, and fair value of available-for-sale securities as of March 31, 2023 and 2022: March 31, 2023 Assets measured at amortized cost Recognized impairment loss in Income Statement Unrealized gain/(loss) accumulated in other comprehensive Assets Maturity Date Corporate debt $ 192,167 $ (402) $ (683) $ 191,082 2023 - 2035 Non-US sovereign debt 42,456 — (2,294) 40,162 2024 - indefinite U.S. sovereign debt 8,391 — (582) 7,809 2023 - 2044 Total available-for-sale securities, at fair value $ 243,014 $ (402) $ (3,559) $ 239,053 March 31, 2022 (Recasted) Assets measured at amortized cost Unrealized gain/(loss) accumulated in other comprehensive Assets Maturity Date Corporate debt $ 146,111 $ (275) $ 145,836 2022 - 2035 Non-US sovereign debt 13,784 (787) 12,997 2022 - indefinite U.S. sovereign debt 2,912 (382) 2,530 2044 Corporate equity 1 — 1 not applicable Total available-for-sale securities, at fair value $ 162,808 $ (1,444) $ 161,364 |
MARGIN LENDING, BROKERAGE AND_2
MARGIN LENDING, BROKERAGE AND OTHER RECEIVABLES, NET (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Schedule of brokerage and other receivables | Margin lending, brokerage and other receivables, net of the Company are comprised of the following: March 31, 2023 March 31, 2022 (Recasted) Margin lending receivables $ 361,684 $ 138,983 Receivables from brokerage clients 7,302 4,386 Bank commissions receivable 6,035 598 Receivable for underwriting and market-making services 2,317 296 Long-term installments receivables 895 1,367 Dividends accrued 486 45 Receivable from sale of securities 613 884 Other receivables 9,504 3,207 Allowance for receivables (12,507) (2,107) Total margin lending, brokerage and other receivables, net $ 376,329 $ 147,659 |
LOAN ISSUED (Tables)
LOAN ISSUED (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Schedule of loans issued | Loans issued as of March 31, 2023, consisted of the following: Amount Outstanding Due Dates Average Interest Rate Fair Value of Loan Currency Mortgage loans* $ 534,154 April, 2023 - March, 2048 9.00 % $ 534,154 KZT Right of claims for purchased retail loans 121,177 January, 2023 - March, 2027 15.00 % 121,177 KZT Uncollateralized bank customer loans $ 46,970 January, 2023 - March, 2043 25.00 % KZT Collateralized Bank customer loans 17,653 May, 2023 - March, 2028 2.00 % 17,636 KZT/RUB Car loans $ 102,269 April, 2023 - April, 2030 25.00 % $ 102,247 KZT Subordinated loan 5,039 December, 2025 3.00 % — USD Loans issued to policyholders $ 1,488 June, 2023 - February, 2024 15.00 % $ 1,752 KZT Other 300 March, 2024 - September, 2029 2.00 % — EUR Allowance for loans issued (2,792) Total loans issued $ 826,258 *Fair value of collateral for the mortgage loans is the minimum amount of market value of the pledged immovable property and outstanding loan amount. Loans issued as of March 31, 2022, consisted of the following: Amount Outstanding Due Dates Average Interest Rate Fair Value of Loan Currency Mortgage loans 52,227 April 2022 - March 2047 11.86 % 52,134 KZT Right of claims for purchased retail loans 35,293 April 2022 - March 2026 15.00 % 35,293 KZT Uncollateralized bank customer loans 100 April 2022 - March 2047 10.00 % — KZT Subordinated loan 5,033 December 2022-April 2024 4.89 % — USD Subordinated loan 1,256 December 2022-April 2024 7.00 % — UAH Other 123 February 2022-Febraury 2027 2.50 % — USD Loans to policyholders 43 July 2022 - March 2023 12.02 % 284 KZT Allowance for loans issued $ (1,629) Total loans issued (recasted) $ 92,446 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of deferred tax assets and liabilities | As of March 31, 2023 and March 31, 2022, deferred tax assets and liabilities of the Company were comprised of the following: March 31, 2023 March 31, 2022 (recast) Deferred tax assets: Revaluation on trading securities Tax losses carryforward $ 1,548 $ 679 Accrued liabilities 933 828 Provision for impairment losses 2,079 — Stock compensation expenses — — Deferred tax assets $ 4,560 $ 1,507 Deferred tax liabilities: Revaluation on trading securities $ 29 $ 210 Fixed and Intangible Assets 2,457 — Other liabilities 326 388 Deferred tax liabilities $ 2,812 $ 598 Net deferred tax assets $ 2,442 $ 909 Net deferred tax liabilities $ 694 $ — |
Schedule of federal income taxes | The reconciliation of of the amount computed by multiplying income before provision for income taxes at the 21% income tax rate compared to the Company's income tax expense as reported is as follows: Year ended March 31, 2023 Year ended March 31, 2022 Year ended March 31, 2021 (recast) (recast) Income before income tax at 21% $ 49,547 $ 76,376 $ 31,879 Global intangible low taxed income 39,139 31,194 18,451 Permanent differences 14,096 (2,567) (2,160) Subpart F Income 4,732 — — Stock based compensation 2,039 3,090 348 Provision for impairment losses — (13) 113 Valuation allowance — (316) (361) Foreign tax rate differential (13,089) (18,544) (9,491) Foreign tax credit (18,423) (16,200) (10,155) Nontaxable gains (35,265) (34,450) (5,317) Income tax expense $ 42,776 $ 38,570 $ 23,307 |
Schedule of income tax expenses | As of March 31, 2023, 2022 and 2021, income tax expense was comprised of the following: Year ended March 31, 2023 Year ended March 31, 2022 Year ended March 31, 2021 (recast) (recast) Current income tax charge Federal 22,387 15,184 7,771 Foreign 21,406 27,381 14,040 43,793 42,565 21,811 Deferred income tax charge Federal (2,606) (2,191) 1,752 Foreign 1,589 (1,804) (256) (1,017) (3,995) 1,496 Income tax expense $ 42,776 $ 38,570 $ 23,307 |
Schedule of Income before Income Tax, Domestic and Foreign | Income before income taxes includes the following components: Year ended March 31, 2023 Year ended March 31, 2022 Year ended March 31, 2021 (recast) (recast) United States $ (26,383) $ (8,012) $ 1,076 Foreign 262,321 371,705 150,729 Net income before income tax $ 235,938 $ 363,693 $ 151,805 |
FIXED ASSETS, NET (Tables)
FIXED ASSETS, NET (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of fixed assets | As of March 31, 2023 and 2022, fixed assets, net of the Company included the following: March 31, 2023 March 31, 2022 (Recasted) Buildings $ 19,569 $ 7,770 Office equipment 11,004 4,633 Processing and storage data centers 10,793 3,729 Land 9,106 1,564 Furniture 6,633 2,759 Capital expenditures on leasehold improvements 3,288 1,239 Vehicles 1,516 643 Other 1,428 722 Less: Accumulated depreciation (9,320) (5,236) Total fixed assets, net $ 54,017 $ 17,823 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | As of March 31, 2023 and 2022, intangible assets, net of the Company included the following: March 31, 2023 March 31, 2022 (Recasted) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortized intangible assets Client base $ 5,264 $ (1,707) $ 1,843 $ (1,504) Software 6,140 (992) 1,898 (572) Value added business 5,058 (2,355) 3,643 (2,257) Licenses 4,977 (489) 2,574 (509) Other intangible assets 2,074 (355) 49 (2) Total $ 23,513 $ (5,898) $ 10,007 $ (4,844) Total intangible assets, net $ 17,615 $ 5,163 Aggregate Amortization Expense For year ended 31.03.2023 $ 1,054 Estimated Amortization Expense For year ended 31.03.2024 $ 2,115 For year ended 31.03.2025 $ 1,809 For year ended 31.03.2026 $ 1,555 For year ended 31.03.2027 $ 1,194 For year ended 31.03.2028 $ 1,118 |
OTHER ASSETS, NET (Tables)
OTHER ASSETS, NET (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Other Assets [Abstract] | |
Schedule of other assets | As of March 31, 2023 and 2022, other assets, net of the Company included the following: March 31, 2023 March 31, 2022 (Recasted) Prepayments on future acquisitions $ 23,428 $ 4,069 Deferred acquisition costs 17,495 9,617 Advances paid 12,553 4,340 Taxes other than income taxes 5,908 1,697 Investments in joint ventures and associated companies 4,000 — Deferred tax assets 2,442 909 Current income tax asset 1,529 2,497 Rent guarantee deposit 363 759 Due from financial institutions — 4,763 Other 5,745 990 Total other assets 73,463 29,641 Allowance for other assets — — Other assets, net $ 73,463 $ 29,641 |
SECURITIES REPURCHASE AGREEME_2
SECURITIES REPURCHASE AGREEMENT OBLIGATIONS (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Securities Sold under Agreements to Repurchase [Abstract] | |
Schedule of Securities under repurchase agreement obligations | As of March 31, 2023 and 2022, trading securities included collateralized securities subject to repurchase agreements as described in the following table: March 31, 2023 Interest rates and remaining contractual maturity of the agreements Average Up to 30-90 Over 90 Total Securities sold under repurchase agreements Non-US sovereign debt 15.98 % $ 826,196 $ 55,265 $ — $ 881,461 Corporate debt 16.07 % 597,559 5,375 — 602,934 US sovereign debt 1.52 % 17,637 — — 17,637 Corporate equity 12.24 % 15,384 — — 15,384 Total securities sold under repurchase agreements $ 1,456,776 $ 60,640 $ — $ 1,517,416 March 31, 2022 (Recasted) Interest rates and remaining contractual maturity of the agreements Average Up to 30 30-90 Over 90 Total Securities sold under repurchase agreements Corporate debt 11.96 % $ 609,405 $ 142 $ — $ 609,547 Non-US sovereign debt 10.85 % 222,893 — — 222,893 US sovereign debt 0.77 % 7,396 — — 7,396 Corporate equity 14.00 % 388 — — 388 Total securities sold under repurchase agreements $ 840,082 $ 142 $ — $ 840,224 |
CUSTOMER LIABILITIES (Tables)
CUSTOMER LIABILITIES (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Contract with Customer, Liability [Abstract] | |
Schedule of customer liabilities | The Company recognizes customer liabilities associated with funds held by our brokerage and bank customers. Customer liabilities consist of: March 31, 2023 March 31, 2022 (Recasted) Amount Interest rate Amount Interest rate Interest-bearing deposits: Term deposits $ 832,751 0.1% -16.9% 164,837 0.01%-14.3% Total Interest-bearing deposits $ 832,751 $ 164,837 Non-interest-bearing deposits: Current customer accounts $ 458,954 $ 81,447 Brokerage customers $ 633,542 $ 519,344 Total non-interest-bearing deposits $ 1,092,496 $ 600,791 Total customer liabilities 1,925,247 765,628 |
MARGIN LENDING AND TRADE PAYA_2
MARGIN LENDING AND TRADE PAYABLES (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Accounts Payable [Abstract] | |
Schedule of trade payables | As of March 31, 2023 and 2022, margin lending and trade payables of the Company included the following: March 31, 2023 March 31, 2022 (Recasted) Margin lending payable $ 117,144 $ 39,250 Payables to suppliers of goods and services 2,965 4,463 Trade payable for securities purchased 482 462 Other 2,309 908 Total margin lending and trades payables $ 122,900 $ 45,083 |
Compensation Related Costs, Ret
Compensation Related Costs, Retirement Benefits (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
Investments Sold, Not yet Purchased | The following table provides a reconciliation of the beginning and ending balances for securities sold, not yet purchased - at fair value by the Company, as of March 31, 2023 and 2022: Total Balance as of March 31, 2021 (Recasted) $ 8,569 Short sales 7,055 Repurchase (346) Net gain on trading securities (1,413) Balance as of March 31, 2022 (Recasted) $ 13,865 Balance as of March 31, 2022 (Recasted) $ 13,865 Short sales 394 Repurchase (15,650) Net loss on trading securities 1,391 Balance as of March 31, 2023 $ — |
DEBT SECURITIES ISSUED (Tables)
DEBT SECURITIES ISSUED (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Debt Securities [Abstract] | |
Schedule of outstanding debt securities of company | As of March 31, 2023 and 2022, outstanding debt securities of the Company included the following: Debt securities issued by March 31, 2023 March 31, 2022 (Recasted) Freedom SPC $ 58,582 $ 13,200 Freedom Holding Corp. — 20,500 Accrued interest 1,443 690 Total debt securities issued $ 60,025 $ 34,390 |
INSURANCE CONTRACTS ASSETS AN_2
INSURANCE CONTRACTS ASSETS AND LIABILITIES FROM INSURANCE ACTIVITIES (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Insurance [Abstract] | |
Insurance And Reinsurance Receivables | As of March 31, 2023, and March 31, 2022, insurance and reinsurance receivables of the Company was comprised of the following: March 31, 2023 March 31, 2022 Assets: (Recasted) Amounts due from policyholders $ 9,699 $ 3,500 Claims receivable from reinsurance 1,087 769 Amounts due from reinsured 555 23 Less provision for impairment losses (1,325) (343) Insurance and reinsurance receivables: 10,016 3,949 Unearned premium reserve, reinsurers’ share 2,379 143 Reserves for claims and claims’ adjustment expenses, reinsurers’ share 1,390 1,620 Total $ 13,785 $ 5,712 |
Insurance And Reinsurance Payables | As of March 31, 2023, and March 31, 2022, insurance and reinsurance payable of the Company was comprised of the following: March 31, 2023 March 31, 2022 Liabilities: (Recasted) Amounts payable to agents and brokers $ 2,466 $ 1,981 Amounts payable to reinsurers 2,002 402 Amounts payable to insured 1,807 685 Insurance and reinsurance payables: 6,275 3,068 Unearned premium reserve 43,082 17,985 Reserves for claims and claims’ adjustment expenses 133,145 101,034 Total $ 182,502 $ 122,087 |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Schedule of other liabilities | As of March 31, 2023 and 2022, other liabilities of the Company included the following: March 31, 2023 March 31, 2022 (Recasted) Salaries and other employee benefits $ 4,970 $ 2,120 Payable to suppliers 3,623 3,308 Vacation reserve 3,261 1,400 Taxes payable other than income tax 2,782 567 Deferred income tax liabilities 694 — Deferred distribution payments 156 8,534 Loans received 1 3,538 Outstanding settlements operations — 292 Other 7,385 1,718 Total other liabilities $ 22,872 $ 21,477 |
FEE AND COMMISSION INCOME (Tabl
FEE AND COMMISSION INCOME (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Disclosure Of Fee And Commission Income | During the year ended March 31, 2023, March 31, 2022 and March 31, 2021, fee and commission income was comprised of: Year ended March 31, 2023 Central Asia and Eastern Europe Europe, excluding Eastern Europe U.S. Total Brokerage services 68,224 214,093 4,415 286,732 Bank services 17,964 — — 17,964 Underwriting and market-making services 11,538 — 410 11,948 Other fee and commission income 9,256 1,315 — 10,571 Total fee and commission income 106,982 215,408 4,825 327,215 Year ended March 31, 2022 (Recasted) Central Asia and Eastern Europe Europe, excluding Eastern Europe U.S. Total Brokerage services 7,908 306,245 4,545 318,698 Bank services 6,727 — — 6,727 Underwriting and market-making services 5,963 — — 5,963 Other fee and commission income 3,054 769 — 3,823 Total fee and commission income 23,652 307,014 4,545 335,211 Year ended March 31, 2021 (Recasted) Central Asia and Eastern Europe Europe, excluding Eastern Europe U.S. Total Brokerage services 8,803 194,311 1,130 204,244 Bank services 523 — — 523 Underwriting and market-making services 6,451 — — 6,451 Other fee and commission income 4,790 — — 4,790 Total fee and commission income 20,567 194,311 1,130 216,008 |
NET GAIN ON TRADING SECURITIES
NET GAIN ON TRADING SECURITIES (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of net gain on trading securities | For year ended March 31, 2023, 2022 and 2021, net gain on trading securities included the following: Year ended March 31, 2023 Year ended March 31, 2022 Year ended March 31, 2021 (Recasted) (Recasted) Net unrealized gain/(loss) recognized during the reporting period on trading securities still held at the reporting date $ 107,310 $ (50,987) $ 8,672 Net (loss)/gain recognized during the period on trading securities sold during the period (36,226) 206,239 20,135 Net gain recognized during the period on trading securities $ 71,084 $ 155,252 $ 28,807 |
NET INTEREST INCOME_ (EXPENSE)
NET INTEREST INCOME/ (EXPENSE) (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Interest Income (Expense), Net [Abstract] | |
Schedule of net interest income/(expense) | Net interest income/expense includes: Year ended March 31, 2023 Year ended March 31, 2022 Year ended March 31, 2021 Interest income: (Recasted) (Recasted) Interest income on trading securities $ 178,288 $ 78,327 $ 21,913 Interest income on margin lending 34,558 14,164 3,163 Interest income on loans issued 43,486 4,617 384 Interest income on available-for-sale securities 27,003 22,437 11,238 Interest income on cash and cash equivalents and restricted cash 9,836 1,658 1,630 Interest income from dividends 1,524 406 146 Total interest income $ 294,695 $ 121,609 $ 38,474 Interest expense: Interest expense on securities repurchase agreement obligations $ 158,595 $ 58,229 $ 10,915 Interest expense on customer liabilities 40,335 16,336 7,335 Interest expense on margin lending payable 6,635 — — Interest expense on debt securities issued 3,085 1,822 4,034 Interest expense on loans received 290 539 151 Other interest expense 7 21 9 Total interest expense $ 208,947 $ 76,947 $ 22,444 Net interest income $ 85,748 $ 44,662 $ 16,030 |
NET GAIN_(LOSS) ON FOREIGN EX_2
NET GAIN/(LOSS) ON FOREIGN EXCHANGE OPERATIONS (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Research and Development [Abstract] | |
Schedule of net gain on foreign exchange operations | Net gain on foreign exchange operations includes: Year ended March 31, 2023 Year ended March 31, 2022 Year ended March 31, 2021 (Recasted) (Recasted) Sales and purchases of foreign currency, dealing $ 45,963 $ (4,057) $ 609 Translation of financial assets and financial liabilities 6,191 7,848 (52) Total net gain on foreign exchange operations $ 52,154 $ 3,791 $ 557 |
NET (LOSS)_GAIN ON DERIVATIVES
NET (LOSS)/GAIN ON DERIVATIVES (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments, Gain (Loss) | For years ended March 31, 2023, 2022 and 2021, net (loss)/gain on derivatives included the following: Year ended March 31, 2023 Year ended March 31, 2022 Year ended March 31, 2021 (Recasted) (Recasted) Net realized (loss)/gain on derivatives (64,838) 946 86 Net unrealized loss/(gain) on derivatives 12 — — Total net (loss)/gain on derivatives $ (64,826) $ 946 $ 86 |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Schedule of fair value of such stock options using the Black-Scholes option valuation | The Company has determined the fair value of shares awarded during the year ended March 31, 2023, using the Monte Carlo valuation model based on the following key assumptions: Term (years) 3.62 Volatility 35.1 % Risk-free rate 4.18 % |
Schedule of restricted stock activity | The table below summarizes the activity for the Company's stock awards outstanding during the year ended March 31, 2023: Shares Weighted Outstanding, March 31, 2022 1,049,500 40,303 Granted 65,216 3,506 Vested (274,158) (11,484) Forfeited/cancelled/expired (373,500) (14,290) Outstanding, March 31, 2023 467,058 18,035 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Disclosure of lease related assets and liabilities | The table below presents the lease related assets and liabilities recorded on the Company's consolidated balance sheets as of March 31, 2023: Classification on Balance Sheet March 31, 2023 Assets Operating lease assets Right-of-use assets $ 30,345 Total lease assets $ 30,345 Liabilities Operating lease liability Operating lease obligations $ 30,320 Total lease liability $ 30,320 |
Disclosure of lease operations | The following table presents as of March 31, 2023, the annual maturities of the lease liabilities: Twelve months ending March 31, 2024 $ 9,413 2025 7,971 2026 7,543 2027 6,629 2028 4,766 Thereafter 4,199 Total payments 40,521 Less: amounts representing interest (10,201) Lease liability $ 30,320 Weighted average remaining lease term (in months) 21 Weighted average discount rate 13 % |
ACQUISITIONS OF SUBSIDIARIES (T
ACQUISITIONS OF SUBSIDIARIES (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of purchase price of acquisition | As of the acquisition date by Timur Turlov, the fair value of Freedom Life was $12,076. The total purchase price was allocated as follows: Purchase price allocation ASSETS Cash and cash equivalents $ 3,494 Due from banks 2,514 Loans issued 2 Other assets 1,671 Assets from insurance activity 3,729 Deferred acquisition costs 542 Available-for-sale securities, at fair value 15,842 Fixed assets 171 Intangible assets 5,823 Deferred tax assets 141 TOTAL ASSETS 33,929 Deferred income tax liabilities 47 Other liabilities 139 Liabilities from insurance activity 21,667 TOTAL LIABILITIES 21,853 Net assets acquired 12,076 Goodwill 526 Total purchase price 7,009 Fair value of non-controlling interest at acquisition 5,593 Purchase price allocation ASSETS: Cash and cash equivalents $ 1,224 Due from banks 1,041 Other assets 17 Assets from insurance activity 45 Current income tax asset 5 Available-for-sale securities, at fair value 1,846 Fixed assets 2 Intangible assets 207 Deferred tax assets 2 TOTAL ASSETS 4,389 Other liabilities 214 Liabilities from insurance activity 74 TOTAL LIABILITIES 288 Net assets acquired 4,101 Goodwill 187 Total purchase price 4,288 As of September 1, 2022 ASSETS Cash and cash equivalents $ 8,077 Due from banks 2,176 Trading securities 6,178 Value of business acquired 1,677 Assets from insurance activities 3,401 Fixed assets 806 Intangible assets 127 Other assets 1,505 TOTAL ASSETS 23,947 Insurance reserves 6,380 Liabilities from insurance activity 1,429 Other liabilities 280 TOTAL LIABILITIES 8,089 Net assets acquired 15,858 Goodwill 485 Total purchase price $ 16,343 ASSETS Cash and cash equivalents $ 3,079 Brokerage and other receivables 175 Fixed assets 47 Intangible assets 1,424 Right-of-use asset 63 Other assets 627 TOTAL ASSETS 5,415 Deferred income tax liabilities 36 Lease liability 79 Other liabilities 4,067 TOTAL LIABILITIES 4,182 Net assets acquired 1,233 Goodwill 1,771 Total purchase price $ 3,004 ASSETS Cash and cash equivalents 5,429 Trading securities 3,838 Brokerage and other receivables 1,726 Fixed assets 1,080 Intangible assets 3,288 Right-of-use asset 341 Goodwill 932 Other assets 454 TOTAL ASSETS 17,088 Securities repurchase agreement obligations 3,037 Trade payables 799 Lease liability 993 Other liabilities 600 TOTAL LIABILITIES 5,429 Net assets acquired 11,659 Goodwill — Total purchase price 11,659 As of March 2, 2023 ASSETS Intangible assets 2,540 TOTAL ASSETS 2,540 Trade payables 14 TOTAL LIABILITIES 14 Net assets acquired 2,526 Goodwill 5,774 Total purchase price 8,300 |
ASSETS AND LIABILITIES HELD F_2
ASSETS AND LIABILITIES HELD FOR SALE (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of net gain on foreign exchange operations | February 28, 2023 March 31, 2022 Cash and cash equivalents 593,953 428,480 Restricted cash 6,033 28,406 Trading securities 113,845 122,497 Margin lending, brokerage and other receivables, net 257,184 210,087 Loans issued 23,169 2,395 Other assets 32,398 33,554 Total assets held for sale 1,026,582 825,419 Customer liabilities 776,425 701,584 Securities repurchase agreement obligations 33,275 32,469 Debt securities issued 34,379 64,637 Other liabilities 16,385 13,788 Total liabilities held for sale 860,464 812,478 The results of operations for discontinued operations for the eleven months ended February 28, 2023 and for the years ended March 31, 2022 and 2021, consist of the following: For The Eleven Months Ended February 28, 2023 For The Year Ended March 31, 2022 For The Year Ended March 31, 2021 Fee and commission income 77,109 69,742 52,780 Net gain/(loss) on trading securities 22,045 (78,674) 20,275 Net loss on derivative (44) — 39 Interest income 53,410 28,399 11,221 Net gain/(loss) on foreign exchange operations 45,859 (39,672) 2,285 TOTAL REVENUE, NET 198,379 (20,205) 86,600 Payroll and bonuses 58,971 39,114 24,827 Professional services 620 467 239 Stock compensation expense 1,743 7,887 1,033 Advertising expense 14,945 7,085 1,881 General and administrative expense 26,031 18,476 14,001 Interest expense 15,051 10,450 8,760 Fee and commission expense 10,467 7,988 7,122 Provision for impairment losses 1,566 779 45 Other (income)/expense, net 825 4,748 174 TOTAL EXPENSE 130,219 96,994 58,082 INCOME/(LOSS) BEFORE INCOME TAX 68,160 $ (117,199) $ 28,518 The net cash flows used in operating and investing activities for discontinued operations for the eleven months ended February 28, 2023 and for the years ended March 31, 2022 and 2021, consist of the following: For The Eleven Months Ended February 28, 2023 For The Year Ended March 31, 2022 For The Year Ended March 31, 2021 (Recasted) (Recasted) Cash Flows From Operating Activities Net income/(loss) from discontinued operations $ 12,424 $ (104,195) $ 21,783 Adjustments to reconcile net income used in operating activities: Depreciation and amortization 2,103 2,035 1,745 Noncash lease expense 5,772 4,932 3,826 Change in deferred taxes 8,203 (12,634) 1,170 Impairment of FFIN Bank goodwill — 723 — Impairment of Zerich goodwill — 810 — Stock compensation expense 1,743 7,887 1,033 Unrealized loss/(gain) on trading securities (35,244) 51,652 (425) Net change in accrued interest (276) 354 (1,921) Client base write-off — 3,125 — Allowances for receivables 1,871 771 41 Loss from divestiture of Russian subsidiaries 51,533 — — Changes in operating assets and liabilities: Trading securities 62,100 (39,354) (100,133) Margin lending, brokerage and other receivables (23,325) (218,852) 28,845 Other assets (2,684) (3,684) (1,292) Securities sold, not yet purchased – at fair value 182 239 23 Customer liabilities (106,396) 198,608 392,855 Current income tax liability 1 (637) 658 Margin lending and trade payables (15) (370) 230 Lease liabilities (5,763) (5,166) (3,854) Other liabilities 3,676 1,256 2,433 Net cash flows from/(used in) operating activities from discontinued operations (24,095) (112,500) 347,017 Cash Flows Used In Investing Activities Purchase of fixed assets (4,421) (3,438) (2,137) Proceeds from sale of fixed assets — — 76 Net change in loans issued to customers (25,331) (945) (171) Cash, cash equivalents and restricted cash disposed from divestiture of Russia segment (599,986) — — Net cash flows used in investing activities from discontinued operations (629,738) (4,383) (2,232) The following table presents reconciliation of loss from disposal of discontinued operations as of disposal date: February 28, 2023 Cash and cash equivalents 593,953 Restricted cash 6,033 Trading securities 113,845 Margin lending, brokerage and other receivables, net 257,184 Loans issued 23,169 Other assets 32,398 Total assets of discontinued operations $ 1,026,582 Customer liabilities 776,425 Securities repurchase agreement obligations 33,275 Debt securities issued 34,379 Other liabilities 16,385 Total liabilities of discontinued operations $ 860,464 Net assets of discontinued operations $ 166,118 Reclassification of unrealized loss from cumulative translation adjustment 25,415 Adjusted net assets of discontinued operations $ 191,533 Consideration received 140,000 Loss from divestiture of discontinued operations $ (51,533) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of bank guarantees | Total lending related commitments outstanding at March 31, 2023 and 2022, were as follows: As of March 31, 2023 As of March 31, 2022 (Recasted) Unfunded commitments under lines of credit $ 20,617 $ 11,292 Bank guarantees 7,001 6,384 Total $ 27,618 $ 17,676 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables summarize the Company's Statement of operation by its geographic segments. There are no revenues from transactions between the segments and intercompany balances were eliminated for separate: Year ended March 31, 2023 STATEMENTS OF OPERATIONS Central Asia and Eastern Europe Europe, excluding Eastern Europe US Middle East/Caucasus Total Fee and commission income (1) $ 106,982 $ 215,408 $ 4,825 $ — $ 327,215 Net gain/(loss) on trading securities 92,330 (22,693) 1,447 — 71,084 Interest income 257,285 26,090 11,289 31 294,695 Insurance underwriting income 115,371 — — — 115,371 Net gain/(loss) on foreign exchange operations 58,908 (2,287) (4,479) 12 52,154 Net loss on derivative (64,826) — — — (64,826) TOTAL REVENUE, NET 566,050 216,518 13,082 43 795,693 Fee and commission expense $ 34,939 $ 29,426 $ 1,238 $ 57 $ 65,660 Interest expense 172,326 22,042 14,579 — 208,947 Insurance claims incurred, net of reinsurance 77,329 — — — 77,329 Payroll and bonuses 56,774 16,090 7,818 1,137 81,819 Professional services 1,594 7,397 7,875 140 17,006 Stock compensation expense 6,582 550 2,161 — 9,293 Advertising expense 7,847 5,900 186 126 14,059 General and administrative expense 34,754 20,496 4,095 626 59,971 Provision for impairment losses 12,522 15,070 1,527 — 29,119 Other (income)/expense, net (4,485) 1,101 (14) (50) (3,448) TOTAL EXPENSE 400,182 118,072 39,465 2,036 559,755 INCOME/(LOSS) BEFORE INCOME TAX FROM CONTINUING OPERATIONS $ 165,868 $ 98,446 $ (26,383) (1,993) $ 235,938 Income tax expense (625) (21,813) (20,278) (60) (42,776) NET INCOME/(LOSS) FROM CONTINUING OPERATIONS $ 165,243 $ 76,633 $ (46,661) (2,053) $ 193,162 Year ended March 31, 2022 (Recasted) STATEMENTS OF OPERATIONS Central Asia and Eastern Europe Europe, excluding Eastern Europe US Middle East/Caucasus Total Fee and commission income (1) $ 23,652 $ 307,014 $ 4,545 $ — $ 335,211 Net gain on trading securities 10,511 142,195 2,546 — 155,252 Interest income 107,075 14,051 483 — 121,609 Insurance underwriting income 72,981 — — — 72,981 Net gain/(loss) on foreign exchange operations 7,824 (5,598) 1,565 — 3,791 Net gain on derivative 946 — — — 946 TOTAL REVENUE, NET 222,989 457,662 9,139 — 689,790 Fee and commission expense 20,610 64,519 780 — 85,909 Interest expense 66,392 8,747 1,808 — 76,947 Insurance claims incurred, net of reinsurance 54,447 — — — 54,447 Payroll and bonuses 32,562 9,419 4,224 83 46,288 Professional services 1,773 5,540 5,295 74 12,682 Stock compensation expense 4,768 677 2,414 — 7,859 Advertising expense 4,684 7,217 9 6 11,916 General and administrative expense 16,770 4,894 1,749 120 23,533 Provision for impairment losses 2,441 61 — — 2,502 Other expense/(income), net 3,138 7 872 (3) 4,014 TOTAL EXPENSE 207,585 101,081 17,151 280 326,097 INCOME/(LOSS) BEFORE INCOME TAX FROM CONTINUING OPERATIONS $ 15,404 $ 356,581 $ (8,012) (280) $ 363,693 Income tax (expense)/benefit 1,195 (26,786) (12,988) 9 (38,570) NET INCOME/(LOSS) FROM CONTINUING OPERATIONS $ 16,599 $ 329,795 $ (21,000) (271) $ 325,123 Year ended March 31, 2021 (Recasted) STATEMENTS OF OPERATIONS Central Asia and Eastern Europe Europe, excluding Eastern Europe US Middle East/Caucasus Total Fee and commission income (1) $ 20,567 $ 194,311 $ 1,130 $ — $ 216,008 Net gain on trading securities 21,310 8 7,489 — 28,807 Interest income 34,158 3,634 682 — 38,474 Insurance underwriting income 62,951 — — — 62,951 Net gain/(loss) on foreign exchange operations 1,072 (300) (215) — 557 Net gain on derivative 86 — — — 86 TOTAL REVENUE, NET 140,144 197,653 9,086 — 346,883 Fee and commission expense 7,412 62,430 695 — 70,537 Interest expense 16,608 3,663 2,173 — 22,444 Insurance claims incurred, net of reinsurance 52,405 — — — 52,405 Payroll and bonuses 16,878 5,398 1,156 3 23,435 Professional services 685 769 2,975 1 4,430 Stock compensation expense — 56 58 — 114 Advertising expense 3,566 3,386 19 — 6,971 General and administrative expense 8,036 2,518 553 11 11,118 Provision for impairment losses 1,086 108 396 — 1,590 Other expense/(income), net 2,052 (3) (15) — 2,034 TOTAL EXPENSE 108,728 78,325 8,010 15 195,078 INCOME/(LOSS) BEFORE INCOME TAX FROM CONTINUING OPERATIONS $ 31,416 $ 119,328 $ 1,076 (15) $ 151,805 Income tax (expense)/benefit 111 (13,859) (9,559) — (23,307) NET INCOME/(LOSS) FROM CONTINUING OPERATIONS $ 31,527 $ 105,469 $ (8,483) (15) $ 128,498 The following tables summarize the Company's total asset and total liabilities by its geographic segments. Intercompany balances were eliminated for separate disclosure: March 31, 2023 Central Asia and Eastern Europe Europe, excluding Eastern Europe US Middle East/ Caucasus Held for sale Total Total assets $ 4,303,126 $ 677,425 $ 101,365 $ 2,642 $ 5,084,558 Total liabilities 3,868,326 384,921 60,198 377 4,313,822 Net assets $ 434,800 $ 292,504 $ 41,167 $ 2,265 $ 770,736 March 31, 2022 (Recasted) Central Asia and Eastern Europe Europe, excluding Eastern Europe US Middle East/ Caucasus Held for sale Total Total assets $ 1,466,214 $ 765,698 $ 172,661 $ 355 $ 825,419 $ 3,230,347 Total liabilities 1,206,084 489,884 175,121 172 812,478 2,683,739 Net assets $ 260,130 $ 275,814 $ (2,460) $ 183 $ 12,941 $ 546,608 |
DESCRIPTION OF BUSINESS (Detail
DESCRIPTION OF BUSINESS (Details) $ in Thousands, ₽ in Millions | Mar. 31, 2023 | Jan. 31, 2023 RUB (₽) | Jan. 31, 2023 USD ($) | Mar. 31, 2022 | Jul. 31, 2021 | Jun. 30, 2021 |
Related Party Transaction [Line Items] | ||||||
Variable interest entity, contract agreement, percent of net profits entitled (in percent) | 90% | |||||
Ownership interest sold during the period (in percent) | 23.88% | |||||
Freedom RU | ||||||
Related Party Transaction [Line Items] | ||||||
Consideration received | ₽ 50 | $ 695 | ||||
LLC Freedom Finance Ukraine | ||||||
Related Party Transaction [Line Items] | ||||||
Ownership percentage, non-controlling interest (in percent) | 9% | 9% | 32.90% | |||
Ownership percentage, controlling interest (in percent) | 91% | |||||
Ownership interest sold during the period (in percent) | 23.90% | |||||
Subsidiaries Listed On The Ukrainian Exchange | ||||||
Related Party Transaction [Line Items] | ||||||
Ownership percentage, non-controlling interest (in percent) | 24.30% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Variable Interest Entities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Variable Interest Entity [Line Items] | ||
Cash and cash equivalents (including $35,549 and $22,787 from related parties) | $ 225,464 | |
Restricted cash (including $114,885 and $222,651 from related parties) | 547,950 | |
Trading securities | $ 2,412,556 | 1,158,377 |
Margin lending, brokerage and other receivables, net (including $294,985 and $107,649 from related parties) | 376,329 | 147,659 |
Fixed assets, net | 54,017 | 17,823 |
Intangible assets, net | 17,615 | 5,163 |
Other assets, net (including $16,089 and $— from related party) | 29,641 | |
Total assets | 5,084,558 | 3,230,347 |
Customer liabilities (including $130,210 and $325,904 from related parties) | 1,925,247 | 765,628 |
Securities repurchase agreement obligations | 1,517,416 | 840,224 |
Other liabilities | 21,477 | |
Total liabilities | 4,313,822 | 2,683,739 |
Variable interest entity | ||
Variable Interest Entity [Line Items] | ||
Cash and cash equivalents (including $35,549 and $22,787 from related parties) | 26 | 134 |
Restricted cash (including $114,885 and $222,651 from related parties) | 1,936 | 2,843 |
Trading securities | 4,010 | 2,942 |
Margin lending, brokerage and other receivables, net (including $294,985 and $107,649 from related parties) | 1,616 | 435 |
Fixed assets, net | 782 | 1,043 |
Intangible assets, net | 131 | 205 |
Right-of-use asset | 135 | 905 |
Other assets, net (including $16,089 and $— from related party) | 56 | 127 |
Total assets | 8,692 | 8,634 |
Customer liabilities (including $130,210 and $325,904 from related parties) | 5,837 | 8,439 |
Securities repurchase agreement obligations | 12 | 3,267 |
Trade payables | 25 | 35 |
Lease liability | 159 | 914 |
Other liabilities | 298 | 434 |
Total liabilities | $ 6,331 | $ 13,089 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 11 Months Ended | 12 Months Ended | ||||
Apr. 01, 2023 USD ($) | Mar. 31, 2023 USD ($) | Feb. 28, 2023 issuer | Mar. 31, 2022 USD ($) issuer | Feb. 28, 2023 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 USD ($) | |
Property, Plant and Equipment [Line Items] | ||||||||
Lending margin receivable | $ 37,100 | |||||||
Goodwill, net of impairment | $ 14,192 | $ 5,898 | $ 14,192 | $ 5,898 | $ 7,697 | |||
Impairment expense | 0 | $ 2,300 | ||||||
Number of operating segments | issuer | 4 | 5 | ||||||
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] | Provision for impairment losses | |||||||
Advertising expense | $ 14,059 | $ 11,916 | 6,971 | |||||
Accounting Standards Update 2016-13 | Forecast | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Expected adjustment to the allowance for credit losses | $ 10,000 | |||||||
Zerich, Freedom Bank RU and Freedom UA | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Impairment expense | 2,300 | |||||||
Discontinued operations | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Provision for impairment losses | $ 1,566 | 779 | 45 | |||||
Advertising expense | $ 14,945 | $ 7,085 | $ 1,881 | |||||
Minimum | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Useful lives of assets | 3 years | |||||||
Maximum | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Useful lives of assets | 65 years |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of changes in the carrying amount of goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Goodwill, gross | |||
Goodwill, gross, beginning balance | $ 8,198 | $ 7,697 | |
Foreign currency translation | (74) | 501 | |
Acquired | 8,368 | 0 | |
Goodwill, gross, ending balance | 16,492 | 8,198 | $ 7,697 |
Accumulated impairment | |||
Accumulated goodwill impairment, beginning balance | 2,300 | 0 | |
Impairment expense | 0 | 2,300 | |
Accumulated goodwill impairment, ending balance | 2,300 | 2,300 | 0 |
Goodwill, net of impairment | |||
Goodwill, net of impairment | 14,192 | 5,898 | 7,697 |
Held for sale | |||
Goodwill, gross | |||
Goodwill, gross, beginning balance | 1,468 | 810 | |
Foreign currency translation | 0 | 658 | |
Acquired | 0 | 0 | |
Goodwill, gross, ending balance | 1,468 | 1,468 | 810 |
Accumulated impairment | |||
Accumulated goodwill impairment, beginning balance | 1,468 | 0 | |
Impairment expense | 0 | 1,468 | |
Accumulated goodwill impairment, ending balance | 1,468 | 1,468 | 0 |
Goodwill, net of impairment | |||
Goodwill, net of impairment | 0 | 0 | 810 |
Central Asia and Eastern Europe | |||
Goodwill, gross | |||
Goodwill, gross, beginning balance | 5,104 | 5,261 | |
Foreign currency translation | (74) | (157) | |
Acquired | 2,594 | 0 | |
Goodwill, gross, ending balance | 7,624 | 5,104 | 5,261 |
Accumulated impairment | |||
Accumulated goodwill impairment, beginning balance | 832 | 0 | |
Impairment expense | 0 | 832 | |
Accumulated goodwill impairment, ending balance | 832 | 832 | 0 |
Goodwill, net of impairment | |||
Goodwill, net of impairment | 6,792 | 4,272 | 5,261 |
Europe, excluding Eastern Europe | |||
Goodwill, gross | |||
Goodwill, gross, beginning balance | 0 | 0 | |
Foreign currency translation | 0 | 0 | |
Acquired | 0 | 0 | |
Goodwill, gross, ending balance | 0 | 0 | 0 |
Accumulated impairment | |||
Accumulated goodwill impairment, beginning balance | 0 | 0 | |
Impairment expense | 0 | 0 | |
Accumulated goodwill impairment, ending balance | 0 | 0 | 0 |
Goodwill, net of impairment | |||
Goodwill, net of impairment | 0 | 0 | 0 |
US | |||
Goodwill, gross | |||
Goodwill, gross, beginning balance | 1,626 | 1,626 | |
Foreign currency translation | 0 | 0 | |
Acquired | 5,774 | 0 | |
Goodwill, gross, ending balance | 7,400 | 1,626 | 1,626 |
Accumulated impairment | |||
Accumulated goodwill impairment, beginning balance | 0 | 0 | |
Impairment expense | 0 | 0 | |
Accumulated goodwill impairment, ending balance | 0 | 0 | 0 |
Goodwill, net of impairment | |||
Goodwill, net of impairment | 7,400 | 1,626 | 1,626 |
Middle East/ Caucasus | |||
Goodwill, gross | |||
Goodwill, gross, beginning balance | 0 | 0 | |
Foreign currency translation | 0 | 0 | |
Acquired | 0 | 0 | |
Goodwill, gross, ending balance | 0 | 0 | 0 |
Accumulated impairment | |||
Accumulated goodwill impairment, beginning balance | 0 | 0 | |
Impairment expense | 0 | 0 | |
Accumulated goodwill impairment, ending balance | 0 | 0 | 0 |
Goodwill, net of impairment | |||
Goodwill, net of impairment | $ 0 | $ 0 | $ 0 |
RECAST - Narrative (Details)
RECAST - Narrative (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
May 17, 2022 USD ($) company | Mar. 31, 2023 $ / shares | Mar. 31, 2022 company $ / shares | Mar. 31, 2021 $ / shares | Aug. 22, 2018 USD ($) | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Number of businesses acquired | company | 2 | 2 | |||
Basic earnings per share, continuing operations (USD per share) | $ 3.29 | $ 5.59 | $ 2.19 | ||
Diluted earnings per share, continuing operations (USD per share) | 3.24 | 5.59 | 2.19 | ||
Basic earnings per share, discontinued operations (USD per share) | 0.21 | (1.75) | 0.37 | ||
Diluted earnings per share, discontinued operations (USD per share) | 0.21 | (1.75) | 0.37 | ||
Earnings per common share - diluted (USD per share) | 3.45 | 3.84 | 2.56 | ||
Earnings per common share - basic (USD per share) | $ 3.50 | 3.84 | 2.56 | ||
As previously reported | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Basic earnings per share, continuing operations (USD per share) | 5.43 | 2.06 | |||
Diluted earnings per share, continuing operations (USD per share) | 5.43 | 2.06 | |||
Basic earnings per share, discontinued operations (USD per share) | (1.75) | ||||
Diluted earnings per share, discontinued operations (USD per share) | (1.75) | ||||
Earnings per common share - diluted (USD per share) | 3.67 | 2.43 | |||
Earnings per common share - basic (USD per share) | $ 3.67 | $ 2.44 | |||
Freedom Insurance | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Business acquisition, percentage of outstanding shares acquired (in percent) | 100% | ||||
Total purchase price | $ | $ 13,977 | $ 4,288 | |||
Freedom Life | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Business acquisition, percentage of outstanding shares acquired (in percent) | 100% | ||||
Total purchase price | $ | $ 12,611 |
RECAST - Condensed Consolidated
RECAST - Condensed Consolidated Balance Sheet (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 31, 2023 | Feb. 28, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 |
ASSETS | |||||
Cash and cash equivalents (including $35,549 and $22,787 from related parties) | $ 225,464 | ||||
Restricted cash (including $114,885 and $222,651 from related parties) | 547,950 | ||||
Trading securities | $ 2,412,556 | 1,158,377 | |||
Available-for-sale securities, at fair value | 239,053 | 161,364 | |||
Margin lending, brokerage and other receivables, net (including $294,985 and $107,649 from related parties) | 376,329 | 147,659 | |||
Loans issued | 826,258 | 92,446 | |||
Fixed assets, net | 54,017 | 17,823 | |||
Intangible assets, net | 17,615 | 5,163 | |||
Goodwill, net of impairment | 14,192 | 5,898 | $ 7,697 | ||
Right-of-use asset | 30,345 | 7,431 | |||
Insurance contract assets | 13,785 | 5,712 | |||
Other assets, net (including $16,089 and $— from related party) | 29,641 | ||||
Assets held for sale | 0 | 825,419 | |||
Total assets | 5,084,558 | 3,230,347 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
Securities repurchase agreement obligations | 1,517,416 | 840,224 | |||
Customer liabilities (including $130,210 and $325,904 from related parties) | 1,925,247 | 765,628 | |||
Margin lending and trade payables (including $3,239 and $38,889 to related parties) | 122,900 | 45,083 | |||
Liabilities from insurance activity | 182,502 | 122,087 | |||
Current income tax liability | 4,547 | 14,556 | |||
Securities sold, not yet purchased – at fair value | 0 | 13,865 | 8,569 | ||
Debt securities issued | 60,025 | 34,390 | |||
Lease liability | 30,320 | 7,504 | |||
Liability arising from continuing involvement | 6,447 | ||||
Other liabilities | 21,477 | ||||
Liabilities held for sale | 0 | 812,478 | |||
Total liabilities | 4,313,822 | 2,683,739 | |||
Commitments and Contingent Liabilities (Note 31) | $ 0 | $ 0 | |||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |||
Preferred stock, authorized (in shares) | 20,000,000 | 20,000,000 | |||
Preferred stock, issued (in shares) | 0 | 0 | |||
Preferred stock, outstanding (in shares) | 0 | 0 | |||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |||
Common stock, authorized (in shares) | 500,000,000 | 500,000,000 | |||
Common stock, issued (in shares) | 59,659,191 | 59,542,212 | |||
Equity [Abstract] | |||||
Preferred stock - $0.001 par value; $20,000,000 shares authorized, no shares issued or outstanding | $ 0 | $ 0 | |||
Common stock - $0.001 par value; 500,000,000 shares authorized; 59,659,191 and 59,542,212 shares issued and outstanding as of March 31, 2023 and March 31, 2022, respectively | 59 | 59 | |||
Additional paid in capital | 164,162 | 174,745 | |||
Retained earnings | 647,064 | 441,924 | |||
Accumulated other comprehensive loss | (34,000) | (63,125) | |||
TOTAL FRHC SHAREHOLDERS’ EQUITY | 777,285 | 553,603 | |||
Non-controlling interest | (6,549) | (6,995) | |||
TOTAL SHAREHOLDERS' EQUITY | 770,736 | 546,608 | $ 307,674 | $ 149,369 | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 5,084,558 | 3,230,347 | |||
Discontinued operations | |||||
ASSETS | |||||
Cash and cash equivalents (including $35,549 and $22,787 from related parties) | $ 593,953 | 428,480 | |||
Restricted cash (including $114,885 and $222,651 from related parties) | 6,033 | 28,406 | |||
Trading securities | 113,845 | 122,497 | |||
Margin lending, brokerage and other receivables, net (including $294,985 and $107,649 from related parties) | 257,184 | 210,087 | |||
Loans issued | 23,169 | 2,395 | |||
Other assets, net (including $16,089 and $— from related party) | 32,398 | 33,554 | |||
Total assets | 1,026,582 | 825,419 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
Securities repurchase agreement obligations | 776,425 | 701,584 | |||
Customer liabilities (including $130,210 and $325,904 from related parties) | 34,379 | 64,637 | |||
Debt securities issued | 33,275 | 32,469 | |||
Other liabilities | 16,385 | 13,788 | |||
Total liabilities | $ 860,464 | 812,478 | |||
As previously reported | |||||
ASSETS | |||||
Cash and cash equivalents (including $35,549 and $22,787 from related parties) | 224,663 | ||||
Restricted cash (including $114,885 and $222,651 from related parties) | 547,950 | ||||
Trading securities | 1,080,982 | ||||
Available-for-sale securities, at fair value | 1 | ||||
Margin lending, brokerage and other receivables, net (including $294,985 and $107,649 from related parties) | 147,480 | ||||
Loans issued | 92,403 | ||||
Fixed assets, net | 17,387 | ||||
Intangible assets, net | 3,512 | ||||
Goodwill, net of impairment | 5,388 | ||||
Right-of-use asset | 6,747 | ||||
Insurance contract assets | 0 | ||||
Other assets, net (including $16,089 and $— from related party) | 19,351 | ||||
Assets held for sale | 825,419 | ||||
Total assets | 2,971,283 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
Securities repurchase agreement obligations | 742,710 | ||||
Customer liabilities (including $130,210 and $325,904 from related parties) | 766,627 | ||||
Margin lending and trade payables (including $3,239 and $38,889 to related parties) | 45,082 | ||||
Liabilities from insurance activity | 0 | ||||
Current income tax liability | 14,556 | ||||
Securities sold, not yet purchased – at fair value | 13,865 | ||||
Debt securities issued | 34,390 | ||||
Lease liability | 6,785 | ||||
Liability arising from continuing involvement | 6,447 | ||||
Other liabilities | 20,668 | ||||
Liabilities held for sale | 812,478 | ||||
Total liabilities | 2,463,608 | ||||
Commitments and Contingent Liabilities (Note 31) | 0 | ||||
Equity [Abstract] | |||||
Preferred stock - $0.001 par value; $20,000,000 shares authorized, no shares issued or outstanding | 0 | ||||
Common stock - $0.001 par value; 500,000,000 shares authorized; 59,659,191 and 59,542,212 shares issued and outstanding as of March 31, 2023 and March 31, 2022, respectively | 59 | ||||
Additional paid in capital | 141,340 | ||||
Retained earnings | 426,563 | ||||
Accumulated other comprehensive loss | (53,291) | ||||
TOTAL FRHC SHAREHOLDERS’ EQUITY | 514,671 | ||||
Non-controlling interest | (6,996) | ||||
TOTAL SHAREHOLDERS' EQUITY | 507,675 | ||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 2,971,283 | ||||
Revision of prior period, adjustment | FF Life acquisition | |||||
ASSETS | |||||
Cash and cash equivalents (including $35,549 and $22,787 from related parties) | 1,429 | ||||
Restricted cash (including $114,885 and $222,651 from related parties) | 0 | ||||
Trading securities | 8,875 | ||||
Available-for-sale securities, at fair value | 161,363 | ||||
Margin lending, brokerage and other receivables, net (including $294,985 and $107,649 from related parties) | 172 | ||||
Loans issued | 43 | ||||
Fixed assets, net | 182 | ||||
Intangible assets, net | 1,490 | ||||
Goodwill, net of impairment | 359 | ||||
Right-of-use asset | 532 | ||||
Insurance contract assets | 3,555 | ||||
Other assets, net (including $16,089 and $— from related party) | 9,863 | ||||
Assets held for sale | 0 | ||||
Total assets | 187,863 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
Securities repurchase agreement obligations | 47,690 | ||||
Customer liabilities (including $130,210 and $325,904 from related parties) | 0 | ||||
Margin lending and trade payables (including $3,239 and $38,889 to related parties) | 0 | ||||
Liabilities from insurance activity | 108,925 | ||||
Current income tax liability | 0 | ||||
Securities sold, not yet purchased – at fair value | 0 | ||||
Debt securities issued | 0 | ||||
Lease liability | 543 | ||||
Liability arising from continuing involvement | 0 | ||||
Other liabilities | 551 | ||||
Liabilities held for sale | 0 | ||||
Total liabilities | 157,709 | ||||
Commitments and Contingent Liabilities (Note 31) | 0 | ||||
Equity [Abstract] | |||||
Preferred stock - $0.001 par value; $20,000,000 shares authorized, no shares issued or outstanding | 0 | ||||
Common stock - $0.001 par value; 500,000,000 shares authorized; 59,659,191 and 59,542,212 shares issued and outstanding as of March 31, 2023 and March 31, 2022, respectively | 9,465 | ||||
Additional paid in capital | 0 | ||||
Retained earnings | 28,132 | ||||
Accumulated other comprehensive loss | (7,444) | ||||
TOTAL FRHC SHAREHOLDERS’ EQUITY | 30,153 | ||||
Non-controlling interest | 1 | ||||
TOTAL SHAREHOLDERS' EQUITY | 30,154 | ||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 187,863 | ||||
Revision of prior period, adjustment | FF Life acquisition | Eliminations | |||||
ASSETS | |||||
Cash and cash equivalents (including $35,549 and $22,787 from related parties) | (917) | ||||
Restricted cash (including $114,885 and $222,651 from related parties) | 0 | ||||
Trading securities | 0 | ||||
Available-for-sale securities, at fair value | 0 | ||||
Margin lending, brokerage and other receivables, net (including $294,985 and $107,649 from related parties) | (34) | ||||
Loans issued | 0 | ||||
Fixed assets, net | 0 | ||||
Intangible assets, net | 0 | ||||
Goodwill, net of impairment | 0 | ||||
Right-of-use asset | 0 | ||||
Insurance contract assets | 0 | ||||
Other assets, net (including $16,089 and $— from related party) | 0 | ||||
Assets held for sale | 0 | ||||
Total assets | (951) | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
Securities repurchase agreement obligations | 0 | ||||
Customer liabilities (including $130,210 and $325,904 from related parties) | (917) | ||||
Margin lending and trade payables (including $3,239 and $38,889 to related parties) | 0 | ||||
Liabilities from insurance activity | 0 | ||||
Current income tax liability | 0 | ||||
Securities sold, not yet purchased – at fair value | 0 | ||||
Debt securities issued | 0 | ||||
Lease liability | 0 | ||||
Liability arising from continuing involvement | 0 | ||||
Other liabilities | (34) | ||||
Liabilities held for sale | 0 | ||||
Total liabilities | (951) | ||||
Commitments and Contingent Liabilities (Note 31) | 0 | ||||
Equity [Abstract] | |||||
Preferred stock - $0.001 par value; $20,000,000 shares authorized, no shares issued or outstanding | 0 | ||||
Common stock - $0.001 par value; 500,000,000 shares authorized; 59,659,191 and 59,542,212 shares issued and outstanding as of March 31, 2023 and March 31, 2022, respectively | (9,464) | ||||
Additional paid in capital | 16,498 | ||||
Retained earnings | (6,665) | ||||
Accumulated other comprehensive loss | (369) | ||||
TOTAL FRHC SHAREHOLDERS’ EQUITY | 0 | ||||
Non-controlling interest | 0 | ||||
TOTAL SHAREHOLDERS' EQUITY | 0 | ||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | (951) | ||||
Revision of prior period, adjustment | FF Insurance acquisition | |||||
ASSETS | |||||
Cash and cash equivalents (including $35,549 and $22,787 from related parties) | 371 | ||||
Restricted cash (including $114,885 and $222,651 from related parties) | 0 | ||||
Trading securities | 68,520 | ||||
Available-for-sale securities, at fair value | 0 | ||||
Margin lending, brokerage and other receivables, net (including $294,985 and $107,649 from related parties) | 61 | ||||
Loans issued | 0 | ||||
Fixed assets, net | 254 | ||||
Intangible assets, net | 161 | ||||
Goodwill, net of impairment | 151 | ||||
Right-of-use asset | 152 | ||||
Insurance contract assets | 2,157 | ||||
Other assets, net (including $16,089 and $— from related party) | 427 | ||||
Assets held for sale | 0 | ||||
Total assets | 72,254 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
Securities repurchase agreement obligations | 49,824 | ||||
Customer liabilities (including $130,210 and $325,904 from related parties) | 0 | ||||
Margin lending and trade payables (including $3,239 and $38,889 to related parties) | 21 | ||||
Liabilities from insurance activity | 13,162 | ||||
Current income tax liability | 0 | ||||
Securities sold, not yet purchased – at fair value | 0 | ||||
Debt securities issued | 0 | ||||
Lease liability | 176 | ||||
Liability arising from continuing involvement | 0 | ||||
Other liabilities | 292 | ||||
Liabilities held for sale | 0 | ||||
Total liabilities | 63,475 | ||||
Commitments and Contingent Liabilities (Note 31) | 0 | ||||
Equity [Abstract] | |||||
Preferred stock - $0.001 par value; $20,000,000 shares authorized, no shares issued or outstanding | 0 | ||||
Common stock - $0.001 par value; 500,000,000 shares authorized; 59,659,191 and 59,542,212 shares issued and outstanding as of March 31, 2023 and March 31, 2022, respectively | 15,576 | ||||
Additional paid in capital | 0 | ||||
Retained earnings | (4,812) | ||||
Accumulated other comprehensive loss | (1,985) | ||||
TOTAL FRHC SHAREHOLDERS’ EQUITY | 8,779 | ||||
Non-controlling interest | 0 | ||||
TOTAL SHAREHOLDERS' EQUITY | 8,779 | ||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 72,254 | ||||
Revision of prior period, adjustment | FF Insurance acquisition | Eliminations | |||||
ASSETS | |||||
Cash and cash equivalents (including $35,549 and $22,787 from related parties) | (82) | ||||
Restricted cash (including $114,885 and $222,651 from related parties) | 0 | ||||
Trading securities | 0 | ||||
Available-for-sale securities, at fair value | 0 | ||||
Margin lending, brokerage and other receivables, net (including $294,985 and $107,649 from related parties) | (20) | ||||
Loans issued | 0 | ||||
Fixed assets, net | 0 | ||||
Intangible assets, net | 0 | ||||
Goodwill, net of impairment | 0 | ||||
Right-of-use asset | 0 | ||||
Insurance contract assets | 0 | ||||
Other assets, net (including $16,089 and $— from related party) | 0 | ||||
Assets held for sale | 0 | ||||
Total assets | (102) | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
Securities repurchase agreement obligations | 0 | ||||
Customer liabilities (including $130,210 and $325,904 from related parties) | (82) | ||||
Margin lending and trade payables (including $3,239 and $38,889 to related parties) | (20) | ||||
Liabilities from insurance activity | 0 | ||||
Current income tax liability | 0 | ||||
Securities sold, not yet purchased – at fair value | 0 | ||||
Debt securities issued | 0 | ||||
Lease liability | 0 | ||||
Liability arising from continuing involvement | 0 | ||||
Other liabilities | 0 | ||||
Liabilities held for sale | 0 | ||||
Total liabilities | (102) | ||||
Commitments and Contingent Liabilities (Note 31) | 0 | ||||
Equity [Abstract] | |||||
Preferred stock - $0.001 par value; $20,000,000 shares authorized, no shares issued or outstanding | 0 | ||||
Common stock - $0.001 par value; 500,000,000 shares authorized; 59,659,191 and 59,542,212 shares issued and outstanding as of March 31, 2023 and March 31, 2022, respectively | (15,577) | ||||
Additional paid in capital | 16,907 | ||||
Retained earnings | (1,294) | ||||
Accumulated other comprehensive loss | (36) | ||||
TOTAL FRHC SHAREHOLDERS’ EQUITY | 0 | ||||
Non-controlling interest | 0 | ||||
TOTAL SHAREHOLDERS' EQUITY | 0 | ||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ (102) |
RECAST - Condensed Consolidat_2
RECAST - Condensed Consolidated Balance Sheet Shareholders' Equity (Details) - $ / shares | Mar. 31, 2023 | Mar. 31, 2022 |
Accounting Changes and Error Corrections [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 500,000,000 | 500,000,000 |
RECAST - Condensed Consolidat_3
RECAST - Condensed Consolidated Statement of Operations and Other Comprehensive Income (Details) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | ||
Feb. 28, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue: | ||||
Fee and commission income (including $199,235, $291,163 and $184,725 from related parties) | $ 327,215 | $ 335,211 | $ 216,008 | |
Net gain on trading securities | 71,084 | 155,252 | 28,807 | |
Interest income | 294,695 | 121,609 | 38,474 | |
Insurance underwriting income | 115,371 | 72,981 | 62,951 | |
Net gain on foreign exchange operations | 52,154 | 3,791 | 557 | |
Total net (loss)/gain on derivatives | (64,826) | 946 | 86 | |
TOTAL REVENUE, NET | 795,693 | 689,790 | 346,883 | |
Expense: | ||||
Fee and commission expense (including $2,988, $16,307 and $20,291 from related parties) | 65,660 | 85,909 | 70,537 | |
Interest expense: | 208,947 | 76,947 | 22,444 | |
Insurance claims incurred, net of reinsurance | 77,329 | 54,447 | 52,405 | |
Payroll and bonuses | 81,819 | 46,288 | 23,435 | |
Professional services | 17,006 | 12,682 | 4,430 | |
Stock compensation expense | 9,293 | 7,859 | 114 | |
Advertising expense | 14,059 | 11,916 | 6,971 | |
General and administrative expense | 59,971 | 23,533 | 11,118 | |
Provision for impairment losses | 29,119 | 2,502 | 1,590 | |
Other expense/(income), net | 4,014 | 2,034 | ||
TOTAL EXPENSE | 559,755 | 326,097 | 195,078 | |
NET INCOME BEFORE INCOME TAX | 235,938 | 363,693 | 151,805 | |
Income tax (expense)/benefit | (42,776) | (38,570) | (23,307) | |
INCOME FROM CONTINUING OPERATIONS | 193,162 | 325,123 | 128,498 | |
Income/(loss) before income tax (expense)/benefit of discontinued operations | 68,160 | (117,199) | 28,518 | |
Income tax benefit of discontinued operations | 13,004 | (6,735) | ||
Income/(loss) from discontinued operations | 12,424 | (104,195) | 21,783 | |
NET INCOME | 205,586 | 220,928 | 150,281 | |
Less: Net income/(loss) attributable to non-controlling interest in subsidiary | 446 | (6,566) | 631 | |
NET INCOME ATTRIBUTABLE TO CONTROLLING INTEREST | 205,140 | 227,494 | 149,650 | |
Change in unrealized gain on investments available-for-sale, net of tax effect | 1,431 | (4,292) | (304) | |
Reclassification adjustment for net realized gain on available-for-sale investments disposed of in the period, net of tax effect | 2,222 | 2,092 | ||
Foreign currency translation adjustments, net of tax effect | 5,195 | (20,622) | 2,787 | |
OTHER COMPREHENSIVE (LOSS)/INCOME | (22,692) | 4,575 | ||
COMPREHENSIVE INCOME BEFORE NON-CONTROLLING INTERESTS | 234,711 | 198,236 | 154,856 | |
Less: Comprehensive income/(loss) attributable to non-controlling interest in subsidiary | 446 | (6,566) | 631 | |
COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING INTEREST | $ 234,265 | 204,802 | 154,225 | |
Discontinued operations | ||||
Revenue: | ||||
Fee and commission income (including $199,235, $291,163 and $184,725 from related parties) | $ 77,109 | 69,742 | 52,780 | |
Net gain on trading securities | 22,045 | (78,674) | 20,275 | |
Interest income | 53,410 | 28,399 | 11,221 | |
Net gain on foreign exchange operations | 45,859 | (39,672) | 2,285 | |
Total net (loss)/gain on derivatives | (44) | 0 | 39 | |
TOTAL REVENUE, NET | 198,379 | (20,205) | 86,600 | |
Expense: | ||||
Interest expense: | 15,051 | 10,450 | 8,760 | |
Payroll and bonuses | 58,971 | 39,114 | 24,827 | |
Professional services | 620 | 467 | 239 | |
Stock compensation expense | 1,743 | 7,887 | 1,033 | |
Advertising expense | 14,945 | 7,085 | 1,881 | |
General and administrative expense | 26,031 | 18,476 | 14,001 | |
Provision for impairment losses | 10,467 | 7,988 | 7,122 | |
Other expense/(income), net | 825 | 4,748 | 174 | |
TOTAL EXPENSE | 130,219 | 96,994 | 58,082 | |
NET INCOME BEFORE INCOME TAX | 68,160 | (117,199) | 28,518 | |
Income/(loss) from discontinued operations | $ 12,424 | (104,195) | 21,783 | |
As previously reported | ||||
Revenue: | ||||
Fee and commission income (including $199,235, $291,163 and $184,725 from related parties) | 335,444 | 215,996 | ||
Net gain on trading securities | 156,345 | 25,911 | ||
Interest income | 90,153 | 22,815 | ||
Insurance underwriting income | 0 | 0 | ||
Net gain on foreign exchange operations | 1,979 | 1,143 | ||
Total net (loss)/gain on derivatives | 946 | 86 | ||
TOTAL REVENUE, NET | 584,867 | 265,951 | ||
Expense: | ||||
Fee and commission expense (including $2,988, $16,307 and $20,291 from related parties) | 73,243 | 65,978 | ||
Interest expense: | 65,449 | 18,606 | ||
Insurance claims incurred, net of reinsurance | 0 | 0 | ||
Payroll and bonuses | 39,779 | 17,941 | ||
Professional services | 12,123 | 3,980 | ||
Stock compensation expense | 7,859 | 114 | ||
Advertising expense | 10,059 | 5,027 | ||
General and administrative expense | 18,744 | 8,391 | ||
Provision for impairment losses | 2,206 | 1,517 | ||
Other expense/(income), net | 1,312 | (106) | ||
TOTAL EXPENSE | 230,774 | 121,448 | ||
NET INCOME BEFORE INCOME TAX | 354,093 | 144,503 | ||
Income tax (expense)/benefit | (38,529) | (23,362) | ||
INCOME FROM CONTINUING OPERATIONS | 315,564 | 121,141 | ||
Income/(loss) before income tax (expense)/benefit of discontinued operations | (117,199) | 28,518 | ||
Income tax benefit of discontinued operations | 13,004 | (6,735) | ||
Income/(loss) from discontinued operations | (104,195) | 21,783 | ||
NET INCOME | 211,369 | 142,924 | ||
Less: Net income/(loss) attributable to non-controlling interest in subsidiary | (6,566) | 631 | ||
NET INCOME ATTRIBUTABLE TO CONTROLLING INTEREST | 217,935 | 142,293 | ||
Change in unrealized gain on investments available-for-sale, net of tax effect | 0 | 0 | ||
Reclassification adjustment for net realized gain on available-for-sale investments disposed of in the period, net of tax effect | 0 | 71 | ||
Foreign currency translation adjustments, net of tax effect | (17,245) | 1,857 | ||
OTHER COMPREHENSIVE (LOSS)/INCOME | (17,245) | 1,928 | ||
COMPREHENSIVE INCOME BEFORE NON-CONTROLLING INTERESTS | 194,124 | 144,852 | ||
Less: Comprehensive income/(loss) attributable to non-controlling interest in subsidiary | (6,566) | 631 | ||
COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING INTEREST | 200,690 | 144,221 | ||
Revision of prior period, adjustment | FF Life acquisition | ||||
Revenue: | ||||
Fee and commission income (including $199,235, $291,163 and $184,725 from related parties) | 0 | 0 | ||
Net gain on trading securities | (1,283) | 966 | ||
Interest income | 23,027 | 11,818 | ||
Insurance underwriting income | 60,526 | 54,412 | ||
Net gain on foreign exchange operations | 1,615 | (443) | ||
Total net (loss)/gain on derivatives | 0 | 0 | ||
TOTAL REVENUE, NET | 83,885 | 66,753 | ||
Expense: | ||||
Fee and commission expense (including $2,988, $16,307 and $20,291 from related parties) | 12,289 | 4,383 | ||
Interest expense: | 5,194 | 1,605 | ||
Insurance claims incurred, net of reinsurance | 42,606 | 46,754 | ||
Payroll and bonuses | 3,624 | 3,172 | ||
Professional services | 106 | 148 | ||
Stock compensation expense | 0 | 0 | ||
Advertising expense | 0 | 119 | ||
General and administrative expense | 3,516 | 1,304 | ||
Provision for impairment losses | 0 | 73 | ||
Other expense/(income), net | 2,708 | 2,359 | ||
TOTAL EXPENSE | 70,043 | 59,917 | ||
NET INCOME BEFORE INCOME TAX | 13,842 | 6,836 | ||
Income tax (expense)/benefit | (54) | 8 | ||
INCOME FROM CONTINUING OPERATIONS | 13,788 | 6,844 | ||
Income/(loss) before income tax (expense)/benefit of discontinued operations | 0 | 0 | ||
Income tax benefit of discontinued operations | 0 | 0 | ||
Income/(loss) from discontinued operations | 0 | 0 | ||
NET INCOME | 13,788 | 6,844 | ||
Less: Net income/(loss) attributable to non-controlling interest in subsidiary | 0 | 0 | ||
NET INCOME ATTRIBUTABLE TO CONTROLLING INTEREST | 13,788 | 6,844 | ||
Change in unrealized gain on investments available-for-sale, net of tax effect | (4,292) | (304) | ||
Reclassification adjustment for net realized gain on available-for-sale investments disposed of in the period, net of tax effect | 2,222 | 2,021 | ||
Foreign currency translation adjustments, net of tax effect | (2,014) | 10,866 | ||
OTHER COMPREHENSIVE (LOSS)/INCOME | (4,084) | 12,583 | ||
COMPREHENSIVE INCOME BEFORE NON-CONTROLLING INTERESTS | 9,704 | 19,427 | ||
Less: Comprehensive income/(loss) attributable to non-controlling interest in subsidiary | 0 | 0 | ||
COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING INTEREST | 9,704 | 19,427 | ||
Revision of prior period, adjustment | FF Life acquisition | Eliminations | ||||
Revenue: | ||||
Fee and commission income (including $199,235, $291,163 and $184,725 from related parties) | 0 | 0 | ||
Net gain on trading securities | 0 | 0 | ||
Interest income | 0 | 0 | ||
Insurance underwriting income | 0 | 0 | ||
Net gain on foreign exchange operations | 0 | 0 | ||
Total net (loss)/gain on derivatives | 0 | 0 | ||
TOTAL REVENUE, NET | 0 | 0 | ||
Expense: | ||||
Fee and commission expense (including $2,988, $16,307 and $20,291 from related parties) | 0 | 0 | ||
Interest expense: | 0 | 0 | ||
Insurance claims incurred, net of reinsurance | 0 | 0 | ||
Payroll and bonuses | 0 | 0 | ||
Professional services | 0 | 0 | ||
Stock compensation expense | 0 | 0 | ||
Advertising expense | 0 | 0 | ||
General and administrative expense | 0 | 0 | ||
Provision for impairment losses | 0 | 0 | ||
Other expense/(income), net | 0 | 0 | ||
TOTAL EXPENSE | 0 | 0 | ||
NET INCOME BEFORE INCOME TAX | 0 | 0 | ||
Income tax (expense)/benefit | 0 | 0 | ||
INCOME FROM CONTINUING OPERATIONS | 0 | 0 | ||
Income/(loss) before income tax (expense)/benefit of discontinued operations | 0 | 0 | ||
Income tax benefit of discontinued operations | 0 | 0 | ||
Income/(loss) from discontinued operations | 0 | 0 | ||
NET INCOME | 0 | 0 | ||
Less: Net income/(loss) attributable to non-controlling interest in subsidiary | 0 | 0 | ||
NET INCOME ATTRIBUTABLE TO CONTROLLING INTEREST | 0 | 0 | ||
Change in unrealized gain on investments available-for-sale, net of tax effect | 0 | 0 | ||
Reclassification adjustment for net realized gain on available-for-sale investments disposed of in the period, net of tax effect | 0 | 0 | ||
Foreign currency translation adjustments, net of tax effect | 0 | 0 | ||
OTHER COMPREHENSIVE (LOSS)/INCOME | 0 | 0 | ||
COMPREHENSIVE INCOME BEFORE NON-CONTROLLING INTERESTS | 0 | 0 | ||
Less: Comprehensive income/(loss) attributable to non-controlling interest in subsidiary | 0 | 0 | ||
COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING INTEREST | 0 | 0 | ||
Revision of prior period, adjustment | FF Insurance acquisition | ||||
Revenue: | ||||
Fee and commission income (including $199,235, $291,163 and $184,725 from related parties) | 83 | 188 | ||
Net gain on trading securities | 190 | 1,930 | ||
Interest income | 8,429 | 3,841 | ||
Insurance underwriting income | 12,455 | 8,539 | ||
Net gain on foreign exchange operations | 197 | (143) | ||
Total net (loss)/gain on derivatives | 0 | 0 | ||
TOTAL REVENUE, NET | 21,354 | 14,355 | ||
Expense: | ||||
Fee and commission expense (including $2,988, $16,307 and $20,291 from related parties) | 693 | 352 | ||
Interest expense: | 6,304 | 2,233 | ||
Insurance claims incurred, net of reinsurance | 11,841 | 5,651 | ||
Payroll and bonuses | 2,885 | 2,322 | ||
Professional services | 453 | 302 | ||
Stock compensation expense | 0 | 0 | ||
Advertising expense | 1,857 | 1,944 | ||
General and administrative expense | 1,273 | 1,314 | ||
Provision for impairment losses | 296 | 0 | ||
Other expense/(income), net | (6) | (229) | ||
TOTAL EXPENSE | 25,596 | 13,889 | ||
NET INCOME BEFORE INCOME TAX | (4,242) | 466 | ||
Income tax (expense)/benefit | 13 | 47 | ||
INCOME FROM CONTINUING OPERATIONS | (4,229) | 513 | ||
Income/(loss) before income tax (expense)/benefit of discontinued operations | 0 | 0 | ||
Income tax benefit of discontinued operations | 0 | 0 | ||
Income/(loss) from discontinued operations | 0 | 0 | ||
NET INCOME | (4,229) | 513 | ||
Less: Net income/(loss) attributable to non-controlling interest in subsidiary | 0 | 0 | ||
NET INCOME ATTRIBUTABLE TO CONTROLLING INTEREST | (4,229) | 513 | ||
Change in unrealized gain on investments available-for-sale, net of tax effect | 0 | 0 | ||
Reclassification adjustment for net realized gain on available-for-sale investments disposed of in the period, net of tax effect | 0 | 0 | ||
Foreign currency translation adjustments, net of tax effect | (1,363) | (9,936) | ||
OTHER COMPREHENSIVE (LOSS)/INCOME | (1,363) | (9,936) | ||
COMPREHENSIVE INCOME BEFORE NON-CONTROLLING INTERESTS | (5,592) | (9,423) | ||
Less: Comprehensive income/(loss) attributable to non-controlling interest in subsidiary | 0 | 0 | ||
COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING INTEREST | (5,592) | (9,423) | ||
Revision of prior period, adjustment | FF Insurance acquisition | Eliminations | ||||
Revenue: | ||||
Fee and commission income (including $199,235, $291,163 and $184,725 from related parties) | (316) | (176) | ||
Net gain on trading securities | 0 | 0 | ||
Interest income | 0 | 0 | ||
Insurance underwriting income | 0 | 0 | ||
Net gain on foreign exchange operations | 0 | 0 | ||
Total net (loss)/gain on derivatives | 0 | 0 | ||
TOTAL REVENUE, NET | (316) | (176) | ||
Expense: | ||||
Fee and commission expense (including $2,988, $16,307 and $20,291 from related parties) | (316) | (176) | ||
Interest expense: | 0 | 0 | ||
Insurance claims incurred, net of reinsurance | 0 | 0 | ||
Payroll and bonuses | 0 | |||
Professional services | 0 | |||
Stock compensation expense | 0 | |||
Advertising expense | 0 | |||
General and administrative expense | 0 | (10) | ||
Provision for impairment losses | 0 | 0 | ||
Other expense/(income), net | 0 | 10 | ||
TOTAL EXPENSE | (316) | (176) | ||
NET INCOME BEFORE INCOME TAX | 0 | 0 | ||
Income tax (expense)/benefit | 0 | 0 | ||
INCOME FROM CONTINUING OPERATIONS | 0 | 0 | ||
Income/(loss) before income tax (expense)/benefit of discontinued operations | 0 | 0 | ||
Income tax benefit of discontinued operations | 0 | 0 | ||
Income/(loss) from discontinued operations | 0 | 0 | ||
NET INCOME | 0 | 0 | ||
Less: Net income/(loss) attributable to non-controlling interest in subsidiary | 0 | 0 | ||
NET INCOME ATTRIBUTABLE TO CONTROLLING INTEREST | 0 | 0 | ||
Change in unrealized gain on investments available-for-sale, net of tax effect | 0 | 0 | ||
Reclassification adjustment for net realized gain on available-for-sale investments disposed of in the period, net of tax effect | 0 | 0 | ||
Foreign currency translation adjustments, net of tax effect | 0 | 0 | ||
OTHER COMPREHENSIVE (LOSS)/INCOME | 0 | 0 | ||
COMPREHENSIVE INCOME BEFORE NON-CONTROLLING INTERESTS | 0 | 0 | ||
Less: Comprehensive income/(loss) attributable to non-controlling interest in subsidiary | 0 | 0 | ||
COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING INTEREST | $ 0 | $ 0 |
CASH AND CASH EQUIVALENTS - Sch
CASH AND CASH EQUIVALENTS - Schedule of cash and cash equivalents (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 |
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents (including $35,549 and $22,787 from related parties) | $ 581,417 | $ 225,464 | $ 168,804 |
Short term deposits in National Bank (Kazakhstan) | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents (including $35,549 and $22,787 from related parties) | 357,454 | 42,517 | |
Short term deposits in commercial banks | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents (including $35,549 and $22,787 from related parties) | 83,755 | 70,156 | |
Short term deposits on brokerage accounts | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents (including $35,549 and $22,787 from related parties) | 37,417 | 71,060 | |
Petty cash in bank vault and on hand | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents (including $35,549 and $22,787 from related parties) | 35,998 | 18,607 | |
Short term deposits in stock exchanges | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents (including $35,549 and $22,787 from related parties) | 31,691 | 2,828 | |
Securities purchased under reverse repurchase agreements | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents (including $35,549 and $22,787 from related parties) | 29,812 | 19,947 | |
Cash in transit | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents (including $35,549 and $22,787 from related parties) | 3,364 | 35 | |
Overnight deposits | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents (including $35,549 and $22,787 from related parties) | 1,926 | 0 | |
Short term deposits in the Central Depository (Kazakhstan) | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents (including $35,549 and $22,787 from related parties) | $ 0 | $ 314 |
CASH AND CASH EQUIVALENTS - S_2
CASH AND CASH EQUIVALENTS - Schedule of collateralized securities received under reverse repurchase agreements (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Remaining contractual maturity: up to 30 days | $ 1,456,776 | $ 840,082 |
Total Contractual Maturity | 1,517,416 | 840,224 |
Cash and Cash Equivalents | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Remaining contractual maturity: up to 30 days | 29,627 | 19,947 |
Remaining contractual maturity: 30 - 90 days | 185 | 0 |
Total Contractual Maturity | $ 29,812 | $ 19,947 |
US sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average Interest rate | 1.52% | 0.77% |
Remaining contractual maturity: up to 30 days | $ 17,637 | $ 7,396 |
Total Contractual Maturity | $ 17,637 | $ 7,396 |
US sovereign debt | Cash and Cash Equivalents | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average Interest rate | 2.06% | 16.38% |
Remaining contractual maturity: up to 30 days | $ 17,102 | $ 9,952 |
Remaining contractual maturity: 30 - 90 days | 0 | |
Total Contractual Maturity | $ 17,102 | $ 9,952 |
Corporate equity | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average Interest rate | 12.24% | 14% |
Remaining contractual maturity: up to 30 days | $ 15,384 | $ 388 |
Total Contractual Maturity | $ 15,384 | $ 388 |
Corporate equity | Cash and Cash Equivalents | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average Interest rate | 17.17% | 16.90% |
Remaining contractual maturity: up to 30 days | $ 6,963 | $ 152 |
Remaining contractual maturity: 30 - 90 days | 0 | 0 |
Total Contractual Maturity | $ 6,963 | $ 152 |
Non-US sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average Interest rate | 15.98% | 10.85% |
Remaining contractual maturity: up to 30 days | $ 826,196 | $ 222,893 |
Total Contractual Maturity | $ 881,461 | $ 222,893 |
Non-US sovereign debt | Cash and Cash Equivalents | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average Interest rate | 6.12% | 12.51% |
Remaining contractual maturity: up to 30 days | $ 3,483 | $ 9,786 |
Remaining contractual maturity: 30 - 90 days | 0 | 0 |
Total Contractual Maturity | $ 3,483 | $ 9,786 |
Corporate debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average Interest rate | 16.07% | 11.96% |
Remaining contractual maturity: up to 30 days | $ 597,559 | $ 609,405 |
Total Contractual Maturity | $ 602,934 | $ 609,547 |
Corporate debt | Cash and Cash Equivalents | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average Interest rate | 2.52% | 11.88% |
Remaining contractual maturity: up to 30 days | $ 2,079 | $ 57 |
Remaining contractual maturity: 30 - 90 days | 185 | 0 |
Total Contractual Maturity | $ 2,264 | $ 57 |
CASH AND CASH EQUIVALENTS - Nar
CASH AND CASH EQUIVALENTS - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Cash and Cash Equivalents [Abstract] | ||
Fair value of collateral received by the company under reverse repurchase agreements | $ 31,165 | $ 19,911 |
RESTRICTED CASH (Details)
RESTRICTED CASH (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Cash and Cash Equivalents [Line Items] | ||
Restricted cash (including $114,885 and $222,651 from related parties) | $ 445,528 | $ 547,950 |
Brokerage customers' cash | ||
Cash and Cash Equivalents [Line Items] | ||
Restricted cash (including $114,885 and $222,651 from related parties) | 328,435 | 531,032 |
Guaranty deposits | ||
Cash and Cash Equivalents [Line Items] | ||
Restricted cash (including $114,885 and $222,651 from related parties) | 116,628 | 5,540 |
Deferred distribution payment | ||
Cash and Cash Equivalents [Line Items] | ||
Restricted cash (including $114,885 and $222,651 from related parties) | 23 | 8,534 |
Restricted bank accounts | ||
Cash and Cash Equivalents [Line Items] | ||
Restricted cash (including $114,885 and $222,651 from related parties) | 10,436 | 2,844 |
Allowance for restricted cash | ||
Cash and Cash Equivalents [Line Items] | ||
Restricted cash (including $114,885 and $222,651 from related parties) | $ 9,994 | $ 0 |
RESTRICTED CASH - Narrative (De
RESTRICTED CASH - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Cash and Cash Equivalents [Line Items] | ||
Guarantee deposits | $ 115,828 | $ 3,260 |
Restricted cash (including $114,885 and $222,651 from related parties) | 445,528 | 547,950 |
Deferred distribution payment | ||
Cash and Cash Equivalents [Line Items] | ||
Restricted cash (including $114,885 and $222,651 from related parties) | 23 | 8,534 |
Restricted cash, written off | $ 8,378 | |
Funds qualified for FDIC insurance | ||
Cash and Cash Equivalents [Line Items] | ||
Restricted cash (including $114,885 and $222,651 from related parties) | $ 23 |
TRADING AND AVAILABLE-FOR-SAL_3
TRADING AND AVAILABLE-FOR-SALE SECURITIES AT FAIR VALUE - Schedule of trading and available-for-sale securities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total trading securities | $ 2,412,556 | $ 1,158,377 |
Total available-for-sale securities, at fair value | 239,053 | 161,364 |
Corporate debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total trading securities | 1,269,879 | 712,134 |
Total available-for-sale securities, at fair value | 191,082 | 145,836 |
Non-US sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total trading securities | 1,029,857 | 360,570 |
Total available-for-sale securities, at fair value | 40,162 | 12,997 |
Corporate equity | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total trading securities | 65,741 | 72,354 |
Total available-for-sale securities, at fair value | 0 | 1 |
US sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total trading securities | 45,022 | 10,435 |
Total available-for-sale securities, at fair value | 7,809 | 2,530 |
Exchange traded notes | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total trading securities | $ 2,057 | $ 2,884 |
TRADING AND AVAILABLE-FOR-SAL_4
TRADING AND AVAILABLE-FOR-SALE SECURITIES AT FAIR VALUE - Schedule of maturity of trading and available-for-sale securities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Debt Securities, Available-for-Sale [Line Items] | ||
Total available-for-sale securities, at fair value | $ 239,053 | $ 161,364 |
Corporate debt | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Total available-for-sale securities, at fair value | 191,082 | 145,836 |
Non-US sovereign debt | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Total available-for-sale securities, at fair value | 40,162 | 12,997 |
US sovereign debt | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Total available-for-sale securities, at fair value | 7,809 | 2,530 |
Corporate equity | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Total available-for-sale securities, at fair value | 0 | 1 |
Up to 1 year | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Total available-for-sale securities, at fair value | 78,953 | 71,056 |
Up to 1 year | Corporate debt | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Total available-for-sale securities, at fair value | 77,006 | 69,364 |
Up to 1 year | Non-US sovereign debt | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Total available-for-sale securities, at fair value | 0 | 1,692 |
Up to 1 year | US sovereign debt | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Total available-for-sale securities, at fair value | 1,947 | 0 |
Up to 1 year | Corporate equity | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Total available-for-sale securities, at fair value | 0 | |
1-5 years | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Total available-for-sale securities, at fair value | 118,527 | 51,019 |
1-5 years | Corporate debt | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Total available-for-sale securities, at fair value | 82,579 | 50,155 |
1-5 years | Non-US sovereign debt | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Total available-for-sale securities, at fair value | 33,143 | 864 |
1-5 years | US sovereign debt | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Total available-for-sale securities, at fair value | 2,805 | 0 |
1-5 years | Corporate equity | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Total available-for-sale securities, at fair value | 0 | |
5-10 years | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Total available-for-sale securities, at fair value | 34,031 | 27,370 |
5-10 years | Corporate debt | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Total available-for-sale securities, at fair value | 31,486 | 26,284 |
5-10 years | Non-US sovereign debt | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Total available-for-sale securities, at fair value | 820 | 1,086 |
5-10 years | US sovereign debt | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Total available-for-sale securities, at fair value | 1,725 | 0 |
5-10 years | Corporate equity | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Total available-for-sale securities, at fair value | 0 | |
More than 10 years | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Total available-for-sale securities, at fair value | 7,542 | 11,919 |
More than 10 years | Corporate debt | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Total available-for-sale securities, at fair value | 11 | 33 |
More than 10 years | Non-US sovereign debt | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Total available-for-sale securities, at fair value | 6,199 | 9,355 |
More than 10 years | US sovereign debt | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Total available-for-sale securities, at fair value | $ 1,332 | 2,530 |
More than 10 years | Corporate equity | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Total available-for-sale securities, at fair value | $ 1 |
TRADING AND AVAILABLE-FOR-SAL_5
TRADING AND AVAILABLE-FOR-SALE SECURITIES AT FAIR VALUE - Narrative (Details) $ in Thousands | 12 Months Ended | |
Mar. 31, 2023 USD ($) issuer | Mar. 31, 2022 USD ($) issuer | |
Defined Benefit Plan Disclosure [Line Items] | ||
Number of issuers | issuer | 2 | 2 |
Kazakhstan Sustainability Fund JSC | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of trading securities (in percent) | 10% | 10% |
Debt Securities | $ 834,917 | $ 488,560 |
Ministry of Finance of the Republic of Kazakhstan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of trading securities (in percent) | 10% | 10% |
Debt Securities | $ 1,015,161 | $ 357,343 |
TRADING AND AVAILABLE-FOR-SAL_6
TRADING AND AVAILABLE-FOR-SALE SECURITIES AT FAIR VALUE - Schedule of present securities assets at fair value (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total trading securities | $ 2,412,556 | $ 1,158,377 |
Total available-for-sale securities, at fair value | 239,053 | 161,364 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total trading securities | 2,186,786 | 1,148,959 |
Total available-for-sale securities, at fair value | 176,937 | 161,363 |
Significant Other Observable Inputs (Level 2) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total trading securities | 220,632 | 276 |
Total available-for-sale securities, at fair value | 62,116 | 0 |
Significant unobservable units (Level 3) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total trading securities | 5,138 | 9,142 |
Total available-for-sale securities, at fair value | $ 0 | $ 1 |
Corporate debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average interest rate (in percent) | 15.62% | 9.09% |
Total trading securities | $ 1,269,879 | $ 712,134 |
Total available-for-sale securities, at fair value | $ 191,082 | $ 145,836 |
Corporate debt | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total available-for-sale securities, Weighted average interest rate (in percent) | 15.78% | 11.09% |
Total available-for-sale securities, at fair value | $ 191,082 | $ 145,836 |
Corporate debt | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total trading securities | 1,106,584 | 711,539 |
Corporate debt | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total available-for-sale securities, at fair value | 129,504 | 145,836 |
Corporate debt | Significant Other Observable Inputs (Level 2) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total trading securities | 162,895 | 0 |
Corporate debt | Significant Other Observable Inputs (Level 2) | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total available-for-sale securities, at fair value | 61,578 | 0 |
Corporate debt | Significant unobservable units (Level 3) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total trading securities | 400 | 595 |
Corporate debt | Significant unobservable units (Level 3) | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total available-for-sale securities, at fair value | $ 0 | $ 0 |
Non-US sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average interest rate (in percent) | 12.04% | 13.15% |
Total trading securities | $ 1,029,857 | $ 360,570 |
Total available-for-sale securities, at fair value | $ 40,162 | $ 12,997 |
Non-US sovereign debt | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total available-for-sale securities, Weighted average interest rate (in percent) | 13.64% | 5.51% |
Total available-for-sale securities, at fair value | $ 40,162 | $ 12,997 |
Non-US sovereign debt | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total trading securities | 971,762 | 352,274 |
Non-US sovereign debt | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total available-for-sale securities, at fair value | 39,624 | 12,997 |
Non-US sovereign debt | Significant Other Observable Inputs (Level 2) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total trading securities | 54,319 | 0 |
Non-US sovereign debt | Significant Other Observable Inputs (Level 2) | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total available-for-sale securities, at fair value | 538 | 0 |
Non-US sovereign debt | Significant unobservable units (Level 3) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total trading securities | 3,776 | 8,296 |
Non-US sovereign debt | Significant unobservable units (Level 3) | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total available-for-sale securities, at fair value | $ 0 | $ 0 |
Corporate equity | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average interest rate (in percent) | 0% | 0% |
Total trading securities | $ 65,741 | $ 72,354 |
Total available-for-sale securities, at fair value | 0 | $ 1 |
Corporate equity | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total available-for-sale securities, Weighted average interest rate (in percent) | 0% | |
Total available-for-sale securities, at fair value | $ 1 | |
Corporate equity | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total trading securities | 62,971 | 71,827 |
Corporate equity | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total available-for-sale securities, at fair value | 0 | |
Corporate equity | Significant Other Observable Inputs (Level 2) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total trading securities | 1,808 | 276 |
Corporate equity | Significant Other Observable Inputs (Level 2) | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total available-for-sale securities, at fair value | 0 | |
Corporate equity | Significant unobservable units (Level 3) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total trading securities | $ 962 | 251 |
Corporate equity | Significant unobservable units (Level 3) | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total available-for-sale securities, at fair value | $ 1 | |
US sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average interest rate (in percent) | 4.22% | 2.35% |
Total trading securities | $ 45,022 | $ 10,435 |
Total available-for-sale securities, at fair value | $ 7,809 | $ 2,530 |
US sovereign debt | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total available-for-sale securities, Weighted average interest rate (in percent) | 4.24% | 2.17% |
Total available-for-sale securities, at fair value | $ 7,809 | $ 2,530 |
US sovereign debt | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total trading securities | 45,022 | 10,435 |
US sovereign debt | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total available-for-sale securities, at fair value | 7,809 | 2,530 |
US sovereign debt | Significant Other Observable Inputs (Level 2) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total trading securities | 0 | 0 |
US sovereign debt | Significant Other Observable Inputs (Level 2) | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total available-for-sale securities, at fair value | 0 | 0 |
US sovereign debt | Significant unobservable units (Level 3) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total trading securities | 0 | 0 |
US sovereign debt | Significant unobservable units (Level 3) | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total available-for-sale securities, at fair value | $ 0 | $ 0 |
Exchange traded notes | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average interest rate (in percent) | 0% | 0% |
Total trading securities | $ 2,057 | $ 2,884 |
Exchange traded notes | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total trading securities | 447 | 2,884 |
Exchange traded notes | Significant Other Observable Inputs (Level 2) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total trading securities | 1,610 | 0 |
Exchange traded notes | Significant unobservable units (Level 3) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total trading securities | $ 0 | $ 0 |
TRADING AND AVAILABLE-FOR-SAL_7
TRADING AND AVAILABLE-FOR-SALE SECURITIES AT FAIR VALUE - Schedule of valuation techniques and significant level 3 inputs used in the valuation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value | $ 5,138 | $ 9,142 |
Corporate equity | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value | $ 961 | $ 251 |
Fair value input (in percent) | 58.80% | 20% |
Estimated number of years | 9 years | 9 years |
Corporate debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value | $ 399 | $ 595 |
Fair value input (in percent) | 74% | 45% |
Estimated number of years | 3 months | 3 months |
Non-US sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value | $ 3,778 | $ 7,524 |
Fair value input (in percent) | 48.80% | 69% |
Estimated number of years | 11 years | 11 years |
Non-US sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value | $ 772 | |
Fair value input (in percent) | 13.90% | |
Estimated number of years | 1 year |
TRADING AND AVAILABLE-FOR-SAL_8
TRADING AND AVAILABLE-FOR-SALE SECURITIES AT FAIR VALUE - Schedule of reconciliation of the beginning and ending balance for investments that use Level 3 inputs (Details) - Trading securities - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Investments beginning | $ 9,142 | $ 19,033 |
Reclassification to level 3 | 682 | |
Reclassification to level 1 | (18,371) | |
Reclassification to level 2 | (1,339) | |
Sale of investments that use Level 3 inputs | (5,213) | |
Purchase of investments that use Level 3 inputs | 2,604 | 10,812 |
Revaluation of investments that use Level 3 inputs | (56) | (3,014) |
Investments ending | $ 5,138 | $ 9,142 |
TRADING AND AVAILABLE-FOR-SAL_9
TRADING AND AVAILABLE-FOR-SALE SECURITIES AT FAIR VALUE - Schedule of amortized cost, unrealized gains and losses accumulated in other comprehensive income, and fair value of available-for-sale securities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Assets measured at amortized cost | $ 243,014 | $ 162,808 |
Recognized impairment loss in Income Statement | (402) | |
Unrealized gain/(loss) accumulated in other comprehensive income/(loss) | (3,559) | (1,444) |
Assets measured at fair value | 239,053 | 161,364 |
Corporate debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Assets measured at amortized cost | 192,167 | 146,111 |
Recognized impairment loss in Income Statement | (402) | |
Unrealized gain/(loss) accumulated in other comprehensive income/(loss) | (683) | (275) |
Assets measured at fair value | 191,082 | 145,836 |
Non-US sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Assets measured at amortized cost | 42,456 | 13,784 |
Recognized impairment loss in Income Statement | 0 | |
Unrealized gain/(loss) accumulated in other comprehensive income/(loss) | (2,294) | (787) |
Assets measured at fair value | 40,162 | 12,997 |
U.S. sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Assets measured at amortized cost | 8,391 | 2,912 |
Recognized impairment loss in Income Statement | 0 | |
Unrealized gain/(loss) accumulated in other comprehensive income/(loss) | (582) | (382) |
Assets measured at fair value | $ 7,809 | 2,530 |
Corporate equity | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Assets measured at amortized cost | 1 | |
Unrealized gain/(loss) accumulated in other comprehensive income/(loss) | 0 | |
Assets measured at fair value | $ 1 |
MARGIN LENDING, BROKERAGE AND_3
MARGIN LENDING, BROKERAGE AND OTHER RECEIVABLES, NET - Schedule of brokerage and other receivables (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total margin lending, brokerage and other receivables, net | $ 376,329 | $ 147,659 |
Margin lending receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total margin lending, brokerage and other receivables, net | 361,684 | 138,983 |
Receivables from brokerage clients | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total margin lending, brokerage and other receivables, net | 7,302 | 4,386 |
Bank commissions receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total margin lending, brokerage and other receivables, net | 6,035 | 598 |
Receivable for underwriting and market-making services | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total margin lending, brokerage and other receivables, net | 2,317 | 296 |
Long-term installments receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total margin lending, brokerage and other receivables, net | 895 | 1,367 |
Dividends accrued | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total margin lending, brokerage and other receivables, net | 486 | 45 |
Receivable from sale of securities | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total margin lending, brokerage and other receivables, net | 613 | 884 |
Other receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total margin lending, brokerage and other receivables, net | 9,504 | 3,207 |
Allowance for receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total margin lending, brokerage and other receivables, net | $ 12,507 | $ 2,107 |
MARGIN LENDING, BROKERAGE AND_4
MARGIN LENDING, BROKERAGE AND OTHER RECEIVABLES, NET - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Securities loaned, fair value of collateral | $ 1,418,129 | $ 4,432,621 |
Related party transaction, brokerage and other receivable due from related party | $ 290,195 | $ 102,669 |
Brokerage and other receivables from Related party as a percentage of related party brokerage and other receivables | 78% | 73% |
Lending margin receivable | $ 37,100 | |
Total margin lending, brokerage and other receivables, net | 376,329 | $ 147,659 |
Allowance for receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total margin lending, brokerage and other receivables, net | $ 12,507 | $ 2,107 |
FFIN Brokerage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Margin lending receivables from related party as a percentage of related party margin lending receivables | 98% | 95% |
LOANS ISSUED (Details)
LOANS ISSUED (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Amount Outstanding | $ (826,258) | $ (92,446) |
Total loans issued (recasted) | 92,446 | |
Mortgage loan | ||
Financing Receivable, Past Due [Line Items] | ||
Amount Outstanding | $ (534,154) | $ (52,227) |
Average interest rate (in percent) | 9% | 11.86% |
Fair Value of Collateral | $ 534,154 | $ 52,134 |
Right of claims for purchased retail loans | ||
Financing Receivable, Past Due [Line Items] | ||
Amount Outstanding | $ (121,177) | $ (35,293) |
Average interest rate (in percent) | 15% | 15% |
Fair Value of Collateral | $ 121,177 | $ 35,293 |
Uncollateralized bank customer loans | ||
Financing Receivable, Past Due [Line Items] | ||
Amount Outstanding | $ (46,970) | $ (100) |
Average interest rate (in percent) | 25% | 10% |
Fair Value of Collateral | $ 0 | |
Collateralized Bank customer loans | ||
Financing Receivable, Past Due [Line Items] | ||
Amount Outstanding | $ (17,653) | |
Average interest rate (in percent) | 2% | |
Fair Value of Collateral | $ 17,636 | |
Car loans | ||
Financing Receivable, Past Due [Line Items] | ||
Amount Outstanding | $ (102,269) | |
Average interest rate (in percent) | 25% | |
Fair Value of Collateral | $ 102,247 | |
Subordinated loan | ||
Financing Receivable, Past Due [Line Items] | ||
Amount Outstanding | $ (5,039) | $ (5,033) |
Average interest rate (in percent) | 3% | 4.89% |
Fair Value of Collateral | $ 0 | $ 0 |
Subordinated loan | ||
Financing Receivable, Past Due [Line Items] | ||
Amount Outstanding | $ (1,256) | |
Average interest rate (in percent) | 7% | |
Fair Value of Collateral | $ 0 | |
Other | ||
Financing Receivable, Past Due [Line Items] | ||
Amount Outstanding | $ (300) | $ (123) |
Average interest rate (in percent) | 2% | 2.50% |
Fair Value of Collateral | $ 0 | $ 0 |
Loans issued to policyholders | ||
Financing Receivable, Past Due [Line Items] | ||
Amount Outstanding | $ (1,488) | $ (43) |
Average interest rate (in percent) | 15% | 12.02% |
Fair Value of Collateral | $ 1,752 | $ 284 |
Allowance for loans issued | ||
Financing Receivable, Past Due [Line Items] | ||
Amount Outstanding | $ (2,792) | $ (1,629) |
LOANS ISSUED - Narrative (Detai
LOANS ISSUED - Narrative (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Financing Receivable, Past Due [Line Items] | ||
Debt, weighted average interest rate, period term | 20 years | |
Liability arising from continuing involvement | $ 440,805,000 | $ 6,447,000 |
Amount Outstanding | $ 826,258,000 | 92,446,000 |
Bank customer loans | State mortgage program "7-20-25" | ||
Financing Receivable, Past Due [Line Items] | ||
Debt, weighted average interest rate, over 20 year term | 7% | |
Debt, weighted average interest rate, over 20 year term, transferred to program operator | 4% | |
Debt, weighted average interest rate, over 20 year term, transferred to program operator, retained | 3% | |
Amount Outstanding | $ 463,114 | 21,310 |
Right of claims for purchased retail loans | ||
Financing Receivable, Past Due [Line Items] | ||
Amount Outstanding | $ 121,177,000 | $ 35,293,000 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Net income before income tax | $ 235,938 | $ 363,693 | $ 151,805 |
Effective income tax rate (in percent) | (18.10%) | (10.60%) | (15.40%) |
Undistributed earnings of foreign subsidiaries | $ 467,456 | ||
Tax losses carryforward | $ 1,548 | $ 679 | |
US | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Income tax rates used for deferred tax assets and liabilities (in percent) | 21% | 21% | |
Russia | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Income tax rates used for deferred tax assets and liabilities (in percent) | 20% | 20% | |
Azerbaijan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Income tax rates used for deferred tax assets and liabilities (in percent) | 20% | 20% | |
Kyrgyzstan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Income tax rates used for deferred tax assets and liabilities (in percent) | 10% | 10% | |
Germany | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Income tax rates used for deferred tax assets and liabilities (in percent) | 31% | 31% | |
Cyprus | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Income tax rates used for deferred tax assets and liabilities (in percent) | 12.50% | 12.50% | |
Tax losses carryforward | $ 12,384 | $ 5,432 | |
Ukraine | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Income tax rates used for deferred tax assets and liabilities (in percent) | 18% | 18% | |
United Kingdom | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Income tax rates used for deferred tax assets and liabilities (in percent) | 25% | 25% | |
Armenia | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Income tax rates used for deferred tax assets and liabilities (in percent) | 18% | 18% | |
Uzbekistan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Income tax rates used for deferred tax assets and liabilities (in percent) | 15% | 15% |
INCOME TAXES - Schedule of defe
INCOME TAXES - Schedule of deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Deferred tax assets: | ||
Revaluation on trading securities | ||
Tax losses carryforward | 1,548 | 679 |
Accrued liabilities | 933 | 828 |
Provision for impairment losses | 2,079 | 0 |
Stock compensation expenses | 0 | 0 |
Deferred tax assets | 4,560 | 1,507 |
Deferred tax liabilities: | ||
Revaluation on trading securities | 29 | 210 |
Fixed and Intangible Assets | 2,457 | 0 |
Other liabilities | 326 | 388 |
Deferred tax liabilities | 2,812 | 598 |
Net deferred tax assets | 2,442 | 909 |
Net deferred tax liabilities | $ 694 | $ 0 |
INCOME TAXES - Schedule of fede
INCOME TAXES - Schedule of federal income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Income before income tax at 21% | $ 49,547 | $ 76,376 | $ 31,879 |
Global intangible low taxed income | 39,139 | 31,194 | 18,451 |
Permanent differences | 14,096 | (2,567) | (2,160) |
Subpart F Income | 4,732 | 0 | 0 |
Stock based compensation | 2,039 | 3,090 | 348 |
Provision for impairment losses | 0 | (13) | 113 |
Valuation allowance | 0 | (316) | (361) |
Foreign tax rate differential | (13,089) | (18,544) | (9,491) |
Foreign tax credit | (18,423) | (16,200) | (10,155) |
Nontaxable gains | (35,265) | (34,450) | (5,317) |
Income tax expense | $ 42,776 | $ 38,570 | $ 23,307 |
INCOME TAXES - Schedule of inco
INCOME TAXES - Schedule of income tax expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Current income tax charge - Federal | $ 22,387 | $ 15,184 | $ 7,771 |
Current income tax charge - Foreign | 21,406 | 27,381 | 14,040 |
Current income tax charge | 43,793 | 42,565 | 21,811 |
Deferred income tax charge - Federal | (2,606) | (2,191) | 1,752 |
Deferred income tax charge - Foreign | 1,589 | (1,804) | (256) |
Deferred income tax charge | (1,017) | (3,995) | 1,496 |
Income tax expense | $ 42,776 | $ 38,570 | $ 23,307 |
INCOME TAXES - Schedule of In_2
INCOME TAXES - Schedule of Income before Income tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Examination [Line Items] | |||
Net income before income tax | $ 235,938 | $ 363,693 | $ 151,805 |
United States | |||
Income Tax Examination [Line Items] | |||
Net income before income tax | (26,383) | (8,012) | 1,076 |
Foreign | |||
Income Tax Examination [Line Items] | |||
Net income before income tax | $ 262,321 | $ 371,705 | $ 150,729 |
FIXED ASSETS, NET - Schedule of
FIXED ASSETS, NET - Schedule of fixed assets (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Less: Accumulated depreciation | $ (9,320) | $ (5,236) |
Total fixed assets, net | 54,017 | 17,823 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 19,569 | 7,770 |
Office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 11,004 | 4,633 |
Processing and storage data centers | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 10,793 | 3,729 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 9,106 | 1,564 |
Furniture | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 6,633 | 2,759 |
Capital expenditures on leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 3,288 | 1,239 |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,516 | 643 |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,428 | $ 722 |
FIXED ASSETS, NET - Narrative (
FIXED ASSETS, NET - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 4,083 | $ 2,270 | $ 2,118 |
INTANGIBLE ASSETS, NET - Schedu
INTANGIBLE ASSETS, NET - Schedule of intangible assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Goodwill [Line Items] | |||
Gross Carrying Amount | $ 23,513 | $ 10,007 | |
Accumulated Amortization | 5,898 | 4,844 | |
Total intangible assets, net | 17,615 | 5,163 | |
For year ended 31.03.2023 | 1,054 | 1,146 | $ 570 |
For year ended 31.03.2024 | 2,115 | ||
For year ended 31.03.2025 | 1,809 | ||
For year ended 31.03.2026 | 1,555 | ||
For year ended 31.03.2027 | 1,194 | ||
For year ended 31.03.2028 | 1,118 | ||
Client base | |||
Goodwill [Line Items] | |||
Gross Carrying Amount | 5,264 | 1,843 | |
Accumulated Amortization | 1,707 | 1,504 | |
Software | |||
Goodwill [Line Items] | |||
Gross Carrying Amount | 6,140 | 1,898 | |
Accumulated Amortization | 992 | 572 | |
Value added business | |||
Goodwill [Line Items] | |||
Gross Carrying Amount | 5,058 | 3,643 | |
Accumulated Amortization | 2,355 | 2,257 | |
Licenses | |||
Goodwill [Line Items] | |||
Gross Carrying Amount | 4,977 | 2,574 | |
Accumulated Amortization | 489 | 509 | |
Other intangible assets | |||
Goodwill [Line Items] | |||
Gross Carrying Amount | 2,074 | 49 | |
Accumulated Amortization | $ 355 | $ 2 |
INTANGIBLE ASSETS, NET - Narrat
INTANGIBLE ASSETS, NET - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 1,054 | $ 1,146 | $ 570 |
OTHER ASSETS, NET (Details)
OTHER ASSETS, NET (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total other assets | $ 73,463 | $ 29,641 |
Allowance for other assets | 0 | 0 |
Other assets, net (including $16,089 and $— from related party) | 73,463 | 29,641 |
Prepayments on future acquisitions | ||
Property, Plant and Equipment [Line Items] | ||
Total other assets | 23,428 | 4,069 |
Current income tax asset | ||
Property, Plant and Equipment [Line Items] | ||
Total other assets | 1,529 | 2,497 |
Advances paid | ||
Property, Plant and Equipment [Line Items] | ||
Total other assets | 12,553 | 4,340 |
Deferred acquisition costs | ||
Property, Plant and Equipment [Line Items] | ||
Total other assets | 17,495 | 9,617 |
Taxes other than income taxes | ||
Property, Plant and Equipment [Line Items] | ||
Total other assets | 5,908 | 1,697 |
Investments in joint ventures and associated companies | ||
Property, Plant and Equipment [Line Items] | ||
Total other assets | 4,000 | 0 |
Rent guarantee deposit | ||
Property, Plant and Equipment [Line Items] | ||
Total other assets | 363 | 759 |
Deferred tax assets | ||
Property, Plant and Equipment [Line Items] | ||
Total other assets | 2,442 | 909 |
Due from financial institutions | ||
Property, Plant and Equipment [Line Items] | ||
Total other assets | 0 | 4,763 |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Total other assets | $ 5,745 | $ 990 |
SECURITIES REPURCHASE AGREEME_3
SECURITIES REPURCHASE AGREEMENT OBLIGATIONS - Schedule of trading securities including collateralized securities subject to repurchase agreements (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Remaining contractual maturity: up to 30 days | $ 1,456,776 | $ 840,082 |
Remaining contractual maturity: 30 - 90 days | 60,640 | 142 |
Remaining contractual maturity: Over 90 days | 0 | 0 |
Total Contractual Maturity | $ 1,517,416 | $ 840,224 |
Corporate debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average interest rate (in percent) | 16.07% | 11.96% |
Remaining contractual maturity: up to 30 days | $ 597,559 | $ 609,405 |
Remaining contractual maturity: 30 - 90 days | 5,375 | 142 |
Remaining contractual maturity: Over 90 days | 0 | 0 |
Total Contractual Maturity | $ 602,934 | $ 609,547 |
Non-US sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average interest rate (in percent) | 15.98% | 10.85% |
Remaining contractual maturity: up to 30 days | $ 826,196 | $ 222,893 |
Remaining contractual maturity: 30 - 90 days | 55,265 | 0 |
Remaining contractual maturity: Over 90 days | 0 | 0 |
Total Contractual Maturity | $ 881,461 | $ 222,893 |
US sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average interest rate (in percent) | 1.52% | 0.77% |
Remaining contractual maturity: up to 30 days | $ 17,637 | $ 7,396 |
Remaining contractual maturity: 30 - 90 days | 0 | 0 |
Remaining contractual maturity: Over 90 days | 0 | 0 |
Total Contractual Maturity | $ 17,637 | $ 7,396 |
Corporate equity | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average interest rate (in percent) | 12.24% | 14% |
Remaining contractual maturity: up to 30 days | $ 15,384 | $ 388 |
Remaining contractual maturity: 30 - 90 days | 0 | 0 |
Remaining contractual maturity: Over 90 days | 0 | 0 |
Total Contractual Maturity | $ 15,384 | $ 388 |
SECURITIES REPURCHASE AGREEME_4
SECURITIES REPURCHASE AGREEMENT OBLIGATIONS - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Securities Sold under Agreements to Repurchase [Abstract] | ||
Fair value of collateral pledged under repurchase agreements | $ 1,519,926 | $ 834,751 |
CUSTOMER LIABILITIES - Schedule
CUSTOMER LIABILITIES - Schedule of customer liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Interest-bearing deposits: | ||
Term deposits | $ 832,751 | $ 164,837 |
Non-interest-bearing deposits: | ||
Total non-interest-bearing deposits | 1,092,496 | 600,791 |
Total Interest-bearing deposits | 1,925,247 | 765,628 |
Term deposits | ||
Interest-bearing deposits: | ||
Term deposits | $ 832,751 | $ 164,837 |
Minimum | Term deposits | ||
Interest-bearing deposits: | ||
Interest rate | 0.10% | 0.01% |
Maximum | Term deposits | ||
Interest-bearing deposits: | ||
Interest rate | 16.90% | 14.30% |
Current customer accounts | ||
Non-interest-bearing deposits: | ||
Total non-interest-bearing deposits | $ 458,954 | $ 81,447 |
Brokerage customers | ||
Non-interest-bearing deposits: | ||
Total non-interest-bearing deposits | $ 633,542 | $ 519,344 |
CUSTOMER LIABILITIES - Narrativ
CUSTOMER LIABILITIES - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Revenue, Major Customer [Line Items] | ||
Customer liabilities (including $130,210 and $325,904 from related parties) | $ 1,925,247 | $ 765,628 |
JSC Kazakhstan Deposit Insurance Fund | ||
Revenue, Major Customer [Line Items] | ||
Customer liabilities (including $130,210 and $325,904 from related parties) | 44 | |
Insured bank deposits | $ 539,411 | $ 51,818 |
MARGIN LENDING AND TRADE PAYA_3
MARGIN LENDING AND TRADE PAYABLES - Schedule of Trade Payables (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Regulatory Liabilities [Line Items] | ||
Total margin lending and trades payables | $ 122,900 | $ 45,083 |
Margin lending payable | ||
Regulatory Liabilities [Line Items] | ||
Total margin lending and trades payables | 117,144 | 39,250 |
Payables to suppliers of goods and services | ||
Regulatory Liabilities [Line Items] | ||
Total margin lending and trades payables | 2,965 | 4,463 |
Trade payable for securities purchased | ||
Regulatory Liabilities [Line Items] | ||
Total margin lending and trades payables | 482 | 462 |
Other | ||
Regulatory Liabilities [Line Items] | ||
Total margin lending and trades payables | $ 2,309 | $ 908 |
MARGIN LENDING AND TRADE PAYA_4
MARGIN LENDING AND TRADE PAYABLES - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Related Party Transaction [Line Items] | ||
Margin loans, fair value of collateral | $ 164,861 | $ 403,543 |
Total margin lending, brokerage and other receivables, net | 376,329 | 147,659 |
Margin lending receivables | ||
Related Party Transaction [Line Items] | ||
Total margin lending, brokerage and other receivables, net | 361,684 | 138,983 |
Related party | ||
Related Party Transaction [Line Items] | ||
Margin lending payables | $ 3,239 | $ 38,889 |
Trade payables due (in percent) | 3% | 86% |
SECURITIES SOLD, NOT YET PURC_2
SECURITIES SOLD, NOT YET PURCHASED AT FAIR VALUE - Reconciliation of securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||
Securities sold, not yet purchased at fair value, beginning balance | $ 13,865 | $ 8,569 |
Short sales | 394 | 7,055 |
Repurchase | (15,650) | (346) |
Net gain on trading securities | 1,391 | (1,413) |
Securities sold, not yet purchased at fair value, ending balance | $ 0 | $ 13,865 |
DEBT SECURITIES ISSUED - Schedu
DEBT SECURITIES ISSUED - Schedule of outstanding debt securities of company (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Debt Instrument [Line Items] | ||
Debt securities issued | $ 60,025 | $ 34,390 |
Freedom SPC | ||
Debt Instrument [Line Items] | ||
Debt securities issued | 58,582 | 13,200 |
Freedom Holding Corp. | ||
Debt Instrument [Line Items] | ||
Debt securities issued | 0 | 20,500 |
Accrued interest | ||
Debt Instrument [Line Items] | ||
Debt securities issued | $ 1,443 | $ 690 |
DEBT SECURITIES ISSUED - Narrat
DEBT SECURITIES ISSUED - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 |
Debt Instrument [Line Items] | |||
Debt securities issued | $ 60,025 | $ 34,390 | |
FRHC Loan | |||
Debt Instrument [Line Items] | |||
Fixed annual coupon rates (in percent) | 5.50% | ||
Freedom SPC | |||
Debt Instrument [Line Items] | |||
Debt securities issued | $ 58,582 | $ 13,200 | |
Minimum | |||
Debt Instrument [Line Items] | |||
Fixed annual coupon rates (in percent) | 5.50% | ||
Maximum | |||
Debt Instrument [Line Items] | |||
Fixed annual coupon rates (in percent) | 7% | 7% |
INSURANCE CONTRACTS ASSETS AN_3
INSURANCE CONTRACTS ASSETS AND LIABILITIES FROM INSURANCE ACTIVITIES - Schedule of Insurance Receivables (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Effects of Reinsurance [Line Items] | ||
Less provision for impairment losses | $ (1,325) | $ (343) |
Insurance and reinsurance receivables: | 10,016 | 3,949 |
Unearned premium reserve, reinsurers’ share | 2,379 | 143 |
Reserves for claims and claims’ adjustment expenses, reinsurers’ share | 1,390 | 1,620 |
Insurance contract assets | 13,785 | 5,712 |
Amounts due from policyholders | ||
Effects of Reinsurance [Line Items] | ||
Insurance and reinsurance receivable, gross | 9,699 | 3,500 |
Claims receivable from reinsurance | ||
Effects of Reinsurance [Line Items] | ||
Insurance and reinsurance receivable, gross | 1,087 | 769 |
Amounts due from reinsured | ||
Effects of Reinsurance [Line Items] | ||
Insurance and reinsurance receivable, gross | $ 555 | $ 23 |
INSURANCE CONTRACTS ASSETS AN_4
INSURANCE CONTRACTS ASSETS AND LIABILITIES FROM INSURANCE ACTIVITIES - Schedule of Insurance Payables (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Effects of Reinsurance [Line Items] | ||
Insurance and reinsurance payables: | $ 6,275 | $ 3,068 |
Unearned premium reserve | 43,082 | 17,985 |
Reserves for claims and claims’ adjustment expenses | 133,145 | 101,034 |
Liabilities from insurance activity | 182,502 | 122,087 |
Amounts payable to reinsurers | ||
Effects of Reinsurance [Line Items] | ||
Insurance and reinsurance payables: | 2,002 | 402 |
Amounts payable to insured | ||
Effects of Reinsurance [Line Items] | ||
Insurance and reinsurance payables: | 1,807 | 685 |
Amounts payable to agents and brokers | ||
Effects of Reinsurance [Line Items] | ||
Insurance and reinsurance payables: | $ 2,466 | $ 1,981 |
OTHER LIABILITIES (Details)
OTHER LIABILITIES (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Risks and Uncertainties [Abstract] | ||
Salaries and other employee benefits | $ 4,970 | $ 2,120 |
Payable to suppliers | 3,623 | 3,308 |
Vacation reserve | 3,261 | 1,400 |
Taxes payable other than income tax | 2,782 | 567 |
Net deferred tax liabilities | 694 | 0 |
Deferred distribution payments | 156 | 8,534 |
Loans received | 1 | 3,538 |
Outstanding settlements operations | 0 | 292 |
Other | 7,385 | 1,718 |
Other liabilities | $ 22,872 | $ 21,477 |
FEE AND COMMISSION INCOME (Deta
FEE AND COMMISSION INCOME (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of Fee and Commission income [Line Items] | |||
Brokerage services | $ 286,732 | $ 318,698 | $ 204,244 |
Bank services | 17,964 | 6,727 | 523 |
Underwriting and market-making services | 11,948 | 5,963 | 6,451 |
Other fee and commission income | 10,571 | 3,823 | 4,790 |
Fee and commission income (including $199,235, $291,163 and $184,725 from related parties) | 327,215 | 335,211 | 216,008 |
Central Asia and Eastern Europe | |||
Schedule of Fee and Commission income [Line Items] | |||
Brokerage services | 68,224 | 7,908 | 8,803 |
Bank services | 17,964 | 6,727 | 523 |
Underwriting and market-making services | 11,538 | 5,963 | 6,451 |
Other fee and commission income | 9,256 | 3,054 | 4,790 |
Fee and commission income (including $199,235, $291,163 and $184,725 from related parties) | 106,982 | 23,652 | 20,567 |
Europe, excluding Eastern Europe | |||
Schedule of Fee and Commission income [Line Items] | |||
Brokerage services | 214,093 | 306,245 | 194,311 |
Bank services | 0 | 0 | 0 |
Underwriting and market-making services | 0 | 0 | 0 |
Other fee and commission income | 1,315 | 769 | 0 |
Fee and commission income (including $199,235, $291,163 and $184,725 from related parties) | 215,408 | 307,014 | 194,311 |
US | |||
Schedule of Fee and Commission income [Line Items] | |||
Brokerage services | 4,415 | 4,545 | 1,130 |
Bank services | 0 | 0 | 0 |
Underwriting and market-making services | 410 | 0 | 0 |
Other fee and commission income | 0 | 0 | 0 |
Fee and commission income (including $199,235, $291,163 and $184,725 from related parties) | 4,825 | 4,545 | 1,130 |
Middle East/ Caucasus | |||
Schedule of Fee and Commission income [Line Items] | |||
Fee and commission income (including $199,235, $291,163 and $184,725 from related parties) | $ 0 | $ 0 | $ 0 |
NET GAIN ON TRADING SECURITIE_2
NET GAIN ON TRADING SECURITIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |||
Net unrealized gain/(loss) recognized during the reporting period on trading securities still held at the reporting date | $ 107,310 | $ (50,987) | $ 8,672 |
Net (loss)/gain recognized during the period on trading securities sold during the period | (36,226) | 206,239 | 20,135 |
Net gain recognized during the period on trading securities | $ 71,084 | $ 155,252 | $ 28,807 |
NET GAIN ON TRADING SECURITIE_3
NET GAIN ON TRADING SECURITIES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Debt Securities, Available-for-Sale [Line Items] | |||
Equity securities FVNI portfolio shares SPBX | $ 478 | $ 18,408 | $ 11,259 |
Number of equity shares exchanged (in shares) | 7,500,000 | ||
Debt securities, trading, realized gain (loss) | $ 36,226 | (206,239) | (20,135) |
Debt Securities, Trading, Unrealized Gain (Loss) | (107,310) | 50,987 | (8,672) |
Net gain on trading securities | 71,084 | $ 155,252 | $ 28,807 |
SBPX Shares | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Debt securities, trading, realized gain (loss) | 73,384 | ||
Debt Securities, Trading, Unrealized Gain (Loss) | $ 50,785 |
NET INTEREST INCOME_ (EXPENSE_2
NET INTEREST INCOME/ (EXPENSE) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Interest income: | |||
Interest income on trading securities | $ 178,288 | $ 78,327 | $ 21,913 |
Interest income on margin lending | 34,558 | 14,164 | 3,163 |
Interest income on loans issued | 43,486 | 4,617 | 384 |
Interest income on available-for-sale securities | 27,003 | 22,437 | 11,238 |
Interest income on cash and cash equivalents and restricted cash | 9,836 | 1,658 | 1,630 |
Interest income from dividends | 1,524 | 406 | 146 |
Total interest income | 294,695 | 121,609 | 38,474 |
Interest expense: | 208,947 | 76,947 | 22,444 |
Interest expense on securities repurchase agreement obligations | 158,595 | 58,229 | 10,915 |
Interest expense on customer liabilities | 40,335 | 16,336 | 7,335 |
Interest expense on margin lending payable | 6,635 | 0 | 0 |
Interest expense on debt securities issued | 3,085 | 1,822 | 4,034 |
Interest expense on loans received | 290 | 539 | 151 |
Other interest expense | 7 | 21 | 9 |
Interest expense | 208,947 | 76,947 | 22,444 |
Interest Income (Expense), Net | $ 85,748 | $ 44,662 | $ 16,030 |
NET GAIN_(LOSS) ON FOREIGN EX_3
NET GAIN/(LOSS) ON FOREIGN EXCHANGE OPERATIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Research and Development [Abstract] | |||
Sales and purchases of foreign currency, dealing | $ 45,963 | $ (4,057) | $ 609 |
Translation of financial assets and financial liabilities | 6,191 | 7,848 | (52) |
Total net gain on foreign exchange operations | $ 52,154 | $ 3,791 | $ 557 |
NET (LOSS)_GAIN ON DERIVATIVE_2
NET (LOSS)/GAIN ON DERIVATIVES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Net realized (loss)/gain on derivatives | $ (64,838) | $ 946 | $ 86 |
Unrealized (gain)/loss on derivatives | 12 | 0 | 0 |
Total net (loss)/gain on derivatives | $ (64,826) | $ 946 | $ 86 |
NET (LOSS)_GAIN ON DERIVATIVE_3
NET (LOSS)/GAIN ON DERIVATIVES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative [Line Items] | |||
Gain (loss) on derivative | $ 64,826 | $ (946) | $ (86) |
Freedom Bank KZ | |||
Derivative [Line Items] | |||
Gain (loss) on derivative | $ 65,303 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
May 17, 2022 company | Jul. 31, 2021 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) company | Mar. 31, 2021 USD ($) | |
Fair Value, Separate Account Investment [Line Items] | |||||
Fee and commission income (including $199,235, $291,163 and $184,725 from related parties) | $ 327,215 | $ 335,211 | $ 216,008 | ||
Proportion of fee and commission income to related party commission income | 99% | 94% | 36% | ||
Interest income, related parties | $ 294,695 | $ 121,609 | $ 38,474 | ||
Margin lending, brokerage and other receivables, related parties | 376,329 | 147,659 | |||
Bank commission receivables form brokerage client from related parties | 626 | 244 | |||
Margin lending and trade payables, related parties | 122,900 | $ 45,083 | |||
Number of businesses acquired | company | 2 | 2 | |||
Prepayment on acquisitions | 22,462 | $ 0 | $ 0 | ||
Commission expenses | 130,210 | 325,904 | |||
Loans issued (including $121,177 and $35,293 from related party) | $ 826,258 | $ 92,446 | |||
Cash and cash equivalents due to Wisdompoint Capital LTD | 100% | 100% | |||
Ownership interest sold during the period (in percent) | 23.88% | ||||
Proceeds from issuance or sale of equity | $ 415 | ||||
Freedom UA | |||||
Fair Value, Separate Account Investment [Line Items] | |||||
Ownership percentage, controlling interest (in percent) | 9% | ||||
FFIN Brokerage | |||||
Fair Value, Separate Account Investment [Line Items] | |||||
Percentage of interest income, related party | 100% | 100% | 97% | ||
Margin lending receivables from related party as a percentage of related party margin lending receivables | 98% | 95% | |||
Other liabilities from related party as a percentage of related party other liabilities | 18% | 75% | |||
Restricted cash from related party as a percentage of related party restricted cash | 40% | 78% | |||
Wisdompoint Capital LTD | |||||
Fair Value, Separate Account Investment [Line Items] | |||||
Percentage of interest income, related party | 100% | 100% | |||
Other liabilities from related party as a percentage of related party other liabilities | 25% | 6% | |||
Restricted cash from related party as a percentage of related party restricted cash | 60% | 22% | |||
Freedom Life | |||||
Fair Value, Separate Account Investment [Line Items] | |||||
Customer liabilities on brokerage and bank accounts | $ 21,477 | ||||
Freedom Insurance | |||||
Fair Value, Separate Account Investment [Line Items] | |||||
Customer liabilities on brokerage and bank accounts | 21,477 | ||||
Related party | |||||
Fair Value, Separate Account Investment [Line Items] | |||||
Margin lending, brokerage and other receivables, related parties | $ 294,985 | 107,649 | |||
Margin lending and trade payables, related parties | 3,239 | 38,889 | |||
Loans issued (including $121,177 and $35,293 from related party) | 121,177 | 35,293 | |||
Cash and cash equivalents | $ 35,549 | $ 22,787 | |||
Fresh Start Trading | |||||
Fair Value, Separate Account Investment [Line Items] | |||||
Other liabilities from related party as a percentage of related party other liabilities | 36% | 17% | |||
Internet Tourism LLP and Aviata.LLP | |||||
Fair Value, Separate Account Investment [Line Items] | |||||
Prepayment on acquisitions | $ 16,089 | ||||
Brokerage accounts | |||||
Fair Value, Separate Account Investment [Line Items] | |||||
Restricted customer cash | $ 114,885 | $ 222,651 |
STOCKHOLDERS_ EQUITY (Details)
STOCKHOLDERS’ EQUITY (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||||
Mar. 10, 2023 shares | Oct. 20, 2022 shares | Oct. 11, 2022 shares | Oct. 06, 2022 shares | May 17, 2022 company | Mar. 30, 2022 individual shares | May 18, 2021 issuer individual shares | May 31, 2022 USD ($) company | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Restricted stock grants (in shares) | shares | 18,974 | 8,000 | 18,242 | 20,000 | 7,500 | 1,031,500 | |||||
Number of companies acquired | company | 2 | 2 | |||||||||
Acquisition of insurance companies | $ | $ 26,588 | ||||||||||
Capital contribution | $ | 677 | $ 24,417 | $ 1,667 | ||||||||
Number of individuals | 1 | 56 | |||||||||
Stock based compensation | $ | 11,038 | 15,746 | 1,147 | ||||||||
Freedom Life | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Business acquisition, percentage of voting interests acquired (in percentage) | 100% | ||||||||||
Freedom Insurance | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Business acquisition, percentage of voting interests acquired (in percentage) | 100% | ||||||||||
Additional paid in capital | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Acquisition of insurance companies | $ | $ 26,588 | 26,588 | |||||||||
Capital contribution | $ | 677 | 24,417 | 1,667 | ||||||||
Stock based compensation | $ | 11,038 | 15,745 | $ 1,147 | ||||||||
Additional paid in capital | Timur Turlov | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Capital contribution | $ | $ 677 | $ 24,417 | |||||||||
Executive officers | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of individuals | individual | 2 | ||||||||||
Share-based payment arrangement, tranche one | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Restricted stock grants (in shares) | shares | 4,000 | 3,000 | 200,942 | ||||||||
Vesting period (in years) | 1 year | ||||||||||
Share-based payment arrangement, tranche two | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Restricted stock grants (in shares) | shares | 4,000 | 1,500 | 211,658 | ||||||||
Vesting period (in years) | 2 years | ||||||||||
Share-based payment arrangement, tranche three | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Restricted stock grants (in shares) | shares | 4,000 | 1,500 | 206,300 | ||||||||
Vesting period (in years) | 4 years | ||||||||||
Share-based payment arrangement, tranche three | Minimum | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Vesting period (in years) | 3 years | ||||||||||
Share-based payment arrangement, tranche three | Maximum | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Vesting period (in years) | 5 years | ||||||||||
Share Based Payment Arrangement Tranche Four Member | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Restricted stock grants (in shares) | shares | 4,000 | ||||||||||
Share Based Payment Arrangement Tranche Five | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Restricted stock grants (in shares) | shares | 4,000 | ||||||||||
Share Based Compensation Award Tranche Four | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Restricted stock grants (in shares) | shares | 1,500 |
STOCK BASED COMPENSATIONS - Nar
STOCK BASED COMPENSATIONS - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||||
Mar. 10, 2023 | Oct. 20, 2022 | Oct. 11, 2022 | Oct. 06, 2022 | Mar. 30, 2022 | May 18, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted stock grants (in shares) | 18,974 | 8,000 | 18,242 | 20,000 | 7,500 | 1,031,500 | |||
Stock based compensation | $ 11,038 | $ 15,746 | $ 1,147 | ||||||
Unrecognized compensation cost | $ 8,133 | ||||||||
Weighted average period (in years) | 3.07 years | ||||||||
Restricted stock grants | $ 2,880 | 0 | |||||||
Share-based compensation arrangement by award, percentage | 20% | ||||||||
Additional paid in capital | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock based compensation | $ 11,038 | $ 15,745 | $ 1,147 | ||||||
Restricted stock grants | $ 8,158 | ||||||||
Share-based payment arrangement, tranche one | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted stock grants (in shares) | 4,000 | 3,000 | 200,942 | ||||||
Vesting period (in years) | 1 year | ||||||||
Share-based payment arrangement, tranche two | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted stock grants (in shares) | 4,000 | 1,500 | 211,658 | ||||||
Vesting period (in years) | 2 years |
STOCK BASED COMPENSATIONS - Sch
STOCK BASED COMPENSATIONS - Schedule of fair value of such stock options using the Monte Carlo and Black-Scholes option valuation (Details) - Monte Carlo valuation model | 12 Months Ended |
Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Term (years) | 3 years 7 months 13 days |
Volatility (in percent) | 35.10% |
Risk-free rate (in percent) | 4.18% |
STOCK BASED COMPENSATIONS - S_2
STOCK BASED COMPENSATIONS - Schedule of the activity of the company's restricted stock outstanding (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Shares | ||
Restricted stock outstanding, beginning balance (in shares) | 1,049,500 | |
Granted (in shares) | 65,216 | |
Vested (in shares) | (274,158) | |
Forfeited/cancelled/expired (in shares) | (373,500) | |
Restricted stock outstanding, ending balance (in shares) | 467,058 | |
Weighted Average Fair Value | ||
Weighted average fair value, beginning balance | $ 40,303 | |
Granted | $ 3,506 | |
Vested | (11,484) | |
Forfeited/cancelled/expired | (14,290) | |
Weighted average fair value, ending balance | $ 18,035 |
LEASES - Disclosure of operatin
LEASES - Disclosure of operating lease assets and liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Assets and Liabilities, Lessee [Abstract] | ||
Right-of-use asset | $ 30,345 | $ 7,431 |
Lease liability | $ 30,320 | $ 7,504 |
LEASES - Schedule of lease obli
LEASES - Schedule of lease obligations (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Operating Leases, Future Minimum Payments Receivable [Abstract] | ||
2024 | $ 9,413 | |
2025 | 7,971 | |
2026 | 7,543 | |
2027 | 6,629 | |
2028 | 4,766 | |
Thereafter | 4,199 | |
Total payments | 40,521 | |
Less: amounts representing interest | (10,201) | |
Lease liability | $ 30,320 | $ 7,504 |
Weighted average remaining lease term (in months) | 21 months | |
Weighted average discount rate (in percent) | 13% |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | |||
Short term operating lease | $ 457 | ||
Rent expense for office space | $ 2,038 | $ 1,026 | $ 624 |
ACQUISITIONS OF SUBSIDIARIES -
ACQUISITIONS OF SUBSIDIARIES - Narrative (Details) $ in Thousands | 1 Months Ended | |||||||
May 17, 2022 USD ($) company | May 31, 2022 company | Mar. 02, 2023 USD ($) | Feb. 10, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 01, 2022 USD ($) | Aug. 22, 2018 USD ($) | Feb. 28, 2018 USD ($) | |
Business Acquisition [Line Items] | ||||||||
Number of companies acquired | company | 2 | 2 | ||||||
Freedom Insurance | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | $ 13,977 | $ 4,288 | ||||||
Net assets acquired | 4,101 | $ 4,101 | ||||||
Business acquisition, percentage of voting interests acquired (in percentage) | 100% | |||||||
Freedom Life | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | $ 12,611 | |||||||
Net assets acquired | $ 12,076 | |||||||
Business acquisition, percentage of voting interests acquired (in percentage) | 100% | |||||||
London Almaty | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | $ 16,343 | |||||||
Net assets acquired | $ 15,858 | |||||||
Business acquisition, percentage of voting interests acquired (in percentage) | 100% | |||||||
Ticketon | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | $ 3,004 | |||||||
Net assets acquired | $ 1,233 | |||||||
Business acquisition, percentage of voting interests acquired (in percentage) | 100% | |||||||
Paybox | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | $ 11,659 | |||||||
Net assets acquired | $ 11,659 | $ 11,659 | ||||||
L.D. Micro | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | $ 8,300 | |||||||
Net assets acquired | $ 2,526 |
ACQUISITIONS OF SUBSIDIARIES _2
ACQUISITIONS OF SUBSIDIARIES - Schedule of purchase price of acquisition (Details) - USD ($) $ in Thousands | Feb. 28, 2018 | Mar. 31, 2023 | Mar. 02, 2023 | Feb. 10, 2023 | Sep. 30, 2022 | Sep. 01, 2022 | May 17, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Aug. 22, 2018 |
LIABILITIES | ||||||||||
Goodwill, net of impairment | $ 14,192 | $ 5,898 | $ 7,697 | |||||||
Freedom Life | ||||||||||
ASSETS | ||||||||||
Cash and cash equivalents | $ 3,494 | |||||||||
Due from banks | 2,514 | |||||||||
Loans issued | 2 | |||||||||
Assets from insurance activity | 3,729 | |||||||||
Deferred acquisition costs | 542 | |||||||||
Available-for-sale securities, at fair value | 15,842 | |||||||||
Fixed assets | 171 | |||||||||
Intangible assets | 5,823 | |||||||||
Deferred tax assets | 141 | |||||||||
Other assets | 1,671 | |||||||||
TOTAL ASSETS | 33,929 | |||||||||
LIABILITIES | ||||||||||
Deferred income tax liabilities | 47 | |||||||||
Liabilities from insurance activity | 21,667 | |||||||||
Other liabilities | 139 | |||||||||
TOTAL LIABILITIES | 21,853 | |||||||||
Net assets acquired | 12,076 | |||||||||
Goodwill, net of impairment | 526 | |||||||||
Total purchase price | 7,009 | |||||||||
Fair value of non-controlling interest at acquisition | 5,593 | |||||||||
Total purchase price | $ 12,611 | |||||||||
Freedom Insurance | ||||||||||
ASSETS | ||||||||||
Cash and cash equivalents | $ 1,224 | |||||||||
Due from banks | 1,041 | |||||||||
Assets from insurance activity | 45 | |||||||||
Current income tax asset | 5 | |||||||||
Available-for-sale securities, at fair value | 1,846 | |||||||||
Fixed assets | 2 | |||||||||
Intangible assets | 207 | |||||||||
Deferred tax assets | 2 | |||||||||
Other assets | 17 | |||||||||
TOTAL ASSETS | 4,389 | |||||||||
LIABILITIES | ||||||||||
Liabilities from insurance activity | 74 | |||||||||
Other liabilities | 214 | |||||||||
TOTAL LIABILITIES | $ 288 | |||||||||
Net assets acquired | 4,101 | 4,101 | ||||||||
Goodwill, net of impairment | 187 | |||||||||
Total purchase price | $ 13,977 | $ 4,288 | ||||||||
London Almaty | ||||||||||
ASSETS | ||||||||||
Cash and cash equivalents | $ 8,077 | |||||||||
Due from banks | 2,176 | |||||||||
Trading securities | 6,178 | |||||||||
Value of business acquired | 1,677 | |||||||||
Assets from insurance activity | 3,401 | |||||||||
Fixed assets | 806 | |||||||||
Intangible assets | 127 | |||||||||
Other assets | 1,505 | |||||||||
TOTAL ASSETS | 23,947 | |||||||||
LIABILITIES | ||||||||||
Liabilities from insurance activity | 1,429 | |||||||||
Insurance reserves | 6,380 | |||||||||
Other liabilities | 280 | |||||||||
TOTAL LIABILITIES | 8,089 | |||||||||
Net assets acquired | 15,858 | |||||||||
Goodwill, net of impairment | 485 | |||||||||
Total purchase price | $ 16,343 | |||||||||
Ticketon | ||||||||||
ASSETS | ||||||||||
Cash and cash equivalents | $ 3,079 | |||||||||
Brokerage and other receivables | 175 | |||||||||
Fixed assets | 47 | |||||||||
Intangible assets | 1,424 | |||||||||
Right-of-use asset | 63 | |||||||||
Other assets | 627 | |||||||||
TOTAL ASSETS | 5,415 | |||||||||
LIABILITIES | ||||||||||
Deferred income tax liabilities | 36 | |||||||||
Lease liability | 79 | |||||||||
Other liabilities | 4,067 | |||||||||
TOTAL LIABILITIES | 4,182 | |||||||||
Net assets acquired | 1,233 | |||||||||
Goodwill, net of impairment | 1,771 | |||||||||
Total purchase price | 3,004 | |||||||||
Paybox | ||||||||||
ASSETS | ||||||||||
Cash and cash equivalents | 5,429 | |||||||||
Trading securities | 3,838 | |||||||||
Brokerage and other receivables | 1,726 | |||||||||
Fixed assets | 1,080 | |||||||||
Intangible assets | 3,288 | |||||||||
Right-of-use asset | 341 | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Goodwill | 932 | |||||||||
Other assets | 454 | |||||||||
TOTAL ASSETS | 17,088 | |||||||||
LIABILITIES | ||||||||||
Deferred income tax liabilities | 3,037 | |||||||||
Business combination, recognized identifiable assets acquired and liabilities assumed, current liabilities, accounts payable | 799 | |||||||||
Lease liability | 993 | |||||||||
Other liabilities | 600 | |||||||||
TOTAL LIABILITIES | 5,429 | |||||||||
Net assets acquired | $ 11,659 | 11,659 | ||||||||
Goodwill, net of impairment | 0 | |||||||||
Total purchase price | $ 11,659 | |||||||||
L.D. Micro | ||||||||||
ASSETS | ||||||||||
Intangible assets | $ 2,540 | |||||||||
TOTAL ASSETS | 2,540 | |||||||||
LIABILITIES | ||||||||||
Business combination, recognized identifiable assets acquired and liabilities assumed, current liabilities, accounts payable | 14 | |||||||||
TOTAL LIABILITIES | 14 | |||||||||
Net assets acquired | 2,526 | |||||||||
Goodwill, net of impairment | 5,774 | |||||||||
Total purchase price | $ 8,300 |
ASSETS AND LIABILITIES HELD F_3
ASSETS AND LIABILITIES HELD FOR SALE - Narrative (Details) $ in Thousands, ₽ in Millions | 1 Months Ended | 11 Months Ended | 12 Months Ended | |||||
Oct. 17, 2022 USD ($) | Oct. 17, 2022 RUB (₽) | Jan. 31, 2023 USD ($) | Jan. 31, 2023 RUB (₽) | Feb. 28, 2023 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Foreign currency translation adjustments, net of tax effect | $ 5,195 | $ (20,622) | $ 2,787 | |||||
Freedom Finance JSC | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Percentage ownership after all transactions | 90.43% | 90.43% | ||||||
Freedom KZ | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Percentage ownership after all transactions | 100% | 100% | ||||||
Freedom RU | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Ownership interest prior to disposal | 100% | 100% | ||||||
Liabilities assumed | $ 88,500 | ₽ 6,600 | ||||||
Cash consideration | $ 140,000 | |||||||
Foreign currency translation adjustments, net of tax effect | $ 695 | ₽ 50 | $ 25,415 | |||||
Freedom RU | Discontinued operations | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Foreign currency translation adjustments, net of tax effect | $ 25,415 |
ASSETS AND LIABILITIES HELD F_4
ASSETS AND LIABILITIES HELD FOR SALE - Balance sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Feb. 28, 2023 | Mar. 31, 2022 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash and cash equivalents (including $35,549 and $22,787 from related parties) | $ 225,464 | ||
Restricted cash (including $114,885 and $222,651 from related parties) | 547,950 | ||
Trading securities | $ 2,412,556 | 1,158,377 | |
Margin lending, brokerage and other receivables, net (including $294,985 and $107,649 from related parties) | 376,329 | 147,659 | |
Loans issued | 826,258 | 92,446 | |
Other assets, net (including $16,089 and $— from related party) | 29,641 | ||
Total assets | 5,084,558 | 3,230,347 | |
Customer liabilities (including $130,210 and $325,904 from related parties) | 1,925,247 | 765,628 | |
Securities repurchase agreement obligations | 1,517,416 | 840,224 | |
Debt securities issued | 60,025 | 34,390 | |
Other liabilities | 21,477 | ||
Total liabilities | $ 4,313,822 | 2,683,739 | |
Discontinued operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash and cash equivalents (including $35,549 and $22,787 from related parties) | $ 593,953 | 428,480 | |
Restricted cash (including $114,885 and $222,651 from related parties) | 6,033 | 28,406 | |
Trading securities | 113,845 | 122,497 | |
Margin lending, brokerage and other receivables, net (including $294,985 and $107,649 from related parties) | 257,184 | 210,087 | |
Loans issued | 23,169 | 2,395 | |
Other assets, net (including $16,089 and $— from related party) | 32,398 | 33,554 | |
Total assets | 1,026,582 | 825,419 | |
Customer liabilities (including $130,210 and $325,904 from related parties) | 34,379 | 64,637 | |
Securities repurchase agreement obligations | 776,425 | 701,584 | |
Debt securities issued | 33,275 | 32,469 | |
Other liabilities | 16,385 | 13,788 | |
Total liabilities | $ 860,464 | $ 812,478 |
ASSETS AND LIABILITIES HELD F_5
ASSETS AND LIABILITIES HELD FOR SALE - Results of operations (Details) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | ||
Feb. 28, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Fee and commission income (including $199,235, $291,163 and $184,725 from related parties) | $ 327,215 | $ 335,211 | $ 216,008 | |
Net gain on trading securities | 71,084 | 155,252 | 28,807 | |
Total net (loss)/gain on derivatives | (64,826) | 946 | 86 | |
Interest income | 294,695 | 121,609 | 38,474 | |
Net gain on foreign exchange operations | 52,154 | 3,791 | 557 | |
TOTAL REVENUE, NET | 795,693 | 689,790 | 346,883 | |
Payroll and bonuses | 81,819 | 46,288 | 23,435 | |
Professional services | 17,006 | 12,682 | 4,430 | |
Stock compensation expense | 9,293 | 7,859 | 114 | |
Advertising expense | 14,059 | 11,916 | 6,971 | |
General and administrative expense | 59,971 | 23,533 | 11,118 | |
Interest expense: | 208,947 | 76,947 | 22,444 | |
Fee and commission expense | 29,119 | 2,502 | 1,590 | |
Other expense/(income), net | 4,014 | 2,034 | ||
TOTAL EXPENSE | 559,755 | 326,097 | 195,078 | |
NET INCOME BEFORE INCOME TAX | $ 235,938 | 363,693 | 151,805 | |
Discontinued operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Fee and commission income (including $199,235, $291,163 and $184,725 from related parties) | $ 77,109 | 69,742 | 52,780 | |
Net gain on trading securities | 22,045 | (78,674) | 20,275 | |
Total net (loss)/gain on derivatives | (44) | 0 | 39 | |
Interest income | 53,410 | 28,399 | 11,221 | |
Net gain on foreign exchange operations | 45,859 | (39,672) | 2,285 | |
TOTAL REVENUE, NET | 198,379 | (20,205) | 86,600 | |
Payroll and bonuses | 58,971 | 39,114 | 24,827 | |
Professional services | 620 | 467 | 239 | |
Stock compensation expense | 1,743 | 7,887 | 1,033 | |
Advertising expense | 14,945 | 7,085 | 1,881 | |
General and administrative expense | 26,031 | 18,476 | 14,001 | |
Interest expense: | 15,051 | 10,450 | 8,760 | |
Fee and commission expense | 10,467 | 7,988 | 7,122 | |
Provision for impairment losses | 1,566 | 779 | 45 | |
Other expense/(income), net | 825 | 4,748 | 174 | |
TOTAL EXPENSE | 130,219 | 96,994 | 58,082 | |
NET INCOME BEFORE INCOME TAX | $ 68,160 | $ (117,199) | $ 28,518 |
ASSETS AND LIABILITIES HELD F_6
ASSETS AND LIABILITIES HELD FOR SALE - Cash flow statement (Details) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | ||
Feb. 28, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net income/(loss) from discontinued operations | $ 12,424 | $ (104,195) | $ 21,783 | |
Depreciation and amortization | 5,138 | 3,416 | 2,688 | |
Noncash lease expense | 5,113 | 3,546 | 2,573 | |
Change in deferred taxes | (811) | (4,681) | 1,651 | |
Impairment expense | 0 | 2,300 | ||
Stock compensation expense | 9,293 | 7,859 | 114 | |
Unrealized (gain)/loss on trading securities | (107,310) | 50,987 | (8,672) | |
Net change in accrued interest | (56,478) | (15,940) | (14,947) | |
Allowances for receivables | 29,119 | 2,502 | 1,590 | |
Loss from divestiture of Russian subsidiaries | $ 51,533 | 0 | 0 | |
Trading securities | (1,019,191) | (608,622) | (466,591) | |
Other assets | (12,302) | (9,468) | (8,809) | |
Securities sold, not yet purchased – at fair value | (13,865) | 5,296 | 8,508 | |
Customer liabilities | 105,942 | (23,167) | 432,245 | |
Current income tax liability | (10,019) | 357 | 11,571 | |
Lease liabilities | (5,284) | (3,670) | (2,378) | |
Other liabilities | (730) | 10,484 | 1,813 | |
Net cash flows from/(used in) operating activities from discontinued operations | (24,095) | (112,500) | 347,017 | |
Purchase of fixed assets | (38,542) | (5,623) | (1,518) | |
Proceeds from sale of fixed assets | 0 | 0 | 15 | |
Cash, cash equivalents and restricted cash disposed from divestiture of Russia segment | (599,986) | 0 | 0 | |
Net cash flows used in investing activities from continuing operations | $ (833,506) | $ (141,940) | 8,578 | |
Impairment, Intangible Asset, Indefinite-Lived (Excluding Goodwill), Statement of Income or Comprehensive Income [Extensible Enumeration] | Provision for impairment losses | |||
Discontinued operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net income/(loss) from discontinued operations | 12,424 | $ (104,195) | 21,783 | |
Depreciation and amortization | 2,103 | 2,035 | 1,745 | |
Noncash lease expense | 5,772 | 4,932 | 3,826 | |
Change in deferred taxes | 8,203 | (12,634) | 1,170 | |
Stock compensation expense | 1,743 | 7,887 | 1,033 | |
Unrealized (gain)/loss on trading securities | (35,244) | 51,652 | (425) | |
Net change in accrued interest | (276) | 354 | (1,921) | |
Client base write-off | 0 | 3,125 | 0 | |
Allowances for receivables | 1,871 | 771 | 41 | |
Trading securities | 62,100 | (39,354) | (100,133) | |
Margin lending, brokerage and other receivables (including $(187,336), $(97,783), and $54,973 changes from related parties) | (23,325) | (218,852) | 28,845 | |
Other assets | (2,684) | (3,684) | (1,292) | |
Securities sold, not yet purchased – at fair value | 182 | 239 | 23 | |
Customer liabilities | (106,396) | 198,608 | 392,855 | |
Current income tax liability | 1 | (637) | 658 | |
Margin lending and trade payables | (15) | (370) | 230 | |
Lease liabilities | (5,763) | (5,166) | (3,854) | |
Other liabilities | 3,676 | 1,256 | 2,433 | |
Net cash flows from/(used in) operating activities from discontinued operations | (24,095) | (112,500) | 347,017 | |
Purchase of fixed assets | (4,421) | (3,438) | (2,137) | |
Proceeds from sale of fixed assets | 0 | 0 | 76 | |
Net change in loans issued to customers | (25,331) | (945) | (171) | |
Net cash flows used in investing activities from continuing operations | (629,738) | (4,383) | (2,232) | |
Discontinued operations | FFIN Bank | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Impairment expense | 0 | 723 | 0 | |
Discontinued operations | Zerich | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Impairment expense | $ 0 | $ 810 | $ 0 |
ASSETS AND LIABILITIES HELD F_7
ASSETS AND LIABILITIES HELD FOR SALE - Provision for Impairment (Details) $ in Thousands, ₽ in Millions | 1 Months Ended | 11 Months Ended | 12 Months Ended | ||||
Jan. 31, 2023 USD ($) | Jan. 31, 2023 RUB (₽) | Feb. 28, 2023 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 USD ($) | Jan. 31, 2023 RUB (₽) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Cash and cash equivalents (including $35,549 and $22,787 from related parties) | $ 225,464 | ||||||
Restricted cash (including $114,885 and $222,651 from related parties) | 547,950 | ||||||
Trading securities | $ 2,412,556 | 1,158,377 | |||||
Margin lending, brokerage and other receivables, net (including $294,985 and $107,649 from related parties) | 376,329 | 147,659 | |||||
Loans issued | 826,258 | 92,446 | |||||
Other assets, net (including $16,089 and $— from related party) | 29,641 | ||||||
Total assets | 5,084,558 | 3,230,347 | |||||
Customer liabilities (including $130,210 and $325,904 from related parties) | 1,925,247 | 765,628 | |||||
Securities repurchase agreement obligations | 1,517,416 | 840,224 | |||||
Debt securities issued | 60,025 | 34,390 | |||||
Other liabilities | 21,477 | ||||||
Total liabilities | 4,313,822 | 2,683,739 | |||||
Foreign currency translation adjustments, net of tax effect | $ 5,195 | (20,622) | $ 2,787 | ||||
Freedom RU | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Foreign currency translation adjustments, net of tax effect | $ 695 | ₽ 50 | $ 25,415 | ||||
Consideration received | $ 695 | ₽ 50 | |||||
Discontinued operations | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Cash and cash equivalents (including $35,549 and $22,787 from related parties) | 593,953 | 428,480 | |||||
Restricted cash (including $114,885 and $222,651 from related parties) | 6,033 | 28,406 | |||||
Trading securities | 113,845 | 122,497 | |||||
Margin lending, brokerage and other receivables, net (including $294,985 and $107,649 from related parties) | 257,184 | 210,087 | |||||
Loans issued | 23,169 | 2,395 | |||||
Other assets, net (including $16,089 and $— from related party) | 32,398 | 33,554 | |||||
Total assets | 1,026,582 | 825,419 | |||||
Customer liabilities (including $130,210 and $325,904 from related parties) | 34,379 | 64,637 | |||||
Securities repurchase agreement obligations | 776,425 | 701,584 | |||||
Debt securities issued | 33,275 | 32,469 | |||||
Other liabilities | 16,385 | 13,788 | |||||
Total liabilities | 860,464 | 812,478 | |||||
Provision for impairment losses | 1,566 | $ 779 | $ 45 | ||||
Discontinued operations | Freedom RU | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Cash and cash equivalents (including $35,549 and $22,787 from related parties) | 593,953 | ||||||
Restricted cash (including $114,885 and $222,651 from related parties) | 6,033 | ||||||
Trading securities | 113,845 | ||||||
Margin lending, brokerage and other receivables, net (including $294,985 and $107,649 from related parties) | 257,184 | ||||||
Loans issued | 23,169 | ||||||
Other assets, net (including $16,089 and $— from related party) | 32,398 | ||||||
Total assets | 1,026,582 | ||||||
Customer liabilities (including $130,210 and $325,904 from related parties) | 776,425 | ||||||
Securities repurchase agreement obligations | 33,275 | ||||||
Debt securities issued | 34,379 | ||||||
Other liabilities | 16,385 | ||||||
Total liabilities | 860,464 | ||||||
Net assets of discontinued operations | 166,118 | ||||||
Foreign currency translation adjustments, net of tax effect | 25,415 | ||||||
Adjusted net assets of discontinued operations | 191,533 | ||||||
Consideration received | 140,000 | ||||||
Provision for impairment losses | $ (51,533) |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
Unfunded commitments under lines of credit | $ 20,617 | $ 11,292 |
Bank guarantees | 7,001 | 6,384 |
Total | $ 27,618 | $ 17,676 |
SEGMENT REPORTING - Narrative (
SEGMENT REPORTING - Narrative (Details) - issuer | 1 Months Ended | 3 Months Ended |
Feb. 28, 2023 | Mar. 31, 2022 | |
Segment Reporting [Abstract] | ||
Number of operating segments | 4 | 5 |
SEGMENT REPORTING - Income Stat
SEGMENT REPORTING - Income Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Fee and commission income (including $199,235, $291,163 and $184,725 from related parties) | $ 327,215 | $ 335,211 | $ 216,008 |
Net gain on trading securities | 71,084 | 155,252 | 28,807 |
Interest income | 294,695 | 121,609 | 38,474 |
Insurance underwriting income | 115,371 | 72,981 | 62,951 |
Net gain on foreign exchange operations | 52,154 | 3,791 | 557 |
Total net (loss)/gain on derivatives | (64,826) | 946 | 86 |
TOTAL REVENUE, NET | 795,693 | 689,790 | 346,883 |
Fee and commission expense (including $2,988, $16,307 and $20,291 from related parties) | 65,660 | 85,909 | 70,537 |
Interest expense: | 208,947 | 76,947 | 22,444 |
Insurance claims incurred, net of reinsurance | 77,329 | 54,447 | 52,405 |
Payroll and bonuses | 81,819 | 46,288 | 23,435 |
Professional services | 17,006 | 12,682 | 4,430 |
Stock compensation expense | 9,293 | 7,859 | 114 |
Advertising expense | 14,059 | 11,916 | 6,971 |
General and administrative expense | 59,971 | 23,533 | 11,118 |
Provision for impairment losses | 29,119 | 2,502 | 1,590 |
Other (income)/expense, net | (3,448) | 4,014 | 2,034 |
TOTAL EXPENSE | 559,755 | 326,097 | 195,078 |
NET INCOME BEFORE INCOME TAX | 235,938 | 363,693 | 151,805 |
Income tax (expense)/benefit | (42,776) | (38,570) | (23,307) |
Net income from continuing operations | 193,162 | 325,123 | 128,498 |
Central Asia and Eastern Europe | |||
Segment Reporting Information [Line Items] | |||
Fee and commission income (including $199,235, $291,163 and $184,725 from related parties) | 106,982 | 23,652 | 20,567 |
Net gain on trading securities | 92,330 | 10,511 | 21,310 |
Interest income | 257,285 | 107,075 | 34,158 |
Insurance underwriting income | 115,371 | 72,981 | 62,951 |
Net gain on foreign exchange operations | 58,908 | 7,824 | 1,072 |
Total net (loss)/gain on derivatives | (64,826) | 946 | 86 |
TOTAL REVENUE, NET | 566,050 | 222,989 | 140,144 |
Fee and commission expense (including $2,988, $16,307 and $20,291 from related parties) | 34,939 | 20,610 | 7,412 |
Interest expense: | 172,326 | 66,392 | 16,608 |
Insurance claims incurred, net of reinsurance | 77,329 | 54,447 | 52,405 |
Payroll and bonuses | 56,774 | 32,562 | 16,878 |
Professional services | 1,594 | 1,773 | 685 |
Stock compensation expense | 6,582 | 4,768 | 0 |
Advertising expense | 7,847 | 4,684 | 3,566 |
General and administrative expense | 34,754 | 16,770 | 8,036 |
Provision for impairment losses | 12,522 | 2,441 | 1,086 |
Other (income)/expense, net | (4,485) | 3,138 | 2,052 |
TOTAL EXPENSE | 400,182 | 207,585 | 108,728 |
NET INCOME BEFORE INCOME TAX | 165,868 | 15,404 | 31,416 |
Income tax (expense)/benefit | (625) | 1,195 | 111 |
Net income from continuing operations | 165,243 | 16,599 | 31,527 |
Europe, excluding Eastern Europe | |||
Segment Reporting Information [Line Items] | |||
Fee and commission income (including $199,235, $291,163 and $184,725 from related parties) | 215,408 | 307,014 | 194,311 |
Net gain on trading securities | (22,693) | 142,195 | 8 |
Interest income | 26,090 | 14,051 | 3,634 |
Insurance underwriting income | 0 | 0 | 0 |
Net gain on foreign exchange operations | (2,287) | (5,598) | (300) |
Total net (loss)/gain on derivatives | 0 | 0 | 0 |
TOTAL REVENUE, NET | 216,518 | 457,662 | 197,653 |
Fee and commission expense (including $2,988, $16,307 and $20,291 from related parties) | 29,426 | 64,519 | 62,430 |
Interest expense: | 22,042 | 8,747 | 3,663 |
Insurance claims incurred, net of reinsurance | 0 | 0 | 0 |
Payroll and bonuses | 16,090 | 9,419 | 5,398 |
Professional services | 7,397 | 5,540 | 769 |
Stock compensation expense | 550 | 677 | 56 |
Advertising expense | 5,900 | 7,217 | 3,386 |
General and administrative expense | 20,496 | 4,894 | 2,518 |
Provision for impairment losses | 15,070 | 61 | 108 |
Other (income)/expense, net | 1,101 | 7 | (3) |
TOTAL EXPENSE | 118,072 | 101,081 | 78,325 |
NET INCOME BEFORE INCOME TAX | 98,446 | 356,581 | 119,328 |
Income tax (expense)/benefit | (21,813) | (26,786) | (13,859) |
Net income from continuing operations | 76,633 | 329,795 | 105,469 |
US | |||
Segment Reporting Information [Line Items] | |||
Fee and commission income (including $199,235, $291,163 and $184,725 from related parties) | 4,825 | 4,545 | 1,130 |
Net gain on trading securities | 1,447 | 2,546 | 7,489 |
Interest income | 11,289 | 483 | 682 |
Insurance underwriting income | 0 | 0 | 0 |
Net gain on foreign exchange operations | (4,479) | 1,565 | (215) |
Total net (loss)/gain on derivatives | 0 | 0 | 0 |
TOTAL REVENUE, NET | 13,082 | 9,139 | 9,086 |
Fee and commission expense (including $2,988, $16,307 and $20,291 from related parties) | 1,238 | 780 | 695 |
Interest expense: | 14,579 | 1,808 | 2,173 |
Insurance claims incurred, net of reinsurance | 0 | 0 | 0 |
Payroll and bonuses | 7,818 | 4,224 | 1,156 |
Professional services | 7,875 | 5,295 | 2,975 |
Stock compensation expense | 2,161 | 2,414 | 58 |
Advertising expense | 186 | 9 | 19 |
General and administrative expense | 4,095 | 1,749 | 553 |
Provision for impairment losses | 1,527 | 0 | 396 |
Other (income)/expense, net | (14) | 872 | (15) |
TOTAL EXPENSE | 39,465 | 17,151 | 8,010 |
NET INCOME BEFORE INCOME TAX | (26,383) | (8,012) | 1,076 |
Income tax (expense)/benefit | (20,278) | (12,988) | (9,559) |
Net income from continuing operations | (46,661) | (21,000) | (8,483) |
Middle East/ Caucasus | |||
Segment Reporting Information [Line Items] | |||
Fee and commission income (including $199,235, $291,163 and $184,725 from related parties) | 0 | 0 | 0 |
Net gain on trading securities | 0 | 0 | 0 |
Interest income | 31 | 0 | 0 |
Insurance underwriting income | 0 | 0 | 0 |
Net gain on foreign exchange operations | 12 | 0 | 0 |
Total net (loss)/gain on derivatives | 0 | 0 | 0 |
TOTAL REVENUE, NET | 43 | 0 | 0 |
Fee and commission expense (including $2,988, $16,307 and $20,291 from related parties) | 57 | 0 | 0 |
Interest expense: | 0 | 0 | 0 |
Insurance claims incurred, net of reinsurance | 0 | 0 | 0 |
Payroll and bonuses | 1,137 | 83 | 3 |
Professional services | 140 | 74 | 1 |
Stock compensation expense | 0 | 0 | 0 |
Advertising expense | 126 | 6 | 0 |
General and administrative expense | 626 | 120 | 11 |
Provision for impairment losses | 0 | 0 | 0 |
Other (income)/expense, net | (50) | (3) | 0 |
TOTAL EXPENSE | 2,036 | 280 | 15 |
NET INCOME BEFORE INCOME TAX | (1,993) | (280) | (15) |
Income tax (expense)/benefit | (60) | 9 | 0 |
Net income from continuing operations | $ (2,053) | $ (271) | $ (15) |
SEGMENT REPORTING - Balance She
SEGMENT REPORTING - Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 5,084,558 | $ 3,230,347 |
Total liabilities | 4,313,822 | 2,683,739 |
Net assets | 770,736 | 546,608 |
Total available-for-sale securities, at fair value | 239,053 | 161,364 |
Corporate debt | ||
Segment Reporting Information [Line Items] | ||
Total available-for-sale securities, at fair value | 191,082 | 145,836 |
Corporate equity | ||
Segment Reporting Information [Line Items] | ||
Total available-for-sale securities, at fair value | 0 | 1 |
Held for sale | ||
Segment Reporting Information [Line Items] | ||
Total assets | 825,419 | |
Total liabilities | 812,478 | |
Net assets | 12,941 | |
Central Asia and Eastern Europe | ||
Segment Reporting Information [Line Items] | ||
Total assets | 4,303,126 | 1,466,214 |
Total liabilities | 3,868,326 | 1,206,084 |
Net assets | 434,800 | 260,130 |
Europe, excluding Eastern Europe | ||
Segment Reporting Information [Line Items] | ||
Total assets | 677,425 | 765,698 |
Total liabilities | 384,921 | 489,884 |
Net assets | 292,504 | 275,814 |
US | ||
Segment Reporting Information [Line Items] | ||
Total assets | 101,365 | 172,661 |
Total liabilities | 60,198 | 175,121 |
Net assets | 41,167 | (2,460) |
Middle East/ Caucasus | ||
Segment Reporting Information [Line Items] | ||
Total assets | 2,642 | 355 |
Total liabilities | 377 | 172 |
Net assets | $ 2,265 | $ 183 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ in Thousands | 12 Months Ended | ||||
Jul. 26, 2023 USD ($) | Jun. 14, 2023 USD ($) | Apr. 26, 2023 USD ($) company | May 17, 2022 company | Mar. 31, 2022 company | |
Subsequent Event [Line Items] | |||||
Number of businesses acquired | company | 2 | 2 | |||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Number of businesses acquired | company | 2 | ||||
Subsequent Event | Arbuz Group LLP | |||||
Subsequent Event [Line Items] | |||||
Consideration paid for the outstanding common shares | $ 16,509 | ||||
Subsequent Event | Aviata LLP | |||||
Subsequent Event [Line Items] | |||||
Consideration paid for the outstanding common shares | $ 30,411 | ||||
Subsequent Event | Internet-Tourism LLP | |||||
Subsequent Event [Line Items] | |||||
Consideration paid for the outstanding common shares | $ 1,896 | ||||
Subsequent Event | ReKassa PCI Reader | |||||
Subsequent Event [Line Items] | |||||
Consideration paid for the outstanding common shares | $ 2,500 |