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(i) Mr. Anand Rathi, aged 74, is the Chairman and Non-Executive Director of our Company. He has been associated with our Company since March 18, 2005. He is a gold medalist Chartered Accountant of November 1966 batch from ICAI. Since completing his Chartered Accountancy over 50 years back, and prior to joining our Company, he was with Aditya Birla Nuvo Limited, with BSE (where he also held the position of President) and was one of the first directors of Central Depository Services Limited.

(ii) Mr. Pradeep Gupta, aged 53, is a Non-Executive Director of our Company. He has been with the Company since March 18, 2005. He holds a Bachelor of Commerce degree from the University of Rajasthan and started his professional journey as a stockbroker of Jaipur stock exchange in 1989 besides being associated with textiles business at Daman Ganga Textiles Private Limited. He has promoted Anand Rathi Share and Stock Brokers Limited (formerly known as Navratan Capital and Securities Private Limited) and thereafter he joined ARFSL (formerly known as Anand Rathi Securities Private Limited) with Mr. Anand Rathi in the year 1998. He has over 30 years of experience in capital markets and also serves as a director of the Rotary Club of Bombay.

(iii) Mr. Amit Rathi, aged 45, is a Managing Director of our Company. He has been associated with our Company since March 18, 2005. He is a qualified Chartered Accountant from ICAI and has a Masters’ in Business Administration from New York University’s Leonard N Stern School of Business. He is associated with the private wealth management and investment banking businesses of the Anand Rathi Group

FINANCIAL SUMMARY

The summary of the Company’s financial performance, both on a consolidated and standalone for the Financial Year 2020-21 as compared to the previous year FY 2019-20 is as under:

(Rs. In Lakhs)

Particulars	Consolidated		Standalone
	FY 2020-21	FY 2019-20	FY 2020-21	FY 2019-20
Total Revenue	27,924.85	33,642.72	26,225.28	32,805.75
Less: Total Expenditure	21,636.58	24,982.03	19,990.76	23,229.92
Profit / (Loss) before Taxation	6,288.27	8,660.69	6,234.52	9,575.83
Less: Tax Expense
Current Tax	1,786.34	2,585.53	1,782.79	2,584.13
Deferred Tax	46.98	(64.11)	32.74	(136.10)
Net Profit /(Loss) after Tax	4,454.95	6,139.27	4,418.99	7,127.80

PERFORMANCE HIGHLIGHTS AND STATE OF COMPANY’S AFFAIRS
Our standalone revenue from operations and net profit after tax for FY 2020-21 were ₹ 26,225.28 Lakhs and
₹ 4,418.99 Lakhs respectively as compared to ₹ 32,805.75 Lakhs and ₹ 7,127.80 Lakhs respectively for FY 2019-20. Our consolidated revenue from operation and net profit after tax were ₹ 27,924.85 Lakhs and ₹ 4,454.95 Lakhs respectively for FY 2020-21 as compared to ₹ 33,642.72 Lakhs and ₹ 6,139.27 Lakhs respectively for FY 2019-20.

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

COVID-19 Pandemic: Responding to an unprecedented challenge

The COVID-19 pandemic significantly disrupted the Indian economy. In order to contain the spread of the COVID-19 pandemic, the Government of India (GOI) along with state governments declared a lockdown of the country, including severe travel and transport restrictions and a directive to all citizens to shelter in place, unless essential. The COVID-19 pandemic and associated responses have adversely affected, among other things, workforces, consumer sentiment, liquidity, economies, trade and financial markets around the world, including in India. The lockdown required private, commercial and industrial establishments to remain closed for long period of time.

The recent second wave in Covid-19 cases has caused lockdown and curfew in many states resulting in a dip in consumer confidence and reignited uncertainty regarding the near-term outlook and are derailing economic momentum.

The global economy is recording a major growth turn around in recent months. Across countries, there has been acceleration in growth of GDP, industrial production, and retail sales. The forward-looking indicator such as purchasing manager index for manufacturing and services are also suggesting improving growth outlook for most economies. The low base effect of the last year due to the pandemic induced lockdown and progressive lifting of lockdown restrictions as the rate of infection falls and rate of vaccination rises are resulting in normalization of growth. Government has indicated that vaccine will be given to every adult citizen (above 18 years) which may help to reduce the transmission of Covid-19 by December 2021.

Overview of Private Wealth Business:

We are one of the few pure wealth and distribution services company in India catering to the HNI as well as the Ultra HNI segments, offering various innovative financial products and investment solutions through dedicated Relationship Managers and have carved out a special niche for ourselves. We have developed a unique un-complicated and client focused strategic approach.

We have structured our private wealth business on four main tenets – objective/ goal based approach, data backed recommendations, simplified approach and transparency in implementation.

We believe in an ‘uncomplicated’ objective-oriented approach towards private wealth business, coupled with highly motivated team of trained Relationship Managers help us in attracting and servicing HNI and Ultra HNI clients.

(Rs. In Lakhs)

Annual Report 2020-21

Annual Report 2019-20

Comparison With Peers:

Note:

1. Anand Rathi Unlisted Share Price taken as 650 for calculating P/E and Mcap.

2. IIFL, 24.06.2021 price is taken to calculate P/E.

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