| ASSETS AND LIABILITIES HELD FOR SALE |
ASSETS AND LIABILITIES HELD FOR SALE On October 17, 2022, the Company entered into an agreement with Mr. Maxim Povalishin for the sale of 100% of the share capital the Company's subsidiaries in Russia. The transaction was completed on February 27, 2023. Because of the reissuance of the financial statements due to the restatements discussed in Note 4, the Company have also recast the financial statements to reflect the assets and liabilities to be disposed of as discontinued operations in the condensed consolidated financial statements. In accordance with US GAAP, the Company has reported separately the discontinued operations in the condensed consolidated financial statements.
The segment reporting in Note 26 has been recast to remove the Russian segment due to its presentation in the financial statements as discontinued operations.
As of June 30, 2022, and March 31, 2022, the major classes of assets and liabilities from discontinued operations included the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2022 |
|
March 31, 2022 |
| Cash and cash equivalents |
$ |
698,021 |
|
|
$ |
428,480 |
|
| Restricted cash |
6,343 |
|
|
28,406 |
|
| Trading securities |
122,079 |
|
|
122,497 |
|
| Brokerage and other receivables, net |
278,957 |
|
|
210,087 |
|
| Loans issued |
11,430 |
|
|
2,395 |
|
| Other assets |
51,862 |
|
|
33,554 |
|
|
|
|
|
| Total assets held for sale |
$ |
1,168,692
|
|
|
$ |
825,419
|
|
|
|
|
|
| Customer liabilities |
$ |
983,303 |
|
|
$ |
701,584 |
|
| Debt securities issued |
64,637 |
|
|
64,637 |
|
| Securities repurchase agreement obligations |
34,264 |
|
|
32,469 |
|
| Other liabilities |
37,451 |
|
|
13,788 |
|
|
|
|
|
| Total liabilities held for sale |
$ |
1,119,655
|
|
|
$ |
812,478
|
|
The results of operations for discontinued operations for the three months ended June 30, 2022 and 2021, consist of the following:
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|
|
|
|
|
|
|
|
|
For The Three Months Ended |
|
June 30, 2022 |
|
June 30, 2021 |
| Fee and commission income |
$ |
30,664 |
|
|
$ |
17,018 |
|
| Net gain on trading securities |
11,148 |
|
|
2,059 |
|
| Interest income |
12,421 |
|
|
4,674 |
|
| Net gain/(loss) on foreign exchange operations |
425 |
|
|
(2,232) |
|
|
|
|
|
| Total revenue |
54,658
|
|
|
21,519
|
|
|
|
|
|
| Fee and commission expense |
1,926 |
|
|
2,067 |
|
| Interest expense |
5,758 |
|
|
2,249 |
|
| Operating expense |
27,468 |
|
|
13,823 |
|
| Provision for impairment losses |
370 |
|
|
26 |
|
| Other income net |
34 |
|
|
117 |
|
|
|
|
|
| Total expense |
35,556
|
|
|
18,282
|
|
|
|
|
|
| Profit before income tax |
$ |
19,102
|
|
|
$ |
3,237
|
|
The net cash flows from/(used in) operating and investing activities from discontinued operations for the three months ended June 30, 2022 and 2021, consist of the following:
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|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, |
|
2022 |
|
2021 |
| Cash Flows (Used In)/From Operating Activities |
|
|
|
|
|
|
|
| Net income from discontinued operations |
$ |
15,946
|
|
|
$ |
2,700
|
|
|
|
|
|
| Adjustments to reconcile net income from operating activities: |
|
|
|
| Depreciation and amortization |
563 |
|
|
475 |
|
| Noncash lease expense |
1,588 |
|
|
1,091 |
|
| Change in deferred taxes |
3,082 |
|
|
(174) |
|
| Stock compensation expense |
1,821 |
|
|
1,068 |
|
| Unrealized (gain)/loss on trading securities |
(19,611) |
|
|
540 |
|
| Net change in accrued interest |
2,193 |
|
|
851 |
|
| Allowances/(recovery) for receivables |
370 |
|
|
(26) |
|
| Changes in operating assets and liabilities: |
|
|
|
| Trading securities |
78,727 |
|
|
(23,211) |
|
| Brokerage and other receivables |
54,061 |
|
|
(43,962) |
|
| Other assets |
393 |
|
|
(503) |
|
| Securities sold, not yet purchased – at fair value |
98 |
|
|
(23) |
|
| Customer liabilities |
(161,483) |
|
|
(11,029) |
|
| Current income tax liability |
— |
|
|
(611) |
|
| Trade payables |
11,332 |
|
|
(54) |
|
| Lease liabilities |
(1,716) |
|
|
(1,319) |
|
| Other liabilities |
(211) |
|
|
(13) |
|
| Net cash flows (used in)/from operating activities from discontinued operations |
(12,847) |
|
|
(74,200) |
|
|
|
|
|
| Cash Flows (Used In)/From Investing Activities |
|
|
|
| Purchase of fixed assets |
(1,325) |
|
|
(801) |
|
| Proceeds from sale of fixed assets |
— |
|
|
178 |
|
| Net change in loans issued to customers |
(5,754) |
|
|
1,022 |
|
| Net cash flows (used in)/from investing activities from discontinued operations |
$ |
(7,079) |
|
|
$ |
399
|
|
|