Quarterly report [Sections 13 or 15(d)]

RELATED PARTY TRANSACTIONS

v3.25.3
RELATED PARTY TRANSACTIONS
 6 Months Ended
Sep. 30, 2025
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS RELATED PARTY TRANSACTIONS
Related party transactions as of September 30, 2025 and March 31, 2025, consisted of the following:

September 30, 2025 March 31, 2025
Related party balances Total category as per financial statements captions Related party balances Total category as per financial statements captions
ASSETS
Cash and cash equivalents $ 17,640  $ 635,975  $ 2,233  $ 837,302 
Companies controlled by management 17,640  2,233 
Restricted cash $ 52,628  $ 1,312,229  $ 30  $ 807,468 
Companies controlled by management 52,628  30 
Investment securities $ 1,080  $ 2,511,419  $ 1,174  $ 2,814,733 
Companies controlled by management 1,080  1,174 
Margin lending, brokerage and other receivables, net $ 11,245  $ 3,528,382  $ 41,308  $ 3,319,145 
Management 10,146  10,080 
Companies controlled by management 1,094  31,228 
Other
 5  — 
Loans issued $ 225,217  $ 1,750,575  $ 188,445  $ 1,595,435 
Management 433  291 
Companies controlled by management 224,784  188,154 
Other assets, net $ 20,568  $ 188,603  $ 18,994  $ 168,541 
Management 41  486 
Companies controlled by management 20,527  18,508 
LIABILITIES
Customer liabilities $ 85,146  $ 5,759,636  $ 48,161  $ 4,304,999 
Management 23,748  13,827 
Companies controlled by management 59,720  32,607 
Other 1,678  1,727 
Margin lending and trade payables $ 632  $ 507,734  $ 1,307  $ 1,322,241 
Management 184  201 
Companies controlled by management 448  1,106 
Liabilities from insurance activity $ 9,755  $ 520,220  $ 5,960  $ 481,539 
Companies controlled by management 9,755  5,960 
Other liabilities $ 289  $ 225,852  $ 2,339  $ 129,737 
Management 29  1,281 
Companies controlled by management 260  1,057 
Other —  1 
Three Months Ended September 30, 2025 Three Months Ended September 30, 2024
Related party amounts Total category as per financial statements captions Related party amounts Total category as per financial statements captions
Revenue:
Fee and commission income $ 1,399  $ 132,238  $ 837  $ 121,051 
Management 150  290 
Companies controlled by management 1,245  543 
Other 4  4 
Interest income $ 1,183  $ 211,662  $ 375  $ 210,324 
Management 1,010  215 
Companies controlled by management 173  160 
Insurance premiums earned, net of reinsurance
 $ 1,403  $ 125,228  $ 153  $ 160,344 
Management 6  1 
Companies controlled by management 1,396  152 
Other 1  — 
Expense:
Fee and commission expense $ 1,141  $ 64,162  $ 374  $ 90,837 
Companies controlled by management 1,141  374 
Interest expense $ 485  $ 102,259  $ 459  $ 124,665 
Management 131  119 
Companies controlled by management 340  332 
Other 14  8 
Advertising and sponsorship expense $ 4,892  $ 27,502  $ 4,644  $ 32,433 
Companies controlled by management 4,892  4,644 
Six Months Ended September 30, 2025 Six Months Ended September 30, 2024
Related party amounts Total category as per financial statements captions Related party amounts Total category as per financial statements captions
Revenue:
Fee and commission income 2,083  239,880  1,703  236,540 
Management 297  509 
Companies controlled by management 1,778  1,188 
Other 8  6 
Interest income 1,766  410,233  644  436,328 
Management 1,276  419 
Companies controlled by management 490  225 
Insurance premiums earned, net of reinsurance 7,330  278,485  1,302  289,752 
Management 17  4 
Companies controlled by management 7,310  652 
Other 3  646 
Expense:
Fee and commission expense 2,552  149,033  532  170,984 
Management 1  — 
Companies controlled by management 2,551  532 
Interest expense $ 921  215,669  $ 841  270,383 
Management 241  228 
Companies controlled by management 653  600 
Other 27  13 
Advertising and sponsorship expense $ 10,405  51,965  $ 6,689  54,329 
Companies controlled by management 10,405  6,689 
    
As of September 30, 2025 and March 31, 2025, the Group had loans issued which included uncollateralized bank customer loans purchased from FFIN Credit, a company outside of the Group which is controlled by Timur Turlov.
As of September 30, 2025, 47% of the Group's total related party other assets consisted of a prepayment to Freedom Data Centers LLP (formerly, Freedom Telecom LLP) for the potential acquisition of A-Telecom LLP compared to 52% as of March 31, 2025. The potential acquisition of A-Telecom LLP is part of the Group’s strategy to expand its presence in the telecommunications market in Kazakhstan and to develop a digital fintech ecosystem. Freedom Data Centers LLP is considered a related party based on the scale of its economic transactions with the Group.
As of September 30, 2025, 7% of the Group's total related party customer liabilities were bank deposits from Turlov Family Office Securities (PTY) LTD held with Freedom Bank KZ, compared to 13% as of March 31, 2025. Turlov Family Office Securities (PTY) LTD is a private securities brokerage company that is wholly owned by Mr. Timur Turlov. Additionally, 32% of the Group's total related party customer liabilities as of September 30, 2025 were from a private company ITS Central Securities Depository Limited, compared to 1% as of March 31, 2025. Private company ITS Central Securities Depository Limited is a subsidiary of International Trading System Limited, an affiliate of the Group.
As of both September 30, 2025 and March 31, 2025, 99.7% of the Group's total related party liabilities from insurance activity were liabilities from FFIN Credit. The Group provides voluntary credit risk insurance covering losses arising from borrower defaults on microloan agreements originated by FFIN Credit. In addition, during the three months ended September 30, 2025, the Group recognized $1,327 insurance premiums earned, net of reinsurance, from such insurance services, compared to $94 recognized during the three months ended September 30, 2024. For the six months ended September 30, 2025 and 2024, the Group recognized $6,789 and $94, respectively.
The Group continues to support the development of chess and football in Kazakhstan. During the three months ended September 30, 2025, the Group incurred advertising and sponsorship expense from Kazakhstan Chess Federation in the amount of $851 and from Freedom Youth Football League of Kazakhstan in the amount of $2,730, compared to $4,308 and $336, respectively, during the three months ended September 30, 2024. For the six months ended September 30, 2025, advertising and sponsorship expense amounted to $2,459 for the Kazakhstan Chess Federation and $5,256 for the Freedom Youth Football League of Kazakhstan, compared to $6,353 and $336, respectively, for the six months ended September 30, 2024.. Kazakhstan Chess Federation is a Kazakhstan-based company in which Timur Turlov holds a management position. Freedom Youth Football League of Kazakhstan is a Kazakhstan-based company fully owned by Turlov Private Holding, in which Timur Turlov holds 99.9% of the shares. The sponsorship contributions to the Kazakhstan Chess Federation and Freedom Youth Football League of Kazakhstan during the three months ended September 30, 2025 were made to support the preparation and holding of championships, tournaments, training camps and other events.