The pandemic was a boon for a broking industry. However, Anand Rathi Wealth Services have shown poor results. The management has cited the following reason; "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". Key Highlights from the Annual Report 2021 1. The revenue has gone down from 336 Cr in FY20 to 279 Cr in FY21, registering a negative growth of 14%. 2. To reduce the impact of de-growth in revenue to the bottom-line, Anand Rathi Wealth Services has reduced the "Employee Benefit Expense" from 167 Cr in FY20 to 150 Cr in FY21, and "Other Expense" from 57 Cr to 44 Cr. This shows company is struggling to cope up with the losses in the business. 3. PAT has reduced from 60 Cr to 44 Cr. Registering  a de-growth of 27%. 4. Balance Sheet size has been reduced from 409 Cr in FY20 to 339 Cr in FY21. This is mainly due to below mentioned blue bordered box, where "Other Financial Liabilities" i.e. Advance from Customers has been given back and it has reduced from 100 Cr in FY20 to 13 Cr in FY21.   5. Due to the above factor, cash-flow from operations has gone into negative. In FY21, Anand Rathi has achieved negative cash-flow from operations. Last year, it was ~140 Cr. Valuation of Anand Rathi Unlisted Share? a) As per consolidated balance sheet, Anand Rathi Services has 2.75136 Cr shares outstanding. b) Current share price is ~650 per share. Mcap = ~1800 Crores. c) EPS (FY21) = 16. So, P/E based on this EPS is 40x ( which looks high as compared to peers). Announcement of Bonus Shares The company is issuing bonus share in 1:2. It means for every 2 shares held as on record date i.e. 15.07.2021, you will get 1 equity shares. Change of name of the company During the period under review, the name of the Company was changed from Anand Rathi Wealth Services Limited to Anand Rathi Wealth Limited, effective from 7th January 2021. This has been done to comply with last year SEBI regulations according to which, no person, while dealing in distribution of securities, shall use the nomenclature “Independent Financial Adviser or IFA or Wealth Adviser or any other similar name” unless registered with SEBI as an Investment Adviser. Annual Report 2021