| Related Party Transactions |
Note 13 - Related Party Transactions
| Schedule of related party transactions |
|
|
| Name of the related party |
|
Relationship |
| Aark II Pte Limited |
|
Affiliate entity |
| Aeries Technology Products And Strategies Private Limited (“ATPSPL”) |
|
Affiliate entity |
| Aeries Financial Technologies Private Limited |
|
Affiliate entity |
| Bhanix Finance And Investment Limited |
|
Affiliate entity |
| Ralak Consulting LLP |
|
Affiliate entity |
| Sqrrl Fintech Private Limited (“Sqrrl”) |
|
Affiliate entity |
| TSLC Pte Limited |
|
Affiliate entity |
| Venu Raman Kumar |
|
Chairman of ATI’s Board and controlling shareholder |
| Vaibhav Rao |
|
Members of immediate families of Venu Raman Kumar |
| Sudhir Appukuttan Panikassery |
|
Key managerial personnel (till February 9, 2025) Vice chairman of ATI’s Board (February 10, 2025 through September 18, 2025) |
| Bhisham (Ajay) Khare |
|
Key managerial personnel |
Summary of significant transactions and balances due to and from related parties are as follows:
| Schedule of significant transactions and balances due to and from related parties |
|
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| |
|
Year Ended
March 31, |
|
| |
|
2026 |
|
|
2025 |
|
| Cost sharing arrangements |
|
|
|
|
|
|
|
|
| Aeries Financial Technologies Private Limited (b) |
|
|
- |
|
|
|
177 |
|
| Bhanix Finance And Investment Limited (b) |
|
|
103 |
|
|
|
120 |
|
| Interest expense |
|
|
|
|
|
|
|
|
| Aeries Technology Products And Strategies Private Limited (d) |
|
|
5 |
|
|
|
72 |
|
| Mr. Vaibhav Rao (g) |
|
|
94 |
|
|
|
83 |
|
| Sqrrl Fintech Private Limited (k) |
|
|
- |
|
|
|
8 |
|
| Interest income |
|
|
|
|
|
|
|
|
| Aeries Financial Technologies Private Limited (f), (h) |
|
|
210 |
|
|
|
188 |
|
| Aeries Technology Products And Strategies Private Limited (e), (h) |
|
|
64 |
|
|
|
125 |
|
| Legal and professional fees paid |
|
|
|
|
|
|
|
|
| Ralak Consulting LLP (c) |
|
|
216 |
|
|
|
305 |
|
| Management consultancy service |
|
|
|
|
|
|
|
|
| Aark II Pte Limited (a) |
|
|
2,256 |
|
|
|
2,861 |
|
| Office management and support services expense |
|
|
|
|
|
|
|
|
| Aeries Technology Products And Strategies Private Limited (i) |
|
|
3 |
|
|
|
36 |
|
| |
|
March 31, |
|
| |
|
2026 |
|
|
2025 |
|
| Accounts payable |
|
|
|
|
|
|
|
|
| Ralak Consulting LLP (c) |
|
|
53 |
|
|
|
- |
|
| Accounts receivable |
|
|
|
|
|
|
|
|
| Aark II Pte Limited (a) |
|
|
407 |
|
|
|
439 |
|
| Aeries Financial Technologies Private Limited (b) |
|
|
- |
|
|
|
102 |
|
| Bhanix Finance And Investment Limited (b) |
|
|
16 |
|
|
|
105 |
|
| TSLC Pte Limited (a) |
|
|
- |
|
|
|
101 |
|
| Prepaid expense and other current assets |
|
|
|
|
|
|
|
|
| Receivables from Mr. Bhisham (Ajay) Khare (j) |
|
|
741 |
|
|
|
- |
|
| Remittance in transit – Inwards (l) |
|
|
6 |
|
|
|
- |
|
| Interest payable (classified under other current liabilities) |
|
|
|
|
|
|
|
|
| Aeries Technology Products And Strategies Private Limited (d) |
|
|
41 |
|
|
|
41 |
|
| Interest receivable (classified under prepaid expenses and other current assets) |
|
|
|
|
|
|
|
|
| Aeries Technology Products And Strategies Private Limited (e) |
|
|
28 |
|
|
|
14 |
|
| Aeries Financial Technologies Private Limited (f) |
|
|
- |
|
|
|
1 |
|
| Investment in 0.001% Series-A Redeemable preference share |
|
|
|
|
|
|
|
|
| Aeries Financial Technologies Private Limited (h) |
|
|
1,110 |
|
|
|
1,008 |
|
| Investment in 10% Cumulative redeemable preference shares |
|
|
|
|
|
|
|
|
| Aeries Technology Products And Strategies Private Limited (h) |
|
|
786 |
|
|
|
822 |
|
| Loan from Members of immediate families of Venu Raman Kumar |
|
|
|
|
|
|
|
|
| Mr. Vaibhav Rao (g) |
|
|
734 |
|
|
|
812 |
|
| Loans from affiliates |
|
|
|
|
|
|
|
|
| Aeries Technology Products and Strategies Private Limited (d) |
|
|
- |
|
|
|
111 |
|
| Loans to affiliates (classified under other assets) |
|
|
|
|
|
|
|
|
| Aeries Financial Technologies Private Limited (f) |
|
|
92 |
|
|
|
102 |
|
| Aeries Technology Products And Strategies Private Limited (e) |
|
|
148 |
|
|
|
129 |
|
| Advance to Vendor |
|
|
|
|
|
|
|
|
| Aeries Technology Products And Strategies Private Limited (i) |
|
|
2 |
|
|
|
- |
|
| (a) |
The Company provided management consulting services to Aark II Pte Ltd under an agreement dated June 21, 2021 and its amendments thereof and to TSLC Pte Ltd under an agreement dated July 12, 2021. |
| (b) |
The Company was in a cost sharing arrangement with Aeries Financial Technologies Private Ltd and Bhanix Finance and Investment Ltd under separate agreements dated April 1, 2020. The cost sharing arrangement included costs in the areas of office management, IT and operations. The agreements are for a 36-month term with auto renewals after the original term. |
| (c) |
The Company availed consulting services including implementation services in business restructuring, risk management, feasibility studies, mergers & acquisitions etc. from Ralak Consulting LLP via agreement dated April 1, 2022. |
| (d) |
The Company incurred interest expense in relation to loans taken from ATPSPL, which were borrowed to meet working capital requirements. The loans were for a 3-year term and were issued at an interest rate of 12% per annum. |
| (e) |
The Company received interest income in relation to loans given to affiliates to support their working capital requirements. The loans were for a 3-year term and issued at an interest rate of 12% per annum. |
| (f) |
The Company received interest income in relation to loans given to affiliates to support their working capital requirements. The loans were for a 3-year term and issued at an interest rate of 15-17% per annum. |
| (g) |
The Company obtained a loan at 12% per annum interest rate (w.e.f April 1, 2025; 10% per annum till March 31, 2025) from Mr. Vaibhav Rao for business purposes. The agreement shall remain valid until the principal amount along with interest is fully repaid. The loan amount was outstanding in entirety as of March 31, 2026. |
| (h) |
This amount represents investments in affiliates. The Company earned interest income on its investments in affiliates. |
| (i) |
The Company availed management consulting services from ATPSPL under agreements dated March 20, 2020 and April 1, 2021. |
| (j) |
For the year ended March 31, 2026, ATI has issued 851,184 shares at a fair value of $0.87 per share to Mr. Bhisham (Ajay) Khare pursuant to the exchange agreement dated November 6, 2023 for his holding in ATGBA. As on March 31, 2026, Mr. Bhisham (Ajay) Khare is yet to transfer the shares to ATI and consequently a receivable of $741.00 has been recognized. |
| (k) |
The Company incurred interest expense in relation to loans taken from Sqrrl, which were borrowed to meet working capital requirements. The loans were for a 3-month term and were issued at an interest rate of 17% per annum. |
| (l) |
For the year ended March 31, 2026, Mr. Bhisham (Ajay) Khare has exercised 59,110 options under Aeries Management Stock Option Plan 2019 (“MSOP”) with exercise price of INR 10 (or approximately $0.11 at the exchange rate in effect on March 31, 2026). As on March 31, 2026, a remittance in transit of $6.24 has been recognized in respect of the exercise price of such options has been recognised. |
The Company has also executed two Exchange Agreements: (1) with AARK and Mr. Raman Kumar in his capacity as a shareholder of AARK; and (2) with ATGBA and Mr. Sudhir Appukuttan Panikassery, Mr. Ajay Khare, and Mr. Unnikrishnan Balakrishnan Nambiar, key managerial personnel of ATGBA in their capacity as shareholders of ATGBA (together referred to as “counterparties”). Under the Exchange Agreements, the counterparties would have a right to exchange the shares held by them in AARK or ATGBA into shares of ATI or cash subject to the conditions specified in relevant Exchange Agreement. Refer Note 16 for details. Additionally, pursuant to the Business Combination, 5,638,530 Class A ordinary shares were issued to Innovo Consultancy DMCC, which is wholly owned by Mr. Kumar.
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