5paisa Capital Limited (5PAISA) Earnings Call Transcript & Summary

Dear shareholders, a very good afternoon to all. I, Namita Godbole, Company Secretary, welcome you all to the 16th Annual General Meeting of 5paisa Capital Limited, which is being held through video conferencing. Pursuant to the MCA General Circular dated December 28, 2022, extension has been granted to hold the AGM through video conference or other audio/visual means. Further, SEBI circular dated January 5, 2023, has extended the relaxation from dispatching of physical copies of financial statements till September 30, 2023. In adherence to the said directives, this AGM is being held through video conference, facility of which is provided by the Central Depository Services Limited, CDSL. Further, the annual report has also been dispatched to all the shareholders electronically. Before proceeding with the meeting, I would like to take you through certain points regarding the participation at this meeting. Facility of joining the AGM through video conference or other audio/visual means is being made available for members on first come, first serve basis. All members who have joined the meeting, are, by default, placed on mute mode, and their videos are also turned off by the host to avoid any disturbance arising from background noise and to ensure smooth and seamless conduct of the meeting. Every shareholder intending to speak at the meeting will be given an opportunity to speak during the question-and-answer session. Once the question-and-answer session begins, the Chairperson will announce the names of the shareholders who have registered as speaker shareholders one by one. The microphone or speaking facility of the speaker and his video will thereafter be unmuted by the host. The shareholder may then start speaking by telling his name and the location from where he has joined the meeting. If the shareholder is not able to speak through video for any reason, the shareholder can speak through audio mode only so that we can have the questions put forth before the meeting today. While speaking, we request the speaker to use the earphones so that he is clearly audible, minimize any noise in the background, ensure that the Wi-Fi connection is not connected to any other device, no other background applications are running and there is proper lighting for good video and audio experience. If there is any connectivity issue at the speaker's end, we would ask the next speaker to join. Once the normal connectivity is restored at the earlier speaker's end, the speaker will be called again to speak after the other registered shareholders have completed their turns. I require the shareholders to keep their questions brief and specific to the business of this meeting and limit their speech to 3 minutes so that the other shareholders have a fair chance to speak at the meeting. During the AGM, if a member faces any technical issue, he or she will contact the helpline number mentioned on Page #15 in Point #20th in the notice of the AGM. If any time you lose your connectivity, do check your Internet connection and log in again using the same process. Regarding voting at this meeting, there will be no show of hands at this meeting to propose or second the resolution. Pursuant to the provisions of Section 108 and other relevant provisions, all members have been given an opportunity to cast their vote by way of remote e-voting. A cutdown date for the same was Thursday, August 24, 2023, and the voting window was kept open from Monday, August 28, 2023, to Wednesday of August 30, 2023. The persons who were the members as of the cutoff date, who -- have cast their votes through this medium. Members who have not, can do so today at this meeting, either during the meeting or after the meeting. Those members who have cast their votes during remote e-voting can participate at this meeting but cannot cast their votes again. Voting window will remain open during the meeting and 15 minutes post conclusion of the meeting. Members are requested to note that those members who have not registered themselves as the speaker with the company as per the details mentioned in the notice and have any queries, are requested to send their queries to [email protected]. so that your queries can be addressed by us. The registered prescribed under the Companies Act 2013 are available for inspection during the meeting. The company has received the necessary letters along with the Board resolutions from the corporate shareholders authorizing their representatives under Section 113 of the Companies Act 2013. I now request our Chairperson, Dr. Archana Hingorani to proceed with this meeting. Thank you.

Thank you, Namita. Good afternoon, dear members. I welcome all of you to the 16th Annual General Meeting of 5paisa Capital Limited, which is being held through video conference mode. The requisite quorum being present, I now call the meeting to order. Today, I would like to especially mention our business partners, bankers, vendors and employees who have efficiently navigated through the operating constraints of the last year and have helped to maintain continuity in our business operations. As Namita has already apprised the members, this meeting is being held through video conferencing, provided by CDSL. I must draw your attention and let you know that the company has taken all the requisite steps so that all of you can join and participate in this meeting seamlessly. Sometimes, despite our best arrangement and our secretarial team having worked very hard to fine-tune the arrangements for this AGM, some technical errors could be faced at our end, and I request the members to bear with us for the same. Since this meeting is being conducted virtually without presence of members in-person, the proxy facility is not necessitated and hence, is not being provided. The Board of Directors of the company have joined this meeting from their respective locations. Apart from the Board and the Company Secretary, we also have Mr. G. Shankar and Ms. Asha Patel, partners of the Statutory Auditors, Messrs V. Sankar Aiyar & Co., chartered accountants; and Mr. Mahesh [ Taji ] representative of the Secretarial Auditor of the company. M/S Nilesh Shah & Associates, practicing company secretaries; and Ms. Aparna Joshi from Messrs Aparna Paricharak & Associates, who -- appointed as the scrutinizer to monitor remote e-voting and e-voting at this AGM. I will now request each Director of the company to introduce themselves and confirm their presence to begin with. I am Dr. Archana Hingorani, Chairperson of the Board and the Risk Management Committee, and I'm attending the AGM through video conferencing from my office. Nirali, would you introduce yourself?

This is Nirali [Technical Difficulty].

Milin?

This is Milin Mehta, Independent Director of 5paisa Capital Limited. I'm attending this meeting from my video conference from Baroda. I am the Audit Committee Chairman and also Chairman of the Corporate Social Responsibility Committee. Thank you.

Ravi?

Good afternoon, dear members. I'm Ravindra Garikipati, Independent Director of 5paisa Capital, attending AGM though video conferencing from my residence in Bangalore. I'm also a member of Audit Committee and [ CSR ].

Narayan?

I'm Narayan Gangadhar. I'm the Managing Director and CEO of the company, attending the AGM through video conferencing from my residence in Bangalore. I'm also the Chairman of the Finance Committee.

Prakarsh?

I'm Prakarsh Gagdani. I'm attending the AGM. I'm a whole time Director of the company, and I'm attending the AGM from my office in Thane. Thank you.

Gourav?

I'm Gourav Munjal. I'm the Whole-Time Director and Chief Financial Officer of the company, attending this AGM through video conferencing from our office in Thane. I'm also the member of Risk Management Committee, Finance Committee and Corporate Social Responsibility Committee.

Thank you, everybody. With the permission of the members, I take the notice of 16th Annual General Meeting, which was duly circulated to all the members electronically as well. All of you have received the annual report, also electronically, and it includes the auditor's report. The Statutory Auditor and the Secretarial Auditor of the company has submitted their respective reports for FY '22 to '23, and there are no qualifications, reservations or adverse remarks in their reports. With your permission, I will take these reports as read. The auditor's report and financial statements are available from Page #142 onwards, and the Secretarial Audit report in from MR-3 enclosed as Annexure 2 on Page 51 to 53 of the annual report. Now I would like to share a few thoughts about the company's performance and growth before we take questions from shareholders. It was a year of continued growth in adaptation to the changing market and the macroeconomic landscape for 5paisa. The year was marked by dynamic changes in the global economic landscape and evolving consumer behavior. While it began with optimism as a world, it witnessed a robust post-recession recovery and as businesses and likes return to normalcy from the after-effects of the pandemic, we also faced challenges from the geopolitical uncertainty and rising commodity prices. The reversal of liquidity measures implemented to combat the surging inflation influenced capital flows and the cost of capital. Notwithstanding these pressures, India has remained one of the fastest-growing major economies amid increased private sector consumption and continued government focus on infrastructure development. The Indian economy grew at 7.2% during FY '22, '23. As per estimates by the World Bank, India's GDP could grow by 6.3% in FY '23, '24. Robust investment activity, government's thrust on CapEx and buoyant private consumption are likely to drive this growth. India continues to be at the forefront of the Fintech revolution. In 2022, India had 89.5 million digital transactions and topped the list of 5 countries in digital payments, Brazil, China, Thailand and South Korea being the other 4 countries according to data from my MyGovIndia. Interestingly, the number of digital transactions for India exceeded the total digital transaction done by the other 4 countries combined. This accomplishment can largely be attributed to the central government's push towards a cashless economy, with the broader objective of empowering rural populace and driving inclusive development. The pandemic gave further impetus to the digital transformation taking place in the financial services sector. Additionally, factors such as rising incomes, healthy economic growth, innovation and favorable regulatory environment will drive demand for financial services. With more and more individuals embracing online investing, well-governed fintech companies like us stand to benefit the most. Going forward, the fintech ecosystem could continue growing in India on the back of increased availability of smartphones, greater Internet access and high-speed connectivity. At 5paisa, our digital capabilities enable us to grow our business by reaching out to more clients and providing them with personalized services. Throughout the year, we continue to augment our infrastructure and people capabilities with the purpose of making our platform more intuitive. We also harness technology to provide faster services and enhanced efficiency. We are proud to announce by the end of FY '22 to '23, we achieved over 4 million app downloads, and the average time spent on our app increased 25% during the year. The rating of our app improved from 4.19 stars in FY '21, '22 to 4.31 stars in FY '23. Overall, we are honored to serve over 3.5 million clients and create value for them consistently. Our mutually rewarding and strategic partnerships with fintechs and other investment experts are a significant part of our growth. These partnerships help us go the extra mile in creating superior experience for our clients by providing high ease of transactions along with best-in-class offerings. From here on, we will continue to welcome new investors to our universe, especially from Tier 2 and Tier 3 cities of the country. Millennials and do-it-yourself investors are other key target segments for us. In conclusion, your continued support and trust has been instrumental in driving our success, and we remain dedicated to delivering excellence in our services. Thank you for being a part of our journey, and we hope you find this report both insightful and inspiring. None of these achievements would have been possible without the dedication and hard work of our talented teams. I extend my heartfelt gratitude to all our people at 5paisa for their unwavering commitment to our goals and the pursuit of excellence. Moreover, I would like to thank each of our stakeholders for their continued support and trust in 5paisa. Together, we will continue raising ahead with our digital edge, driven by our determination to achieve our objectives. I would now like to take this opportunity to introduce our newest Managing Director, Mr. Narayan Gangadhar, who has been recently appointed as Managing Director and Chief Executive Officer of the company. Mr. Gangadhar has a Bachelor of Engineering from Mumbai University and a Master in Computer Sciences from Worcester Polytechnic Institute. He has over 2 decades of experience, mostly with global tech giants like Microsoft, Google, Amazon and Uber. Most recently, Mr. Narayan Gangadhar was CEO of Angel Broking. Welcome, Narayan, I would now request you to address the shareholders. Thank you.

Hello, and welcome to the 16th Annual General Meeting of 5paisa Capital. It's my pleasure to be associated with 5paisa Capital, and I am excited to be a part of the company's growth story. FY '22, '23 was another year of robust growth and solid profitability. We clocked in our highest-ever PAT, profit after tax, of INR 436 million. This is a jump of 216% as compared to FY '21, '22. This performance is a combined outcome of constant reduction of cost of client acquisition and our technology capabilities to provide us -- to provide our clients with superior journeys every time they engage with us. Our strong brand recall, transparent and ethical business practices and a demonstrated track record of value creation make us stand out in an otherwise highly competitive market. During the year, both BSE- and NSE-identified brokerage companies fit to be classified as QSBs, Qualified Stock Brokers. 5paisa Capital is also a part of this list of important brokerage firms. We welcome this move as it will go a long way in strengthening not just the corporate governance practices but also the overall health and efficiency of QSBs, which, in turn, bodes well for retail investors and the brokerage sector as a whole. At 5paisa, we are ready to capitalize on immense opportunities knocking at our door. Our total customers increased 27% in FY '22, '23, with clients belonging to Tier 2 and Tier 3 cities, growing at a pace of 34% over the previous year. During the year, we progressed well along with our key focus areas, namely products, technology and infrastructure. Post the revamp of our app, its ratings increased from 4.19 in FY '21, '22 to 4.31 in FY '22, '23. We witnessed 21% growth in daily active users and monthly active users. One of our key product launches during this year, FnO 360, a dedicated trading platform for derivative traders, received overwhelming response from the market. MarginPlus, another new product introduced during this year, enabled traders, investors to meet their cash margin requirements for purchasing additional stocks at a nominal interest rate and is also garnering good traction. We embark on our future journey with confidence in our ability to create sustainable value for all stakeholders. Our investments in technology and constant focus on delivering the best trading platform will drive revenue and profitability. In other words, we are racing ahead with our digital strategy. In the end, I would like to express my heartfelt gratitude to our employees for their unwavering commitment and invaluable contributions, I'd like to extend my appreciation to our shareholders, patrons, partners, regulators and other stakeholders for their continued support and collaboration. Thank you very much. I now request our Chairperson, Dr. Archana Hingorani, to proceed with the meeting. Thank you. Over to you.

Thank you. Before proceeding with the business of the meeting, I wish to inform you that in terms of the Companies Act 2013, the act and the rules made thereunder, one, since this AGM is being held through video conferencing, pursuant to MCA and SEBI circulars, the facility to appoint proxy to attend and cast vote on behalf of the members is not available; two, the manner of transacting the business contained in the notice of the AGM is only through remote e-voting before the AGM and e-voting during this AGM as arranged by the company. The instructions for remote e-voting and e-voting during the AGM is provided on Page #15 and also in Point #28 of the notice of the AGM. Since the AGM is being held through VC, there is no proposing or seconding of resolutions. With this, I now proceed with the agenda as per the notice as ordinary business. Resolution #1, to receive, consider and adopt by passing an ordinary resolution, A, the audited financial statements of the company for the financial year ending March 31, 2023, together with the report of the Board of Directors and the Statutory Auditors thereon; and B, the audited consolidated financial statements of the company for the financial year ended March 31, 2023, together with the report of the Statutory Auditors thereon. Resolution #2, to appoint a Director in place of Mr. Gourav Munjal, DIN 06360031, who retires by rotation and being eligible, offers himself for reappointment. And in this regard, to consider any thought fit to pass with or without modification, the following resolution as an ordinary resolution. As a special business, Resolution #3, to approve appointment of Mr. Narayan Gangadhar, DIN 09298665, as Director of the company. And in this regard, to consider and if thought, fit to pass with or without modification of following resolution as an ordinary resolution. Resolution #4, to approve acquirement and remuneration of Mr. Narayan Gangadhar, DIN 09298665, Chief Executive Officer, as the Managing Director of the company, and in this regard, to considering and if thought fit to pass with or without modifications, the following resolution as an ordinary resolution. Resolution #5, to approve material related party transactions with IIFL Facility Services Limited and in this regard, to consider and if fit to pass with or without modification, the following resolution as an ordinary resolution. Resolution #6, to approve material related party transactions with IIFL Finance Limited and in this regard, to consider and if thought fit, to pass with or without modifications, the following resolution as an ordinary resolution. Resolution #7, to approve material related party transactions with IIFL Management Services Limited and in this regard, to consider and if thought fit, to pass with and without modification, the following resolution as an ordinary resolution. Resolution #8 to approve material, related party transactions with IIFL Securities Limited and in this regard, to consider and if thought fit with or without modification, the following resolution as an ordinary resolution. Resolution #9, to approve material related party transactions with IIFL Samasta Finance Limited and in this regard, to consider and if thought fit, to pass with or without modifications the following resolution as an ordinary resolution. Resolution #10, to approve material related party transactions with IIFL Wealth Prime Limited, formerly known as IIFL Wealth Finance Limited and in this regard, to consider and if thought fit to pass with or without modification, the following resolution as an ordinary resolution. Resolution #11, to approve material related party transactions with IIFL Home Finance Limited and in this regard, to consider and if thought fit to pass with or without modifications, the following resolution as an ordinary resolution. Resolution #12, to approve material related party transactions with Livlong Insurance Brokers Limited, formerly known as IIFL Insurance Brokers Limited, and in this regard, to consider and if thought fit to pass with or without modification, the following resolution as an ordinary business. Resolution #13, to approve material related party transactions with 360 One WAM Limited, formerly known as IIFL Wealth Management Limited and in this regard, to consider and if thought fit to pass with or without modification, the following resolution as an ordinary resolution. Resolution #14, to approve material related party transactions with 5paisa P2P Limited and in this regard, consider it and if thought fit to pass with or without modification, the following resolution as an ordinary resolution. Resolution #15, to approve material related party transactions with 5paisa Trading Limited and in this regard, to consider and if thought fit to pass with or without modifications, the following resolution as an ordinary resolution. Resolution #16, to approve material related party transactions with 5paisa Corporate Services Limited, formerly known as 5paisa Insurance Brokers Limited, and in this regard, to consider if and thought fit to pass with or without modification, the following resolution as an ordinary resolution. Resolution #17 to approve material related party transactions with 5paisa International Securities, IFSC Limited, and in this regard to consider and if thought fit to pass with or without modification, the following resolution as an ordinary resolution. Resolution #18, to approve payment of remuneration by way of commission to nonexecutive directors, including independent directors, up to 1% of the net profit of the company and to consider and if thought fit, to pass the following resolution at a special resolution. Resolution #19, to approve offer or invitation to subscribe to the nonconvertible debentures on a private placement basis and in this regard, to consider and if thought fit to pass with or without modification, the following resolution as a special resolution. Resolution #20, to approve increasing the limits of borrowings under Section 181c of the Companies Act 2013 and in this regard, try to consider and if thought fit to pass with or without modification, the following resolution as a special resolution. Resolution #21, to approve increase in the limit under Section 181a of the Companies Act 2013 and in this regard, to consider and if thought fit to pass with or without modification, the following resolution as a special resolution. Resolution #22, to consider and approve adoption of 5paisa Capital Limited Employee Stock Option Scheme, named 5paisa [ ESOS2 ] 2023, and if thought fit to pass with or without modification, the following resolution as a special resolution. I now request our Company Secretary, Ms. Namita, to invite the members who have registered themselves as speakers so that their queries can be addressed. Over to you, Namita.

Thank you, Archana. I will now call out the names of every speaker, one by one. I request other speakers to remain muted til I call out their names so that all members attending the AGM can listen without any disturbances. May I now request our host Mr. [ Iyaas ] to enable Mr. Ajay Kumar Jain. Mr. Anil Parikh?

Am I audible, madam?

Yes, sir, you are audible.

Chairman madam, Archana Hingorani-ji, other Board members and my fellow shareholders, madam, I'm Anil Parikh here from Bombay. I hope you all are doing well at your respective end. Madam, I hope you are well in all manner. I would like to extend my wholehearted support for today's -- all the resolutions proposed. And also, I'm thankful for secretarial team, especially Namita, Charvi Panchmatia, all are very good doing investor services as far as the investors are concerned. Chairman madam, on my request for physical copy, promptly they sent me the physical copy. And so I'm pleased with going through entire balance sheet. I'm very, very pleased with the performance of the company. And you all are doing excellently well as far as 5paisa Capital's performance is concerned. Chairperson madam, I have no special questions. My all questions have been answered earlier by our CS team. However, I would like to understand what would be the future steps we are taking to help our exponential growth of this company. And how you are looking at -- having understood that so many competitors in the market, and where we stand among them? I have no questions to ask you. I'm very much pleased with the balance sheet. Thank you for allowing me to speak, and I am supporting all the resolutions proposed today.

Thank you, sir. May I now request the host to unmute Mr. Rajendra Seth?

[Foreign Language].

Thank you so much. May I now request the host to unmute Mr. Bharat Shah? Yes, madam. Please speak. You are audible.

1 minute. [Foreign Language].

[Foreign Language].

Thank you for your kind words and appreciation. May I now request the host to unmute Lekha Shah?

Thank you, ma'am. Respected Chairperson madam, Board of Directors and my fellow [ shareholders ], good afternoon to all of you. Myself, Lekha Shah from Mumbai. First of all, I'm very much thankful to our Company Secretary, Namita madam, especially Charvi madam, for sending the AGM notice well in time. It is full of knowledge, facts and figures in place. So I am very grateful to our Company Secretary, Namita madam. Again, I thank our company secretarial team for their best performance and always outstanding support for any queries. I find the report really useful, with lots of information. Thank you Chairperson madam for explaining [indiscernible] company. Congratulations for excellent results, madam. Madam, I pray to God that He always shower his blessings upon you. Thank you, Narayan-ji, for such an informative and wonderful presentation. Madam, I have a couple of questions. My first question is, what is the total number of options granted by our company ESOS 2023 to employees and at what price? My second question is, our company borrows [ funds ] from its group companies. What is the purpose of it, and where it is utilized? How many retail clients we have our online discounts [ stock brokering ] services? Madam, I hope the company will continue video conference meeting in future. So I strongly and wholeheartedly support all the resolutions for today's meeting. And my best wishes always for the company and its prosperity. Thank you so much, madam.

Thank you, Lekha. May I now request the host to unmute Mr. Ajay Kumar Jain?

[Foreign Language].

Thank you, Ajay-ji. May I now request the host to unmute Mr. Prakashini Shenoy?

Hello. Am I audible, madam?

Yes. You're audible, madam.

I'm Prakashini Ganesha Shenoy from Bombay. Respected, honorable Chairperson madam, Dr. Archana Hingorani madam-ji, other dignitaries from the Board and my fellow shareholders, good afternoon to all of you. I received the annual report well in time, which is transparent, informative, knowledgeable and contains all the information as per the corporate governance. I thank the company secretary and her team, Mr. Namita and Charvi, for the same. I should not forget to thank them once again for reminding me of today's meeting and giving me the link for the same. Thank you Company Secretary madam and Charvi madam once again. The Chairperson, Dr. Archana Madam-ji, has given a beautiful picture, along with Narayan, about the company. It's working in all parameters. Thank you, Chairperson Archana madam once again. I'm glad that the company is [ having ] robust performance during the year when compared to last year. Congratulations once again. At the outset, I congratulate one and all staff for getting various awards during the year, which shows their sincerity and hard work. So madam, I have a few questions. My first question is, how much is our customers network in the depository in the online discount brokering, who are our nearest competitors and our bank in the top 10? My second question is during the year, how many customers closed their accounts in the brokering services division, and how many new accounts were added? Chairperson madam, one more question/request to you is please continue with VC so that people all over the world will have an opportunity to express their views. I wish the company good look for a bright future and pray God that the profit of the company shall reach the peak in due course. I will -- strongly and wholeheartedly support all the resolutions put forth in today's meeting. Thank you, Chairperson madam.

Thank you, madam. May I now request the host to unmute Mr. Rajendra Prasad Joshi?

Am I audible, madam?

Yes, sir, you're audible. Please go head.

I'm trying for video. Am I visible now?

You are not visible.

Now?

Not yet. Sir, you can proceed with your questions.

Okay. Okay. Okay. I will proceed with the questions, finally. Respected, Chairperson, Dr. Archana Hingorani; our new MD and CEO, Mr. Narayan Gangadhar-ji; and Prakarsh Gagdani; and other dignified Directors present in the meeting, Company Secretary Namita Godbole-ji, madam, myself, Rajendra Prasad Joshi, shareholder, speaking from my residence, attending this AGM from my residence. Madam, at the outset, I express my sincere gratitude to Company Secretary, Namita Godbole-Ji, and her team, especially Charvi, for giving me excellent services and continued cooperation. I received the annual report well on time, even -- on my request, I received the physical copy also. For that, I'm very much thankful to them. Annual report gives full details of company's working, which are very, very knowledgeable. Namita madam and Charvi madam are both very sober, polite, and they are very, very quick to answer our queries. Madam, I wish them all the best. And I also wish that they will keep it up. Archana madam, I appreciate that with the management's foresighted approach and advanced digital technology deployment, our company has become one of the fastest-growing financial service provider. Remarkably, our client base increased by 27% over previous year in -- that is 3.5 million. So this all very excellent, madam. Also, there is excellent operational and financial performance on all parameters. It is very commendable that our company recorded a robust highest revenues of INR 3,394 million, that is 14% up over the previous years; and profit after tax of INR 436 million, that is also 216% up our previous year. So very, very -- a very nice result for this year. Archana madam, I congratulate you and 5paisa team, for our company is shortlisted as a Qualified Stock Broker by SEBI. This gives more confidence to investors in our company. I wish our company to surpass such milestones of growth in future also. Madam, our [indiscernible] promoters are holding is 33.39% only. Sir, why should we not look for increasing their holding because our share price is very reasonable and even our growth is also very consistent and we see a bright future for our company? And if promoters will increase their holding, I think it will give even more confidence to the investor. Madam, it is a good fact the company had reduced debt. [ Sir, but ] what is the average cost of borrowing and when you expect our company to be debt-free? Secondly, what is our percentage of market share in the broking industry? And what is the percentage of profit earned from mutual fund segment? Madam, what is your views on extending our business in rural region? And if you can answer me this, to what extent algo trading is reliable for good returns in stock market? Sir, madam, with this, I strongly support all the resolutions of today's AGM. Like other previous speakers, I also support them that our VC, madam, should be continued -- video conference meeting should be continued in future also. With this, I thank Chairman, Archana madam; Company Secretary, Namita madam, for their -- all their support and also giving me this opportunity to speak from this platform. Thank you, madam. Thank you very much.

Thank you, [ Rajendra-ji ]. May I now request the host to unmute Mr. [ Tushar Sooda ].

A very good afternoon to all. Am I audible and visible?

[ Tushar-ji ], you are audible. You are not visible.

My camera is on. I wonder why it is not.

Okay. You are.

I'm visible as well?

Yes. You are visible.

Thank you so very much for the confirmation. Very respected Chairperson madam and eminent Board of Directors, my name is [ Tushar Sooda ], and I have joined our company's virtual AGM from Mumbai. Many congratulations for the highest ever revenues of INR [ 339 ] crores. Net profits have also increased more than 3x year-on-year to all-time high of INR 43.6 crores. Our company has achieved these magnificent numbers despite challenging times and fierce competition. Our top management strategy of focusing on quality of acquisitions, products, technologies and infrastructure has paid off well and helping improving our net profit margins to all-time high of 12.9 percentage. Reflecting this superlative set of numbers, market price of 5paisa Capital recorded all-time high of INR 485 in July '23 from March 2023 lows of INR 271. We, the investors, have witnessed our investment value gaining a fabulous 80% in just 4 months. Will dividend still remains a matter of concern for the shareholders, which I request you to kindly consider next year onwards. Both secretarial and finance departments deserve appreciation for detailed presentation of the financial statements. We have covered every aspect in great detail, especially the theme, racing ahead with digital edge, is catchy and generates lots of interest. I congratulate Mr. Gagdani for winning The Great Indian BFSI CEO of the Year Award. BFSI has also recognized 5paisa Capital as the fastest-growing company of the year. It has always been our company's endeavor of staying ahead of times. India is expected to lead in terms of financial wealth in coming years, and 5paisa Capital is very well poised to seize this exciting opportunity. I'm very happy that average daily turnover improved by 146% last year due to the efforts on product strengthening. For high-frequency derivative traders, we have a dedicated terminal, FnO 360. I request you to please give us some color on the same. In quarter 3 of FY '23, online retail trading acquisition of IIFL Securities was announced. When can we expect the entire acquisition process to be completed? I'm happy that with this transition, we will be getting more than 15 lakh customers as part of the acquisition. Chairperson madam, I read in social media that changes in ASBA, A-S-B-A, will increase our company's working capital requirement by about INR 130 crores. How are we going to handle and manage that requirement? How does our company foresee [ broking ] rates to evolve going ahead, especially with ever increasing compliance costs? Please share with us our company's initiatives to drive future growth. Also, please inform us the propositions to grow and consolidate market position via differentiated product offerings. Madam, I refer to consolidated accounts on Page 210 and 230 of the annual report. Cash and cash equivalents in client accounts have taken a hit of almost INR 70 crores. I request you to kindly share if there is any major reason for the same. I refer to Page 246 of the annual report. Advertisement and marketing/branding expenses have reduced to only INR 56 crores as compared to INR 96 crores over last year. Please inform if this will have any adverse effect on further client acquisitions. I take this opportunity to appreciate employees at all levels and the entire senior management team. I'm pretty sure that our company, 5paisa Capital, will conquer newer financial heights in coming years by capitalizing on emerging opportunities. I'm equally convinced with the 3 core principles of resilience, agility and growth, which will [ clearly ] lead us to the next levels. As always, I extend my wholehearted and continued support to our company. Thank you, Chairperson madam for giving me this opportunity to put forth my queries and express my views. Thank you so very much, ma'am.

Thank you, [ Tushar-ji ]. May I now request the host to unmute Mr. [indiscernible].

[indiscernible]

Thank you, [indiscernible]. May I now request the host to unmute Mr. [indiscernible]. I think we are done with all the shareholders now. I now request the host to unmute Mr. [ Tushar Sooda ] once again who would like to present a word of thanks.

Thank you for this opportunity. I sincerely thank team secretarial at 5paisa Capital along with team CDSL for arranging today's seamless virtual AGM through video conference. Connectivity and clarity were of superior quality, and all participants were very clearly audible and visible. I thank our registrars and transfer agents, Link Intime, for providing excellent investor services at all times. I also thank and appreciate entire 5paisa Capital team for their dedicated efforts. They have taken the meaning of teamwork to a whole new level. I'm confident that they will continue raising the bar. Above all, I thank you, Chairperson madam, Dr. Hingorani ma'am, along with all esteemed Board of Directors for your exemplary leadership and very valuable guidance. A hearty vote of thanks to the Chair. Thank you very much for this opportunity.

Thank you, [ Tushar-ji ]. Thank you so much. Thank you all of the shareholders for your valuable feedback and your best wishes. I now request the management and whole-time directors, our Chairperson and our CFO to respond to the queries raised by our shareholders.

[ Perhaps we can start ]. Yes. So we shall -- hold on one second, please. So we will start with questions from Mr. [ Tushar Sooda ], and there were a few questions there. So I will just take a few from this list and proceed, okay? Yes. So I think the first one, one question is, "For high-frequency derivative traders, we have a dedicated terminal, FnO 360. I request you to give some color on the same." So see, we have -- we are going to continue investing in building bespoke trading platforms for our high-frequency traders or algo traders. Now these traders are operating with a very -- they're operating in a highly latency sensitive environment. So it is very important that their app and their system always stay on, and it is also very important that we complete their transaction with a system that is always on. So our strategy going forward is we are going to continue investing in the platform, make the app much more stronger so that we can continue to sell better SLAs and better product experience to these traders. So overall, the feedback -- the platform has been very well received. We are seeing very exciting traction in terms of revenues -- in terms of both revenue and also in terms of the daily active and monthly active users. Now we don't reveal these numbers, but -- because these are very competitive -- it's very sensitive information. But overall, we are very happy about the progress, and we continue to -- we will continue to build more features and expand the footprint of this offering. Now moving on to the next question. "In quarter 3 of FY '23, online retail trading acquisition of IIFL Securities was announced. When can we expect the entire acquisition process to be completed? I'm very happy that with this transition, we'll be getting 15 lakh customers as a part of the acquisition." The transaction is proceeding as planned. And right now, as we are going through the legal process and also through the policy process that typically is involved in this kind of a transaction. So as that takes its turn, we expect that once that is through, the acquisition will be complete. Gourav, do you have -- do you want to add anything to this, apart from what I just said here? If that's okay, I can take other questions.

Take it.

Great. Yes. Okay. So yes -- go ahead, please. Go ahead.

Okay. Sir, I'm just replying every queries. A question from Mr. [ Anil ] that the [ competition ], the answer is only the product and tech and the branding. This is the only thing we can do, and we'll focus on that. Mr. [ Bharat Shah ], we don't have any branches right now, and there is no plan because we are online digital discount broker, and there is no requirement for the branches. Three questions from ma'am [ Lekha ], ESOP grant as -- on Page #31 of the notice that it is 20 lakh. And for the RSU, the price is 10, and for the options, it is the current prevailing market price. The second is that why we need borrowing from the ICD, because of the [ exchange margin ] purpose. The market is volatile. And sometimes if the margin goes up during the day, we need to [ ask through our ] group companies. But it is only for the short-term purpose and temporary purpose. As on balance sheet [ date ], it is nil. How many retail clients are we? All -- we are having only the retail clients. All of 35 lakh customers are on the retail basis. [ Prakashini ] ma'am, the overall net worth of all our customers together is approximately INR 8,000 crores. And with the new acquisition, 15 lakh customers we are adding with that. Questions from Mr. [ Rajendra Prasad ], sir, you said promoter is not increasing shareholding. But even in this year, if you see the comparison from last year to this year, promoter has increased 4% shareholding by taking 12 lakh shares. Debt-free, right now, I mean, to get the debt is a very good option for us because we are selling MTF, which is at 18%. So we can get the 7% spread rate, which is very good. We have a market share of approximately 3.3% to 3.4%. Other mutual fund, AUM is INR 400 crores. Question, algo trading is reliable or not. We can't answer that as a broker. And the last one is the rural area. I mean, yes, we are expanding our customer base to Tier 2 and Tier 3 cities, which includes our rural area also. Three questions from Mr. [ Tushar ] that broker can't use client -- so ASBA, we will getting the funding requirement. Sir, there is a disconnect in understanding the circular. There are 2 separate circulars. One is broker can't use client money, which is already implemented. The second is ASBA, broker can't use client money. This will impact our working capital and already impacted. But that INR 150 crores, we have a sufficient liquidity of INR 466 crores as we have the [ network ]. So there is no problem at. And another ASBA, which we'll implement in future, there will be no additional working capital requirement for the same. And apart from that, there are 2 other questions you have asked that on the Page #210, cash and cash equivalents, INR 70 cores. Sir, always see cash and cash equivalent and bank [ average ] together. If you see [ club ] that it is going from INR 1,200 crores to INR 1,300 crores, only if you see the cash and cash equivalent, that is just for the [ temporary purposes ] because we have increased the margin of INR 70 crores, INR 80 crores [ at closing date ] as on 31st March. And hence, it [ represent -- look ] like that. Otherwise, you should total that. Advertisement and branding expenditures have reduced 96 to 56. This was a part of our strategy because we were focusing on the quality acquisition, and our focus will be the same even in future. And I guess I have covered all and every questions for each and every shareholders.

Thank you, Narayan and Gourav, for answering the questions. I'm going to now request all the members who have not voted to cast their vote via e-voting system provided by CDSL, and the instructions for the same are given in the Notice of the AGM. All the members can vote during the AGM in terms of Section 108 of the Companies Act 2013 on all ordinary and special business as set out in the Notice of the AGM. Members are requested to note that those members who have not already -- those who have already voted electronically through remote e-voting are not eligible to vote in the AGM. Further, please note that the e-voting during the AGM is open for the next 15 minutes, and the members are requested to vote on the proposed resolutions numbered 1 to 22 as set out in the Notice of the AGM. The company has appointed CS Aparna Joshi, Practicing Company Secretary, as the scrutinizer for remote e-voting under Section 108 of the Companies Act 2013 and also for the votes casted by members during the AGM by e-voting system to scrutinize the remote e-voting and e-voting process in a fair and transparent manner. The scrutinizer shall submit her report in the prescribed manner to me within 48 hours of the conclusion of this meeting. The results of the remote e-voting and e-voting during the AGM will be informed no later than 2 working days from the conclusion of this AGM to the stock exchanges, which is National Stock Exchange and Bombay Stock Exchange, and will also be uploaded on the company's website, i.e., www.5paisa.com. The scrutinizer has verified the process for remote e-voting and e-voting during the AGM. Members are requested to vote on each of the resolutions. Voting results on each resolution will be an aggregation of remote e-voting and votes cast through e-voting during the AGM in favor or against the proposed resolutions. All resolutions contained in the notice, if carried with the requisite majority, shall be deemed to be passed on the date of the AGM. With the completion of the above proceedings, I declare the meeting as concluded. I thank members for joining this meeting through video conferencing and for having spared their valuable time to attend this annual general meeting. Thank you. Namita?

Thank you, all. Thank you, shareholders, for making it convenient to attend this AGM. Thank you all of the whole-time directors and independent directors. We now treat this meeting as concluded, and the e-voting will be started right after this. Thank you, all.

Thank you.