Q4 19/20

May 20, 2020

Quarterly report

Ladies and gentlemen, good day, and welcome to CDSL India Limited Q4 FY 'twenty Investor Conference Call hosted by Axis Capital Limited. Please note that CDSL does not provide specific revenue or earnings guidance. Anything said on this call, which reflects CDSL's outlook for the future of which could be construed as forward looking statements must be reviewed in conjunction with the risks that the company faces. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Please note this conference is being recorded. I now hand the conference over to Mr. Aditya Baghul from Access Capital. Thank you. Hand over to you, sir. Thank you, Nirav. Good morning, everyone, and thank you for standing by. On on behalf of Raxus Capital, a warm welcome to the Q4 and Financial Year 2020 Earnings Call of CBS L India Limited. These are challenging times and during these crisis, we hope that you, your families and colleagues are well and healthy. On the call today, we have the management of CDSL represented by Mr. Nehal Vohra, Managing Director and CEO Mr. Girish Ameysara, CFO Mr. Sunil Alwaraj, Chief Operating Officer, CDHL Ventures Limited Mr. Swaroop Gote, VP and Mr. Nilesh Kippur, Assistant Vice President. I shall now hand over the phone to Nehal sir for his opening remarks. First of all, I would really like to thank clearly access capital for this call. I'm wishing I would basically like to wish everybody a very basically a very good morning and a good afternoon wherever you are. I welcome you all to the quarterly conference call for the year ending and the Q4 ended March 31, 2020, and I trust each and I trust really basically each of you and your loved ones are safe in these extremely difficult times. The depository services was categorized as an essential service in these testing times, CDSL and its employees have represented strong resiliency and ability to adapt to the changing circumstances. The health and the well-being of our employees, investors and all our stakeholders is of utmost importance to us, along with the business continuity and CDSL has continued to perform all its operations under these very, very difficult circumstances. Basically, our efforts in these challenging times has to grow and strengthen our business. We request all our investors to move to a digital mode where the transactions can go through even in these times. And CDX's easiest continues to operate without compromising on the health or security of the BP operations. Basically, in our effort to support the country in its battle against this novel pandemic, TDSLS contributed some of INR 6.8 crores towards the ongoing relief efforts by the central government and the state government. On the business side, during the last financial year, the number of active beneficial owner accounts in CDS has increased to INR 2.12 crores as on March 31, 2020. From INR 1.74 crores as on March 31, 2019, which indicates a growth of around 22%. During the quarter ended March 31, 2020, the active beneficial owner accounts of 14.96 lakhs were added as compared to 9.2 Lakhs for the quarter ended December 31, 2019, and Lakhs 6.61 Lakhs for the quarter ended March 31, 2019. Basically as on March 31, 2020, CDFL has 499 Depository Participants offering Depository Participant Services from over 20,000 locations across the country, representing about 94% of the pin codes, these depository participants comprise of clearing members, banks, custodians and non banking finance companies. The securities of almost all listed companies have been admitted with CDSL for DMAT. Further, a large number of private limited and unlisted companies are also admitted with CDSL. As on March 31, 2020, the securities of 14,762 companies have been admitted for DMAT with CDSL. During the last 12 months, Ladies and gentlemen, the volume of securities and the custody has increased by about 26%. I now hand over the call to the Chief Financial Officer, Shigirish Hamish Ara to take you through our financial performance. Thank you. Good morning, everyone. Good evening, wherever you are. I will just brief through the financial performance that we have going through for the year ended March 2020 quarter ended March 2020, the total income on a consolidated basis for the year ended March 31, 2020 has increased by INR38.80 crores, which is representing 16% to INR284.25 crores from the previous year income of INR245.45 crores, the net profit after tax on a consolidated basis for the year ended March 31, 2020, is INR106.72 crores compared to INR114.83 crores for the year ended March 31, 2019. Total income on a stand alone basis for the year ended March 31, 2020, has increased by INR 20 INR2.92 crores, representing 12 percent increase to INR211.39 crores from the previous year income of INR188.47 The net profit after tax on a stand alone basis for the year ended March 31, 2020, is at INR77.32 crores compared to INR INR84.38 crores for the year ended March 31, 2019. It may be noted that the consolidated and stand on profits have decreased mainly on account of provision for a nonrecurring previous year's anticipated statutory liability of INR10.56 crores, contribution towards CSR expenditure of INR 6.80 crores, which includes INR 4.17 crores of unspent amount of previous years and a legal provision of INR 1.79 crores pertaining to an outcome of previous year's legal matters. The consistent income growth is a reward for the core values that the company believes in of being convenient, secure and dependable. The dip in the net profit is a result of nonrecurring expenses arising out of legacy issues. We want to send out a very clear message that we are strongly committed to the core principle of transparency and good governance as per the framework specified by the government and the regulators. Now I request Sunil Alwaris to give an update on our operation of our wholly owned subsidiary, CDSL Ventures Limited. Over to you, Sumil. [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] Hello. Good morning, everybody. So far as CDSL Ventures is concerned, the total income was INR68.8 billion, has again INR31.58 crores, that is an increase of 30% of INR15.22 crores in the swap. However, the overall expenses increased from INR 15.5 an increase of almost INR 13 crores that is up to 90%. Based on this, the profit after TAG, okay, worked out to INR 36.42 crores higher against INR 35.78 crores. The increase in expenses were mostly related to the increase in the KYC's protest to the charges towards that. Secondly, is the inter KRA charges that is Whatever we fetch from other KRAs, the expenses towards that and for this, the expenses towards the PSEL project. So the PSEL project, there was a provision year of about 6.5%. We would also like to mention so far as the KYC registrations are concerned. In this financial year, it had as of 31st March, it was INR2.16 crores as against 1.88 crores. That was a growth of 29 lakh KYCs in this calendar year, which is a growth of 15%. We are also doing the CKYC processing for other companies so that they can submit the devices in that where we this year we processed 11.42 lakh KYC as against 2.29 lakh KYC last year, which was a growth of 291%. So far as the RTA business is concerned, we have been registered with 402 RTAs as of 31st March as against 121 companies as of 31st March 2019, which is a growth of 281 companies or 2 30%. So far as the JSP, that is the JSP Suvita service provider is concerned, we have processed 2.77 lakh transaction has against 2 59 lakh transactions, which is a growth of 7%. And finally, coming to the NAG project, we have registered 6 19 academic institution has against 527 academic institution as of 1st March 2019, also we had good number of awards which were uploaded about 2.83 crore awards uploaded into the system have again 1.04 crore awards uploaded last year and a total of as of 31st March 2020, 13.27 lakh students were registered as of its 2.7 lakh students which were registered 31st March 2019, one adverse news is that the NAC project has been handed over to Digilocker And both the depositories will no longer be handling it going forward. So that is all from my side. If there are any questions, we'd like to take them now. Thank you very much. We'll now begin the question and answer first question is from the line of Prakash Kapadia from Amvic Portfolio Management Service. Please go ahead. Yes. Thanks Couple of questions. If I look at our financial performance for FY 'twenty, this is the 2nd year in a row where EBITDA growth is negative. Even if I adjust For some of the expenses, which Girish mentioned in terms of increased CSR contribution, And we've seen a decent revenue growth this year. So going forward for FY 'twenty one, will revenue and EBITDA both be positive for us? What is our sense and what will drive this? On the unlisted space, if you could give us some insights into what were one time activation fees, recurring revenues and the revenue breakup for Q4 in terms of our major heads, that will be helpful. So let's see. Can I take the question? And I'll hand it over to Girish. Yes. So in terms of as basically you're aware, we have a new management team, which has joined around the half year mark, so around October, we have a new Board. So the entire structure has the management structure has changed. If you kind of add back the legacy items to the expenses, it kind of has a twofold impact that had those incurred in those years, the profits comparison wouldn't be lower. And if you do what if, the profits for the current year would be higher than the previous year. That's number 1. Number 2, I think the important metrics that should be seen is the number of accounts which are getting enrolled. This year has been a landmark year for CDSL on two counts. One is that basically we have crossed our competition, number of payment accounts opened and there seems there continues to be a robust growth And the second is basically the we are the only deposit trainless International Finance Center, which has been permitted to start a branch. So there is definitely growth. And as this and Dalek is basically coming. There is going to be new paradigms of doing business. So the online digital is going to be the way forward. And that's where we see a lot of I'm not a core business which is basically expected to grow. The other important thing is that we have 599 depositary participants. So in terms of the distribution reach, we are at 92% of the claim codes. Our competition has around 280 Depository Participants. So I think that distribution reach is also going to be extremely critical. We have a lot of connectivity and volumes coming from Tier 2, Tier 3, Tier 4 downs, where there is expected to be more of growth. And therefore, in these times, we would really hope and expect that growth should continue. However, this is based on lot of extraneous factors also on how the pandemic really pans out in the country, but at least from the way things have been going on that the securities market has continued even despite the time limit and it's considered to be an essential service. We expect this growth to continue. On the second part of the question, I request our CFO, she immediately to answer that. Nehal, what when you're referring To some of the management changes, it is the employee structure and revision is what you are hinting at, which is also a big contributor cost in this year? Yes, that had happened prior to me joining. This was in the 1st April. It was December 1, 2020, I joined in September 10. What I was referring is we are our new CFO, CTO and MD and CEO. So 3 core management team our members have changed in this year, in the second half of this year and the entire board composition has also changed. There has been significant management change which has happened at this CDS event. And to the point of which, obviously, you've been leaders in terms of the account opening and we've overtaken NSDL also, so when do some of these changes translate into more steady state revenue? What I'm trying to understand is, the activation cycle, what will kick start some of these accounts? Because we've been very aggressive and kudos to the management team for adding so many accounts in such a time period. So will it be some Some kind of an IPO because what we read is volumes are going up in Capital Markets. So when the typical activation cycle would be worth, 6 months, 1 year? And when do some of these initiatives lead to more steady state higher revenues for us. Yes, I think this will be dependent on the market on how they are going to use it. Our expectation is that more and more people are going to enroll themselves into the VMAT mode. Also, there are more and more assets which are expected to move into the VMAT mode. There is obviously going to translate into more amount of transactions being done through the Demag. Like how that will transfer is a futuristic statement and I would really not like to comment on it at this point of time. Our core is to present the facts, the way they are and the hope in which we really expect this to grow going forward. Whether this will translate or not is is this something which you and I, we both will have to see as the situation unfolds? Sure. [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] Girish here. Just to answer your question on the EBITDA margin, if you were to add back those earlier year expenses, which are debited to this profit and loss account this year, I think then you will see a positive EBITDA. Just that €68,000,000 and the legal provision, it still comes to negative. So I will just give a break up. If you remember in December quarter, we had charged off INR10.56 crores towards earlier year service tax payment, right? And we have paid earlier year CSR expenditure of around INR 4 crores and legal provision of around, roughly around INR 2 crores. So you add up all this expenditure and add back to the EBITDA, you will see a positive EBITDA. These are all nonrecurring expenditure, which has to be incurred during this year to sort out all issues. Yes. And if you could give us the revenue breakup of the major heads for this call. Sure, sure, sure. You want a quarter or you want Whatever is [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] Okay, okay, okay, okay. I will just I will give you quarter wise revenue breakup for the March quarter on a consolidated basis. So our annual issuer charge income is 33% of our total operating income. Transaction charge is 21% of total operating income. Online data charges, which are largely from our subsidiary, is around 19%. IPO corporate exchange charges is around 12% of our operating income. Statement that we deliver to the investor BOS is around 4% of our total income. Document storage and e KYC each contribute 2%. So if you add up all these things, it will constitute to around 94% of our total operating income. So this is the constituent of our main operating income. I hope I have answered your query. Sure. And the last question from my side is, the NAND, which is being transferred to Digi locker, were we paid any one time revenue by the government on this? And what is our government business contribution to these revenues on an annual basis? And are we still continuing with the government project or no? That's the last Shul Kumar. [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] On NED, I doubt government had not paid any revenue to us. And on that operation question, I will [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] Just a minute. Yes. So far as the that is concerned the government, we had to provide these services free of cost up to November level in the contract and post They have received the contract and then awarded to legal offer. They will I do not think the government will be paying us anything for And so far as the government project is concerned, if you consider the current project we are doing for 3.8 liter for processing with the business 1 company, Then that is about 9.5 crores in that project in this particular year as again the expenses were not purchased and now sorry, your voice was cracking to me, 9.5 crores you said is the contribution for the whole year? Yes, yes. INR 9.5 crores. And you incurred an expense of around INR 6.5 crores over. INR 6.5 crores. Yes, that's true. That's true. Thank you. All the best. Thank you. Thank you. Next question is from the line of Mr. Varun Goenka from RelianceNet Partnership Fund. Please go ahead. Yes. Good morning, sir. I have three questions. So first, on this NAND project, could you help us understand under what circumstances or what decision backdrop was it transferred from the depositories, and is there any other projects which are under consideration to receive or to be transferred. So basically could you ask all the three questions? It will be easier to answer them. Okay. Okay. And secondly, on the e KYC that we have received, how does that change our business or how does that impact us? And third, I think every 5 years we receive some kind of a issuer charge hike and we have to go to Sibi, if you could help us with where does that lie today? What's the status of that? So I think first two questions, Sunil, could you answer? And basically, I'll take your 3rd question. Yes. So far as the NAND is concerned, we had a contract for 3 years from the government. And post the And post the contract, a government is supposed to evaluate the EMEA, you are supposed to review the performance of the royalty then give an extension of the Alpaca. After they did a review of the deposit fees because I'm not an IIT professor based on where there was a 2 subcommittees appointed by the sorry, your voice is breaking. Just a moment. Participants, please stay connected. Thank you. So they commented that Detilocker should come in as a third depository. And as a final So far as the EKYC business We were already providing the services prior to the Supreme Court verdict. Post that services were suspended. We had almost 250 odd intermediaries who are availing of the EKYC services. So far has this EKYC business is Santander, one of the intermediaries who have been permitted to take up the AURK AUR license. And we have, at the same time, also received an e signed license from the CCS. So both of these put together is definitely related to the online account only as well as added to the number of devices. Hello? So both the e KYC and the eSign will definitely facilitate online account opening and add to the number of accounts in CDSL as well as the KYC's in CVS. So as regards to third question about the issuer fees being increased every 5 years, yes, 5 years have lapsed, but given the pandemic, I don't know what's going to be because the charges have to be approved by SEBI. And given that there are a general mode of reducing charges all over, I don't know how that's going to pan out in terms of the increase of charges. So that is something which we'll have to wait and watch. It will be a joint application made by both the NSDL and CDSL to SEBI. And based on that, they will take a call whether it should be increased or not. Hello? Yes, go ahead. Yes, yes. So the question on Nat project, the voice was not clear. Just to circle back once more on that, Keith, are there any other projects also where the government feels that the output or delivery is probably suboptimal that we need to increase any kind of volumes there, if you could help us on the same measurement? See, I think basically the government's push is to move towards a digital mode, Andy. And basically the depository is the best equipped to kind of take forward this particular thought of the central government. And there are the various areas which they are looking at, but it's all at the planning stage, it's not yet been firmed up. But given this particular issue about the virus it's only businesses which have been able to move an online mode have continued to have their business going on while the virus is gone. So I think that's a clear cut indication that the push is going to be to move more to move really more and more into this kind of mode. Any major CapEx plans or investment plans for us, sir, that is on the board? So basically the software technology is one area which we would continue to grow because the backbone of CDSL is its technology. Cybersecurity also continues to remain an area of focus for us. And so we will continue to basically invest in technology as we go forward. So, basically we'll see how it pans out, but this is going to be a focused area. Any quantification of how much what amount are we looking to invest for next 2 years? We have not yet firmed up. That is yet under being discussed and deliberated at the level of the Board. So we have not formed that up. As soon as we formed that up, we will be making whenever it is due, we will surely be informing people. Sure. Thank you, sir. I'll come back in the queue. Thank you. Thank you very much. Next question is from the line of Ritesh Shera from Lucky Investment Manager. Please go ahead. Sir, on that one off charge Our one off expenses which have flowed in FY 'twenty and quarter 4, I just want to clarify a lot thing. So we have mentioned that for FY 'twenty, there is a 10.5 crore on service settlement, INR7 crores on CSR and a legal provision of INR1.7 crores. Until quarter 3, there was a bad debt provision also which was taken and was classified as one off. So just want to clarify, is that number and whatever that number is, is it a one off or it is no more relevant one off for FY 2020? And what is the one off in quarter four expense because the number for your other expense Shoots up from INR10 crores to INR20 crores. So I would just request the CFO, Girish, to answer that. What we have informed in the presentation is that service tax and CSR, unspent amount of CSR of previous year are one of the items which we had to spend during this financial year. On provision for bad and doubtful debts, now that is a function of collection mechanism and based and it is also depending upon the market scenario at the customer end level. During this pandemic situation, the overall collection is not that fast as what each and every company must have desired. You must be also experiencing that payments are coming with a delayed time frame. I just want to intervene here. So I'm answering your question. I'm coming to that only. So when we say bad debts, bad debts would be required to be provided for based on the criteria specified in the accounting standard, based on the collection history. Now if there is an overlapping collection, suppose our collection is delayed, then there will be provision prescribed under the accounting standard. That's how it works. So yes, on an average, our provision will work out to around 8% to 9% of our total invoicing that we do for any financial year because that's what it is based on our recovery ratio that we have right now. So bad debts provision for bad debts will continue to happen on a quarter to quarter basis. That's the reason we have not said that it is a nonrecurring expenditure. I hope I have answered your question. [SPEAKER SRINIVASAN VENKATAKRISHNAN:] Okay. So is it possible to just mention then what was the bad debt number, provisioning number for FY '20 and what is it for FY 'nineteen? If you have the 2 numbers, you want financial year wise, right? Full year, I'm asking all full year. Just a moment. Let me give you that number. And for quarter 4, what is the specific one off? So that CSR spend number flows in, in quarter 4, the entire one off Number in quarter 4 because you are Yes, yes, yes. One of his CSR is totally in quarter 4. So it's about INR 7 crores, right? Or it's about INR 7 crores you mentioned. Yes, yes, roughly INR 7 crores. So to To answer your provision question on provision, the provision for bad debt is around INR 7.5 crores in the financial year 2020 ending March 2020, and correspondingly, the provision made during last year was roughly around INR 3 crores. This explains one thing. Is there any other one off in quarter 4 barring the INR 7 crores CSR? So you are asking for quarter or full year? Quarter of 4. So quarter in the March quarter, the one off is CSR spent and a provision made towards legal matter of earlier year. Okay. Even that's closing in quarter 4. Yes, yes, yes. This explains one part. And another question I want from the FY 2020 absolute revenue mix, if you could give, Which is your transaction charge, issuer charge for protection, KYC, for full year. Okay. Okay. So full financial year, the annual issue charge Full financial year, Sonamir. Sure, sure, sure. I will give. So annual issuer charge income for the full financial year March 2020 is INR77.5 crores. Transaction charges around INR43 crores. Online data charges is around INR 37 crores. IPO and corporate exchange charges is around INR23 crores. How much are the online data and that you mentioned? IPO corporate debts and charges. Charges how much? INR 23 crores. Okay. SEBI project on PACL is around INR9.5 crores. Statement that we deliver cash charges is around around INR 9 crores. E KYC, C KYC charges is around INR 4 crores. Documents storage charges is around INR 5 crores. E voting charges is around INR 3.5 crores. And I think this covers almost 94% of our income. Perfect. And additionally, the corporate action is the only Revenue item which gets influenced for FY 'twenty one as of now? Yes. Right, because that is linked [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] To your IPO and all? Yes, yes, yes. So will this be largely IPO for production or it will be IPO it would be mixture of all the executive corporate action that a company does. Okay. So as of now what gets affected as a line item is basically the corporate action, right? Yes. Because transaction charge is linked to market volume, issuer Your charges is linked to the number of companies that you probably add in the system as well? Yes. KYC is linked to your financial instruments, Mutual funds and insurance is almost right? Yes. Okay. Do you have any outlook on how much reduction the corporate action might take in FY 'twenty one? No, we don't give any futuristic numbers. So this will be again dependent on the market. So it will be difficult to predict. But in a market year like this, does this go down by half and so on? Again, I'm telling you, you are asking the same question in a different form. The point is that it's basically a futuristic question. It will be difficult to answer that. Thank you very much and all the best. Thank you. Thank you. Thank you. Our request to all the participants, please restrict to one question per participant. Next question is from the line of Siyash Neerukar from PPFAS, please go ahead. Hello. Hello. Yes. Yes. I hope everyone is well and safe. So I just had a couple of questions. So firstly, just wanted to get like proper sense about the NED project. So we spend like almost a year spending like the expenditure and doing everything, building up the whole network of execution, registering the students and then the entire president moved on to Digi locker. So that was I don't expect that that will generate some you will be open additional lines of revenues for the company. But since that entire project is that it has moved to digital offer, so that as revenue jump will just be gone. So is there anything else on your mind which going forward which would open the revenue lines, any other product, any other strategy which is in the pipeline? Yes. So we are expecting Just one minute. Just can you finish all your question so that as the person said, you would like to restrict it to 1 question per person. So basically everybody has a fair chance. Sure. So secondly, I just wanted to get clear sense about the KYC thing. I just missed it in your opening remarks. Like what was it about the Kia, Kia, which you are talking about that they are processing for other companies? So these are the only 2 questions, Chad. Can you come again on your second question? It's about the yes, go ahead. Yes. So in the opening remarks, Okay. So as far as so far anyway there was no income generated by books by NAD last year, okay. And we were expecting some income to come in from the NAD project this year till the project went to Digi Law Firm. To compensate for that, we are looking at the projects from EKYC where we will be registered as an AUAKUA with UIDAI, where we will enable investors through. The second project we are looking at is becoming an eSign service provider. As you are aware that the SEBI has made it mandatory for all investors to e sign their documents when they make an online application for either King or Demac. And the third part is we also have an online account opening service, which we will be providing. So we hope that licenses are in place that it will make up for the income what we would have got from the Nat product. So any expenditure done, sorry, that will just be kind of a sunk cost or an education? So far, that project is concerned, yes, there is already a sunk cost. I mean, Maybe our CFO will handle that question better. And most of the expenses have come over the last 3 years. So to answer your question head on, it's just that all the costs have been done. At some cost, it was just the revenue which was expected and now that would win. So I think that has been answered by Suneet in terms of how we are proposing to go forward. Thank you. Next question is from the line of Kunal Sangi from Biontech Investment sorry, Biontech Advisors. Please go ahead. So in terms of that price hike from the same eboard depositories were Just wanted to have historical background on previous increases. I understand that last increase that we took was in 2015. Can you quantify for me like what kind of increase were taken, say, in 2005 2010? That would be my first question. And second question would be on the opportunity in the unlisted security side. I understand that I have 2 questions there. One is what is the opportunity left in terms of unlisted public companies? What is the target market left? And second is, I understand there was some incentive structure where NSDL was better than CDSL and that resulted into NSDL gaining market share. Now how we are pleased with R and TAs in terms of the Ensign infrastructure and what we think about it, like how we plan to gain market share there? So basically the first one I'll answer. 2nd one, I'll request Yogesh to answer that question. The first question on when on 2005, 2010, 2015 is where this price increase has happened. I think there is no particular trend in which that increases. So I don't think that's going to really matter in terms of going forward. What Sevi sees is the current market conditions before they approve on any kind of increase in the charges. And as I have stated before, the virus conditions is something which we'll have to see how it pans out, whether SEBI will be agreeable for that price increase to happen. So it is not a trend which can be put in that every 5 years so much percent increase has happened. It depends on the facts and circumstances which have been presented. And therefore, it is also not put down that every 5 years, the increase would happen. It could happen in 3 years. It could happen in more than 5 years. It is basically on the facts and circumstances, which are there at that point of time? Vendor, but particular thing is to talk to study. The second part of the question, Yogesh, if you could answer those? Yes, Yogesh here. See, there are close to about 80,000 companies in the analyst tax space. Out of that approximately 11,000 have been admitted till now. The balance are to be admitted. But what MCA guideline says is that if there is corporate action or any transfer, then it is mandatory to do it in the DMAT form. That is first part. The second part which you asked was of the incentive or the referral fee structure. So we have actually matched the referral fee structure of the other depository. And now we are also offering the same referral fee to RTAs as well as to the practicing company secretaries also. And so that is what is I hope I have answered your question. Sure. Sure. Thank you. Thank you. Next question is from the line of Prashanth from JM Financial. Please go ahead. Yes. Hi. This is Ashutosh. Just wanted to know how is the business being during the lockdown, both in terms of revenues and whether we have taken any special cost line items also during the lockdown, So I think I will have to restrict it to up to 31st March the lockdown has continued after that. The purpose of our call is to discuss the results of Q1 March. After the past March, the business has really been the way it has been going on, on so many months. There has been no major impact seen in the month of March, as can be seen from our quarterly results also for the Q4. And in terms of the technology costs, it continues to remain within our standards, there is nothing which is coming really easily out of tune. It is in line and in sync with what we normally spend. Sure. Thank you. Thank you. Thank you. Next question is from the line of Amit Chanda from ICICI Securities. Please go ahead. Hello. This is Amit Chandra from SDFC Securities. And sir, thanks for the opportunity. I answered my question with regards to the annual issue of charges. So in FY 'twenty, roughly, we had the rate of around 170 companies per month. So now this is half of what the competition was adding. So as you have explained that we have the incentive structure and so maybe we can increase there. So my question is related to what has been this rate in the last in the up down period, have you seen significant drop in this number? And also for FY 'twenty, if you can there is the contribution from the amylistic companies in the annual issue charges and if you could break up between one time issues charges and the annuity part, it will be very useful. And the second question is on the approval that we got from SEBBI for the Adar Desi KYC, we are changing the process post this for onboarding of a client and to what extent it could boost the KYC volumes? Thank you. So on the first one, we'll have to distribute it again approved March 31st, so I'll ask Yogesh to just give a sense. And second part in terms of the transaction charges make up to the extent I'll ask the CFO, Girish, to reply to that. And on the third one, Suneel, if you could answer on that? So basically, Yogesh, could you answer the first question? Yes, yes. Yes, correct. After 31st March, we as I answered the previous participant's query also, last year also, we have also started the referral fee structure. And due to the registrar and transfer agents as well as the practicing company secretary, so we have been also gradually gaining market share. So it's close to about 30% that Companies we have also admitted, that is till 31st March. What was your other question, please? Amit, roughly around Lakhs has been contributed by the unlisted company during the quarter ended March 'twenty. Let me come back on this, Amit. Okay. [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] Anshul, this contribution would also include the one time registration charges and the annuity part also, right? [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] Yes. So, okay, sir. I will get back to you. Yes. Yes. And for the Adar based EKYC Yes. Sudhir, if you could answer that? Yes. So far as the Adar based EKYC is concerned, we are pretty bullish on that because in the last couple of months, OTS daily is mostly accounts of getting opened online. And once the Adar just 3 ks It will make it much more easier for an investor to open an account. And we are very bullish that it will add to a substantial number of accounts through this vertical, especially when we have eSign as well as our own online account opening product in place. Amit, for the full year, the income is around INR 2.24 crores. Thank you. Next question is from the line of Jatin Daphania from Chordak Securities. Please go ahead. Good morning, sir, and thank you for the opportunity. So just wanted to carry on with the question the earlier participant asked regarding the number of companies. You can help us in understanding what was the number of companies that has been added in the unlisted page in entire FY 'twenty and what the total count stands as of now for us? Okay. So I think the CFM, you would be having numbers. Kirish, can you just give that number? How many have been added in the quarter? So during the financial year during the financial ended March 2020, the number of companies headed is around 2,120 companies. And total, I need to Okay. So during the financial, what will be the annuity charges that has been recovered or the 110 registered entry that could have been recorded from this 2,000 odd companies that I Okay. I had answered that to earlier question. It is around 2.24 crore. Okay. That's 2.2%. Yes. Thank you. So just with that total number of companies that has been admitted. That's all from my side. Thank you. Next question is from the line of Gautam Gupta Bayanassi. Please go ahead. Good morning, sir. Thank you for the opportunity. First, let me Thank you also for the investor presentation. I think we've been asking for it and this is the first time it's come up. A lot of useful data that gets answered. I hope we can see this maybe every quarter. So I think that will also save time on the call. So thanks for that. And the question that I had was, 1, on the commodity If you could give us any color in terms of progress, how that is panning out? And 2, on whether that government project, whether we are seeing a Phase 2 happening or so on the commodity repository, it's currently and basically, aggregates commodities is where it has been permitted. I think there are discussions with government to move with the non aggregates also, so that's something we'll have to wait and watch how it moves forward. And there we can really contribute a lot more than what we have been contributing. So to wait and watch how the rules change. On the second query, I'm sorry, your voice broke off. What's the second question? We had the government project, that PSL-one. So whether we are going to see a Phase 2 of that project or not, do we have some clarity now or? See, that is something which continues in terms of an ongoing basis. So there are a lot of circumstances. It's required to give you a firm answer on that because there are a lot of conditions, ifs and buts, etcetera. So I don't want to give a firm answer when We don't have a direction essentially yet. I mean, a clear direction in that next question is from the line of Sriram Srinivasan from KFPA. Please go ahead. Sir, this is Chiram Chinni Hagen. First of all, congratulations for your numbers almost posted 16% of growth in this very tough times. My hearty congratulations to you. My query is will be on animal issue charges for sites. Actually we have added almost 200 companies during this fiscal. The average run rate will be around 150 to 180 companies that we will keep on adding every month, right? So is this the trend we can expect to continue along for FY 'twenty one? So again, it's a futuristic question, but if I can just answer on a broad basis that as Yogesh had mentioned earlier that there is a significant portion of companies which are yet to be enrolled under Demac mode. So whenever the transfers are required to be done or they will be reestablished, they will have to come into the Demac mode. So the way I would look at it is that there is significant opportunity of growth and difficult to predict how FY 'twenty one is going to pan out because of the virus issue. But looking at the core numbers the way they are, I would see that the really, we should see some growth coming in. Whether that will be more or less in this financial year or it will turn off in the next financial year is something we can see how it goes? Almost 60,000 unlisted companies are likely to are they, right? Yes, they're around 73,000 companies. From the 3,000 companies, so it's in big offices that we are looking forward, right? Yes. In terms of national Sir, we have been getting approval to get charging for that. We have been expecting in September, but we are caught in the end of March actually. Sir, is that can you you need a revenue idea or revenue breakup idea for this? How we are going to charge and we are going to refer the revenue for this. Can you brief about that? Yes, the latest update on this project is that the government [SPEAKER SRINIVASAN VENKATAKRISHNAN:] Taken the project from the depositories and given it to the DigiLog. So the depositories will not be handling this project. Okay. For every log in that we have been charging, is there any recurring revenue? What I mean to say that depositories will not be handling this project going forward as per the Okay. Going forward, thank you. Thank you. Next question is from the line of Neeraj Kamvekar from Prosperity. Please go ahead. Hello. Go ahead sir. Thank you for the opportunity. Sir, currently PAN is not compulsory for 3 KYC, while the security market require PAN number and therefore broker and mutual fund use KYC data stored by CDL KRA. However, if c KYC makes PAN number mandatory in their data, then who will use CVL KRA? That is my first question. 2nd, other than securities market intermediaries, who will use CBL KRA? And last question is how much senior CRA has got for onetime pitching data? So Zareen, can you answer that? Yes. So far as CBL KRA is concerned, it's only the second market intermediaries who can use the PTR. Point number 2, what you mentioned is if PAN number is made mandatory in the cell side database. Who will use the CBN KRA? The point is that it is not only the PAN number which matters here, it also matters on the quality of the data. Today, what is happening, the intermediaries are able to fetch data, but they are not confident with the type of data they are getting from Celsa because there is no verification done at the Celsa end, Okay. So because of that, many of the intermediaries depend on the KRI data itself. Okay. And what was your third question, sir? TVL KRA will charge for one time fetching data. Yes, we charge INR 35 for fetching a record. Does that answer all your questions? Yes. Thank you. Next question is from the line of Ashish Sood from Vishuddha Capital. Please go ahead. Sir, I want to ask question regarding outlook on your insurance business because we are seeing that around And is the reason that there is a pricing difference between the price charged by you from the insurance companies on the price charge by the DigiLocal. And in the forward, can the same thing happen that government can make DigiLocal mandatory as a one time entity is for all storing the all insurance policy record, so outflow on this business going forward? So basically that insurance repository as of now, it's not a mandatory. I'll ask Mr. Ram Kumar to give a reply to your answers. [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] Yes. Ram Kumar here. If I may take forward the answer. The first part of the question was the DigiLockar is having x number of policies. As per the present IRDA regulations, only an insurance repository is allowed to hold electronic policies through electronic insurance account, that is one part of the answer. 2nd part is that on the DigiLocker, what generally people do is they store their policies. So it is not known whether it is really true or not. In case of some companies, DigiLocker has got a back to back arrangement, but not in case of all the insurance companies. That is the first question. But the second question I have asked was whether Digi locker, that is only time will tell. We'll not be able to comment on that as of now. Okay. And is the pricing difference between the price charged by Digi Locker from insurance company and price charged by you or the pricing is same? My understanding is sir, if I may Mr. MD, if I may just continue the answering. Yes, yes. Yes. So my understanding is Digi locker doesn't charge anybody for anything, and they can well afford to do so. But we are a commercial organization. To that extent, we'll not be able to give anything free, point number 1. Point number 2 is if you compare our cost With the cost of printing a policy and dispatching it or handing it over to the policyholder, ours is much less than that. That I hope answers your question. Okay. Sure. Thanks. Thank you very much. Ladies and gentlemen, with your time constraint, that was the last question for today. I will now hand the conference over to Mr. Abhay Patel for closing comments. Yes. So, thank you everyone for taking out the time and attending this call. Special thanks to Nehal sir and the entire team at CDHL for patiently answering questions. Nehal sir, I'll hand it over to you for any closing remarks. So I would sincerely thank all of you for your questions. One comment which rather compliment we got that we have put in our numbers in the form of our presentation. We shall be doing that going forward in basically every such quarter, so you all can look forward to that. And we are basically hopeful that with these current tough times, our business continues to grow. And basically, basically our effort is there of all the stakeholders to ensure that the business of CDSM continues to go forward. Thank you, sir. Thank you very much. On behalf of Atlas Capital Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you.