Dear shareholders, I welcome all the members to the Extraordinary General Meeting of the company. This meeting is being held through VC-OAVM on the platform provided by NSDL in compliance with the circulars issued by MCA and SEBI in this regard. Before starting the proceedings of the meeting, I would like to inform the members about the modalities for participation or process to be followed while attending this meeting. The facility of participation in the EGM through VC or OAVM have been made available to the members on first come first served basis. Members participating in the meeting can post questions or feedback through question box option during the meeting. The questions so received may be taken up towards the end of the meeting. As this meeting is held through VC-OAVM, the provisions relating to appointment of proxy is not applicable.
Requisite arrangements have been made through e-voting services provided by NSDL to enable its member to exercise their right to vote on chairman election and resolution set forth in the EGM notice. Mr. Shashank Pratap Jain, Practicing Company Secretary, membership number F8621 and CP number 9515, has been appointed as the scrutinizer for the e-voting during the EGM and remote e-voting process. The result of the e-voting on the resolution set forth in the EGM notice, along with the report of the scrutinizer, shall be made available on the website of the company under the Head of Investors Relation and also on the website of NSDL and stock exchanges NSE and BSE.
Today we have with us Mr. Dinesh Chandra Agarwal, Managing Director and CEO, Mr. Brijesh Kumar Agrawal, Whole-Time Director, Mr. Vivek Narayan Gour, Independent Director and Chairman of the Audit Committee and Stakeholders Relationship Committee, Ms. Elizabeth Lucy Chapman, Independent Director and Chairperson of the Nomination and Remuneration Committee, Mr. Dhruv Prakash, Non-Executive Director, Mr. Rajesh Sawhney, Independent Director, and Mr. Prateek Chandra, CFO of the company, present through video conferencing. Apart from the above, Ms. Kanika Kohli, representative of B S R & Co LLP Statutory Auditors, and Devesh Vashist, representative of Sanjay Grover & Associates Secretarial Auditors are also present through video conferencing. As there is no designated Chairman of the board, the members present are required to elect the Chairman of the EGM from amongst the nominated directors through e-voting in compliance with the requirement of the circular issued by MCA.
Mr. Vivek Narayan Gour and Mr. Dhruv Prakash are being nominated by the other directors present for being elected as the chairman of the meeting. The instructions for election of chairman through e-voting are shared on the screen. Members are requested to follow these instructions and cast their vote. The window for voting on election of chairman is now open and would be closed at 11:15 A.M. You may now cast your votes for the same. The company is in receipt of two corporate representations along with board resolution authorizing the persons concerned to attend and vote at the meeting on behalf of the respective entities, representing 48,621 equity shares constituting 0.17% of paid-up equity share capital of the company as on the cut-off date, that is February 3rd, 2021.
The meeting is adjourned for enabling the members to cast their vote for election of chairman of this meeting and shall be resumed at 11:20 A.M.
[Break]
Sorry. I once again extend a warm welcome to all the members to the meeting. As per the poll results, Mr. Vivek Narayan Gour has been elected as the chairman of this meeting. I request chairman to preside over the chair and carry out the proceedings of this meeting.
I have immense pleasure in welcoming you all to the 26th Extraordinary General Body Meeting of the company. The requisite quorum being present, I call this meeting to order. Notice of the EGM has already been circulated to all members through email, and the same is now available on the company website. I now take notice of the EGM as read. All members of the company present at the EGM who were eligible and could not exercise their right to vote during the remote e-voting period, can exercise their vote now through the e-voting platform of NSDL by logging on to https://www.evoting.nsdl.com//. The window for e-voting is now open, and the same would close at 11:45 A.M. Members need to follow the instructions mentioned in the notice of the meeting, and in case of any difficulties, you may connect on the helpline numbers which are given therein.
The following resolutions are proposed to be passed in this meeting. First, to approve fundraising activities and issuance of securities by the company. Second, approval for increase in authorized share capital and consequent alteration of the memorandum of association. Third, approval for reclassification of authorized share capital and consequent alteration to the memorandum of association. It is now time to take questions from the members. The first question which has come up is as follows. What is the purpose of the proposed fundraise? Which are the areas of business the company is targeting for the acquisitions, and the time horizon in which the said amount will be deployed? I will request the Managing Director, Shri Dinesh Agarwal, to answer this question. Dinesh Ji.
The purpose of the fundraise is to invest organically and inorganically in the growth areas, of strategic business adjacency, where we feel that we can add more value to the entire B2B ecosystem, including enablement of commerce and enablement of businesses for small and medium businesses. The time horizon that we are thinking is depending upon the plan that we have made. We believe that about two years of the time horizon for deployment of this fund should be okay.
Thank you, Dinesh. There's a second question which I can see on my screen. It is as follows. The company is already sitting on adequate cash and cash equivalents in the balance sheet. Why is there a need to raise such huge cash right now? I'll once again direct this question to the Managing Director and CEO, Shri Dinesh Agarwal.
See, as on December 31st, 2020, the company has INR 1,143 crores of cash and investment and the deferred revenues of INR 633 crores. As the deferred revenue represents advances from customers and is a liability, they should not be considered as a free cash reserve for making long-term investments. This leaves us with remaining cash reserve of around INR 500 crores. Some cash balance needs to be reserved for the company needs. Considering the size of our company and potential opportunity, we believe the fund raise of approximately INR 1,100 crores may be needed to fund our growth for the next two, three years.
Thank you, Dinesh Ji. There are a lot of questions being received, and we would collate all unanswered questions and respond to them individually within the next seven days from this meeting. Ladies and gentlemen, there being no other business to transact, I hereby conclude the Extraordinary General Body Meeting of the company and thank all of you for your participation and dignified presence. Thank you.