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Quick Heal Technologies Limited Capital/Financing Update 2019
60974_rns_2019-05-15_8bafdc1a-da4e-4c0b-9847-072582547ee7.pdf
Capital/Financing Update
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Quick Heal Quick Heal Technologies Ltd.
Security Simplified (Formerly Known as Quick Heal Technologies Pvt. Ltd.) Regd. Office: Marvel Edge, Office No. 701 0, ( & D, 7th Floor, opp. NE(O Garden Society, Vimannagar, Pune - 411014 Tel: 020-66813232 I Email: [email protected] (IN - L72200MH1995PL(091408
Ref. No.: QHTL/Sec/SE/2019-20/24
May 15, 2019
The Manager, Corporate Services, BSE Limited, 14th floor, P J Towers, Dalal Street, Mumbai - 400001 Ref: Security ID: QUICKHEAL Security Code: 539678
The Manager, Corporate Services, National Stock Exchange of India Limited, Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai - 400051 Symbol: QUICKHEAL Series : EQ
Subject: Report of the Monitoring Agency for the quarter ended March 31, 2019
Dear Sir/Madam,
Please find enclosed herewith a Report of the Monitoring Agency, for the quarter ended March 31, 2019, for your records.
Please acknowledge the receipt.
Thanking you,
For QUiCk:?=ealT chnologies Limited
~,~
Vinav Agarw Compliance Officer
Encl.: As above
April 30, 2019
To.
Quick Heal Technologies Limited
Marvel Edge, 7010 C&D, 7th Floor, Opp. NECO Garden Society Pune $-411014$
Dear Sir.
Kind Attn: Mr. Shankar Shinde
Clue Dars
Sub: Quick Heal Technologies Limited - initial public offering of equity shares by the Company aggregating upto Rs. 250 Crores
We write in our capacity of Monitoring Agent for the captioned initial public offering of the Company and refer to our duties cast under Regulation 16(2) of the Securities & Exchange Board of India (Issue of Capital & Disclosure Requirements) Regulations, 2009.
In terms of above, please find attached the Monitoring Report for the quarter ended March 31st 2019 as per aforesaid SEBI Regulations.
Request you to kindly take the same on records.
Thanking you,
For Axis Bank Limited
thorised Signatory
Axis Bank Limited.,Corporate Banking Branch - CBB MUMBAI.12, Miittal Tower, A-Wing,Nariman Point, Mumbai - 400021.022-22895100
REGISTERED OFFICE : "Trishul" - 3rd Floor Opp. Samartheswar Temple, Near Law Garden, Ellisbridg
Report of the Monitoring Agency
Name of the Issuer: Quick Heal Technologies Ltd
For Quarter ended: March, 2019
Name of the Monitoring Agency: Axis Bank Limited
(a) Deviation from the objects: No deviation from the objects (relevant comments are specified in the report below)
(b) Range of Deviation*: Not applicable (relevant comments are specified in the report below)
Declaration:
We hereby declare that this report is based on the format as prescribed by SEBI (ICDR) Regulations, 2009, as amended. We further declare that this report provides true and fair view of the utilization of issue proceeds.
We declare that we do not have any direct / indirect interest in or relationship with the issuer/promoters/directors/management and also confirm that we do not perceive any conflict of interest in such relationship / interest while monitoring and reporting the utilization of issue proceeds by the issuer. We also declare that the certificate is provided on the basis of management representation and certification provided by the independent chartered accountant.
For Axis Bank Limited
thorized Signatory
$D$ ate: April 30, 2019
Issuer Details: $\left\vert 1\right\rangle$ Name of the issuer: Quick Heal Technologies Ltd The names of the promoters of the issuer: Kailash Katkar, Sanjay Katkar, Anupama Katkar and Dr. Chhaya Katkar Industry/sector to which it belongs: Security software products and solutions 2) Issue Details: Issue Period: minimum of 3 working days and not more than 10 working days. Type of issue (public/rights): Public Issue Type of specified securities: Equity Shares
Grading: As this is an offer of Equity shares, no credit rating agency has been appointed in respect of obtaining grading fo the offer.
Issue size (Rs. in Crores): Fresh issue of 250 crores
$3)$ Details of the arrangement made to ensure the monitoring of issue proceeds:
(Give item by item description for all the objects stated in offer document separately in following format)
| Particulars Factor: Francisco Particular Particular Comment Material Material Accounts in the Comment | |
|---|---|
| Advertising and sales promotion | As per annexure attached 3.1 |
| Capital expenditure on research and development | As per annexure attached 3.1 |
| Purchase, development and renovation of office As per annexure attached 3.1 | |
| premises in Kolkata, Pune and New Delhi | |
| General corporate purposes | As per annexure attached 3.1 |
$#$ Where material deviation may be defined to mean:
- a) Deviation in the objects or purposes for which the funds have been raised: Not applicable
- b) Deviation in the amount of fund actually utilized by more than 10% of the amount projected in the offer documents.: Not applicable
$4)$ Details of object(s)s to be monitored:
(i) Cost of object(s)-
(Give Item by Item Description for all the Objects Stated in Offer Document separately in following format)
(Rs. in million)
| SI. No. |
Item Head |
Original Cost (as per Offer Document) |
Revised Cost |
Comments of Monitoring |
Reason of cost revision |
Proposed financing |
Comments of Board of Directors Particulars of firm arrangements |
|---|---|---|---|---|---|---|---|
| н. | Offer lrelated expenses |
157.49 | 174.74 | Agency The fact that estimated offer related expenses are short of actual expenses is mentioned in all earlier Utilization Certificate* |
option | made |
* Relevant comments are provided in our report dated 25th October, 2016
(ii) Progress in the object(s)-Attached as Annexure 3.2
| SI. no. |
Type of instrument where amount invested* |
Amount invested | Maturity date | Accrued interest Earnings# |
Return on Investment (ROI. %) |
Market Value as at the end of quarter** |
|---|---|---|---|---|---|---|
| $\mathbf{1}$ | Deposit Fixed in Kotak Mahindra with FD no 8813103482 |
4,90,00,000 | 26-Mar-20 | 59,605 | 7.40% | 4,90,59,605 |
| $\overline{2}$ | Fixed Deposit in Kotak Mahindra FD with no 8813105554 |
11,65,00,000 | 25-Sep-19 | 45,323 | 7.10% | 11,65,45,323 |
| $\mathbf{3}$ | Deposit Fixed in Kotak Mahindra with FD no 8812985522 |
14,90,00,000 | 28-Aug-2019 | 67,14,185 | 7.65% | 15,57,14,185 |
| $\overline{4}$ | Fixed Deposit in Kotak Mahindra with FD no 8813097644 |
9,75,00,000 | 12-Mar-2020 | 4,00,685 | 7.50% | 9,79,00,685 |
| $\overline{5}$ | Deposit Fixed in Kotak Mahindra with FD no 8813097651 |
9,75,00,000 | 12-Mar-2020 | 4,00,685 | 7.50% | 9,79,00,685 |
| 6 | Deposit Fixed in Kotak Mahindra with FD no 8813103451 |
3,55,00,000 | 26-Mar-2020 | 43,184 | 7.40% | 3,55,43,184 |
| $\tau$ | Fixed Deposit in Kotak Mahindra with FD no 8813103468 |
4,90,00,000 | 26-Mar-2020 | 59,605 | 7.40% | 4,90,59,605 |
| 8 | Fixed Deposit in Kotak Mahindra with FD no 8813103475 |
4,90,00,000 | 26-Mar-2020 | 59,605 | 7.40% | 4,90,59,605 |
| 9 | Deposit Fixed in Kotak Mahindra with FD no 8812988189 |
25,00,00,000 | 28-Aug-2019 | 1,16,33,562 | 7.90% | 26,16,33,562 |
| 10 | Fixed Deposit in HDFC with FD no |
10,00,00,000 | 26-Feb-2020 | 7,17,260 | 7.70% | 10,07,17,260 |
| 11 | 50300315359830 Bank Balance in Axis Account Bank No. 916020008277004 as on 31 March 2019 |
7,89,705 | NA | NA | $\overline{NA}$ | 7,89,705 |
| Total | 99,37,89,705 | 2,01,33,699 | 1,01,39,23,404 |
* Also indicate name of the party/company in which amounts have been invested ** Where market value is not practical to find, provide NAV/NRV/Book Value of the same
** Where market value is not practical to find, provide NAV/NRV/Book Value of the same
# Interest Accrued Earnings are mentioned as p
(iv) Delay in implementation of the object(s)- Comments enclosed in Annexure 3.1 and 3.3 to this letter
| ANNEA ORE 3.1 I O THE MUNITURING AGENCY CERTIFICATE DATED Particulars |
APKIL 30 ZUIY Reply |
Monitoring Agency Comment | Comments of Board of Directors |
|---|---|---|---|
| Whether all the utilization is as per disclosure in Offer Document? |
Yes/He | Quick Heal Technologies Limited in meeting dated 13th February 2019 Proceeds received by Quick Heal Technologies Limited by way of IPO should be deployed during the fiscal years 2016, 2017, 2018 and 2019. As per the objects of the offer stated in the prospectus the Total Net reasons mentioned in prospectus, then such unutilized fund can be However, if the funds are not utilized within prescribed period for Based on the above, we undeestand that the Board of Directors of utilized in a fiscal year 2020 or any subsequent period as may be have decided to extend the utilization of Net Proceeds to the subsequent fiscal years upto 31 March 2021 determined by the company. |
|
| Whether Shareholder approval is deviations# from expenditures disclosed in Offer Document? obtained in case of material |
Not Applicable | $\vec{z}$ | |
| disclosed objects of the Issue has Whether means of finance for changed? |
Yes/No | Ę | |
| Any major deviation observed over the earlier monitoring agency reports? |
Yes/No | Not to our knowledge | |
| Statutory approvals related to the Whether all Government object(s) obtained? |
Yes/ Ne | $\Xi$ | |
| assistance/collaboration in Whether all arrangements pertaining to technical operation? |
Yes/ Ne | $\Xi$ | |
| Any favorable events improving object(s) viability |
Yes/No | $\Xi$ | |
| Any unfavorable events affecting object(s) viability |
Yes/No | Not to our knowledge | |
| decision making of the investors Any other relevant information that may materially affect the |
Yes/No | 弖 | |
| ABAK |
ş É $\ddot{\phantom{0}}$ ANNEYLIPE
| елимин ни инноп | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| SI.No | Item Head S | proposed in Amount as |
Amount utilized | Comments Monitoring Agency | Comments of Board of Directors | ||||
| Letter of Offer |
Beginning of the quarter As at |
ng the quarter Durit |
At the end of the quarter |
unutilized Amount Total |
Reason of idle funds | Proposed Course of Action |
|||
| Sales and Advertising Promotion |
1,110.00 | 454.47 | 42.04 | 496.51 | 613.49 | accordance with the objects of promotion are utilized from Annexure 3.1 to this letter prospectus except for the Comments mentioned in net proceeds and are in Expenses incurred on advertising and sales the offer as stated in |
Please Refer to Annexure 3.3 |
Please Refer to Annexure 3.3 |
|
| 2 | $\overline{\overline{\overline{\overline{\overline{\overline{\overline{\overline{\overline{\overline{\overline{\overline{\overline{\over$ research and development expenditure Capital |
418.80 | 308.94 | 82.75 | 391.69 | 27.11 | Utilization is as per disclosure the Comments mentioned in in the prospectus except for Annexure 3.1 to this letter |
Please Refer to Annexure 3.3 |
Please Refer to Annexure 3.3 |
| 3 | renovation of office premises in Kolkata, Pune and New development and Purchase, Delhi |
275.95 | 188.72 | $\pmb{\mathsf{I}}$ | 188.72 | 87.23 | Utilization is as per disclosure the Comments mentioned in in the prospectus except for Annexure 3.1 to this letter |
Please Refer to Annexure 3.3 |
Please Refer to Annexure 3.3 |
| 4 | General corporate purposes | 537.76 | 211.20 | 74.46 | 285.64 | 252.12 | Utilization is as per disclosure the Comments mentioned in in the prospectus except for Annexure 3.1 to this letter |
Please Refer to Annexure 3.3 |
Please Refer to Annexure 3.3 |
| Total | 2,342.51 | 1,163.33 | 199.25 | 1,362.57 | 979.94 |
ANNEXURE 3.2 TO THE MONITORING AGENCY CERTIFICATE DATED APRIL 30, 2019
Amount in million
| ANNEXURE 3.3 TO THE MONITORING AGENCY CERTIFICATE DATED APRIL | Delay (No. of 30,2019 |
||||
|---|---|---|---|---|---|
| Object(s) Name | As per offer Document |
Actual Completion date |
days/months) | Comments of Board of Director of Quick Heal Reason of Delay |
Proposed course of Action |
| Advertising and Sales | 31st March 2019 | 31st March 2021 | Upto 24 Months | As evident from the historical data, recognition and reputation The unutilised funds will get fully consumed on "Quick Heal" amoungst the enterprise users to grow our enterprise business setup, the spend on "Seqrite" brand was on hold till date and Since our enterprise products were not fully ready for bigger and "Seqrite" brand building in next 2 years since there are We are also making the efforts to build "Seqrite" brand of "Quick Heal" brand has contributed to the growth in we were waiting for the product readiness. marketing plan in place. at rapid pace. business. |
Now the products are ready for bigger setup, from March-2019. We expect that, we will start spending on advertising of Enterprise we have started "Seqrite" brand building Product sale in the coming years. |
| Capital expenditure on | 31st March 2019 | 31st March 2021 | Upto 24 Months | advanced technology to continue our innovation and develop expectations and hence company decided to go slow on this have to ensure that our IT infrastructure is maintained with In order to maintain our R&D technology capabilities, we solutions with the latest technology for existing as well as The Business Growth so far was not in line with our upcoming new products for all latest platforms. spend. |
Company has started the process of procuring balance will get consumed in Q1FY20. This initial spends have done in Q4FY19 and the new products of better quality and make our will give us leverage to test and release our Security Lab assets for R&D purpose & other IT related Assets in Q4FY19. The products market competitive. |
| and renovation of office Purchase, development Pune and New Delhi premises in Kolkata, |
31st March 2019 | 31st March 2021 | Upto 24 Months | renovation of office premises at Chennai, Kolkata, New Delhi Company is planning to transfer the balance substantial delay in possession of Marvel Edge property (Pune and Pune. We have also optimised these costs by better The amount remained unspent mainly on account of Property 2) for almost two years. negotiations. |
Corporate Business Purposes subject to the necessary approval and after following the required process after ensuging all the compliances. |
| General corporate | 31st March 2019 | 31st March 2021 | Upto 24 Months | purpose and in execution of Marketing Schemes and Business Promotions Exps in sync with our Revenue growth Plans in We have been using this amounts for many other business line with Forecast for coming quarters. |
next 2 years as mentioned in IPO prospectus. security business, company is confident of spending the balance unutilised amount in improved business environment for cyber With the Planned Revenue Growth and |
