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E2E Networks Limited — Capital/Financing Update 2024
Nov 13, 2024
60804_rns_2024-11-13_0b228504-b6a4-44b4-8edc-4c474aa0ddfc.pdf
Capital/Financing Update
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E2E Networks Limited
CIN- L72900DL2009PLC341980 Awfis, 1st Floor, A-24/9,Mohan Cooperative Industrial Estate Mathura Road, New Delhi-110044, Phone No. +91-11-4084-4964 Email: [email protected], Website https://www.e2enetworks.com/
November 13, 2024
To, Corporate Service Department National Stock Exchange of India Limited Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra (E), Mumbai, Maharashtra-400051
Scrip Code/Symbol: E2E
Sub: Monitoring Agency Report for the quarter ended on September 30, 2024
Dear Sir/Madam,
Pursuant to Regulation 162A of Chapter V of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 and Regulation 32(6) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, we are enclosing herewith report of the monitoring agency for the quarter ended 30th September 2024 from Care Ratings Limited dated November 08, 2024 with respect of utilization of proceeds raised by way of Preferential Issue.
This is for your information and records.
Thanking You,
Yours faithfully,
For E2E Networks Limited
RONIT
Digitally signed by RONIT Date: 2024.11.13 18:54:02 +05'30'
Ronit Gaba Company Secretary & Compliance Officer Membership No.: A59215
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Monitoring Agency (MA) report
No. CARE/NRO/GEN/2024-25/1064
The Board of Directors
E2E Networks Limited
Awfis, First Floor, A-24/9, Mohan Cooperative Industrial Estate Mathura Road, New Delhi-110044.
November 08, 2024
Dear Sir/Ma’am,
Monitoring Agency Report for the quarter ended September 30, 2024 - in relation to the Preferential Issue of E2E Networks Limited (“the Company”)
We write in our capacity of Monitoring Agency for the Preferential Issue for the amount aggregating to Rs.405.66 crore of the Company and refer to our duties cast under Regulation 162A of the Securities and Exchange Board of India (Issue of Capital & Disclosure Requirements) Regulations.
In this connection, we are enclosing the Monitoring Agency Report for the quarter ended September 30, 2024, as per aforesaid SEBI Regulations and Monitoring Agency Agreement dated September 11, 2024.
Request you to kindly take the same on records.
Thanking you, Yours faithfully,
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Dhruv Mittal
Assistant Director
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CARE Ratings Ltd.
Plot no. C-001 A/2 Sector 16B, 4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Berger Tower, Noida, Gautam Budh Nagar (UP) - 201301 Eastern Express Highway, Sion (East), Mumbai - 400 022 Phone: +91-120-4452 000 Phone: +91-22-6754 3456 Email: [email protected] • www.careedge.in CIN-L67190MH1993PLC071691
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Report of the Monitoring Agency
Name of the issuer: E2E Networks Limited For quarter ended: September 30, 2024 Name of the Monitoring Agency: CARE Ratings Limited (a) Deviation from the objects: Nil (b) Range of Deviation: Not applicable
Declaration:
We declare that this report provides an objective view of the utilization of the issue proceeds in relation to the objects of the issue based on the information provided by the Issuer and information obtained from sources believed by it to be accurate and reliable. The MA does not perform an audit and undertakes no independent verification of any information/ certifications/ statements it receives. This Report is not intended to create any legally binding obligations on the MA which accepts no responsibility, whatsoever, for loss or damage from the use of the said information. The views and opinions expressed herein do not constitute the opinion of MA to deal in any security of the Issuer in any manner whatsoever. Nothing mentioned in this report is intended to or should be construed as creating a fiduciary relationship between the MA and any issuer or between the agency and any user of this report. The MA and its affiliates also do not act as an expert as defined under Section 2(38) of the Companies Act, 2013.
The MA or its affiliates may have credit rating or other commercial transactions with the entity to which the report pertains and may receive separate compensation for its ratings and certain credit related analyses. We confirm that there is no conflict of interest in such relationship/interest while monitoring and reporting the utilization of the issue proceeds by the issuer, or while undertaking credit rating or other commercial transactions with the entity.
We have submitted the report herewith in line with the format prescribed by SEBI, capturing our comments, where applicable. There are certain sections of the report under the title “Comments of the Board of Directors”, that shall be captured by the Issuer’s Management / Audit Committee of the Board of Directors subsequent to the MA submitting their report to the issuer and before dissemination of the report through stock exchanges. These sections have not been reviewed by the MA, and the MA takes no responsibility for such comments of the issuer’s Management/Board.
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Signature:
Name and designation of the Authorized Signatory: Dhruv Mittal Designation of Authorized person/Signing Authority: Assistant Director
CARE Ratings Ltd.
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Plot no. C-001 A/2 Sector 16B, 4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Berger Tower, Noida, Gautam Budh Nagar (UP) - 201301 Eastern Express Highway, Sion (East), Mumbai - 400 022 Phone: +91-120-4452 000 Phone: +91-22-6754 3456 Email: [email protected] • www.careedge.in CIN-L67190MH1993PLC071691
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1) Issuer Details: Name of the issuer Name of the promoter Industry/sector to which it belongs
: E2E Networks Limited
: Mr. Tarun Dua, Ms. Srishti Baweja : IT Services - IT Enabled Services
2) Issue Details
Issue Period Type of issue (public/rights) Type of specified securities IPO Grading, if any Issue size (in crore)
: August 19, 2024 (Date of proposal) to September 21, 2024 (Date of allotment)
: Preferential Issue
: Equity shares : Not Applicable : Rs.405.66 crore (gross proceeds of preferential issue)
3)Details of the arrangement made to ensure the monitoring of issue proceeds:
| Particulars | Reply | Source of information / certifications considered by Monitoring Agency for preparation of report |
Comments of the Monitoring Agency |
Comments of the Board of Directors |
|---|---|---|---|---|
| Whether all utilization is as per the disclosures in the Offer Document? |
Yes | CA Certificate*, Bank statements, Management certificate |
All the proceeds from preferential issue have been utilized as per the objectives mentioned in the offer document. |
No comments |
| Whether shareholder approval has been obtained in case of material deviations# from expenditures disclosed in the Offer Document? |
No material deviation |
CA Certificate*, Bank statements, Management certificate |
Not applicable | No comments |
| Whether the means of finance for the disclosed objects of the issue have changed? |
No | Not applicable | Not applicable | No comments |
| Is there any major deviation observed over the earlier monitoring agency reports? |
Not applicable | Not applicable | Not applicable | No comments |
| Whether all Government/statutory approvals related to the object(s) have been obtained? |
Yes | In-Principal approval, listing approval and trading approval have been obtained by the company from NSE on September 11, 2024, October 11, 2024, and October 23, 2024, respectively. |
Not applicable | No comments |
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CARE Ratings Ltd.
Plot no. C-001 A/2 Sector 16B, 4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Berger Tower, Noida, Gautam Budh Nagar (UP) - 201301 Eastern Express Highway, Sion (East), Mumbai - 400 022 Phone: +91-120-4452 000 Phone: +91-22-6754 3456 Email: [email protected] • www.careedge.in CIN-L67190MH1993PLC071691
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| Particulars | Reply | Source of information / certifications considered by Monitoring Agency for preparation of report |
Comments of the Monitoring Agency |
Comments of the Board of Directors |
|---|---|---|---|---|
| Whether all arrangements pertaining to technical assistance/collaboration are in operation? |
Not applicable | Not applicable | Not applicable | No comments |
| Are there any favorable/unfavorable events affecting the viability of these object(s)? |
Not applicable | Not applicable | Not applicable | No comments |
| Is there any other relevant information that may materially affect the decision making of the investors? |
Not applicable | Not applicable | Not applicable | No comments |
-
*CA certificate dated October 24, 2024, from M/s G S A & Associates LLP, Chartered Accountants (certified by peer reviewed board of the Institute of Chartered Accountants of India (ICAI)). #Where material deviation may be defined to mean:
-
a) Deviation in the objects or purposes for which the funds have been raised.
-
b) Deviation in the amount of funds actually utilized by more than 10% of the amount projected in the offer documents.
4)Details of objects to be monitored:
(i) Cost of objects –
| Sr. No |
Item Head | Source of information / certifications considered by Monitoring Agency for preparation of report |
Original cost (as per the Offer Document) in Rs. Crore |
Revised | Comments | Comments of the Board of Directors |
Comments of the Board of Directors |
Comments of the Board of Directors |
|---|---|---|---|---|---|---|---|---|
Cost in Rs. Crore |
of the Monitoring Agency |
Reason for cost revision |
Proposed financing option |
Particulars of firm arrangements made |
||||
| 1. | Capital expenditures towards IT equipment | CA Certificate*, Management certificate and Offer document |
254.42 | Not applicable |
- | No comments |
No comments |
No comments |
| 2. | IT equipment Payment of lease rentals for IT equipment taken on lease |
CA Certificate*, Management certificate and Offer document |
39.14 | Not applicable |
- | No comments |
No comments |
No comments |
| 3. | General corporate purpose | CA Certificate*, Management certificate and Offer document |
97.85 | Not applicable |
- | No comments |
No comments |
No comments |
| 4. | Issue-related expenses | CA Certificate*, Management certificate Offer document and Board resolution |
14.25 | Not applicable |
- | No comments |
No comments |
No comments |
| Total (Gross proceeds) | 405.66 |
- *CA certificate dated October 24, 2024, from M/s G S A & Associates LLP, Chartered Accountants (certified by peer reviewed board of ICAI).
CARE Ratings Ltd.
Plot no. C-001 A/2 Sector 16B, 4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Berger Tower, Noida, Gautam Budh Nagar (UP) - 201301 Eastern Express Highway, Sion (East), Mumbai - 400 022 Phone: +91-120-4452 000 Phone: +91-22-6754 3456 Email: [email protected] • www.careedge.in CIN-L67190MH1993PLC071691
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| (ii) Progress in the objects– | (ii) Progress in the objects– | (ii) Progress in the objects– | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Sr. No |
Item Head |
Source of information / certifications considered by Monitoring Agency for preparation of report |
Amount as proposed in the Offer Document in Rs. Crore |
Amount utilised in R | s. Crore | Total unutilised amount in Rs. crore |
Comments of the Monitoring Agency |
Comments of the Board of Directors |
||
| As at beginning of the quarter in Rs. Crore |
During the quarter in Rs. Crore |
At the end of the quarter in Rs. Crore |
Reasons for idle funds |
Proposed course of action |
||||||
| 1. | Capital expenditures towards IT equipment |
CA Certificate*, Management certificate, Bank Statements |
254.42 | - | 0.29 | 0.29 | 254.13 | The amount is utilized towards the purchase of IT Equipment. |
No comments |
No comments |
| 2. | Payment of lease rentals for IT equipment taken on lease |
CA Certificate*, Management certificate, Bank Statements |
39.14 | - | 0.34 | 0.34 | 38.80 | The amount is utilized towards payment of lease rentals. |
No comments |
No comments |
| 3. | General corporate purpose | CA Certificate*, Management certificate, Bank Statements |
97.85 | - | - | - | 97.85 | Nil amount spent in Q2FY25 | No comments |
No comments |
| 4. | Issue-related expenses | CA Certificate*, Management certificate, Bank Statements |
14.25 | - | - | - | 14.25 | Nil amount spent in Q2FY25 | No comments |
No comments |
| Total (Gross proceeds) | 405.66 | - | 0.63 | 0.63 | 405.03 | |||||
| *CA certificate dated October 24, 2024, from M/s G | S A & Associates | LLP, Chartered Accountants | (certified by p | eer reviewed board of ICAI). |
(iii) Deployment of unutilized proceeds:
| Sr. No. | Type of instrument and name of the entity invested in | Amount invested (in crore) |
Maturity date | Earning (in crore) |
Return on Investment (%) |
Market value as at the end of quarter (in crore) |
|---|---|---|---|---|---|---|
| 1 | Fixed deposit with HDFC Bank – 50301041689406 | 31.00 | October 14,2024 | 0.03 | 4.75% | 31.03 |
| 2 | Fixed deposit with HDFC Bank – 50301041690090 | 30.00 | January21,2025 | 0.04 | 6.95% | 30.04 |
CARE Ratings Ltd.
Plot no. C-001 A/2 Sector 16B, 4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Berger Tower, Noida, Gautam Budh Nagar (UP) - 201301 Eastern Express Highway, Sion (East), Mumbai - 400 022 Phone: +91-120-4452 000 Phone: +91-22-6754 3456 Email: [email protected] • www.careedge.in CIN-L67190MH1993PLC071691
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| 3 | Fixed deposit with HDFC Bank – 50301041697504 | 35.00 | January21,2025 | 0.05 | 7.20% | 35.05 |
|---|---|---|---|---|---|---|
| 4 | Fixed Deposit with Axis Bank – 924040096275651 | 25.00 | October 03,2025 | 0.04 | 7.52% | 25.04 |
| 5 | Fixed Deposit with Axis Bank – 924040096270041 | 4.00 | October 08,2024 | 0.01 | 4.75% | 4.01 |
| 6 | Fixed Deposit with Axis Bank – 924040096275415 | 28.00 | October 03,2025 | 0.04 | 7.52% | 28.04 |
| 7 | Fixed Deposit with Axis Bank – 924040096286101 | 25.00 | March 23,2025 | 0.03 | 7.25% | 25.03 |
| 8 | Fixed Deposit with Axis Bank – 924040096277932 | 25.00 | December 23,2024 | 0.03 | 6.95% | 25.03 |
| 9 | Fixed Deposit with Axis Bank – 924040096443045 | 14.00 | October 24,2024 | 0.01 | 5.50% | 14.01 |
| 10 | Fixed Deposit with Axis Bank – 924040096645306 | 50.00 | April 18,2025 | 0.06 | 7.55% | 50.06 |
| 11 | Fixed Deposit with Axis Bank – 924040096440240 | 25.00 | April 29,2025 | 0.03 | 7.40% | 25.03 |
| 12 | Fixed Deposit with Axis Bank – 924040096442958 | 38.00 | April 29,2025 | 0.05 | 7.40% | 38.05 |
| 13 | Fixed Deposit with Axis Bank – 924040096441214 | 50.00 | October 04,2025 | 0.06 | 7.52% | 50.06 |
| 14 | Fixed Deposit with Axis Bank – 924040096438904 | 25.00 | April 29,2025 | 0.03 | 7.40% | 25.03 |
| 15 | Special(or monitoring)account – Axis Bank – 924020054727660 | 0.03 | - | - | - | 0.03 |
| Total unutilizedproceeds | 405.03 | 0.51 | 405.54 |
| (iv) Delay in implementation of the object(s)– | |||||
|---|---|---|---|---|---|
| Completion Date | Delay | Comments of the Board of Directors | |||
| Objects | (no. of days/ |
Reason of | Proposed course | ||
| As per the offer document | Actual | ||||
months) |
delay | of action |
|||
| Capital expenditures towards IT equipment | To be utilized by August 31, 2027 | Ongoing | Not applicable | No comments | No comments |
| Payment of lease rentals for IT equipment taken on lease | To be utilized by August 31, 2027 | Ongoing | Not applicable | No comments | No comments |
| General corporate purpose | To be utilized by August 31, 2027 | Ongoing | Not applicable | No comments | No comments |
| Issue-related expenses | Not specified in the Offer Document | - | Not applicable | No comments | No comments |
5)Details of utilization of proceeds stated as General Corporate Purpose (GCP) amount in the offer document:
| Source of information / | |||||
|---|---|---|---|---|---|
| Sr. No. | Item Head^ |
Amount | certifications considered by | Comments of | Comments of the |
| in Rs. Crore | Monitoring Agency for |
Monitoring Agency | Board of Directors | ||
preparation of report |
|||||
| Nil amount spent in Q2FY25. | No comments | No comments |
CARE Ratings Ltd.
Plot no. C-001 A/2 Sector 16B, 4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Berger Tower, Noida, Gautam Budh Nagar (UP) - 201301 Eastern Express Highway, Sion (East), Mumbai - 400 022 Phone: +91-120-4452 000 Phone: +91-22-6754 3456 Email: [email protected] • www.careedge.in CIN-L67190MH1993PLC071691
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Disclaimers to MA report:
a) This Report is prepared by CARE Ratings Ltd (hereinafter referred to as “Monitoring Agency/ MA” ). The MA has taken utmost care to ensure accuracy and objectivity while developing this Report based on the information provided by the Issuer and information obtained from sources believed by it to be accurate and reliable. The views and opinions expressed herein do not constitute the opinion of MA to deal in any security of the Issuer in any manner whatsoever.
b) This Report has to be seen in its entirety; the selective review of portions of the Report may lead to inaccurate assessments. For the purpose of this Report, MA has relied upon the information provided by the management /officials/ consultants of the Issuer and third-party sources like statutory auditors (or from peer reviewed CA firms) appointed by the Issuer believed by it to be accurate and reliable. c) Nothing contained in this Report is capable or intended to create any legally binding obligations on the MA which accepts no responsibility, whatsoever, for loss or damage from the use of the said information. The MA is also not responsible for any errors in transmission and specifically states that it, or its directors, employees do not have any financial liabilities whatsoever to the users of this Report. d) The MA and its affiliates do not act as a fiduciary. The MA and its affiliates also do not act as an expert to the extent defined under Section 2(38) of the Companies Act, 2013. While the MA has obtained information from sources it believes to be reliable, it does not perform an audit and undertakes no independent verification of any information/ certifications/ statements it receives from auditors (or from peer reviewed CA firms), lawyers, chartered engineers or other experts, and relies on in its reports. e) The MA or its affiliates may have other commercial transactions with the entity to which the report pertains. As an example, the MA may rate the issuer or any debt instruments / facilities issued or proposed to be issued by the issuer that is subject matter of this report. The MA may receive separate compensation for its ratings and certain credit-related analyses, normally from issuers or underwriters of the instruments, facilities, securities or from obligors.
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CARE Ratings Ltd.
Plot no. C-001 A/2 Sector 16B, 4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Berger Tower, Noida, Gautam Budh Nagar (UP) - 201301 Eastern Express Highway, Sion (East), Mumbai - 400 022 Phone: +91-120-4452 000 Phone: +91-22-6754 3456 Email: [email protected] • www.careedge.in CIN-L67190MH1993PLC071691