Quick Heal Technologies Limited — Capital/Financing Update 2020

May 22, 2020

Quick Heal Technologies Ltd.

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Regd. Office: Marvel Edge, Office No. 7010 C & D, 7th Floor, Opposite Neco Garden Society, Viman Nagar, Pune 411014. Tel: +91 20 66813232 | Email: info@quickheal.com CIN - L72200MH1995PLC091408

Ref. No.: QHTL/Sec/SE/2020-21/11

May 22, 2020

The Manager, The Manager, Corporate Services, Corporate Services, BSE Limited, National Stock Exchange of India Limited, 14[th] floor, P J Towers, Dalal Street, Exchange Plaza, Bandra Kurla Complex, Mumbai – 400 001 Bandra (E), Mumbai – 400 051 Ref: Security ID: QUICKHEAL Symbol: QUICKHEAL Security Code: 539678 Series : EQ

Dear Sir/Madam,

Subject: Report of the Monitoring Agency for the quarter ended March 31, 2020

Please find enclosed herewith a Report of the Monitoring Agency, for the quarter ended March 31, 2020, for your records.

As permitted, this letter is being submitted under Sd/- mode due to work from home as per the Government advisory on Covid-19 and as a part of safety measure.

This is for your information and records.

Please acknowledge the receipt.

For Quick Heal Technologies Limited

Sd/-

A. Srinivasa Rao Company Secretary

Encl.: As above

www.quickheal.com

AXB/CO/IFB-TS/20-21/7 April 27, 2020

To,

Quick Heal Technologies Limited

Marvel Edge, 7010 C&D, 7[th] Floor, Opp. NECO Garden Society Pune – 411 014.

Kind Attn: Mr. Shankar Shinde

Dear Sir,

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 31[st] 2020 as per aforesaid SEBI Regulations.

Request you to kindly take the same on records.

Thanking you,

For Axis Bank Limited

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Authorised Signatory

Axis Bank Limited, ‘Axis House’, C-2, Wadia International Centre, Pandurang Budhkar marg, Worli, Mumbai - 400 025. www.axisbank.com

Report of the Monitoring Agency

Name of the Issuer: Quick Heal Technologies Ltd

For Quarter ended: March, 2020

Name of the Monitoring Agency: Axis Bank Limited

d(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

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Authorized Signatory Date: 27 April, 2020

1) Issuer Details:

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 :

[th] February 2016 to 18[th] February, 2016 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 for the offer. Issue size (Rs. in Crores): Fresh issue of Rs. 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	Comment
Advertisingand salespromotion	Asper annexure attached 3.1
Capital expenditure on research and development	Asper annexure attached 3.1
Purchase, development and renovation of office premises in Kolkata,Pune and New Delhi	As per annexure attached 3.1
General corporatepurposes	Asper 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

b) Deviation in the amount of fund actually utilized by more than 10% of the amount projected in the offer documents.

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)

Sl. No	Item Head	Original Cost (as per Offer Document)	Revised Cost	Comments of Monitoring Agency		Comments of Board of Directors	Comments of Board of Directors
					Reason of cost revision	Proposed financing option	Particulars of firm arran gem ents made
1.	Offer related expenses	157.49	174.74	The fact that estimated offer related expenses are short of actual expenses is mentioned in all earlier Utilization Certificate*

• Relevant comments are provided in our report dated 25[th] October, 2016

• (ii) Progress in the object(s)-Attached as Annexure 3.2

(iii) Deployment of unutilized IPO proceeds-

Sl. no.	Type of instrument where amount invested*	FD No	Amount invested	Maturity date	Accrued interest Earnings	Return on Investment (ROI % )	Market Value as at the end of quarter**
1.	Fixed Deposit with Kotak Mahindra Bank	8813188199	3,70,00,000	31-Aug- 20	~~#~~ 14,84,815	6.75%	3,84,84,815
2.	Fixed Deposit with Kotak Mahindra Bank	8813188205	4,70,00,000	31-Aug- 20	18,86,116	6.75%	4,88,86,116
3.	Fixed Deposit with Kotak Mahindra Bank	8813188168	1,90,00,000	22-Sep- 20	7,79,416	6.90%	1,97,79,416
4.	Fixed Deposit with Kotak Mahindra Bank	8814125315	4,10,00,000	26-Aug- 20	2,28,027	5.80%	4,12,28,027
5.	Fixed Deposit with Kotak Mahindra Bank	8814125858	4,10,00,000	26-Aug- 20	2,21,512	5.80%	4,12,21,512
6.	Fixed Deposit with Kotak Mahindra Bank	8814135505	4,87,50,000	12-Mar- 21	1,60,274	6.00%	4,89,10,274
7.	Fixed Deposit with Kotak Mahindra Bank	8814135956	4,00,00,000	15-Mar- 21	1,24,932	6.00%	4,01,24,932
8.	Fixed Deposit with Kotak Mahindra Bank	8814142596	8,45,00,000	23-Sep- 20	66,558	5.75%	8,45,66,558
9.	Fixed Deposit with Kotak Mahindra Bank	8814142701	9,80,00,000	23-Sep- 20	78,534	5.85%	9,80,78,534
10.	Fixed Deposit with ICICI Bank	624013035465	4,87,50,000	12-Mar- 21	1,57,258	6.00%	4,89,07,258
11.	Fixed Deposit with ICICI Bank	624013031756	6,75,00,000	25-Sep- 20	23,86,001	6.75%	6,98,86,001
14	Bank Balance in Axis Bank Account No. 916020008277004 as on 31 March 2020		8,57,095	NA	NA	NA	8,57,095
	Total						*58,09,30,538

• 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

• # Interest Accrued Earnings are mentioned as per interest accrued certificates issued by Bank.

• ## Interest accrued as per unaudited books of account is Rs. 75,49,723.29/- and as per Interest Certificates issued by bank is Rs. 75,73,443.00 /-

(iv) Delay in implementation of the object(s) -No. As per the objects of the offer stated in the prospectus the Total Net Proceeds received by Quick Heal Technologies Limited by way of IPO should be deployed during the fiscal years 2016,2017,2018 and 2019. However, if the funds are not utilized within prescribed period for reasons mentioned in prospectus, then such unutilized fund can be utilized in a fiscal year 2020 or any subsequent period as may be determined by the company. Based on the above, the Board of Directors of Quick Heal Technologies Limited in meeting dated 13th February 2019 have decided to extend the utilization of Net Proceeds to the subsequent fiscal years upto 31 March 2021 stating that the same is within p ermissible reason as specified in prospectus.

ANNEXURE 3.1 TO THE MONITORING AGENCY CERTIFICATE DATED 27[th] APRIL, 2020

Particulars	Reply	Monitoring Agency Comment	Comments of Board of Directors
Whether all the utilization is as per disclosure in Offer Document?	Yes	Utilization is as per disclosure in prospectus.
Whether Shareholder approval is obtained in case of material deviations from expenditures disclosed in Offer Document?	Not Applicable	For the concerned period, there is no material deviation for the expenses incurred on advertising and sales promotion expenses and Capital expenditure on research development & General Corporate purpose
Whether means of finance for disclosed objects of the Issue has changed?	No	Nil
Any major deviation observed over the earlier monitoring agency reports?	No	Not to our knowledge
Whether all Government / Statutory approvals related to the object(s) obtained?	Not Applicable	Nil
Whether all arrangements pertaining to technical assistance/collaboration in operation?	Yes	Nil
Any favorable events improving object(s) viability	No	Not to our knowledge

Particulars	Reply	Monitoring Agency Comment	Comments of Board of Directors
Any unfavorable events affecting object(s) viability	No	Not to our knowledge
Any other relevant information that may materially affect the decision making of the investors	No	Not to our knowledge

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ANNEXURE 3.2 TO THE MONITORING AGENCY CERTIFICATE DATED 27[th] APRIL, 2020

								Amount in million	Amount in million	Amount in million
Sl. No	Item Head	Amount as proposed in Letter of Offer		Amount utilized				Comments of Monitoring Agency	Comments of Board of Directors
			As at Beginning of the quarter	During the quarter	At the end of the quarter	Transfer of funds after approval obtained in AGM dt.15th July 2019	Total unutiliz ed Amoun t		Reas on of idle funds	Propo sed Cours e of Actio n
1	Advertising and Sales Promotion	1110	603.74	37.76	641.50	0	468.50	Expenses incurred on advertising and sales promotion are utilized from net proceeds and are in accordance with the objects of the offer as stated in prospectus.
2	Capital expenditure on research and development	418.80	414.64	3.82	418.47	0	0.33	Utilization is as per disclosure in prospectus
3	Purchase, development and renovation of office premises in Kolkata, Pune and New Delhi	275.95	188.72	0	188.72	(87.23)	0	For the said quarter, there is no expenditure incurred on Purchase, development and renovation of office premises in Kolkata, Pune and New Delhi. Amount of 87.23 is transferred from Purchase, development and renovation of office premises in Kolkata, Pune and New Delhi object to General Corporate Purposes object by resolution dated 15thJuly 2019
4	General corporate purposes	537.76	401.04	133.27	534.31	87.23	90.68	Utilization is as per disclosure in prospectus. Amount of 87.23 is transferred from Purchase, development and renovation of office premises in Kolkata, Pune and New Delhi object to this object byresolution dated 15thJuly2019
	Total	2342.51	1608.15	174.85	1782.99	0	559.51