10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

[X]	QUARTERLY REPORT UNDER TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED APRIL 30, 2012
	OR
[   ]	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number:   000-54166

MONAR INTERNATIONAL INC.

(Exact name of registrant as specified in its charter)

NEVADA

(State or other jurisdiction of incorporation or organization)

1103 United Success Commercial Centre

508 Jaffe Road

Causeway Bay

Hong Kong, China

(Address of principal executive offices, including zip code)

852-9738-1945

(Registrant’s telephone number, including area code)

Indicate by check mark whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the last 90 days.   YES [X]     NO [   ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (SS 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).   YES [X]     NO [   ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer,” “non-accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated Filer	[   ]	Accelerated Filer	[   ]
Non-accelerated Filer	[   ]	Smaller Reporting Company	[X]
(Do not check if smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   YES [X]     NO [   ]

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicated the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

57,600,000 as of June 11, 2012.

Monar International Inc.

Form 10-Q for the Quarter Ended April 30, 2012

INDEX TO FINANCIAL STATEMENTS

		Page No.
	Part I. - Financial Information
Item 1.	Financial Statements.
	Consolidated Balance Sheets as of April 30, 2012 (Unaudited) and July 31, 2011.	3
	Consolidated Statements of Expenses for the Three Months and Nine Months ended April 30, 2012 and 2011 and for the period from July 6, 2009 (Inception) to April 30, 2012 (Unaudited).	4
	Consolidated Statements of Cash Flows for the Nine Months ended April 30, 2012 and 2011 and for the period from July 6, 2009 (Inception) to April 30, 2012 (Unaudited).	5
	Notes to Consolidated Financial Statements (Unaudited).	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operation.	9
Item 3.	Quantitative and Qualitative Disclosure about Market Risk.	13
Item 4.	Controls and Procedures.	13
	Part II. - Other Information
Item 1A.	Risk Factors.	13
Item 2.	Changes in Securities and Use of Proceeds.	13
Item 6.	Exhibits.	14
Signatures		15
Exhibit Index		16

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PART I – FINANCIAL INFORMATION

ITEM 1.          FINANCIAL STATEMENTS.

Monar International Inc.
(A Development Stage Company)
Consolidated Balance Sheets
	April 30, 2012			July 31, 2011
	(Unaudited)
Current assets
Cash	$	9		$	72
Prepaid expenses		369			208
Total current assets		378			280
TOTAL ASSETS	$	378		$	280
LIABILITIES & STOCKHOLDERS' DEFICIT
Current liabilities
Accounts payable	$	63,927		$	12,735
Advances from related party		62,739			28,941
Accrued salary		8,750			-
Advances from third party		3,000			-
Total current liabilities		138,416			41,676
Total liabilities	$	138,416		$	41,676
Stockholders' Deficit
Preferred stock, $0.00001 par value, 100,000,000 shares authorized, 0 issued and outstanding	$	-		$	-
Common stock, $0.00001 par value, 250,000,000 shares authorized, 57,600,000  issued and outstanding as of April 31, 2012 and July 31, 2011		576			576
Additional paid-in capital		75,474			75,474
Cumulative translation adjustment		(105	)		(53	)
Deficit accumulated during development stage		(213,983	)		(117,393	)
Total stockholders' deficit		(138,038	)		(41,396	)
Total liabilities & stockholders' deficit	$	378		$	280

The accompanying notes are an integral part of these unaudited consolidated financial statements

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Monar International Inc.
(A Development Stage Company)
Consolidated Statements of Expenses
(Unaudited)
													From July 6, 2009
	Three Months Ended						Nine Months Ended						(Inception) to
	April 30, 2012			April 30, 2011			April 30, 2012			April 30, 2011			April 30, 2012
Revenue	$	-		$	-		$	-		$	-		$	-
Expenses
Professional fees	$	13,124		$	29,478		$	75,818		$	51,268		$	179,180
Officers' salary	$	-			-			8,750			-			8,750
Filing fees		615			-			1,570			3,379			7,766
Travel expense		-			-			4,397			-			9,026
Meals and entertainment		-			-			1,042			-			1,042
Rent expense		-			195			390			585			1,950
Advertising and promotion		3,058			-			3,308			-			4,048
Office supplies and expenses		-			-			164			-			164
Dues & Subscriptions		39			-			39			-			39
Business license and fees		-			-			315			-			315
Postage and shipping		-			-			173			-			173
Bank service charges		163			810			624			810			1,530
Total expenses		16,999			30,483			96,590			56,042			213,983
Net Loss	$	(16,999	)	$	(30,483	)	$	(96,590	)	$	(56,042	)	$	(213,983	)
Other Comprehensive (Loss) Income
Foreign currency translation adjustment		(54	)		23			(52	)		(34	)		(105	)
Total Comprehensive Loss	$	(17,053	)	$	(30,460	)	$	(96,642	)	$	(56,076	)	$	(214,088	)
Basic and diluted net loss per share	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)
Weighted average number of common shares outstanding, basic and diluted		57,600,000			57,600,000			57,600,000			57,600,000

The accompanying notes are an integral part of these unaudited consolidated financial statements

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Monar International Inc
(A Development Stage Company)
Consolidated Statements of Cash Flows
(Unaudited)
	Nine Months Ended						July 6, 2009 (Inception) to
	April 30, 2012			April 30, 2011			April 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(96,590	)	$	(56,042	)	$	(213,983	)
Adjustments to reconcile net loss to net cash used in operating activities:
Changes in operating assets and liabilities:
Prepaid expenses and deposits		(161	)		(1,000	)		(369	)
Accounts payable		54,192			4,425			66,927
Accrued salary		8,750			-			8,750
Net cash used in operating activities		(33,809	)		(52,617	)		(138,675	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from sale of stock to founder		-			-			50
Proceeds from advances from  related party		34,123			21,000			101,262
Repayments of advances to related party		(325	)		(37,500	)		(38,523	)
Proceeds from stock subscription		-			-			76,000
Net cash provided by (used in)  financing activities		33,798			(16,500	)		138,789
Effect of exchange rate on cash		(52	)		(33	)		(105	)
Net increase (decrease) in cash		(63	)		(69,150	)		9
Cash at beginning of period		72			71,780			-
Cash at end of period	$	9		$	2,630		$	9
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash Paid for interest	$	-		$	-		$	-
Cash Paid for income taxes	$	-		$	-		$	-
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Payments of accounts payable by a third party	$	3,000		$	-		$	3,000

The accompanying notes are an integral part of these unaudited consolidated financial statements

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Monar International Inc.

(A Development Stage Company)

Notes to Consolidated Financial Statements

(Unaudited)

NOTE 1 – ORGANIZATION AND BUSINESS OPERATIONS

Monar International Inc. (the “Company”) was incorporated in Nevada on July 6, 2009.  On December 15, 2010, the Company incorporated a wholly owned subsidiary, Monar Hong Kong Limited (Monar HK), in Hong Kong. On September 2, 2011, the Company incorporated Syntas Inc., a wholly owned subsidiary, in Nevada, United States.  Monar HK had minimal activities since incorporation through April 30, 2012; results of its operations are included in these consolidated financial statements.  As of April 30, 2012, Syntas Inc did not have any assets or any activity since their inception through April 30, 2012.

The Company has limited operations and in accordance with FASB ASC 915-15, is considered a development stage company. The Company has had no revenues from operations from its inception to date.

Initial operations have included organization, capital formation, target market identification, and marketing plans. The Company has a website (www.monarinc.com) that will offer to the public tasteful traditional style Chinese furniture adapted to modern needs for Asian ethnic and high end markets in North America. As of April 30, 2012, the website is still under development.

In March 2012, the Company announced its decision to implement a new business strategy by entering the business of providing supply of forest product to the Chinese market. The Company believes that its new business strategy will increase the scale and profitability of the Company’s China business activities and will enhance shareholder value.  The new strategy will involve a re-structuring of the Company to enable both the online sales and forest products sales to develop efficiently.  The Company expects to have its plans for re-structuring finalized in the next two months.

NOTE 2 - BASIS OF PRESENTATION

The accompanying unaudited interim consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Financial Report on Form 10-K for the fiscal year ended July 31, 2011, as filed with the SEC.

In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim period presented, have been reflected herein. The results of operations for the interim period are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal period, as reported in the Form 10-K, have been omitted.

The Company’s consolidated financial statements include all accounts of Monar International Inc. and its two wholly owned subsidiaries: Monar HK and Syntas. All significant inter-company balances and transactions have been eliminated in consolidation.

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Monar International Inc.

(A Development Stage Company)

Notes to Consolidated Financial Statements

(Unaudited)

NOTE 3 – GOING CONCERN

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates, among other things, the realization of assets and satisfaction of liabilities in the normal course of business. If the Company fails to generate positive cash flow or obtain additional financing, when required, it may have to modify, delay, or abandon some or all of its business and expansion plans.

At April 30, 2012, the Company had cash and cash equivalents of $9 and working capital deficit of $138,038, which compares to $72 cash and $41,396 working capital deficit as of July 31, 2011. The ability of the Company to emerge from the development stage is dependent upon the Company's successful efforts to raise sufficient capital and then attaining profitable operations. The Company intends to fund operations through sales and equity financing arrangements.

For the three months ended April 30, 2012 and 2011, the Company had net operating losses of $16,999 and $30,483. During the nine months period ended April 30, 2012 and 2011, the Company had net operating losses of $96,590 and $56,042, respectively. From inception through April 30, 2012 the Company incurred a cumulative net operating loss of $213,983.

The Company believes that its existing capital resources may not be adequate to enable it to execute its business plan, and that it will require additional cash resources during 2012 based on its current operating  plan and conditions. These conditions raise substantial doubt as to the Company's ability to continue as a going concern. The accompanying statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.

NOTE 4 - RECLASSIFICATIONS

During the nine months ended April 30, 2012, the Company accrued salaries of $8,750 to Mr. Rodriguez, the Company’s Principal Accounting and Financial Officer and Treasurer. Mr. Rodriguez resigned from his position in November of 2011, and is no longer deemed to be a related party. The whole amount of accrued salaries of $8,750 due to Mr. Rodriguez as of April 30, 2012 was reclassified as being due to unrelated party. There was no amount due to Mr. Rodriguez outstanding as of July 31, 2011.

NOTE 5 – RELATED PARTY TRANSACTIONS

To support its operations, the Company receives advances from Robert Clarke, President and sole Director, and 7bridge Capital Partners Limited, which is controlled by Mr. Clarke. These advances are non-interest bearing, unsecured and due on demand.

During the nine months ended April 30, 2012, the Company received $34,123 in cash advances from the related party for its operating expenses and repaid $325 of the advances.

As of April 30, 2012 and July 31, 2011, $62,739 and $28,941, respectively, were due to 7bridge and Robert Clarke for cash advances.

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Monar International Inc.

(A Development Stage Company)

Notes to Consolidated Financial Statements

(Unaudited)

NOTE 6 – SUBSEQUENT EVENTS

On June 12, 2012, the Company entered into a loan agreement with a third party. Per the terms of the agreement, the third party will advance to the Company a loan of funds and /or payment of third party expenses to a maximum of $50,000. This loan will be non-interest bearing and has to be repaid on or before September 1, 2012, unless the parties agree otherwise.  During the quarter ended April 30, 2012, a third party made a payment of $3,000 on behalf of the Company which is deemed to be a part of the loan.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION.

This section of this quarterly report includes a number of forward-looking statements that reflect our current views with respect to future events and financial performance. Forward-looking statements are often identified by words like: believe, expect, estimate, anticipate, intend, project and similar expressions, or words which, by their nature, refer to future events. You should not place undue certainty on these forward-looking statements, which apply only as of the date of this report. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or our predictions.

Results of operations

From Inception on July 6, 2009 April 30, 2012

We had a loss from operations for the three months ended April 30, 2012 of $16,999 in comparison to $30,483 loss for the three months ended April 30, 2011. During the nine months period ended April 30, 2012 and 2011, the Company had net operating losses of $96,590 and $56,042, respectively. We are in the start-up phase of our proposed business operations.

As of April 30, 2012 we have cash on hand of $ 9. To fund ongoing activities and business development we expect to receive additional advances from 7bridge Capital, a company controlled by our President.  We expect to be able to receive sufficient funds from 7bridge to enable us to complete our web site and start-up our business, as well as to cover professional fees.  These advances will continue to be without interest or specific terms of payment.  Beyond the start-up phase we do not expect to be able to receive advances from 7bridge indefinitely and if we are unable to generate sufficient revenue from sales or are unable to locate other sources of funds we will not continue and will cease operations.

From inception on July 6, 2009 to April 30, 2012, we incorporated the company, hired the attorney, hired an auditor and our registration statement was declared effective by the SEC. We incorporated a wholly owned subsidiary, Monar Hong Kong Limited on December 15, 2010 and a second wholly-owned subsidiary, Syntas Inc., in Nevada on September 2, 2011. We have prepared an internal business plan. We have reserved the domain name “www.monarinc.com” and commenced construction of our web site.

We have had loss from operations from inception on July 6, 2009 to April 30, 2012 of $213,983, mostly related to our professional and consulting fees of $179,180. The professional fees included legal fees of $59,703, audit and accounting fees of $82,290 and consulting and other professional fees of $37,187. Since inception to date, we also incurred officer’s salary of $8,750, filing fees of $7,766, travel expenses of $9,026, and other expenses of $9,261.

Since inception, we sold 5,000,000 shares of common stock to our sole officer and director for $50 and have collected gross proceeds under our public offering of $76,000 to January 31, 2011. Shares totaling 760,000 shares of common stock were issued to the subscribers to our public offering on August 17, 2010.

On July 8, 2010, the completion of our public offering provided us with sufficient capital to begin our operations. We are currently implementing our business plan to begin operations and are following our plan to spend the funds as described in the Use of Proceeds section of our prospectus, which was filed with the SEC on December 3, 2009.

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On January 12, 2011, we declared a stock dividend of 9 new shares for each 1 share held (10:1) with a record date of January 24, 2011. These additional shares were issued immediately after the record date.

On January 24, 2011 our Board of Directors approved an increase in authorized capital from 100,000,000 common shares to 250,000,000 common shares. This increase was approved by written consent of our majority shareholder, Robert Clarke, our President, who holds approximately 86.81% of our common stock. All shareholders at the record date of February 1, 2011 were notified by mail of the increase in authorized capital when it became effective.

On January 28, 2011 we entered into an agreement with Adegu Canada Inc. (“Adegu”) located in Toronto, Ontario, Canada, wherein we retained Adegu to provide general management services and access to certain technical understandings and expertise for the development of our business operations.  The term of the agreement was three months at a fee of CDN$7,000.00 per month.

On April 28, 2011, Charlie Rodriguez was appointed treasurer, principal financial officer and principal accounting officer.  Mr. Rodriguez replaced Robert Clarke in those positions. Mr. Clarke continued as president, principal executive officer, secretary, and the sole member of the board of directors.  Mr. Rodriquez was selected for the foregoing positions as a result of his past experiences with public companies.  On November 14, 2011 Mr. Rodriguez resigned as Chief Financial Officer.  Mr. Rodriguez has not expressed any disagreements with us over any financial or accounting matter. During his period with us we orally agreed with Mr. Rodriguez to pay him a monthly fee of $2,500 as his compensation.  In total $7,500 is still owed to Mr. Rodriguez for three months compensation up to the date of his resignation on Nov. 14, 2011. We expect to have sufficient funds to pay the compensation owed to Mr. Rodriguez over the next 3 to 6 months.

On May 5, 2011, we entered into a non-binding memorandum of understanding (MOU) with a group of shareholders of Integrated Clinical Care Corporation, a Nevada corporation (“ICC”) to acquire up to 100% of the outstanding shares of common stock of ICC in exchange for 50,000,000 restricted shares of our common stock.  ICC offers to medical practices usable work flow solutions that include advanced support systems at the point-of-care in the field medical/clinical services with special emphasis on the rapidly evolving practice of oncology.  On July 5, 2011 we replaced the MOU with a binding share exchange agreement with an anticipated closing date of July 31, 2011.  It subsequently proved impossible to close the contemplated transaction by July 31, 2011, nor for an extended period thereafter, and as a result, we gave formal notice to ICC on Oct. 17, 2011 that the proposed share exchange was canceled.

On March 20, 2012, we announced that we had initiated a new business strategy which we believe will increase the scale and profitability of our China business activities and will enhance shareholder value. In developing the supplier base for our online sales of Chinese furniture we became evident that major opportunities exist for the supply of sustainable forest products to the Chinese market and we have decided to develop a business based on supply such products to the Chinese market.  This will involve a re-structuring of our company to enable both the online sales and forest products sales to develop efficiently.  We expect to have our plans for re-structuring finalized in the next two months.

In a further step to develop the forest products business, on April 10, 2012, we entered into an agreement with Pan Pacific Group International Inc.  (“PPGI”) whereby PPGI will be paid a fee of 10% fee for negotiating logging contracts in the Republic of Suriname over a four-year period. Further, PPGI will be paid US$5.00 per cubic meter for Asia and European export logs; a US$20,000 set up fee upon signing a formal agreement with us; 10% net profits on domestic log and lumber sales; and 500,000

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restricted shares of our common stock.  Since then the time limit on this initial agreement has expired and the agreement is null and void, but we are in contact with PPGI to negotiate a more extensive agreement covering essentially the same terms.  At this is point there is no deadline to finalize this new agreement.

We are negotiating for expanded premises to establish our office and acquire the equipment for our operations. Earlier we had expected to have expanded office premises in place by November 1, 2010, but we have delayed this as we did not have an immediate need.  We finalized new office arrangements in April 2011 and have been operating our Hong Kong office from a location in the Causeway Bay district as of August 2011. We have allocated $10,000 for the initial setup of the office and do not expect to exceed that amount. As costs are incurred for office set-up we expect to be able to cover these via advances from 7bridge Capital.  We do not intend to hire employees for the foreseeable future. Our sole officer and director will handle our administrative duties and he will also contract for such other personnel as we may require on a short term basis.

To date we have spent nominal time designing the website, but we are now developing a re-designed web site for which we are testing its basic functionality. We now believe we will have about a 30% overrun on our original budget of $10,000 for the website which will include graphics and links from our site. We intend to locate smaller, new manufacturers to offer their products on a more exclusive basis and are currently evaluating several Chinese manufacturers.

To facilitate our operations in Hong Kong we incorporated a company in Hong Kong under the name Monar Hong Kong Limited and this company will be the focus for our day to day operations in Hong Kong and China. As well, in February 2012 we decided to focus all future development of our web site through Monar Hong Kong Limited utilizing the abundant, low cost IT and web development resources available in the province of Guangdong which is adjacent to Hong Kong.  We commenced this transition in late February following the full resumption of business activities in China after the break for Chinese New Year.  Final completion of the online sales web site has been deferred until we finalize our corporate structure to accommodate the forest products business.  In work has been ongoing on web site development and we have also modified it to cover activities in forest product sales to China.

On June 8, 2012 we signed a letter agreement with Capex Investment Ltd. to provide funding for working capital up to $50,000.  To date $28,000 of this facility has been used.  We have to repay these funds by September 1, 2012 unless a longer term agreement is negotiated with Capex.

Plan of Operation

We completedour public offering on July 8, 2010 and our specific goal is to profitably sell products on our Internet website to the public. We intend to accomplish the foregoing by the following steps.

1. Marketing and advertising will be focused on promoting our website and products. The advertising campaign may also include the design and printing of various sales materials. Once our website is fully operational we intend to market our products and website through traditional sources. Advertising and promotion will be an ongoing effort but the initial cost of developing the campaign is estimated to cost between $15,000 to $35,000.

2. Once the website is fully functional and we have located and negotiated agreements with a suitable number of suppliers to offer their products for sale, we intend to hire 1 or 2 part-time salesperson(s) to fill Internet orders from customers.

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3. We anticipate that we will generate revenues as soon as we are able to offer products for sale on our website. This will happen once we negotiated agreements with one or two suppliers of products and we are currently identifying Chinese suppliers the products we wish to offer.

4. We will not be conducting any research. We are not going to buy or sell any plant or significant equipment during the next twelve months.

5. We will develop a separate business plan for our recently announced intention to supply forest products to the Chinese market.

6. If we cannot generate sufficient revenues to continue operations, we will suspend or cease operations. If we cease operations, we do not know what we will do and we do not have any plans to do anything.

Limited operating history and need for additional capital

There is no historical financial information about us upon which to base an evaluation of our performance. We are in a start-up stage operations and have not generated any revenues. We cannot guarantee we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources and possible cost overruns due to price and cost increases in services and products.

To become profitable and competitive, we have to locate and negotiate agreements with manufacturers to offer their products for sale to us at pricing that will enable us to establish and sell the products to our clientele at a profit and although we are in the process of locating suitable manufacturers there is no assurance that we will be successful in doing so. We will also need to seek additional equity financing to provide capital if we are to grow rapidly.

We have no assurance that future financing will be available to us on acceptable terms. If financing is not available on satisfactory terms, we may be unable to continue, develop or expand our operations. Equity financing could result in additional dilution to existing shareholders.

Liquidity and capital resources

As of the date of this report, we have yet to generate any revenues from our business operations.

We issued 5,000,000 shares of common stock pursuant to the exemption from registration contained in Regulation S of the Securities Act of 1933. This was accounted for as a sale of common stock. We completed our public offering on July 8, 2010 and sold 760,000 shares of common stock at an offering price of $0.10 per share to 48 individuals and raised $76,000.

As of April 30, 2012, our total assets were $378, comprised of cash and prepaid expenses, and our total liabilities were $138,416, out of which $62,739 was due to 7bridge Capital Partners Limited for payments made for our operating expenses.

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ITEM 3.          QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

ITEM 4.          CONTROLS AND PROCEDURES.

Under the supervision and with the participation of our management, including the Principal Executive Officer and Principal Financial Officer, we have evaluated the effectiveness of our disclosure controls and procedures as required by Exchange Act Rule 13a-15(b) as of the end of the period covered by this report. Based on that evaluation, the Principal Executive Officer and Principal Financial Officer have concluded that these disclosure controls and procedures are effective.

There were no changes in our internal control over financial reporting during the quarter ended April 30, 2012 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. - OTHER INFORMATION

ITEM 1A.       RISK FACTORS.

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

ITEM 2.          CHANGES IN SECURITIES AND USE OF PROCEEDS.

On November 30, 2009, our Form S-1 registration statement (SEC file no. 333-161566) was declared effective by the SEC. Pursuant to the Form S-1, we offered 750,000 shares minimum, 1,500,000 shares maximum at an offering price of $0.10 per share in a direct public offering, without any involvement of underwriters or broker-dealers. On July 8, 2010, we completed our public offering and sold 760,000 shares of common stock at an offering price of $0.10 per share and raised $76,000. Since then, we have paid the following amounts from the proceeds of our public offering:

Website development	$	15,500
Database	$	7,500
Marketing and advertising	$	10,175
Establishing an office	$	2,500
Salaries	$	0
Working capital	$	2,500
TOTAL	$	35,675

We realized net proceeds of $45,000 after offering costs and we have spent $35,675 of this amount as identified above. We expect to pay the remaining costs identified in our S-1 Use of Proceeds in the next 3 to 6 months with funds advanced as necessary from 7bridge Capital.  During the three months ended April 30, 2012, we incurred new expenditures for web site development and other business development activities totaling $11,675.

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ITEM 6.          EXHIBITS.

		Incorporated by reference
Exhibit	Document Description	Form	Date	Number	Filed herewith
3.1	Articles of Incorporation.	S-1	8/26/09	3.1
3.2	Bylaws.	S-1	8/26/09	3.2
3.3	Amended Articles of Incorporation.	10-Q	3/16/11	3.1
4.1	Specimen Stock Certificate.	S-1	8/26/09	4.1
10.1	Memorandum of Lease.	S-1/A-1	10/08/09	10.1
14.1	Code of Ethics.	10-K	10/27/10	14.1
31.1	Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.				X
32.1	Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.				X
99.2	Audit Committee Charter.	10-K	10/27/10	99.2
99.3	Disclosure Committee Charter.	10-K	10/27/10	99.3
101.INS	XBRL Instance Document.				X
101.SCH	XBRL Taxonomy Extension – Schema.				X
101.CAL	XBRL Taxonomy Extension – Calculations.				X
101.DEF	XBRL Taxonomy Extension – Definitions.				X
101.LAB	XBRL Taxonomy Extension – Labels.				X
101.PRE	XBRL Taxonomy Extension – Presentation.				X

-14-

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following person on behalf of the Registrant and in the capacities on this 13th day of June, 2012.

MONAR INTERNATIONAL INC.
(the “Registrant”)
BY:	ROBERT G. CLARKE
	Robert G. Clarke
	President, Principal Executive Officer, Principal Accounting Officer, Principal Financial Officer, Secretary, Treasurer and sole member of the Board of Directors

-15-

EXHIBIT INDEX

		Incorporated by reference
Exhibit	Document Description	Form	Date	Number	Filed herewith
3.1	Articles of Incorporation.	S-1	8/26/09	3.1
3.2	Bylaws.	S-1	8/26/09	3.2
3.3	Amended Articles of Incorporation.	10-Q	3/16/11	3.1
4.1	Specimen Stock Certificate.	S-1	8/26/09	4.1
10.1	Memorandum of Lease.	S-1/A-1	10/08/09	10.1
14.1	Code of Ethics.	10-K	10/27/10	14.1
21.1	List of Subsidiaries.	10-K	10/31/11	21.1
31.1	Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.				X
32.1	Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.				X
99.2	Audit Committee Charter.	10-K	10/27/10	99.2
99.3	Disclosure Committee Charter.	10-K	10/27/10	99.3
101.INS	XBRL Instance Document.				X
101.SCH	XBRL Taxonomy Extension – Schema.				X
101.CAL	XBRL Taxonomy Extension – Calculations.				X
101.DEF	XBRL Taxonomy Extension – Definitions.				X
101.LAB	XBRL Taxonomy Extension – Labels.				X
101.PRE	XBRL Taxonomy Extension – Presentation.				X

-16-

EX-31.1

Exhibit 31.1

SARBANES-OXLEY SECTION 302(a) CERTIFICATION

I, Robert G. Clarke, certify that:

1. I have reviewed this Form 10-Q for the period ended April 30, 2012 of Monar International Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and,

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant=s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant=s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant=s internal control over financial reporting.

Date:   June 13, 2012	ROBERT G. CLARKE
	Robert G. Clarke
	Principal Executive Officer and Principal Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. Section 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Monar International Inc. (the “Company”) on Form 10-Q for the period ended April 30, 2012, as filed with the Securities and Exchange Commission on the date here of (the “report”), I, Robert G. Clarke, Chief Executive and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated this 13th day of June, 2012.

ROBERT G. CLARKE

Robert G. Clarke

Chief Executive Officer and Chief Financial Officer

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NOTE 4 - RECLASSIFICATIONS

3 Months Ended

Apr. 30, 2012

Reclassifications [Text Block]

NOTE 4 - RECLASSIFICATIONS

During the nine months ended April 30, 2012, the Company accrued salaries of $8,750 to Mr. Rodriguez, the Company’s Principal Accounting and Financial Officer and Treasurer. Mr. Rodriguez resigned from his position in November of 2011, and is no longer deemed to be a related party. The whole amount of accrued salaries of $8,750 due to Mr. Rodriguez as of April 30, 2012 was reclassified as being due to unrelated party. There was no amount due to Mr. Rodriguez outstanding as of July 31, 2011.

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NOTE 3 - GOING CONCERN

3 Months Ended

Apr. 30, 2012

Going Concern Note

NOTE 3 – GOING CONCERN

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates, among other things, the realization of assets and satisfaction of liabilities in the normal course of business. If the Company fails to generate positive cash flow or obtain additional financing, when required, it may have to modify, delay, or abandon some or all of its business and expansion plans.

At April 30, 2012, the Company had cash and cash equivalents of $9 and working capital deficit of $138,038, which compares to $72 cash and $41,396 working capital deficit as of July 31, 2011. The ability of the Company to emerge from the development stage is dependent upon the Company's successful efforts to raise sufficient capital and then attaining profitable operations. The Company intends to fund operations through sales and equity financing arrangements.

For the three months ended April 30, 2012 and 2011, the Company had net operating losses of $16,999 and $30,483. During the nine months period ended April 30, 2012 and 2011, the Company had net operating losses of $96,590 and $56,042, respectively. From inception through April 30, 2012 the Company incurred a cumulative net operating loss of $213,983.

The Company believes that its existing capital resources may not be adequate to enable it to execute its business plan, and that it will require additional cash resources during 2012 based on its current operating  plan and conditions. These conditions raise substantial doubt as to the Company's ability to continue as a going concern. The accompanying statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.

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Consolidated Balance Sheets (USD $)	Apr. 30, 2012	Jul. 31, 2011
Current assets
Cash	$ 9	$ 72
Prepaid expenses	369	208
Total current assets	378	280
TOTAL ASSETS	378	280
Current liabilities
Accounts payable	63,927	12,735
Advances from related party	62,739	28,941
Accrued salary	8,750
Advances from third party	3,000
Total current liabilities	138,416	41,676
Total liabilities	138,416	41,676
Stockholders' Deficit
Common stock, $0.00001 par value, 250,000,000 shares authorized, 57,600,000 issued and outstanding as of April 31, 2012 and July 31, 2011	576	576
Additional paid-in capital	75,474	75,474
Cumulative translation adjustment	(105)	(53)
Deficit accumulated during development stage	(213,983)	(117,393)
Total stockholders' deficit	(138,038)	(41,396)
Total liabilities & stockholders' deficit	$ 378	$ 280

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NOTE 1 - ORGANIZATION AND BUSINESS OPERATIONS

3 Months Ended

Apr. 30, 2012

Significant Accounting Policies [Text Block]

NOTE 1 – ORGANIZATION AND BUSINESS OPERATIONS

Monar International Inc. (the “Company”) was incorporated in Nevada on July 6, 2009.  On December 15, 2010, the Company incorporated a wholly owned subsidiary, Monar Hong Kong Limited (Monar HK), in Hong Kong. On September 2, 2011, the Company incorporated Syntas Inc., a wholly owned subsidiary, in Nevada, United States.  Monar HK had minimal activities since incorporation through April 30, 2012; results of its operations are included in these consolidated financial statements.  As of April 30, 2012, Syntas Inc did not have any assets or any activity since their inception through April 30, 2012.

The Company has limited operations and in accordance with FASB ASC 915-15, is considered a development stage company. The Company has had no revenues from operations from its inception to date.

Initial operations have included organization, capital formation, target market identification, and marketing plans. The Company has a website (www.monarinc.com) that will offer to the public tasteful traditional style Chinese furniture adapted to modern needs for Asian ethnic and high end markets in North America. As of April 30, 2012, the website is still under development.

In March 2012, the Company announced its decision to implement a new business strategy by entering the business of providing supply of forest product to the Chinese market. The Company believes that its new business strategy will increase the scale and profitability of the Company’s China business activities and will enhance shareholder value.  The new strategy will involve a re-structuring of the Company to enable both the online sales and forest products sales to develop efficiently.  The Company expects to have its plans for re-structuring finalized in the next two months.

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NOTE 2 - BASIS OF PRESENTATION

3 Months Ended

Apr. 30, 2012

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

NOTE 2 - BASIS OF PRESENTATION

The accompanying unaudited interim consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Financial Report on Form 10-K for the fiscal year ended July 31, 2011, as filed with the SEC.

In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim period presented, have been reflected herein. The results of operations for the interim period are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal period, as reported in the Form 10-K, have been omitted.

The Company’s consolidated financial statements include all accounts of Monar International Inc. and its two wholly owned subsidiaries: Monar HK and Syntas. All significant inter-company balances and transactions have been eliminated in consolidation.

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Consolidated Balance Sheets (Parentheticals) (USD $)	Apr. 30, 2012	Jul. 31, 2011
Preferred stock par value (in Dollars per share)	$ 0.00001	$ 0.00001
Preferred stock, shares authorized	100,000,000	100,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in Dollars per share)	$ 0.00001	$ 0.00001
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	57,600,000	57,600,000
Common stock, shares outstanding	57,600,000	57,600,000

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Document And Entity Information (USD $)	9 Months Ended
	Apr. 30, 2012	Jun. 14, 2012
Document and Entity Information [Abstract]
Entity Registrant Name	Monar International Inc.
Document Type	10-Q
Current Fiscal Year End Date	--07-31
Entity Common Stock, Shares Outstanding		57,600,000
Entity Public Float		$ 3,420,000
Amendment Flag	false
Entity Central Index Key	0001470719
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Well-known Seasoned Issuer	No
Document Period End Date	Apr. 30, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q3

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Consolidated Statements of Expenses (USD $)	3 Months Ended		9 Months Ended		34 Months Ended
	Apr. 30, 2012	Apr. 30, 2011	Apr. 30, 2012	Apr. 30, 2011	Apr. 30, 2012
Expenses
Professional fees	$ 13,124	$ 29,478	$ 75,818	$ 51,268	$ 179,180
Officers' salary			8,750		8,750
Filing fees	615		1,570	3,379	7,766
Travel expense			4,397		9,026
Meals and entertainment			1,042		1,042
Rent expense		195	390	585	1,950
Advertising and promotion	3,058		3,308		4,048
Office supplies and expenses			164		164
Dues & Subscriptions	39		39		39
Business license and fees			315		315
Postage and shipping			173		173
Bank service charges	163	810	624	810	1,530
Total expenses	16,999	30,483	96,590	56,042	213,983
Net Loss	(16,999)	(30,483)	(96,590)	(56,042)	(213,983)
Other Comprehensive (Loss) Income
Foreign currency translation adjustment	(54)	23	(52)	(34)	(105)
Total Comprehensive Loss	$ (17,053)	$ (30,460)	$ (96,642)	$ (56,076)	$ (214,088)
Basic and diluted net loss per share (in Dollars per share)	$ 0.00	$ 0.00	$ 0.00	$ 0.00
Weighted average number of common shares outstanding, basic and diluted (in Shares)	57,600,000	57,600,000	57,600,000	57,600,000

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NOTE 6 - SUBSEQUENT EVENTS

3 Months Ended

Apr. 30, 2012

Subsequent Events [Text Block]

NOTE 6 – SUBSEQUENT EVENTS

On June 12, 2012, the Company entered into a loan agreement with a third party. Per the terms of the agreement, the third party will advance to the Company a loan of funds and /or payment of third party expenses to a maximum of $50,000. This loan will be non-interest bearing and has to be repaid on or before September 1, 2012, unless the parties agree otherwise.  During the quarter ended April 30, 2012, a third party made a payment of $3,000 on behalf of the Company which is deemed to be a part of the loan.

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Consolidated Statements of Cash Flows (USD $)	9 Months Ended		34 Months Ended
	Apr. 30, 2012	Apr. 30, 2011	Apr. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (96,590)	$ (56,042)	$ (213,983)
Changes in operating assets and liabilities:
Prepaid expenses and deposits	(161)	(1,000)	(369)
Accounts payable	54,192	4,425	66,927
Accrued salary	8,750		8,750
Net cash used in operating activities	(33,809)	(52,617)	(138,675)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from sale of stock to founder			50
Proceeds from advances from related party	34,123	21,000	101,262
Repayments of advances to related party	(325)	(37,500)	(38,523)
Proceeds from stock subscription			76,000
Net cash provided by (used in) financing activities	33,798	(16,500)	138,789
Effect of exchange rate on cash	(52)	(33)	(105)
Net increase (decrease) in cash	(63)	(69,150)	9
Cash at beginning of period	72	71,780
Cash at end of period	9	2,630	9
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Payments of accounts payable by a third party	$ 3,000		$ 3,000

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NOTE 5 - RELATED PARTY TRANSACTIONS

3 Months Ended

Apr. 30, 2012

Related Party Transactions Disclosure [Text Block]

NOTE 5 – RELATED PARTY TRANSACTIONS

To support its operations, the Company receives advances from Robert Clarke, President and sole Director, and 7bridge Capital Partners Limited, which is controlled by Mr. Clarke. These advances are non-interest bearing, unsecured and due on demand.

During the nine months ended April 30, 2012, the Company received $34,123 in cash advances from the related party for its operating expenses and repaid $325 of the advances.

As of April 30, 2012 and July 31, 2011, $62,739 and $28,941, respectively, were due to 7bridge and Robert Clarke for cash advances.