Padam Cotton Yarns Ltd — Important, 09-06-2026: Company Update

1

Monitoring Agency Report

for Padam Cotton Yarns Limited

for the quarter ended March 31, 2026

2

Monitoring Agency Report

May 30, 2026

To

Padam Cotton Yarns Limited

C-801, Krish Cubical Govardhan Partyplot,

Avalon Hotal Road, Sindhu Bhavan Marg Thaltej,

Ahmedabad, Gujarat, India, 380059

Dear Sir,

Monitoring Agency Report for the quarter ended March 31, 2026 - in relation to the Right

Issue of Padam Cotton Yarns Limted (“The Company”)

We write in our capacity of Monitoring Agency for the right issue equity shares for the amount

aggregating to Rs. 18.71 crore of the Company and refer to our duties cast under 162A of the

Securities & Exchange Board of India (Issue of Capital & Disclosure Requirements)

Regulations, 2018 (SEBI ICDR Regulations).

In this connection, we are enclosing the Monitoring Agency Report for the quarter ended March

31, 2026, as per aforesaid SEBI Regulations and Monitoring Agency Agreement dated 27

th

March 2026.

Request you to kindly take the same on records.

Thanking you,

For and on behalf of Infomerics Valuation and Rating Limited

Mithun Vyas

(Associate Director - Ratings)

Mihun.Vyas@infomerics.com

3

Report of the Monitoring Agency

Name of the Issuer: Padam Cotton Yarns Limited

For quarter ended: March 31, 2026

Name of the Monitoring Agency: Infomerics Valuation and Rating Limited

(a) Deviation from the objects: Yes

(b) Range of Deviation: 15-20% (15.23%)

➢ As per the management Issue-related expenses of ₹0.37 crore were initially paid using loans

and advances from Ved Shastra Astro and later repaid from rights issue proceeds.

Accordingly, the repayment of loans obtained from Ved Shastra Astro has been treated as

reimbursement of issue-related expenses. However, MA was unable to verify that the

payments made to Ved Shastra Astro were actually for the purpose of issue-related

expenses

➢ As per the management declaration, out of the total amount of ₹2.80 crore incurred towards

general corporate purposes (GCP),

• The company has deployed a sum of ₹0.48 crore as interest-bearing loans and advances

to Ved Shastra Astro (this entity is same to whom issue related expenses are reimbursed,

please refer Note 2 above)

• ₹2.00 crore were extended as interest-bearing loans and advances to DSP Technical and

Financial Services.

Monitoring Agency (MA) could not independently verify the nature and purpose of these

advances. Further, the extension of interest-bearing loans and advances was not specified as an

object in the offer document and also names of these parties were not mentioned in the offer

document. Accordingly, an amount of ₹2.48 crore, along with ₹0.37 crore paid to Ved Shastra

Astro (treated as reimbursement of issue-related expenses), has been considered as a deviation.

The total deviation of ₹2.85 crore represents 15.23% of the gross issue proceeds of Rs. 18.71

crore

4

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 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 further declare that this report provides true and fair view of the utilization of issue proceeds.

Signature:

Name of the Authorized Person / Signing Authority: Mithun Vyas

Designation of Authorized person / Signing Authority: Associate Director - Ratings

Seal of the Monitoring Agency:

Date: May 30, 2026

5

1) Issuer Details:

Name of the issuer: Padam Cotton Yarns Limited

Names of the promoters of the issuer: Mr. Dinesh Shivcharanbhai Shreevastav

Industry/sector to which it belongs: The Company is presently engaged in trading and dealing of textiles, garments, and other allied products.

2) Issue Details:

Issue Period: Opening Date – March 02, 2026

Closing Date – March 13, 2026

Type of issue (public/rights): Right Issue

Type of specified securities: Equity shares

Grading: Not Applicable

Issue size (₹ in Crores): ₹ 18.71 crores (Note No. 1)

Note 1

The company has issued 9,03,70,000 Equity Shares at an issue price of ₹ 2.07/-(including a premium of ₹ 1.07/-) aggregating to ₹ 18.71 crore to

eligible shareholders basis for consideration of cash.

6

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 Monitoring

Agency

Comments of

Board of

Directors

Whether all the utilization is as per disclosure in

Offer

Document?

No

Bank Statement, CA

Certificate*, Management

Certificate, Ledgers, Invoices

Refer Note 2 and Note 3

Refer #Comments

below

Whether Shareholder approval is obtained in case

of material deviations from expenditures

disclosed in Offer

Document?

No

Management Declaration, CA

Certificate

Refer Note 2 and Note 3

Refer #Comments

below

Whether means of finance for disclosed objects of

the Issue has changed?

There is no change

in the means of

finance for

disclosed objects

Management Declaration, CA

certificate

Refer Note 1, Note 2 and Note 3

No comments

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) obtained?

Yes

As confirmed by the Issuer’s

management

.

No Comments

7

Whether all arrangements pertaining to technical

assistance/collaboration in operation?

Not Applicable Not applicable Not Applicable No Comments

Any favourable events improving object(s)

viability

Nil Not applicable Nil

No Comments

Any unfavourable events affecting object(s)

viability

Nil Not applicable Nil

No Comments

Any other relevant information that may

materially affect the decision making of the

investors

Nil

Not applicable

Nil

No Comments

Note 1: As per the offer letter, the amount allocated to be utilized from right issue proceeds towards issue expense was 0.75 lakh and that allocated

towards general corporate purpose for utilization was Rs 2.62 Crore. As per offer letter, in case of any difference between the estimated Issue

related expenses and actual expenses incurred, the shortfall or excess shall be adjusted with the amount allocated towards general corporate

purposes. Accordingly, the actual amount utilized towards issue-related expenses was Rs. 0.57 crore as against the estimated allocation of Rs. 0.75

crore. The unutilized balance of Rs. 0.18 crore was subsequently utilized towards general corporate purposes. As a result, the amount utilized

towards general corporate purposes increased to Rs. 2.80 crore as against 2.68 Crore.

Note 2. As per the management Issue-related expenses of ₹0.37 crore were initially paid using loans and advances from Ved Shastra Astro and

later repaid from rights issue proceeds. Supporting invoices covering approximately 85% of the total issue expenses have been reviewed, and

100% of the payments towards such expenses have been verified through the company’s current account.

8

Accordingly, the repayment of loans obtained from Ved Shastra Astro has been treated as reimbursement of issue-related expenses. However, MA

was unable to verify that the payments made to Ved Shastra Astro were actually for the purpose of issue-related expenses

Note 3- As per the management declaration, out of the total amount of ₹2.80 crore incurred towards general corporate purposes (GCP),

• The company has deployed a sum of ₹0.48 crore as interest-bearing loans and advances to Ved Shastra Astro (this entity is same to whom

issue related expenses are reimbursed, please refer Note 2 above)

• ₹2.00 crore were extended as interest-bearing loans and advances to DSP Technical and Financial Services.

Monitoring Agency (MA) could not independently verify the nature and purpose of these advances. Further, the extension of interest-bearing loans

and advances was not specified as an object in the offer document and also names of these parties were not mentioned in the offer document.

Accordingly, an amount of ₹2.48 crore, along with ₹0.37 crore paid to Ved Shastra Astro (treated as reimbursement of issue-related expenses),

has been considered as a deviation. The total deviation of ₹2.85 crore represents 15.23% of the gross issue proceeds.

#Comments

“The Company has utilized a portion of the funds allocated towards General Corporate Purposes for granting interest-bearing loans and advances.

The said deployment of funds was undertaken as a business decision with the objective of earning income on available funds and maximizing

returns for the benefit of the Company and its stakeholders. Company would like to draw your attention to the fact that the loans granted by the

Company are interest-bearing in nature and generate regular income for the Company. Accordingly, the utilization of funds is commercially

beneficial and contributes to the overall financial position of the Company. The management believes that such deployment constitutes a legitimate

corporate funding activity and is in the best interests of the Company. Further, the Company has duly complied with the provisions of Section 186

of the Companies Act, 2013. The shareholders of the Company had accorded approval by way of a Special Resolution passed at the Annual General

Meeting held on July 10, 2024, authorizing the Company to make loans, provide guarantees, give securities and make investments within the

prescribed limits. The loans granted by the Company are well within the limits approved by the shareholders and the Board of Directors.

9

The deployment of funds was approved by the Board of Directors in their meeting held on March 16, 2026 and was carried out in compliance with

applicable provisions of the Companies Act, 2013. The Company continues to monitor the utilization of Rights Issue proceeds and remains

committed to utilizing the funds in a transparent and compliant manner.

In view of the above, the Company respectfully submits that the utilization of funds towards interest-bearing loans and advances was undertaken

in compliance with the applicable legal provisions, is commercially beneficial to the Company, and does not prejudice the interests of shareholders

or other stakeholders”

4) Details of object(s)s to be monitored:

(i) Cost of object(s)-

Sl.

No

Item Head

Source of

information /

certifications

considered by

Monitoring

Agency for

preparation of

report

Cost (as per

the Offer

Document)

in ₹ in

Crore

Revised Cost (₹ in

crore)

Comments of

Monitoring Agency

Comments of Board of Directors

Reason of

cost

revision

Proposed

financing

option

Particulars

of firm

arrangeme

nts made

1

To augment the existing

and incremental working

Offer Letter, CA

Certificate,

15.34 15.34 No comments.

No

comments.

- -

10

capital requirement of

the company

Management

Certificate

2

General Corporate

Purposes

Letter of Offer,

CA Certificate,

Management

Certificate

2.62 2.80 Refer Note 1, Note 2

and Note 3

Refer

#Comments

below

-

-

5 Issue related expenses

Letter of Offer,

CA Certificate,

Management

Certificate

0.75 0.57 Refer Note 1 and

Note 2

Refer

#Comments

below

-

-

TOTAL 18.71 18.71

The above details are also verified by S V J K and Associates, Chartered Accountants (FRN:135182W) vide its CA certificate dated May 20, 2026.

who is also the statutory auditor of the company

Note 1: As per the offer letter, the amount allocated to be utilized from right issue proceeds towards issue expense was 0.75 lakh and that allocated

towards general corporate purpose for utilization was Rs 2.62 Crore. As per offer letter, in case of any difference between the estimated Issue

related expenses and actual expenses incurred, the shortfall or excess shall be adjusted with the amount allocated towards general corporate

purposes. Accordingly, the actual amount utilized towards issue-related expenses was Rs. 0.57 crore as against the estimated allocation of Rs. 0.75

crore. The unutilized balance of Rs. 0.18 crore was subsequently utilized towards general corporate purposes. As a result, the amount utilized

towards general corporate purposes increased to Rs. 2.80 crore as against 2.68 Crore.

11

Note 2. As per the management Issue-related expenses of ₹0.37 crore were initially paid using loans and advances from Ved Shastra Astro and

later repaid from rights issue proceeds. Supporting invoices covering approximately 85% of the total issue expenses have been reviewed, and

100% of the payments towards such expenses have been verified through the company’s current account.

Accordingly, the repayment of loans obtained from Ved Shastra Astro has been treated as reimbursement of issue-related expenses. However, MA

was unable to verify that the payments made to Ved Shastra Astro were actually for the purpose of issue-related expenses

Note 3- As per the management declaration, out of the total amount of ₹2.80 crore incurred towards general corporate purposes (GCP),

• The company has deployed a sum of ₹0.48 crore as interest-bearing loans and advances to Ved Shastra Astro (this entity is same to whom

issue related expenses are reimbursed, please refer Note 2 above)

• ₹2.00 crore were extended as interest-bearing loans and advances to DSP Technical and Financial Services.

Monitoring Agency (MA) could not independently verify the nature and purpose of these advances. Further, the extension of interest-bearing loans

and advances was not specified as an object in the offer document and also names of these parties were not mentioned in the offer document.

Accordingly, an amount of ₹2.48 crore, along with ₹0.37 crore paid to Ved Shastra Astro (treated as reimbursement of issue-related expenses),

has been considered as a deviation. The total deviation of ₹2.85 crore represents 15.23% of the gross issue proceeds.

#Comments

“The Company has utilized a portion of the funds allocated towards General Corporate Purposes for granting interest-bearing loans and advances.

The said deployment of funds was undertaken as a business decision with the objective of earning income on available funds and maximizing

returns for the benefit of the Company and its stakeholders. Company would like to draw your attention to the fact that the loans granted by the

Company are interest-bearing in nature and generate regular income for the Company. Accordingly, the utilization of funds is commercially

beneficial and contributes to the overall financial position of the Company. The management believes that such deployment constitutes a legitimate

corporate funding activity and is in the best interests of the Company. Further, the Company has duly complied with the provisions of Section 186

12

of the Companies Act, 2013. The shareholders of the Company had accorded approval by way of a Special Resolution passed at the Annual General

Meeting held on July 10, 2024, authorizing the Company to make loans, provide guarantees, give securities and make investments within the

prescribed limits. The loans granted by the Company are well within the limits approved by the shareholders and the Board of Directors.

The deployment of funds was approved by the Board of Directors in their meeting held on March 16, 2026 and was carried out in compliance with

applicable provisions of the Companies Act, 2013. The Company continues to monitor the utilization of Rights Issue proceeds and remains

committed to utilizing the funds in a transparent and compliant manner.

In view of the above, the Company respectfully submits that the utilization of funds towards interest-bearing loans and advances was undertaken

in compliance with the applicable legal provisions, is commercially beneficial to the Company, and does not prejudice the interests of shareholders

or other stakeholders”

(ii) Progress in the object(s)-

Sl.

No

Item Head

@

Source of

information /

certifications

considered by

Monitoring

Agency for

preparation of

report

Amount

as

proposed

in the

Offer

Documen

t in Rs.

Crore

Amount

raised till

March 31,

2026

(₹ in crore)

(Q4FY26)

Amount utilized

Unutilis

ed

amount

in Rs.

crore

Comments

of

Monitorin

g Agency

Comments of Board of

Directors

As at

Beginning

of the

quarter

During

the

quarter

At the

end of

the

quarter

Reason of

idle funds

Proposed

Course of

Action

13

1

To augment

the existing

and

incremental

working

capital

requirement

of the

company

CA

Certificate,

Management

Certificate,

Bank

statements,

ledgers and

relevant

supporting

invoices

15.34 15.34 - 15.34 15.34 -

Refer

Note 1, 2

and 3

No

Comments

No

Comments

2

General

Corporate

Purpose

CA

Certificate,

Management

Certificate,

Bank

statements,

ledgers

2.62 2.62 - 2.80 2.80 (-0.18)

Refer

Note 1, 2

and 3

Refer

#Comments

below

-

5

Issue related

expenses

CA Certificate,

Management

Certificate,

Bank

statements and

relevant

supporting

invoices

0.75 0.75 - 0.57 0.57 0.18

Refer

Note 1, 2

and 3.

Refer

#Comments

below

-

14

TOTAL 18.71 18.71 - 18.71 18.71^ 0

The above details are also verified by S V J K and Associates, Chartered Accountants (FRN:135182W) vide its CA certificate dated May 20, 2026.

who is also the statutory auditor of the company

^

Almost all the funds raised through the rights issue were utilized during Q4FY26, with only ₹4,791 remaining unutilized, which was kept in a

public monitoring account.

Note 1: As per the offer letter, the amount allocated to be utilized from right issue proceeds towards issue expense was 0.75 lakh and that allocated

towards general corporate purpose for utilization was Rs 2.62 Crore. As per offer letter, in case of any difference between the estimated Issue

related expenses and actual expenses incurred, the shortfall or excess shall be adjusted with the amount allocated towards general corporate

purposes. Accordingly, the actual amount utilized towards issue-related expenses was Rs. 0.57 crore as against the estimated allocation of Rs. 0.75

crore. The unutilized balance of Rs. 0.18 crore was subsequently utilized towards general corporate purposes. As a result, the amount utilized

towards general corporate purposes increased to Rs. 2.80 crore as against 2.68 Crore.

Note 2. As per the management Issue-related expenses of ₹0.37 crore were initially paid using loans and advances from Ved Shastra Astro and

later repaid from rights issue proceeds. Supporting invoices covering approximately 85% of the total issue expenses have been reviewed, and

100% of the payments towards such expenses have been verified through the company’s current account.

Accordingly, the repayment of loans obtained from Ved Shastra Astro has been treated as reimbursement of issue-related expenses. However, MA

was unable to verify that the payments made to Ved Shastra Astro were actually for the purpose of issue-related expenses

Note 3- As per the management declaration, out of the total amount of ₹2.80 crore incurred towards general corporate purposes (GCP),

• The company has deployed a sum of ₹0.48 crore as interest-bearing loans and advances to Ved Shastra Astro (this entity is same to whom

issue related expenses are reimbursed, please refer Note 2 above)

• ₹2.00 crore were extended as interest-bearing loans and advances to DSP Technical and Financial Services.

15

Monitoring Agency (MA) could not independently verify the nature and purpose of these advances. Further, the extension of interest-bearing loans

and advances was not specified as an object in the offer document and also names of these parties were not mentioned in the offer document.

Accordingly, an amount of ₹2.48 crore, along with ₹0.37 crore paid to Ved Shastra Astro (treated as reimbursement of issue-related expenses),

has been considered as a deviation. The total deviation of ₹2.85 crore represents 15.23% of the gross issue proceeds.

#Comments

“The Company has utilized a portion of the funds allocated towards General Corporate Purposes for granting interest-bearing loans and advances.

The said deployment of funds was undertaken as a business decision with the objective of earning income on available funds and maximizing

returns for the benefit of the Company and its stakeholders. Company would like to draw your attention to the fact that the loans granted by the

Company are interest-bearing in nature and generate regular income for the Company. Accordingly, the utilization of funds is commercially

beneficial and contributes to the overall financial position of the Company. The management believes that such deployment constitutes a legitimate

corporate funding activity and is in the best interests of the Company. Further, the Company has duly complied with the provisions of Section 186

of the Companies Act, 2013. The shareholders of the Company had accorded approval by way of a Special Resolution passed at the Annual General

Meeting held on July 10, 2024, authorizing the Company to make loans, provide guarantees, give securities and make investments within the

prescribed limits. The loans granted by the Company are well within the limits approved by the shareholders and the Board of Directors.

The deployment of funds was approved by the Board of Directors in their meeting held on March 16, 2026 and was carried out in compliance with

applicable provisions of the Companies Act, 2013. The Company continues to monitor the utilization of Rights Issue proceeds and remains

committed to utilizing the funds in a transparent and compliant manner.

In view of the above, the Company respectfully submits that the utilization of funds towards interest-bearing loans and advances was undertaken

in compliance with the applicable legal provisions, is commercially beneficial to the Company, and does not prejudice the interests of shareholders

or other stakeholders”

16

@

Brief description of Object(s):

S.no Name of the object(s) Brief description of the object(s)

1

To augment the existing and incremental

working capital requirement of our company

Padam Cotton Yarns Limited is expanding into trading of textile garments, with a strategic

focus on menswear and kids wear. As part of this expansion, the Company plans to

establish new sales offices in Ahmedabad and Delhi. This expansion into multiple

metropolitan and tier-2 markets will require significant augmentation of working capital.

The entire amount of ₹15.34 crore earmarked for working capital purposes has been

utilized for the purchase of finished goods for trading operations.

2 General Corporate Purpose

The Net Proceeds will first be utilized towards the Objects, as well as meeting the Issue-

related expenses. Subject to this, Company intends to deploy any balance left out of the

Net Proceeds towards general corporate purposes and the business requirements of

Company, as approved by management, from time to time. Utilization for general

corporate purposes shall not exceed 25% of the Gross Proceeds of the Issue. Such

utilisation towards general corporate purposes shall be to drive business growth, including,

amongst other things , (a) funding growth opportunities, (b) employee expenses, (c)

meeting of exigencies which our Company may face in the course of any business, (d)

advertising, brand building and other marketing expenses, (e) additional Issue expenses, if

any, and any other purpose in the ordinary course of business as may be approved by the

Board or a duly appointed committee from time to time, subject to compliance with

applicable laws.

Management will have flexibility in utilizing the proceeds earmarked for general corporate

purposes towards the object of this issue. In the event that company unable to utilize the

entire amount that they have currently estimated for use out of Net Proceeds in a Fiscal,

17

they will utilize such unutilized amount in the subsequent Fiscals towards the object of the

Issue. Out of the total Rs 2.80 crore incurred towards General Corporate purchases, Rs

0.48 crore was provided as loans and advances to Ved Shastra Astro, Rs 0.01 crore was

paid to Mr. Deenesh Sreevastav as director remuneration, Rs 2.00 crore was provided as

loans and advances to DSP Technical and Financial Services, and the remaining Rs 0.31

crore was incurred towards purchases

(iii) Deployment of unutilized Right Issue proceeds: Almost all the funds raised through the rights issue were utilized for their intended

purposes during Q4FY26, with only ₹4,791 remaining unutilized, which was kept in a public monitoring account

Sl. no.

Type of instrument

where amount

invested

Amount

invested

(in Rs)

Maturity

date

Earnings

(in Crores)

Return on

Investment

(ROI %)

Market Value as at

the end of quarter (in Rs)

1.

Public Monitoring

Account No. -

494705000120

4791 - - - 4791

18

(iv) Delay in implementation of the object(s)-

Object(s) Name Completion Date

Delay (No. of days/

months)

Comments of Board of Directors

As per Offer Document Actual *

Reason of delay

Proposed Course of

Action

To augment the

existing and

incremental working

capital requirement

of our company

FY25-26 25-26 No Delay

General Corporate

Purpose

FY25-26 25-26 No Delay

*Almost all the funds raised through the rights issue were utilized for their intended purposes during Q4FY26, with only ₹4,791 remaining

unutilized, which was kept in a public monitoring account

19

v) Details of utilisation of Proceeds stated as General Corporate Purpose (GCP) amount in the offer document:

S.No Item Head Amount in ₹ in

Crore

Source of Information/Certifications

Considered by the Monitoring agency for

preparation of report

Comments of

Monitoring Agency

Comments of the

Board of Directors

1 Loans and Advances –

Ved Shastra Astro

0.48 Bank Statements, CA Certificate, Ledger GCP utilised for

giving loans and

advances. Refer Note

below

2 Loans and Advances -

DSP Technical and

Financial Services

2.00 Bank Statements, CA Certificate, Ledger GCP utilised for

giving loans and

advances.

3

Director Remuneration

0.01

Bank Statements, CA Certificate*, ledgers

GCP utilised for

payment of

remuneration to

director

4 Purchases 0.31 Bank Statements, CA Certificate*, Invoices

and ledger

GCP utilised for

payment towards

purchases made

TOTAL 2.80

* The above details are also verified by S V J K and Associates, Chartered Accountants (FRN:135182W) vide its CA certificate dated May 20, 2026.

who is also the statutory auditor of the company

20

DISCLAIMERS:

➢ This Report is prepared by Infomerics Valuation and Rating Limited (hereinafter

referred to as "Monitoring Agency” / “MA" / “IVRL”). 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.

➢ 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/independent chartered accountant appointed by the Issuer

believed by it to be accurate and reliable.

➢ 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.

➢ 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, lawyers, chartered engineers or other experts, and relies

on in its reports

➢ 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.

➢ The MA report is intended for the jurisdiction of India only. This report does not

constitute an offer of services. Without limiting the generality of the foregoing, nothing in the

report is to be construed as MA providing or intending to provide any services in jurisdictions

outside India, where it does not have the necessary licenses and/or registration to carry out its

business activities referred to above.

➢ Access or use of this report does not create a client relationship between MA and the

user.

➢ MA is not aware that any user intends to rely on the report or of the manner in which a

user intends to use the report. In preparing this report, MA has not taken into consideration

the objectives or particular needs of any particular user.

➢ It is made abundantly clear that the report is not intended to and does not constitute an

investment advice. The report is not an offer to sell or an offer to purchase or subscribe for

any investment inany securities, instruments, facilities or solicitation of any kind to enter into

any deal or transaction with the entity to which the report pertains.

21

➢ The report comprises professional opinion of MA as of the date they are expressed,

based on the information received from the issuer and other sources considered reliable by

MA. Any opinions expressed here are in good faith, are subject to change without notice, and

are only current as of the stated date of their issue. The report does not constitute statements

of fact or recommendations to purchase, hold or sell any securities/instruments or to make any

investment decisions.

➢ Neither MA nor its affiliates, third-party providers, as well as their directors, officers,

shareholders, employees or agents guarantee the accuracy, completeness or adequacy of the

report, and shall not have any liability for any errors, omissions or interruptions therein,

regardless of the cause, or for the results obtained from the use of any part of the report. MA

and each aforesaid party disclaim any and all express or implied warranties, including but not

limited to any warranties of merchantability, suitability or fitness for a particular purpose or

use or use. In no event shall MA or any aforesaid party be liable to any user for any direct,

indirect, incidental, exemplary, compensatory, punitive, special or consequential damages,

costs, expenses, legal fees or losses (including, without limitation, lost income or lost profits

and opportunity costs) in connection with any use of any part of the report even if advised of

the possibility of such damages.

➢ MA has established policies and procedures to maintain the confidentiality of certain

non-public information received in connection with the preparation of this report. MA has in

place a code of conduct and policies for managing conflict of interest.

➢ Unless required under any applicable law, this report should not be reproduced or

redistributed to any other person or in any form without prior written consent from MA.

➢ By accepting a copy of this Report, the recipient accepts the terms of this Disclaimer,

which forms an integral part of this Report.