Avalon Technologies Limited — Interim / Quarterly Report 2024

Feb 1, 2024

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To:

To:

BSE Limited The Manager Corporate Relationship Department Listing Department PJ towers, The National Stock Exchange of India Limited Dalal Street, “Exchange Plaza”, Bandra – Kurla Complex, Mumbai -400001 Bandra (EAST), Mumbai – 400051 BSE SCRIP CODE: 543896 NSE Symbol: AVALON

Sirs,

Sub: -

Outcome of Board Meeting under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015.

This is to inform you that:

1. The Board of Directors at its meeting held today, i.e., February 01, 2024, has approved the Unaudited Standalone and Consolidated Financial Results for the Quarter Ended December 31, 2023, of the Company. The meeting commenced at 06.25 PM and concluded at 8.15 P.M.

2. The said Unaudited Standalone and Consolidated Financial Results for the Quarter Ended December 31, 2023, with the Limited Review Report of the Auditors are enclosed

3. Further, the Board approved the recommendation of the Nomination and Remuneration Committee and allotted 15,675 equity shares to the employees’ consequent upon exercise of their ESOPs, at an exercise price of Rs. 20/- as determined under the “ AVALON- Employee Stock Option Plan 2022 ” by the eligible employees.

In terms of the aforesaid allotment of equity shares, the paid-up capital of the Company stands increased from ₹13,12,71,788 comprising of 6,56,35,894 equity shares to ₹13,13,03,138 comprising of 6,56,51,569 equity shares of Rs. 2/- each.

You are requested to kindly take the above on records.

Yours sincerely,

For AVALON TECHNOLOGIES LIMITED

Digitally signed by RAJESH V Date: 2024.02.01 20:19:30 RAJESH V +05'30'

Name of the Person : Dr. V. Rajesh Designation : Company Secretary Membership Number: F9213 Date: February 01, 2024

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Avalon Technologies limited (formerly known as Avalon Technologies Private Limited) CIN:U30007TN1999PLC043479 Registered Office: B-7 First Main Road, MEPZ-SEZ, Tambaram, Chennai - 600045, Tamil Nadu, India Visit us at https://www.avalontec.com

STATEMENT OF UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTH ENDED DECEMBER 31, 2023

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(₹. In Millions)
For the Year
For the Quarter Ended For the Nine Month Ended
Ended
S.No Particulars
31 Dec'23 30 Sep'23 31 Dec'22 31 Dec'23 31 Dec'22 31 Mar'23
Unaudited Unaudited (Refer Note 3) Unaudited (Refer Note 3) Audited
I Revenue from Operations 1,195.90 974.73 1,231.13 3,306.24 3,462.72 4,793.71
II Other Income 34.54 57.92 17.72 145.39 52.77 48.84
III Total Income (I+II) 1,230.44 1,032.65 1,248.85 3,451.63 3,515.49 4,842.55
IV Expenses:
Cost of raw materials consumed 833.39 757.06 943.98 2,425.03 2,702.72 3,683.19
Purchases of Stock-in-Trade - - - - - -
Changes in Inventories of finished goods, work-in-progress
and stock in trade 31.78 (22.98) (30.38) 15.48 (77.12) (131.86)
Employee benefit expenses 127.60 112.87 102.39 353.96 312.67 416.50
Finance costs 3.25 3.20 39.35 23.39 130.20 176.43
Depreciation and amortisation expenses 13.42 13.61 12.41 39.80 34.72 48.70
Other expenses 79.64 67.01 103.41 209.63 226.31 265.26
Total Expenses 1,089.08 930.77 1,171.16 3,067.29 3,329.50 4,458.22
V Profit before tax (III-IV) 141.36 101.88 77.69 384.34 185.99 384.33
VI Tax Expense:
(1) Current Tax 35.95 22.32 19.07 91.40 45.66 95.95
(2) Tax of earlier years - - - - - -
(3) Deferred Tax 0.72 3.04 0.95 5.80 2.27 4.69
36.67 25.36 20.02 97.20 47.93 100.64
VII Profit for the period / year (V - VI) 104.69 76.52 57.67 287.14 138.06 283.69
VIII Other Comprehensive Income
A. i) Items that will not be reclassified to profit or loss
a) Remeasurements of the defined benefit
(1.19) (1.40) (0.80) (3.57) (2.78) (3.92)
plans - Gratuity
ii) Income tax expense on remeasurement 0.30 0.35 0.20 0.90 0.70 0.99
benefit/(loss) of defined benefit plans
Total other comprehensive income/ (loss) A (i+ii) (0.89) (1.05) (0.60) (2.67) (2.08) (2.93)
IX Total Comprehensive Income for the period / year 103.80 75.47 57.07 284.47 135.98 280.76
(VII+VIII)
X Paid up Equity share Capital 131.27 130.96 113.36 131.27 113.36 115.91
(Nominal Value Rs. 2 each)
XI Other Equity 6,454.03
XII Earnings Per Equity Share (not (not (not
(not annualised) (not annualised) (annualised)
(Nominal value per share ₹ 2/-) annualised) annualised) annualised)
(a) Basic (In ₹ ) 1.60 1.17 1.02 4.41 2.46 5.00
(b) Diluted (In ₹ ) 1.56 1.14 0.99 4.31 2.38 4.89
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Digitally signed by KUNHAMED BICHA DN: c=IN, o=AVALON TECHNOLOGIES PRIVATE LIMITED, KUNHAME ou=DIRECTOR, 2.5.4.20=abb0688b30bc016601eeb7fe04c7d259ce3686e 22211d220a48c389a2d30316a, postalCode=600045, st=TAMIL NADU, serialNumber=2a1f9b2a71ccb9cafca7293ff39cae6dc98ae D BICHA b01bf45b18efee7665c09eac7d2, cn=KUNHAMED BICHA Date: 2024.02.01 19:46:52 +05'30'

Avalon Technologies Limited

(formerly known as Avalon Technologies Private Limited)

CIN: U30007TN1999PLC043479

Regd Office: B-7, First Main Road, MEPZ-SEZ, Tambaram, Chennai - 600 045, Tamil Nadu, India visit us at https://www.avalontec.com

Notes to Statement of Unaudited Standalone financial results for the quarter and nine months ended December 31, 2023

Notes:

• 1 The above unaudited standalone financial results for the quarter and nine months ended December 31, 2023, have been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34 “Interim Financial Reporting” (“Ind AS 34”) as prescribed under Section 133 of the Companies Act, 2013, which were reviewed and recommended by the Audit Committee and approved by the Board of Directors at its respective meetings held on January 31, 2024. The statutory auditors of the Company have carried out a limited review of the results for the quarter and nine months ended December 31, 2023, and have issued an unmodified conclusion thereon.

• 2 The Company has completed the Initial Public Offering of 19,839,446 equity shares of face value of ₹2 each at an issue price of ₹436 per equity share, consisting of a fresh issue of 7,339,449 equity shares aggregating to ₹3,200 Million and an offer for sale of 12,499,997 equity shares aggregating to ₹5,450 Million. The equity shares of the Company were listed on the National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) w.e.f April 18, 2023. The Company had also completed two pre-IPO placements during the previous year aggregating to ₹1,600 Million, consisting of ₹800 million of primary issuance and ₹800 million of secondary share sales. The first pre-IPO issue consisted of 798,339 Equity shares of ₹2 each at ₹375.78 per share and the second pre-IPO issue consisted of 1,173,543 Equity shares of ₹2 each at ₹426.06 per share.

• 3 The results for the quarter and nine months ended December 31, 2022, have not been subject to an audit or review by the Statutory Auditors. However, the management has exercised necessary diligence to ensure that the financial results for these periods provide a true and fair view of the Company's affairs

• 4 The expenditure incurred by the Company in connection with the IPO is ₹ 546.50 Million (including GST). These expenses have been allocated between the Company and selling shareholders in proportion to the total proceeds raised and also considering the nature of expenditure incurred. The Company's share of expenses of ₹176.96 Million has been adjusted against Securities Premium.

• 5 The Company has received an amount of ₹ 2,995.70 Million (net of IPO expenses) from proceeds out of the fresh issue of equity shares. The utilisation of net IPO proceeds is summarised below:

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(₹ In Millions)
Unutilised amount as on
Amount as per Utilisation upto
Objects of the issue as stated in the prospectus December 31, 2023
prospectus (A) December 31, 2023 (B)
(A-B)
Prepayment or repayment of all or a portion of certain outstanding
borrowings availed by our Company and one of our Material Subsidiaries, 1,450.00 1,450.00 -
Avalon Technology and Services Pvt Limited [Refer (b) below]
Funding the working capital requirements of our Company 900.00 900.00 -
General corporate purposes [Refer (a) & (b) below] 644.00 645.70 -
Total 2,994.00 2,995.70 -
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(a) As disclosed in the Prospectus, the amount to be spent for General Corporate Purposes is ₹ 644.00 Million which is arrived at as ₹ 850.00 Million less estimated issue expenses of ₹ 206.00 Million. Considering the actual issue expenses (including GST) of ₹ 204.30 Million, the amount utilised towards General Corporate Purposes stands at ₹ 645.70 Million.

(b) The company has infused ₹ 830.02 million (including ₹ 711.39 million out of IPO proceeds) in one of its material subsidiaries, Avalon Technology and Services Private Limited, consisting of ₹ 300.02 Million as equity investment and ₹ 530.00 Million as unsecured loan.

• 6 The Company operates in only one reportable business segment i.e. providing Electronics Manufacturing Services (EMS) with capabilities in printed circuit board assembly, custom cable and wire harnesses, etc., as determined by the chief operating decision maker, in accordance with Ind AS 108 “Operating Segments”.

• 7 Number of employee stock options granted is 17,79,750 and outstanding as at December 31, 2023 is 13,97,820. During the quarter ended December 31,2023, the company has allotted 1,57,995 Equity shares upon excercise of Employee stock options by the eligible employees.

• 8 The previous period figures have been re-grouped wherever necessary to conform to current period's presentation.

For Avalon Technologies Limited

KUNHAME Digitally signed by KUNHAMED BICHA DN: c=IN, o=AVALON TECHNOLOGIES PRIVATE LIMITED, ou=DIRECTOR, 2.5.4.20=abb0688b30bc016601eeb7fe04c7d259ce3686 D BICHA e22211d220a48c389a2d30316a, postalCode=600045, st=TAMIL NADU, serialNumber=2a1f9b2a71ccb9cafca7293ff39cae6dc98aeb01bf45b18efee7665c09eac7d2, cn=KUNHAMED BICHA Date: 2024.02.01 19:45:41 +05'30'

Chennai Dated : February 01, 2024

Kunhamed Bicha Chairman & Managing Director

Varma & Varma

Chartered Accountants

Independent Auditor's Review Report on Review of Unaudited Standalone Financial Results.

To The Board of Directors of Avalon Technologies Limited

1. We have reviewed the accompanying Statement of Unaudited Standalone Financial Results of Avalon Technologies Limited (“the Company”) for the quarter and nine months ended December 31, 2023 (“the Statement”), being submitted by the Company pursuant to the requirement of Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended (“Listing Regulations”).

2. This Statement, which is the responsibility of the Company's Management and approved by the Company's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard 34 “Interim Financial Reporting” (“Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.

3. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 ‘Review of Interim Financial Information Performed by the Independent Auditor of the Entity’, issued by the Institute of Chartered Accountants of India (ICAI). This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statements is free of material misstatement. A review of interim financial information consists of making inquiries, primarily of the Company's personnel responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing specified under section 143(10) of the Companies Act, 2013 and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

4. Based on our review conducted as stated in paragraph 3 above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement.

New No.2 (Old No.20)|Second Canal Cross Road ,Gandhi Nagar | Adyar,Chennai - 600 020 Ph: +91 44 24452239, 24423496 E-mail : chennai@varmaandvarma.com

Varma & Varma

Chartered Accountants

Other Matter

1. Attention is invited to Note No.3 to the Statement. As stated therein, the Statement includes results for the quarter and nine months ended December 31,2022 which have not been subject to an audit or review by us.

Our conclusion is not modified in respect of the above matter.

For Varma & Varma Chartered Accountants FRN. 004532S

Digitally signed by POONJAR POONJAR RAMA RAMA PRASANNA VARMA PRASANNA VARMA Date: 2024.02.01 19:54:11 +05'30'

Place : Chennai Date : February 01, 2024

P. R. Prasanna Varma Partner M.No. 025854 UDIN: 24025854BKGPXN6975

New No.2 (Old No.20)|Second Canal Cross Road ,Gandhi Nagar | Adyar,Chennai - 600 020 Ph: +91 44 24452239, 24423496 E-mail : chennai@varmaandvarma.com

Avalon Technologies limited (formerly known as Avalon Technologies Private Limited) CIN:U30007TN1999PLC043479

Registered Office: B-7 First Main Road, MEPZ-SEZ, Tambaram, Chennai - 600045, Tamil Nadu, India Visit us at https://www.avalontec.com

STATEMENT OF UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2023

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For the Year
For the Quarter Ended For the Nine months Ended
Ended
S.No Particulars
31 Dec'23 30 Sep'23 31 Dec'22 31 Dec'23 31 Dec'22 31 Mar'23
Unaudited Unaudited (Refer Note 4) Unaudited (Refer Note 4) Audited
I Revenue from Operations 2,142.73 2,009.93 2,326.92 6,503.58 6,733.92 9,447.19
II Other Income 21.51 47.43 12.26 120.13 146.53 143.50
III Total Income (I+II) 2,164.24 2,057.36 2,339.18 6,623.71 6,880.45 9,590.69
IV Expenses:
Cost of raw materials consumed 1,296.12 1,253.63 1,539.87 4,157.77 4,397.91 6,117.68
Purchases of Stock-in-Trade - - - - - -
Changes in Inventories of finished goods, work-in-progress
and stock in trade 53.92 8.50 (49.68) 1.79 (108.12) (171.14)
Employee benefit expenses 456.64 455.43 433.23 1,394.37 1,250.72 1,713.61
Finance costs 36.32 32.46 85.71 124.78 260.94 347.92
Depreciation and amortisation expenses 59.98 55.15 50.36 167.86 144.64 196.55
Other expenses 170.56 166.32 201.46 495.99 510.19 659.14
Total Expenses 2,073.54 1,971.49 2,260.95 6,342.56 6,456.28 8,863.76
V Profit before tax (III-IV) 90.70 85.87 78.23 281.15 424.17 726.93
VI Tax Expense:
(1) Current Tax 45.33 44.67 33.15 134.55 89.81 160.30
(2) Tax of earlier years - - - - - -
(3) Deferred Tax (20.40) (31.59) (12.25) (62.66) 36.35 41.60
24.93 13.08 20.90 71.89 126.16 201.90
VII Profit for the period / year (V - VI) 65.77 72.79 57.33 209.26 298.01 525.03
VIII Other Comprehensive Income
A. i) Items that will not be reclassified to profit or loss
a) Remeasurements of the defined benefit plans - (0.16) 1.38 1.15 (0.47) (2.27) (6.80)
Gratuity
ii) Income tax expense on remeasurement benefit/(loss) of
0.01 (0.46) (0.35) (0.01) 0.55 1.81
defined benefit plans
B. i) Items that may be reclassified to profit or loss
a) Exchange differences on translating the financial
(0.61) (12.03) (14.47) (11.94) (78.35) (72.03)
statements of foreign operations
Total other comprehensive loss A (i+ii) + B (i) (0.76) (11.11) (13.67) (12.42) (80.07) (77.02)
IX Total Comprehensive Income for the period / year 65.01 61.68 43.66 196.84 217.94 448.01
X Profit for the period / year
Attributable to:
Equity holders of the parent 65.77 72.79 57.33 209.26 298.01 525.03
Non-controlling interests - - - - - -
XI Other comprehensive income/(loss) for the period / year
Attributable to:
Equity holders of the parent (0.76) (11.11) (13.67) (12.42) (80.07) (77.02)
Non-controlling interests - - - - - -
XII Total comprehensive income for the period / year
Attributable to:
Equity holders of the parent 65.01 61.68 43.66 196.84 217.94 448.01
Non-controlling interests - - - - - -
XIII Paid up Equity Share Capital (Nominal Value of Rs. 2 131.27 130.96 113.36 131.27 113.36 115.91
each)
XIV Other Equity 5,254.28
XV Earnings Per Equity Share
(not annualised) (not annualised) (not annualised) (not annualised) (not annualised) (annualised)
1.00 1.11 1.01 3.21 5.31 9.27
0.98 1.09 0.98 3.14 5.14 9.08
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KUNHAMED BICHA Digitally signed by KUNHAMED BICHA DN: c=IN, o=AVALON TECHNOLOGIES PRIVATE LIMITED, ou=DIRECTOR, 2.5.4.20=abb0688b30bc016601eeb7fe04c7d259ce3686e22211d220a48c389a2d30316a, postalCode=600045, st=TAMIL NADU, serialNumber=2a1f9b2a71ccb9cafca7293ff39cae6dc98aeb01bf45b18efee7665c09eac7d2, cn=KUNHAMED BICHA Date: 2024.02.01 19:48:29 +05'30'

(formerly known as Avalon Technologies Private Limited)

Avalon Technologies Limited CIN: U30007TN1999PLC043479

Regd Office: B-7, First Main Road, MEPZ-SEZ, Tambaram, Chennai - 600 045, Tamil Nadu, India visit us at https://www.avalontec.com Notes to Statement of Unaudited Consolidated financial results for the quarter and nine months ended December 31, 2023

Notes:

• 1 The above unaudited consolidated financial results for the quarter and nine months ended December 31, 2023 have been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34 “Interim Financial Reporting” (“Ind AS 34”) as prescribed under Section 133 of the Companies Act, 2013, which were reviewed and recommended by the Audit Committee and approved by the Board of Directors at its respective meetings held on January 31, 2024. The statutory auditors of the Company have carried out a limited review of results for the quarter and nine months ended December 31, 2023 and have issued an unmodified conclusion thereon.

• 2 The Consolidated Financial Results of the Company and its subsidiaries (the Company and its subsidiaries collectively referred to as 'the Group') includes results of the following entities.

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Name of the Entity Relationship
Avalon Technologies Limited Holding Company
Avalon Technology and Services Private Limited, India
Sienna Ecad Technologies Private Limited, India Subsidiary
ABV Electronics, Inc. (D/B/A Sienna Corporation), United States of America
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• 3 The Company has completed the Initial Public Offering of 19,839,446 equity shares of face value of ₹2 each at an issue price of ₹436 per equity share, consisting of a fresh issue of 7,339,449 equity shares aggregating to ₹3,200 Million and an offer for sale of 12,499,997 equity shares aggregating to ₹5,450 Million. The equity shares of the Company were listed on the National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) w.e.f April 18, 2023. The Company had also completed two pre-IPO placements during the previous year aggregating to ₹1,600 Million, consisting of ₹800 million of primary issuance and ₹800 million of secondary share sales. The first preIPO issue consisted of 798,339 Equity shares of ₹2 each at ₹375.78 per share and the second pre-IPO issue consisted of 1,173,543 Equity shares of ₹2 each at ₹426.06 per share.

• 4 The Consolidated results for quarter and nine months ended December 31, 2022, have not been subject to an audit or review by the Statutory Auditors. However, the management has exercised necessary diligence to ensure that the financial results for these periods provide a true and fair view of the Company's affairs.

• 5 The expenditure incurred by the Company in connection with the IPO is ₹ 546.50 Million (including GST). These expenses have been allocated between the Company and selling shareholders in proportion to the total proceeds raised and also considering the nature of expenditure incurred. The Company's share of expenses of ₹176.96 Million has been adjusted against Securities Premium.

• 6 The Company has received an amount of ₹ 2,995.70 Million (net of IPO expenses) from proceeds out of the fresh issue of equity shares. The utilisation of net IPO proceeds is summarised below:

is summarised below:
			(₹ In Millions)
Objects of the issue as stated in the prospectus	Amount as per prospectus (A)	Utilisation upto December 31, 2023 (B)	Unutilised amount as on December 31, 2023 (A-B)
Prepayment or repayment of all or a portion of certain outstanding borrowings
availed by our Company and one of our Material Subsidiaries, Avalon	1,450.00	1,450.00	-
Technology and Services Pvt Limited [Refer (b) below]
Funding the working capital requirements of our Company	900.00	900.00	-
General corporate purposes [Refer (a) & (b) below]	644.00	645.70	-
Total	2,994.00	2,995.70	-

(a) As disclosed in the Prospectus, the amount to be spent for General Corporate Purposes is ₹ 644.00 Million which is arrived at as ₹ 850.00 Million less estimated issue expenses of ₹ 206.00 Million. Considering the actual issue expenses (including GST) of ₹ 204.30 Million, the amount utilised towards General Corporate Purposes stands at ₹ 645.70 Million.

(b) The company has infused ₹ 830.02 million (including ₹ 711.39 million out of IPO proceeds) in one of its material subsidiaries, Avalon Technology and Services Private Limited, consisting of ₹ 300.02 Million as equity investment and ₹ 530.00 Million as unsecured loan.

• 7 The Group operates in only one reportable business segment i.e. providing Electronics Manufacturing Services (EMS) with capabilities in printed circuit board assembly, custom cable and wire harnesses, etc., as determined by the chief operating decision maker, in accordance with Ind AS 108 “Operating Segments”.

• 8 Number of employee stock options granted is 17,79,750 and outstanding as at December 31, 2023 is 13,97,820. During the quarter ended December 31,2023, the company has allotted 1,57,995 Equity shares upon excercise of Employee stock options by the eligible employees.

• 9 The previous period figures have been re-grouped wherever necessary to conform to current period's presentation.

For Avalon Technologies Limited

Digitally signed by KUNHAMED BICHA DN: c=IN, o=AVALON TECHNOLOGIES PRIVATE LIMITED, KUNHAMED ou=DIRECTOR, 2.5.4.20=abb0688b30bc016601eeb7fe04c7d259ce3686e22 211d220a48c389a2d30316a, postalCode=600045, st=TAMIL NADU, serialNumber=2a1f9b2a71ccb9cafca7293ff39cae6dc98aeb BICHA 01bf45b18efee7665c09eac7d2, cn=KUNHAMED BICHA Date: 2024.02.01 19:47:38 +05'30'

Dated : February 01, 2024

Chennai

Kunhamed Bicha

Chairman & Managing Director

Varma & Varma

Chartered Accountants

Independent Auditor's Review Report on Review of Unaudited Consolidated Financial Results.

To The Board of Directors of Avalon Technologies Limited

1. We have reviewed the accompanying Statement of Unaudited Consolidated Financial Results of Avalon Technologies Limited (hereinafter referred to as the "Holding Company") and its subsidiaries (Holding Company and its subsidiaries together referred to as "the Group") for the quarter and nine months ended December 31, 2023 (“the Statement”), being submitted by the Holding Company pursuant to the requirement of Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ("Listing Regulations").

2. This Statement, which is the responsibility of the Holding Company's Management and approved by the Holding Company's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard 34 “Interim Financial Reporting” (“Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.

3. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 ‘Review of Interim Financial Information Performed by the Independent Auditor of the Entity’, issued by the Institute of Chartered Accountants of India (ICAI). This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statements is free of material misstatement. A review of interim financial information consists of making inquiries, primarily of the Holding Company's personnel responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing specified under section 143(10) of the Companies Act, 2013 and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

We also performed procedures in accordance with the circular issued by the SEBI under Regulation 33(8) of the Listing Regulations, to the extent applicable.

New No.2 (Old No.20)|Second Canal Cross Road ,Gandhi Nagar | Adyar,Chennai - 600 020 Ph: +91 44 24452239, 24423496 E-mail : chennai@varmaandvarma.com

Varma & Varma

Chartered Accountants

1. The Statement includes the financial results of the following entities.

Avalon Technologies Limited, India	Holding Company
Avalon Technology and Services Private Limited, India	Subsidiary
Sienna Ecad Technologies Private Limited, India
ABV Electronics Inc (D/B/A Sienna Corporation), United States of America

1. Based on our review conducted as stated in paragraph 3 above and based on the consideration of the review report of the other auditor referred to in paragraph 6(b), nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement.

Other Matters

2. (a) Attention is invited to Note No.4 to the Statement. As stated therein, the Statement includes the results for the quarter and nine months ended December 31,2022 which have not been subject to an audit or review by us.

3. (b) The interim financial information in respect of the subsidiary of the Company incorporated in the United States of America (whose Special Purpose Statement of Unaudited Standalone Financial Results reflects total income of Rs.1189.50 million for the quarter ended December 31, 2023, net profit/(loss) after tax of Rs. (64.51) million for the quarter ended December 31, 2023 and total comprehensive income/(loss) of Rs. (65.12) million for the quarter ended December 31, 2023 respectively and total income of Rs.3527.32 million for nine months ended December 31, 2023, net profit/(loss) after tax of Rs. (202.93) million for nine months ended December 31, 2023 and total comprehensive income/(loss) of Rs.(214.87) million for nine months ended December 31, 2023 respectively) included in the Statement are based on the Special Purpose Statement of Unaudited Standalone Ind AS Financial Results of the said subsidiary prepared by the management based on the financial statements prepared in accordance with the US GAAP reviewed by the said subsidiary’s auditor which have been restated by the Company to comply with Ind AS. The review report of the other auditor on the financial statements of the subsidiary prepared in accordance with the US GAAP for the quarter and nine months ended December 31, 2023, expressed an unmodified conclusion on those financial statements. Adjustments to the said financial information of the subsidiary for the differences in accounting principles adopted by the Company in accordance with Ind AS have been reviewed by us as stated in our report on the Special Purpose Statement of Unaudited Standalone Ind AS Financial Results of the said subsidiary for the quarter and nine months ended December 31, 2023.

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Varma & Varma

Chartered Accountants

Our conclusion, insofar as it relates to the amounts included in respect of such subsidiary (other than the adjustments arising on restatement to Ind AS that have been reviewed by us) is based solely on the review report of the other auditor and the procedures performed by us as stated in paragraph 3 above.

Our conclusion is not modified in respect of the above matters.

For Varma & Varma Chartered Accountants FRN. 004532S

POONJAR RAMA Digitally signed by POONJAR PRASANNA RAMA PRASANNA VARMA Date: 2024.02.01 19:54:53 VARMA +05'30'

Place : Chennai Date : February 01, 2024

P. R. Prasanna Varma Partner M.No. 025854 UDIN: 24025854BKGPXO8228

New No.2 (Old No.20)|Second Canal Cross Road ,Gandhi Nagar | Adyar,Chennai - 600 020 Ph: +91 44 24452239, 24423496 E-mail : chennai@varmaandvarma.com