Dynamatic Technologies Ltd. — Capital/Financing Update 2023

Aug 11, 2023

Date: 11th Aug 2023

• 1. The Secretary Bombay Stock Exchange Limited Phiroze Jeejeebhoy Towers Dalal Street, MUMBAI 400 001. Fax No. 022 - 2272 3121 / 3719 / 2037 / 2039 / 2041 / 2061
• 1. The Secretary National Stock Exchange of India Limited "Exchange Plaza" Bandra-Kurla Complex Bandra East, MUMBAI 400 051. Fax No.022 – 26598237 / 38 / 26598346

Sub: Monitoring Agency Report for the quarter ended 30 th June 2023

Ref: Scrip Code: 505242 / DYNAMATECH

Dear Sir / Madam,

Pursuant to Regulation 32(6) of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, we are enclosing herewith Monitoring Agency Report issued by India Ratings and Research, Monitoring Agency, for the quarter ended 30 th June 2023 in respect of utilization of proceeds of the preferential issue of the Company.

We kindly request you to take this intimation on record.

Thanking you,

Yours sincerely, For Dynamatic Technologies Limited

Shivaram V Head- Legal, Compliance and Company Secretary

Date: 10^th August 2023

To, Dynamatic Technologies Limited. JKM Plaza, Dynamatic Aerotropolis, 55 KIADB Aerospace Park, Devanahalli Bangalore 562110

Subject: Monitoring Agency Report for the quarter ended 30^th June 2023 in relation to preferential allotment of equity shares.

Dear Sir,

Pursuant to Regulation 162A(2) of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 ("SEBI ICDR Regulations") and Monitoring Agency Agreement dated 23rd March 2023, please find enclosed herewith the Monitoring Agency Report, as per Schedule XI of the SEBI ICDR Regulations towards utilization of proceeds of preferential allotment for the quarter ended June 30, 2023.

Request you to kindly take the same on records.

Thanking You,

For and on behalf of India Ratings & Research Private Limited

Designation: Director, Secretarial

India Ratings & Research Private Limited A Fitch Group Company Wockhardt Tower, Level 4, West Wing, Bandra Kurla Complex, Bandra (E), Mumbai 400 051 Tel: +91 22 4000 1700 | Fax: +91 22 4000 1701 | CIN/LLPIN: U67100MH1995FTC140049 | www.indiaratings.co.in

Report of the Monitoring Agency (MA)

Name of the issuer: Dynamatic Technologies Limited

For quarter ended: June 2023

Name of the Monitoring Agency: India Ratings & Research Private Limited

(a) Deviation from the objects: No Deviation from the objects.

Based on the Management undertaking and as per Statutory Auditor certificate dated 4th August 2023 issued by DELOITTE HASKINS & SELLS LLP, Chartered Accountants (FRN - 117366W/W-100018) having UDIN 23206920BGYMGL4029* and documents provided to us, no deviation from the objects has been observed.

*The reference to the Statutory Auditor certificate anywhere in the MA report refers to the said certificate.

(b) Range of Deviation: Not Applicable

Declaration:

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We declare that this report provides an objective view of the utilization of the issue proceeds in relation to the objects of the issue based on the information provided by the Issuer and information obtained from sources believed by it to be accurate and reliable. The MA does not perform an audit and undertakes no independent verification of any information/ certifications/ statements it receives. This Report is not intended to create any legally binding obligations on the MA which accepts no responsibility, whatsoever, for loss or damage from the use of the said information. The views and opinions expressed herein do not constitute the opinion of MA to deal in any security of the Issuer in any manner whatsoever. Nothing mentioned in this report is intended to or should be construed as creating a fiduciary relationship between the MA and any issuer or between the agency and any user of this report. The MA and its affiliates also do not act as an expert as defined under Section 2(38) of the Companies Act, 2013.

The MA or its affiliates may have credit rating or other commercial transactions with the entity to which the report pertains and may receive separate compensation for its ratings and certain credit-related analyses. We confirm that there is no conflict of interest in such relationship/interest while monitoring and reporting the utilization of the issue proceeds by the issuer, or while undertaking credit rating or other commercial transactions with the entity.

We have submitted the report herewith in line with the format prescribed by SEBI, capturing our comments, where applicable. There are certain sections of the report under the title "Comments of the Board of Directors", that shall be captured by the Issuer's Management / Audit Committee of the Board of Directors subsequent to the MA submitting their report to the issuer and before dissemination of the report through stock exchanges. These sections have not been reviewed by the MA, and the MA takes no responsibility for such comments of the issuer's Management/Board.

Signature: ne and designation of the Authorized Signatory: Shrikant Dev (Director, Secretarial) Page 1 of 7

Wockhardt Tower, Level 4, West Wing, Bandra Kurla Complex, Bandra (E), Mumbai 400 051

Tel: +91 22 4000 1700 | Fax: +91 22 4000 1701 | CIN/LLPIN: U67100MH1995FTC140049 | www.indiaratings.co.in

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Fitch Group

1) Issuer Details:

Name of the issuer: Dynamatic Technologies Limited

Names of the promoter: Mr Udayant Malhoutra

Industry/sector to which it belongs: Manufacturing of precision engineering products for

Hydraulics, Aerospace & Defence and Metallurgy segments.

2) Issue Details:

Issue/offer Period: 13^th March 2023 to 21^st March 2023.

Type of issue (public/rights): Preferential Issue

Type of specified securities: Equity Shares

IPO Grading, if any: Not Applicable

Issue size: INR 112.91 Crores

3) Details of the arrangement made to ensure the monitoring of issue proceeds:

$*$ Particulars	Reply	Source of information / certifications considered by Monitoring Agency for preparation of report	Comments of the Monitoring Agency	Comments of the Board of Directors
Whether all utilization is as per the disclosures in the Offer Document?	Yes	Management undertaking, Statutory Auditor certificate, Notice to Shareholders for EGM, Bank Statement and outstanding balance confirmation from Banks and other relevant information.	NA	NA
Whether shareholder approval has been obtained in case of material deviations from expenditures disclosed in the Offer Document?	NΑ	NA	NA	NA
Whether the means of finance for the disclosed objects of the issue has changed?	N o	Management undertaking, Statutory Auditor certificate.	NA	NA
Is there any major deviation observed over the earlier monitoring agency reports?	No	NA	NA	NA
Whether all Government/statutory approvals related to the object(s) have been obtained?	NA	Management undertaking, Statutory Auditor certificate.	NA	NA

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Whether all arrangements pertaining to technical assistance/collaboration are in operation?	NA	NA	NA.	NA.
Are there any favorable events improving the viability of these $object(s)$ ?	NA	NA	NA	NA.
Are there any unfavorable events affecting the viability of the object(s)?	NA.	NA	NA	NA
Is there any other relevant information that may materially affect the decision making of the investors?	N o	Management undertaking, Statutory Auditor certificate.	NA. A.	NA

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

i. Cost of object(s)-

		Source of information $\beta$ ,	Original cost					Comments of the Board of Directors
		certifications	(as per the
		considered by	Offer	Revised	Comments	Reason		Particulars of
		Monitoring Agency	Document)	Cost	of the	$of+$	Proposed	firm
Sr.		for preparation of	(INR)	(INR)	Monitoring	Cost	financing	arrangements
No.	Item Head	report	Crores)	Crores)	Agency	revision	option	made
	Repayment of Loans from Banks:
	Kotak Mahindra	Management
	Bank Limited	undertaking,	45.00	NA	NA	NA	NA.	NA.
	Axis Bank	Statutory Auditor
	Limited	certificate, Notice to	25.00	NA	NA	NA	. NÄ	NA.
	IndusInd Bank	Shareholders for
	Limited	EGM, Bank account	30.00	NA	NA.	$NA = -$	NA	NA.
		statements and				$k = 1$
		Balance
		confirmation from
	General	Banks and other
	Corporate	relevant
	Purpose	Documents.	12.91 $\epsilon$	NA.	NA.	NA	NA	NA
	TOTAL		112.91

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ii. Progress in the object(s) -

		Source of
					Amount Utilized (INR		e,		Comments of the
		information /	Amount		Crores)				Board of Directors
		certifications	as				$\mathcal{C}=\mathcal{C}_k$
		considered	proposed				Total
		by	in the	As at			Unutiliz	Commen		Propos
		Monitoring	Offer	beginni		At the	ed	ts of the		ed
		Agency for	Document	ng of	During	end of	Amount	Monitori	Reasons	course
Sr.		preparation	(INR)	the	the	the	(INR)	ng	for idle	of
No.	Item Head	of report	Crores)	quarter	quarter	quarter	Crore)	Agency	funds	action
$\mathbf{1}$		Repayment of Loans from Banks
	Kotak	Management					$ +$ $ -$
	Mahindra	undertaking,						Refer
	Bank	Statutory of a					$\sim$	Below	$\epsilon=$
	Limited*	Auditor A	45.00	11.34	33.66	45.00		Note*	NA	NA
		certificate,					$\sqrt{\frac{1}{2}}$ .	Refer	Ł
	Axis Bank	Notice $\frac{1}{2}$ to						Below -
	Limited ^	Shareholders	25.00	5.00	20.00	25.00		Note ^	NA	NA
		for EGM, Bank account
		statements,
	IndusInd	Balance
	Bank	confirmation						Refer	65
	Limited ^	from Banks.	30.00	$\frac{1}{2}$	30.00	30.00		Below
		Management						Note ^^	NA	NA
		undertaking,					$\epsilon^{\mu}_{\rm e}$
		Statutory
		Auditor -					÷
	General	certificate,						Refer
	Corporate	Bank account						Below	$\mathbf{L}$
$\overline{2}$	Purpose#	statements.	12.91	11.14	1.76	12.91	$\mathbb{L}^{s(\mathcal{C})}$	Note#	ΝA	NA
							$\mathrm{m}^2$
	TOTAL		112.91	27.48	85.42	112.91	engruu.

such a man of car

$\frac{1}{2}$

$\Delta \equiv -\frac{1}{2}M_{\rm c} = 6\pi$ .

$\bar{z}$

$\bar{z}$

*Includes repayment of outstanding WCDL loan (INR 11.90 Crores), outstanding PCFC facility (INR 20.11 Crores), outstanding LC (INR 1.52 Grores), interest & bank Charges on WCDL/PCFC (INR 0.13 Crores).

^Represents repayment/prepayment of TL by INR 20 Crores.

AA Represents repayment/prepayment of TL by INR 30 Crores.

$\mathbb{R}^n_{\text{max}}$ . #Includes vendor payment of INR 0.44 Crores and bank obligation (Interest/Installment) of INR 1.32 Crores.

Page 4 of 7

iii. Deployment of unutilized IPO proceeds:

Sr. No.	$\vert$ Type of	Amount	Maturity	Earning	Return on	Market
	.instrument	linvested	date		Investment	Value as at
	and name				(%)	the end of
	of the entity					quarter
	invested in
	Not Applicable as entire issue proceeds utilized as on 30 th June 2023

$\sim 10^{-2}$ m $^{-1}$ $\epsilon = 1$ , we

$\mathcal{A}$

iv. Delay in implementation of the object(s)

$\sim$ 2 $\times$ 3 $^\circ$		Completion Date	Delay	Comments of the Board of Directors
	As per the Offer		(no. of days/mo	$\mathbb{Z}{\geq 0}$ for $\mathbb{Z}{\geq 0}$ . If	Proposed Course of
Object(s) $\ldots$ $\ldots$	Document#	Actual	nths)	Reason of Delay	action
Repayment of Loans from Banks:
- Kotak Mahindra Bank Limited ^	On or before 31st March 2023	INR 0.07 Crs on April 1, 2023.	$1$ day	The Company transferred the amount of Rs 45 crores to the Bank on March 23, 2023 and	NA
$+1$		INR 20.12 Crs on April 3, 2023	3 days	had intimated the Bank on March 24, 2023 to recover such amount and adjust the
		INR 12.20 Crs on April 4, 2023	4 days	same against the loan outstanding. However, the Bank processed the request
$\mathbf{v}_{\mathbf{w}}$		INR 1.28 Crs by June 17, 2023	78 days	post March 31, 2023. $\sim$ $\frac{1}{2}$
- Axis Bank Limited	On or before 15th April 2023	April 5, 2023	NA	$\overline{12.777}$ NA	NA
- IndusInd Bank Limited	On or before 15th April 2023	April 3, 2023	NA	A ge NA $5 - 2 - 4$	NA
General	On or before	INR 11.59 Crs by April 15, 2023 and INR		13. Page
Corporate	15th April	1.32 by April
Purpose	$\frac{1}{2023}$	30, 2023	15 days	'NA	NA

^INR 11.34 Crores utilized before 31^st March 2023.

$\mathbf{u}$

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& Research

$5)$ Details of utilization of proceeds stated as General Corporate Purpose (GCP) amount in the offer document:

	TOTAL	1.76			$\sim$
$\overline{2}$	Vendor Payments	0.44	Copy of Invoices.
			Statutory Auditor certificate, Bank account statements,
1	Bank Obligations	1.32	Management undertaking,	NIL:	NIL
Sr. No.	Item Head	Amount (INR) Crores)	Source of information / certifications considered by Monitoring Agency for preparation of report	Comments of the Monitoring Agency	Comments of the Board of Directors

Disclaimers:

The MA Report is prepared by India Ratings. India Ratings 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.

India Ratings declare that the MA Report is based on the format prescribed by the SEBI (ICDR) Regulations, 2018. This declaration forms part of and applies to each MA Report that is issued by India Ratings. The MA Report does not constitute an offer of services. Access or use of any MA Report does not create a client relationship between India Ratings and the Applicant or between India Ratings and User of the report.

This Report has to be seen in its entirety; the selective review of portions of the Report may lead to inaccurate assessments.

Please note that the information presented in the MA Report is based solely on the review of the requisite information, documents, papers, statements received from the Company with regard to the use of the Issue Proceeds including the status of implementation of the activities proposed to be funded out of the Issue proceeds as stated in the Prospectus. India Ratings has not verified any source of information such as invoices, ledgers or payment receipts and other documents either in normal course or in case of deviations from the objects, as the same is the duty of the management and the statutory auditors. India Ratings has relied in good faith and without any liability, upon the contents thereof. The user of the MA Report should understand that India Ratings 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. Ultimately, the issuer and its advisers are responsible for the accuracy of the information they provide to India Ratings. In issuing the MA Report, India Ratings may rely on the representations and certifications from the issuer and experts, including statutory auditors with respect to financial statements, attorneys with respect to legal and tax matters

Page 6 of 7

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and other entities considered reliable by India Ratings. The Company shall be solely responsible and liable for any omission, commission, errors and misrepresentations in the contents of the Information provided to India Ratings. India Ratings disclaims any liability arising out of the contents of the information provided by the Company and in no event shall be held liable to anyone for any damages or claims arising out of such information.

India Ratings may rate the Company or any debt instruments or facilities issued or proposed to be issued by the Company that is subject matter of the MA Report.

As India Ratings have only acted in the capacity of a monitoring agency, the MA Report does not, in any way, constitute an opinion regarding securities, expressed in the form of standard symbols or in any other standardized manner and does not include any qualitative and quantitative assessment of the probability of default on payment of interest and principal on a debt instrument. The content of the MA Report does not constitute any recommendation to buy, hold or sell any securities. The MA Report does not comment on the quality of the objects of the issue, reasonableness of costs or spending by the issuer against any objects / heads or assurance on outcome of such spending, the adequacy of market price or market liquidity; suitability of any security for an investor. The MA Report does not provide to any party any financial advice, or legal, auditing, accounting, appraisal, valuation or actuarial services and should not be viewed as a replacement for such advice or services.

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∄£⊿

$\pm\frac{1}{2}$