Dynamatic Technologies Ltd. — Capital/Financing Update 2023

May 15, 2023

15th May 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
• $2.$ 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 31st March 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 31^st March 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

$n$ and

Shivaram V Head- Legal, Compliance and Company Secretary

Registered Office Dynamatic Technologies Limited JKM Plaza Dynamatic Aerotropolis 55 KIADB Aerospace Park Devanahalli Bangalore 562 110 India Tel +91 80 2839 4933 / 34 / 35 Fax +91 80 2839 5823

www.dynamatics.com

Corporate Identity Number: L72200KA1973PLC002308

Fitch Group

Date:15th May 2023

To,

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

Subject: Monitoring Agency Report for the quarter ended 31st March 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 March 31, 2023.

Request you to kindly take the same on records.

Thanking You,

For and on behalf of India Ratings & Research Private Limited

e: Shrikant Di

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

Fitch Group

India Ratings
& Research

Report of the Monitoring Agency (MA)

Name of the issuer: Dynamatic Technologies Limited

For quarter ended: March 2023

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

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

Based on the Management undertaking and as per Statutory Auditor certificate dated 12^th May 2023 issued by DELOITTE HASKINS & SELLS LLP, Chartered Accountants (FRN - 117366W/W-100018) having UDIN 232069208GYMEC1719* and documents provided to us.

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

(b) Range of Deviation: Not Applicable

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 berein 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:

Name and designation of the Authorized Signatory: Shrikant Dev (Director, Secretarial)

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India Ratings & Research Private Limited A Fitch Group Company

Wockhardt Tower, Level 4, West Wing, Bandra Kurla Complex, Bandra (E), Murnbai 400 051 Tel: +91 22 4000 1700 | Fax: +91 22 4000 1701 | CIN/LLPIN: U67100MH1995FTC140049 | www.indiaratings.co.in

IndiaRatings

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

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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.	NΑ	ΝA
Whether shareholder approval has been obtained in case of material deviations from expenditures disclosed in the Offer Document?	NΑ	NА	ΝA	ΝA
Whether the means of finance for the disclosed objects of the issue has changed?	Nο	Management undertaking, Statutory Auditor certificate.	NA	NA.
Is there any major deviation observed over the earlier monitoring agency reports?	认真	NA	NA	NA
Whether all Government/statutory approvals related to the object(s) have been obtained?	NA	Management undertaking, Statutory Auditor certificate.	NA	ΝA

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India Ratings
& Research

Whether all arrangements pertaining to technical assistance/collaboration are in operation?	NΑ	N٨	NΑ	NΑ
Are there any favorable events improving the viability of these object(s)?	NΑ	NA	NΑ	NA.
Are there any unfavorable events affecting the viability of the object(s)?	NA.	ΝA	ΝA	ΝA
- is there any other relevant information that may materially affect the decision making of the investors? a bis a contract and a series are contracted as a series of the series of the series of the series of the series of the series of the series of the series of the series of the series of the series of the series of the seri	視点	NA	ΝA A 1990 FOR A FRANCHISCO DE MANUEL ANNO 1991 FOR MAIS ANNO 2003 ANNO 2003 FOR MANUEL ANNO 2003 FOR MANUEL ANNO 2003	ΝA

$\mathcal{L}_\gamma^1$ Details of object(s)s to be monitored:

i. Cost of object(s)-

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		Source of information / certifications considered by Monitoring Agency	Original cost (as per the Offer Document)	-Revised Klost	Comments of the	Reason -ef-	Proposed.	Comments of the Board of Directors Particulars of firm.
Sr.		for preparation of	(INR)	(INR)	Monitoring	Cost	financing.	arrangements
Ño.	item Head	report	Crores)	Crores)	Agency	revision	option	made.
	Repayment of Loans from 1 Banks:	Management undertaking,
	Kotak Mahindra Bank Limited Axis Bank	Statutory Auditor certificate, Notice to Shareholders for	45.00	-NA	NΑ	NA	NA	NA
	- Limited	EGM, Bank account	25.00	NА	斜点	ΝA	NA	NA.
	Indusind Bank Limited	statements and Balance confirmation វ័រកម្ម	30.00	ÑА	ÑΑ	NA	NΛ	N٨
	General Corporate	Banks -and other relevant
	Purpose	Documents.	12.91	NA	NA	NA.	NA.	NΑ
	TOTAL		112.91

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ii. Progress in the object(s) $-$

		Source of information /	Amount		Amount Utilized (INR Crores)				Comments of the Board of Directors
Sr. No.	Item Head	certifications considered by Monitoring Agency for preparation of report	as proposed in the Offer Document (INR) Crores)	As at beginni + ng of the quarter	During the quarter	At the end of the quarter	Total Unutiliz ed Amount (INR Crore)	Commen ts of the Monitori ng : Agency	Reasons for idle funds	Propos ed course of action
1		Repayment of Loans from Banks
	Kotak Mahindra Bank Limited*	Management undertaking, Statutory Auditor certificate,	45.00		11.34	11.34	33.66	Refer Below Note*	Utilized $\ln 1^{st}$ week of April 2023	NΑ,
	Axis Bank Limited^	Notice to Shareholders for EGM, Bank account statements,	25.00		5.00	5.00	20.00	Refer Below Note A	Utilized in $1st$ week of April 2023	NA
	IndusInd Bank Limited	Balance confirmation from Banks.	30.00				30.00	Nil	Utilized in $1st$ week of April 2023	ΝA
	General Corporate	Management undertaking, Statutory Auditor certificate, Bank account statements, Advance Tax						Refer Below
2	Purpose#	Challan	12.91		11.14	11.14	1.76	Note#	ΝA	ΝA
	TOTAL		112.91		27.48	27.48	85.42

*Includes repayment of WCDL loan, repayment of outstanding CC balance, LC payment, interest on CC/WCDL/PCFC and processing cost.

ARepresents reduction in CC outstanding balance and CC limit by INR 5 Crores.

Includes payment for advance tax, Capex, Salary, interest on bank loans and service vendor payments.

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India Ratings

iii. Deployment of unutilized IPO proceeds:

$\sim$ $\sim$ No. Ar.	. Tvbe of	Amount	Maturity	contract and property the contract of the contract of the Earning	1.11111111111111111111111111111111111 :Return on :	. Market
	instrument	invested	date.		Investment	Value as ar
	land name.				(%)	The end of
	of the entity					ouarter
All States	invested in:	$\sim$ 100
			Not Applicable
	The Calculus and Company and accountational and service and contracts	The contract of the contract and contract the contract of the contract of the contract of the contract of the	All Cards		. .	.

The unutilized amount of INR 85.42 Crores is not invested in any instruments but lying in bank accounts of the issuer as on 31^st March 2023.

iv. Delay in implementation of the object(s)

		Completion Date	Delay	Comments of the Board of Directors
Object(s)	As per the Offer Document # Actual		(no. of days/mo nths).	Reason of Delay	Proposed Course of action
Repayment of Loans from Banks:
- Kotak Mahindra Bank Limited A	On or before : 31st March 2023	4th Aoi目 2023	4 Days	The Company transferred the amount of Rs.45 crores to the - bank on March 23, 2023 and - had intimated the Bank on March 24, 2023 to recover such amount and adjust the against the. loan same outstanding. However, the Bank processed the request only on April 4, 2023.	ΝA
- Axis Bank Limited - Industrid Bank Limited General Corporate	On or before 15th April 2023 On or before 15th April 2023 On or before 15th April	NA as on 31 st March 2023	NΑ	ŃΑ NA.	NΑ ΝA
Purpose	2023			NA	ÑA

If Tentative timeline for utilization as per notice to shareholders.

^ out of INR 45 Crores, INR 11.34 Crores willized on or before 31st March 2023.

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Fitch Group

India Ratings
& Research

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

: 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
	3 Bank Obligations	3.82
	2 Capex Payments	1.06	: Management
	3 : Salary Payments		undertaking, 2.16 Statutory Auditor	一裂佳	NI.
4	Tax Payments	2.00 -	certificate, Bank account statements,
	5 Vendor Payments		Advance Tax 2.09 : Challan.
	TOTAL	11.14

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 limits 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 controls 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

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India Ratings
& Research

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 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.

The issuance of the MA Report by India Ratings shall not constitute consent by the agency to use its name as an expert in connection with any registration statement, offering document or other filings under any relevant securities laws.

India Ratings is neither construed to be nor acting under the capacity or nature of an 'expert' as defined under Section 2(38) of the Companies Act, 2013. It is issuing the MA Report solely in the capacity of a monitoring agency and that the same shall not be construed to be an opinion of an expert, as it relies on certificates, confirmations and representations of reliable stakeholders such as auditors, banks and others.

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