ETHOS LIMITED — Capital/Financing Update 2023

May 12, 2023

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Ref. no. : Ethos/Secretarial/2023-24/23

Dated: May 12, 2023

BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai – 400 001

National Stock Exchange of India Limited Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra, Mumbai - 400 051

Scrip Code : 543532

Trading symbol : ETHOSLTD

• ISIN : INE04TZ01018

• Subject : Statement of deviation or variation in the use of proceeds of Initial Public Offering of Ethos Limited for the quarter ended March 31, 2023

Dear Sir/Ma’am

Greetings from Ethos.

Pursuant to Regulation 32 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Securities and Exchange Board of India Circular CIR/CFD/CMD1/162/2019 dated December 24, 2019, we wish to inform you that there are no deviation(s) or variation(s) in respect of utilization of proceeds of Initial Public Offering of the Company for the quarter ended on March 31, 2023 as mentioned in the object clause of the Prospectus dated May 25, 2022 filed with Securities and Exchange Board of India and the Registrar of Companies, Himachal Pradesh.

In this regard, we are also enclosing herewith the Statement of deviation or variation in the use of proceeds of the Initial Public Offering of the Company. The aforesaid statement is also being made available on the Company website i.e., https://www.ethoswatches.com/investors-information.

We would request you to please take the same in your records and oblige.

Thanking you

Yours truly For Ethos Limited

Anil Digitally signed by Anil Kumar Kumar Date: 2023.05.12 21:53:52 +05'30'

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Anil Kumar Company Secretary & Compliance Officer Membership no. F8023

Encl.: as above

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Name of listed entity Ethos Limited	Name of listed entity Ethos Limited
Mode of fund raising Initial Public Offering
Date of raising funds May26,2022
Amount raised Rs 40,226 lakh {Issue size comprised of fresh issuance/gross proceeds of Rs 37,500 lakh (net proceeds of Rs 33,968.95 lakhs*)and an offer for sale of Rs 2,726 lakhs}
Report filed forquarter ended March 31,2023
Monitoring Agency Applicable
Monitoring Agency name, if applicable CRISIL Ratings Limited
Is there a Deviation/ Variation in use of funds raised No
If yes, whether the same is pursuant to change in terms of a contract or objects, which was approved by the shareholders Not Applicable
If Yes, Date of shareholder approval Not Applicable
Explanation for the deviation/ variation Not Applicable
Comments of the Audit Committee after review No Comments
Comments of the auditors, if any No Comments
Objects for which funds have been raised and where there has been a deviation, in the following table	a) Repayment or pre-payment, in full or in part, of all or certain borrowings availed by the company, b) Funding working capital requirements of the Company, c) Financing the establishments of new stores and renovation of certain existing stores, d) Financing the upgradation of enterprise resource planning software, e) General Corporate Purposes No deviation from the objects.

Anil Digitally signed by Anil Kumar Kumar Date: 2023.05.12 21:54:19 +05'30'

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Amount in Rs. Lacs
Original object Modified Original Modified Funds Amount of deviation / Remarks, if any
object, if any allocation allocation, if utilized variation for the quarter
any according to the applicable
object
Repayment or pre-payment, in full or Not applicable 2,989.09 N.A. 2,989.09 Not applicable Entire amount was
in part, of all or certain borrowings utilized during the
availed by our Company quarter ended June,
2022.
Funding working capital requirements Not applicable 23,496.22 N.A. 8,682.66 Not applicable Amount was utilized for
of our Company making vendor
payments towards
working capital
requirements.
Financing the establishment of new Not applicable 3,327.28 N.A. 450.48 Not applicable The amount was utilized
stores and renovation of the certain towards new stores.
existing stores
Financing the upgradation of ERP Not applicable 198.01 N.A. 0 Not applicable No proceeds were
utilized towards this
object during the
reported quarter.
General corporate purpose Not applicable 3,609.87 3,958.35^ 2,213.63 Not applicable Amount was utilized
towards capital
expenditure.
Total 33,620.47 33,968.95 14,335.86
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^The actual cost incurred by the Company towards offer related expenses is lower against the estimated cost disclosed in the final offer document hence the surplus proceeds available from offer expenses is added to GCP during the quarter ended September 30, 2022 and March 31, 2023 in following manner:

Digitally signed by Anil Anil Kumar Kumar Date: 2023.05.12 21:54:40 +05'30'

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Particulars Amount (Rs in lakh)
GCP as per offer document 3,609.87
Add: Surplus from offer expenses added to GCP during the quarter ended September 30, 2022 347.92
Revised GCP at the end of quarter 3,957.79
Add: Surplus from offer expenses added to GCP during the quarter ended March 31,2023 0.56
Revised GCP as at the quarter ended March 31, 2023 3,958.35
Revised Net Proceeds as at the quarter ended March 31, 2023 33,968.95
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Deviation or variation could mean:

• (a) Deviation in the objects or purposes for which the funds have been raised or

• (b) Deviation in the amount of funds actually utilized as against what was originally disclosed or

• (c) Change in terms of a contract referred to in the fund-raising document i.e., prospectus, letter of offer, etc.

Anil Digitally signed by Anil Kumar Kumar Date: 2023.05.12 21:55:01 +05'30'

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Name of the Signatory : Anil Kumar Designation : Company Secretary and Compliance Officer

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