ETHOS LIMITED — Capital/Financing Update 2025

Nov 8, 2025

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Ref. No.: Ethos/Secretarial/2025-26/76

Dated: November 08, 2025

Corporate Service Department Listing Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G, Dalal Street, Bandra Kurla Complex, Bandra, Mumbai – 400001 Mumbai - 400051 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 September 30,2025

Dear Sir/Madam,

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 September 30,2025 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/investorsinformation/corporate

You are requested to please take on record the above-mentioned information for your reference and further needful.

Thanking You, Sincerely,

For Ethos Limited

SHUBHAM Digitally signed by SHUBHAM KANDHWAY KANDHWAY Date: 2025.11.08 15:35:39 +05'30'

Shubham Kandhway Company Secretary & Compliance Officer

Encl: as below

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Name of listed entity	Ethos Limited
Mode of fund raising	Initial Public Offering
Date of raising funds	May26,2022
Amount raised	Upto Rs. 40,226 lakh {Issue size comprised of fresh issuance/gross proceeds of Rs. 37,500 lakh (net proceeds of Rs. 33,968.39 lakh*)and an offer for sale of Rs. 2,726 lakh}
Report filed forquarter ended	September 30,2025
Monitoring Agency	Applicable
Monitoring Agency name, if applicable	CRISIL Ratings Limited
Is there a Deviation/ Variation in use of funds raised	Yes
If yes, whether the same is pursuant to change in terms of a contract or objects, which was approved by the shareholders	Yes
If Yes, Date of shareholder approval	March 21,2024 and September 15,2025
Explanation for the deviation / variation	For March 21, 2024: Deployment of funds for an amount of Rs 979.72 lakh under the head ‘Financing the establishment of new stores and renovation of certain existing stores’ on cumulative basis were not foreseen owing to the fact that malls did not commence the operations and the opening of such stores were inordinately delayed which was a reason not attributable to Company. The unutilised amount shall be utilised within 18 months from the date of obtaining shareholder’s approval through Notice issued for Postal Ballot dated January 18, 2024. The shareholders have accorded their approval on March 21, 2024. For September 15, 2025: Funds were earlier proposed to be utilized by September 21, 2025, as per the earlier shareholder’s approval dated March 21, 2024. However, due to repeated GRAP restrictions in Delhi NCR and delays in design approvals from global brands, the Company could not utilize the amount within the said timeline. Based on the resolution passed by the Board of Directors of Ethos Limited in its meeting held on August 14, 2025, and the Special Resolution passed by the shareholders in the Annual General Meeting,the timeline for utilisation of the unutilised IPOproceeds lyingunder the head

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				‘Financing the establishment of new stores and renovation of certain existing stores’ has been extended,and the said amount shall now be utilised byJune 30,2026	‘Financing the establishment of new stores and renovation of certain existing stores’ has been extended,and the said amount shall now be utilised byJune 30,2026	‘Financing the establishment of new stores and renovation of certain existing stores’ has been extended,and the said amount shall now be utilised byJune 30,2026	‘Financing the establishment of new stores and renovation of certain existing stores’ has been extended,and the said amount shall now be utilised byJune 30,2026
	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.
							Amount in Rs. Lacs
	Original object	Modified object, if any	Original allocation	Modified allocation, if any	Funds utilized	Amount of deviation / variation for the quarter according to the applicable object	Remarks, if any
	Repayment or pre-payment, in full or in part, of all or certain borrowings availed byour Company	Not applicable	2,989.09	N.A.	2,989.09	Not applicable	Entire amount was utilized during the quarter ended June,2022.
	Funding working capital requirements of our Company	Not applicable	23,496.22	N.A.	23,496.22	Not applicable	Entire amount was utilized during the quarter ended March 31,2024
	Financing the establishment of new stores and renovation of the certain existing stores	Not applicable	3,327.28	N.A.	2,871.39	Not applicable	Proceeds were utilized for establishment of a new store according to the list of revised locations for deploying the unutilized amounts lying under Object 3 as was recommended by

Amount in Rs. Lacs

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						the Audit Committee and the Board of Directors of the Company vide meetings held on January18,2024.
Financing the upgradation of ERP	Not applicable	198.01	N.A.	198.01	Not applicable	Entire amount has been utilized for this object during the quarter ended September 30,2024
General corporate purpose	Not applicable	3,609.87*	3,958.35*	3,958.35	Not applicable	Entire amount has been utilized for this object during the quarter ended March 31,2024
Total		33,620.47	3,958.35	33,503.06

*The amount utilised for general corporate purposes does not exceed 25% (Rs 9,375 lakh) of the Gross Proceeds from the fresh Issue.

Note 1: 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:

Particulars	Amount(Rs in lakh)
Netproceeds asperprospectus	33,620.47
Add: Surplusfrom offer expenses added to GCP during thequarter ended September 30, 2022	347.92
Revised Net Proceeds as at thequarter ended December 31, 2022	33,968.39
Add: Surplus from offer expenses added to GCP during the quarter ended March 31,2023	0.56
Revised Net Proceeds	33,968.95
Revised GCP	3,958.35

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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.

SHUBHAM KANDHWAY

Digitally signed by SHUBHAM KANDHWAY Date: 2025.11.08 15:36:04 +05'30'

______ Name of the Signatory : Shubham Kandhway Designation : Company Secretary and Compliance Officer

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