KRYSTAL INTEGRATED SERVICES LIMITED — Capital/Financing Update 2024

May 13, 2024

KRYSTAL INTEGRATED SERVICES LIMITED (FORMERLY KNOWN AS KRYSTAL INTEGRATED SERVICES PRIVATE LIMITED)

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May 13, 2024	KISL/CS/SE/32/2024-25
The Department of Corporate Services BSE Limited General Manager Department of Corporate Services Floor 25, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai 400 001 Scrip Code: 544149	National Stock Exchange of India Limited Exchange Plaza, Plot no. C/1, G Block, Bandra-Kurla Complex, Bandra (E), Mumbai - 400 051 Scrip Symbol: KRYSTAL

Dear Sir/Madam,

Sub: Monitoring Agency Report for the quarter ended March 31, 2024

Pursuant to Regulation 32(6) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with Regulation 41 of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, enclosed herewith is the Monitoring Agency Report for the quarter ended March 31, 2024 issued by CRISIL Ratings Limited, Monitoring Agency in respect of utilization of proceeds of the Initial Public Offer (IPO).

The report was duly reviewed by the Audit Committee and taken on record by the Board of Directors of the Company.

The said Monitoring Agency Report shall also be available on the website of the Company at Investor - Krystal (krystal-group.com)

This is for your information and records.

Thanking You,

For Krystal Integrated Services Limited (Previously known as Krystal Integrated Services Private Limited)

Stuti Kishore Maru Digitally signed by Stuti Kishore Maru DN: c=IN, o=Personal, title=8009, pseudonym=zhZQ6hXVGto8suPbOBFHaHyHohrzaZzr, 2.5.4.20=2b5bb3ff3181d555bf7cb3dbdbe9c8b0727829999de6b5acc4441c89f21c4288, postalCode=400014, st=Maharashtra, serialNumber=33787e9e05dd17adb5c94c08f992834b518b1055fd88642d14f0398931e456a8, cn=Stuti Kishore Maru Date: 2024.05.13 18:56:33 +05'30'

Stuti Maru Company Secretary & Compliance Officer Membership Number: A45257

Registered Office.: Krystal House, 15A/17, Shivaji Fort CHS, Duncan Causeway Road Mumbai -400 022, Maharashtra (India) Tel: +9122 4353 1234, +9122 2403 0220/21 Web : www.krystal-group.com CIN - U74920MH2000PLC129827.

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Monitoring Agency Report for Krystal Integrated Services Limited for the quarter ended March 31, 2024

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CRL/MAR/ KTISL /2023-24/1121

May 13, 2024

To

Krystal Integrated Services Limited Krystal House 15A 17, Shivaji Fort CHS, Duncans Causeway Road, Mumbai – 400 022

Dear Sir,

Monitoring Agency Report for the quarter ended March 31, 2024 - in relation to the Initial Public Offer (“IPO”) of Krystal Integrated Services Limited (“the Company”)

Pursuant to Regulation 41 of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (“ ICDR Regulations ”) and Monitoring Agency Agreement dated March 04, 2024, entered with the Company, we enclose herewith the Monitoring Agency Report, issued by CRISIL Ratings Limited, as per Schedule XI of the SEBI ICDR Regulations towards utilization of IPO proceeds for the quarter ended March 31, 2024.

Request you to kindly take the same on records.

Thanking you,

For and on behalf of CRISIL Ratings Limited

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Sushant Sarode Director, Ratings (LCG)

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Report of the Monitoring Agency (MA)

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Name of the issuer: Krystal Integrated Services Limited

For quarter ended: March 31, 2024

Name of the Monitoring Agency: CRISIL Ratings Limited

• (a) Deviation from the objects: Not applicable

• (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 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 we do not perceive any conflict of interest in such relationship/interest while monitoring and reporting the utilization of the issue proceeds by the issuer.

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: Sushant Sarode Designation of Authorized person/Signing Authority: Director , Ratings (LCG)

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1) Issuer Details:

Name of the issuer

Krystal Integrated Services Limited

Names of the promoter

a. Neeta Prasad Lad b. Saily Prasad Lad c. Shubham Prasad Lad d. Prasad Minesh Lad e. Krystal Family Holdings Private Limited

Industry/sector to which it belongs Diversified Commercial Services

• 2) Issue Details

Issue Period: Thursday, March 14, 2024 to Monday, March 18, 2024 Type of issue (public/rights): Initial Public Offer (IPO) Type of specified securities: Equity Shares IPO Grading, if any: NA Issue size: Rs 3,001.25 million {Issue size comprises of fresh issuance/gross proceeds of Rs 1,750.00 million (including net proceeds of Rs 1,633.69 million*) and an offer for sale of Rs 1,251.25 million}

• CRISIL Ratings shall be monitoring the net proceeds.

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

Particulars	Reply	Source of information / certifications considered by Monitoring Agency forpreparation 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, Independent Chartered Accountant Certificate ^, Final Offer Document, Bank Statements	No Comments	No Comments
Whether shareholder approval has been obtained in case of material deviations from expenditures disclosed in the Offer Document?	NA	Management undertaking, Independent Chartered Accountant Certificate ^	No Comments	No Comments

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Particulars	Reply	Source of information / certifications considered by Monitoring Agency forpreparation of report	Comments of the Monitoring Agency	Comments of the Board of Directors
Whether the means of finance for the disclosed objects of the issue has changed?	No	Management undertaking, Independent Chartered Accountant Certificate ^	No Comments	No Comments
Is there any major deviation observed over the earlier monitoring agency reports?	NA		No Comments	No Comments
Whether all Government/statutory approvals related to the object(s) have been obtained?	NA		No Comments	No Comments
Whether all arrangements pertaining to technical assistance/collaboration are in operation?	NA		No Comments	No Comments
Are there any favorable events improving the viability of these object(s)?	No		No Comments	No Comments
Are there any unfavorable events affecting the viability of the object(s)?	No		No Comments	No Comments
Is there any other relevant information that may materially affect the decision making of the investors?	No		No Comments	No Comments

NA represents Not Applicable

^Certificate dated May 07, 2024, issued by M/s Mahendra Doshi & Associates, Peer reviewed Independent Chartered Accountant (Firms’ Registration No. 105765W).

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

**i. **	Cost of the object(s):	Cost of the object(s):
Sr. No	Item Head	Source of information/ certifications considered by MA for preparation of report	Original			Comments of the Board of Directors
			cost (as per the Offer Document) (Rs in million)	Revised Cost (Rs in million)	Comments of the MA
						Reason of Cost revision	Proposed financing option	Particulars of firm arrangeme nts made
1	Repayment/ prepayment, in full or part, of certain borrowings availed of by the Company	Management undertaking, Independent chartered accountant certificate^, Prospectus.	100.00	-	No revision in the cost	No revision in the cost
2	Funding working capital requirements of the Company		1000.00	-	No revision in the cost	No revision in the cost
3	Funding capital expenditure for purchase of new machinery		100.00	-	No revision in the cost	No revision in the cost
4	General Corporate Purposes (GCP)		433.69	-	No revision in the cost	No revision in the cost
		Total	1,633.69

^Certificate dated May 07, 2024, issued by M/s Mahendra Doshi & Associates, Peer reviewed Independent Chartered Accountant (Firms’ Registration No. 105765W).

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ii. Progress in the object(s):

		Source of
				Amount utilized					Comments of the
		information /
			Amount	(Rs in million)					Board of Directors
		certifications
			as
		considered	proposed				Total	Comments
		b
		y Monitorin	in the	As at		At the	unutilized	of the
Sr.	**Item Head# **	g Aenc for	Offer	beginning	During	end	amount	Monitoring	Reasons	Proposed
No.		gy preparation	Document	of the	the	of the	(Rs in	Agency	for idle	course of
		of report	(Rs in	quarter	quarter	quarter	million)		funds	action
			million)
1	Repayment/pr epayment, in full or part, of certain borrowings availed by the Company	Independent chartered accountant Certificate^, Management Undertaking, Prospectus, Bank Statements	100.00	Nil	100.00	100.00	Nil	Fully utilised during the reported quarter	Fully utilised
2	Funding working capital requirements of the Company		1,000.00	Nil	200.00	200.00	800.00	Utilised towards reduction in outstanding working capital debt with UBI	Balance of Rs 800 million to be utilized in FY 2024-25
3	Funding capital expenditure for purchase of new machinery	Independent chartered accountant certificate ^, Management Undertaking	100.00	Nil	-	-	100.00	No utilisation during reported quarter	Balance of Rs 100 million to be utilized in FY 2024-25
4	GCP		433.69	Nil	-	-	433.69	No utilisation during reported quarter	Balance of Rs 433.69 million to be utilized in FY 2024-25
	Total		1,633.69		300.00	300.00	1,333.69

^Certificate dated May 07, 2024, issued by M/s Mahendra Doshi & Associates, Peer reviewed Independent Chartered Accountant (Firms’ Registration No. 105765W).

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#Brief description of objects:

Object of the Issue	Description of objects as per the offer document filed by the issuer
Repayment/prepayment, in full or part, of certain borrowings availed of by the Company	Company proposes to utilize an aggregate amount of Rs.100.00 million from the Net Proceeds towards repayment/pre-payment, in full or in part, of certain borrowings availed of by the Company. The selection and extent of borrowings proposed to be prepaid and/or repaid by the Company is based on various commercial considerations including, among others, the interest rate of the relevant borrowings, prepayment charges, the amount of the borrowings outstanding, amount and nature of security provided and the remaining tenor of the borrowings.
Funding working capital requirements of Company	Company is required to incur certain upfront costs to be able to provide services to its customers from the beginning of the contracted period. These include costs towards manpower, materials, and machine required from the first day of commencement of such contract. Company proposes to utilise Rs.150.00 million and Rs.850.00 million from the Net Proceeds towards funding its working capital requirements in Financial Year 2024 and Financial Year 2025, respectively, for meeting future business requirements
Funding capital expenditure for purchase of new machinery	Company proposes to purchase new machinery with the objective of improving the quality and efficiency of deliverables to its customers. The proposed capital expenditure for purchase of new machinery is expected to have a positive impact on company’s ability to compete in the market. It will enhance capabilities for bidding on new projects and provide it with a distinct competitive advantage.
GCP	The general corporate purposes for which Company proposes to utilize Net Proceeds includes funding growth opportunities, strengthening marketing capabilities, brand building exercises, interest payments and other debt servicing costs, investing towards information technology infrastructure, and purchase of equipments and, other expenses incurred in course of its catering business, as may be approved by Company’s Board or a duly appointed committee from time to time, subject to compliance with applicable laws. Also, the quantum of utilization of funds towards each of the above purposes will be determined by Company’s Board.

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iii. Deployment of unutilised IPO proceeds ^ :

S. No.	Type of investment and name of the entity invested in	Type of investment and name of the entity invested in	Amount invested (Rs in million)	Amount invested (Rs in million)	Maturity Date	Maturity Date	Return on Investment (%)	Return on Investment (%)	Earnings (Rs in million)	Earnings (Rs in million)	Market Value as at the end of quarter (Rs in million)
1	Fixed deposit maintained with UBI bank (No.22123230002433)		800.00		29-Jun-24		6.75%		0.29		800.29
2	Balance in MA account maintained with Axis bank		528.65		-		-		-		528.65
3	Balance in Public issue account maintained with Axis bank		5.04*		-		-		-		5.04
	Total		1,333.69								1,333.98
^ On the basis of the management undertaking and Certificate dated May 07, 2024, issued by M/s Mahendra Doshi & Associates, Peer reviewed Independent Chartered Accountant (Firms’ Registration No. 105765W). _ Out of closing balance of Rs.129.95 million as on March 31, 2024 in Public issue account, Rs.5.04 million pertains to net_ proceeds from fresh issue of shares. iv. Delay in implementation of the object(s)^ –*
		Completion Date						Comments of the Board of Directors
						Delay
						(no. of
Object(s)		As per the Offer								Proposed
						days/
		Document						Reason of delay		course of
				Actual		months)
										Action
								There were expected
								contracts that got
								delayed due to
		Proposed
								government		Proposed to
Funding capital expenditure for		utilisation: Rs.20				Refer
				NIL utilised				tendering activities		purchase in
purchase of new machinery		million by March				Note
								and the said		current FY
		31, 2024
								utilisation for
								machinery will be
								done in FY 2024-25

^Note: On the basis of the management undertaking and Certificate dated May 07, 2024, issued by M/s Mahendra Doshi & Associates, Peer reviewed Independent Chartered Accountant (Firms’ Registration No. 105765W), it has been submitted that the Company has not utilized any amount towards this object till quarter ended 31[st] March 2024 and the pending utilisation is proposed to be utilised by March 31, 2025 hence same is to be considered as revised estimate for utilisation towards the referred object. The Company has obtained Board of Director’s approval for revision in the estimated date for utilisation of these proceeds to FY 2025.

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

Not Applicable based on management undertaking and Certificate dated May 07, 2024, issued by M/s Mahendra Doshi & Associates, Peer reviewed Independent Chartered Accountant (Firms’ Registration No. 105765W).

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Disclaimers:

• a) This Report is prepared by CRISIL Ratings Limited (hereinafter referred to as "Monitoring Agency” / “MA" / “CRL”) . The MA 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. 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.

• b) This Report has to be seen in its entirety; the selective review of portions of the Report may lead to inaccurate assessments. For the purpose of this Report, MA has relied upon the information provided by the management /officials/ consultants of the Issuer and third-party sources like statutory auditor or from peer reviewed CA firms appointed by the Issuer believed by it to be accurate and reliable.

• c) Nothing contained in this Report is capable or 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 MA is also not responsible for any errors in transmission and specifically states that it, or its directors, employees do not have any financial liabilities whatsoever to the users of this Report.

• d) The MA and its affiliates do not act as a fiduciary. The MA and its affiliates also do not act as an expert to the extent defined under Section 2(38) of the Companies Act, 2013. While the MA has obtained information from sources it believes to be reliable, it does not perform an audit and undertakes no independent verification of any information/ certifications/ statements it receives from auditors (or from peer reviewed CA firms), lawyers, chartered engineers or other experts, and relies on in its reports.

• e) The MA or its affiliates may have other commercial transactions with the entity to which the report pertains. As an example, the MA may rate the issuer or any debt instruments / facilities issued or proposed to be issued by the issuer that is subject matter of this report. The MA may receive separate compensation for its ratings and certain credit-related analyses, normally from issuers or underwriters of the instruments, facilities, securities or from obligors.

• f) The MA report is intended for the jurisdiction of India only. This report does not constitute an offer of services. Without limiting the generality of the foregoing, nothing in the report is to be construed as CRL providing or intending to provide any services in jurisdictions outside India, where it does not have the necessary licenses and/or registration to carry out its business activities referred to above.

• g) Access or use of this report does not create a client relationship between CRL and the user.

• h) CRL is not aware that any user intends to rely on the report or of the manner in which a user intends to use the report. In preparing this report, MA has not taken into consideration the objectives or particular needs of any particular user.

• i) It is made abundantly clear that the report is not intended to and does not constitute an investment advice. The report is not an offer to sell or an offer to purchase or subscribe for any investment in any securities, instruments, facilities or solicitation of any kind to enter into any deal or transaction with the entity to which the report pertains. The report should not be a basis for any investment decision within the meaning of any law or regulation (including the laws and regulations applicable in the US).

• j) The report comprises professional opinion of CRL as of the date they are expressed, based on the information received from the issuer and other sources considered reliable by CRL. Any opinions expressed here are in good faith, are subject to change without notice, and are only current as of the stated date of their issue. The report does not constitute statements of fact or recommendations to purchase, hold or sell any securities/instruments or to make any investment decisions.

• k) Neither CRL nor its affiliates, third-party providers, as well as their directors, officers, shareholders, employees or agents guarantee the accuracy, completeness or adequacy of the report, and shall not have any liability for any errors, omissions or interruptions therein, regardless of the cause, or for the results obtained from the use of any part of the report. CRL and each aforesaid party disclaims any and all express or implied warranties, including but not limited to any warranties of merchantability, suitability or fitness for a particular purpose or use or use. In no event shall CRL or any aforesaid party be liable to any user for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of any part of the report even if advised of the possibility of such damages.

• l) CRL has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with the preparation of this report. CRL has in place a code of conduct and policies for managing conflict of interest.

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• m) Unless required under any applicable law, this report should not be reproduced or redistributed to any other person or in any form without prior written consent from CRL.

• n) By accepting a copy of this Report, the recipient accepts the terms of this Disclaimer, which forms an integral part of this Report.

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