Morepen Laboratories Ltd. — Capital/Financing Update 2025

Aug 6, 2025

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Date: 06/08/2025

To,

National Stock Exchange of India Ltd. Exchange Plaza, Bandra Kurla Complex, Bandra (East), Mumbai- 400 051 Symbol: MOREPENLAB

BSE Limited

Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai- 400 001 Scrip Code: 500288

Subject: Monitoring Agency Report for the quarter ended 30[th] June 2025

Dear Sir/ Madam,

Pursuant to Regulation 32 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with Regulation 173A of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, please find enclosed herewith the Monitoring Agency Report dated August 06, 2025, for the quarter ended 30[th] June 2025, issued by Care Ratings Limited, the Monitoring Agency appointed to monitor utilization of proceeds of the qualified institutions placement issue.

Kindly take aforesaid on record.

Thanking you,

Yours faithfully,

For Morepen Laboratories Limited

Vipul Digitally signed by Vipul Kumar Kumar Srivastava Srivastava Date: 2025.08.06 16:15:45 +05'30'

Vipul Kumar Srivastava Company Secretary F-12148 Encl.: a/a.

Morepen Laboratories Limited

CIN NO. L24231 HP1984PLC006028

Corp. Off.: 2nd Floor, Tower C, DLF Cyber Park, Udyog Vihar-III, Sector-20, Gurugram, Haryana-122016, INDIA TEL.: +91 124 4892000, E-mail: corporate@morepen.com, Website: www.morepen.com

Regd. Off.: Morepen Village, Malkumajra, Nalagarh Road, Baddi, Distt. Solan (H.P.) -173205, INDIA Tel.: +91 1795 266401-03, 244590, Fax: +91 1795 244591, E-mail: plants@morepen.com

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No. CARE/NRO/GEN/2025-26/1065

The Board of Directors

Morepen Laboratories Limited

Morepen Village, Nalagarh Road, Near Baddi, Distt. Solan Himanchal Pradesh-173205

August 06, 2025

Dear Sir/Ma’am,

– Monitoring Agency Report for the quarter ended June 30, 2025 in relation to the QIP of Morepen Laboratories Limited (“the Company”)

We write in our capacity of Monitoring Agency for the QIP for the amount aggregating to Rs.200 crore of the Company and refer to our duties cast under 173A of the Securities & Exchange Board of India (Issue of Capital & Disclosure Requirements) Regulations.

In this connection, we are enclosing the Monitoring Agency Report for the quarter ended June 30, 2025, as per aforesaid SEBI Regulations and Monitoring Agency Agreement dated August 01, 2024.

Request you to kindly take the same on records.

Thanking you, Yours faithfully,

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Sandeep Aggarwal

Associate Director Sandeep.aggarwal@careedge.in

CARE Ratings Limited

Plot no. C-001 A/2 Sector 16B, Berger Tower, Gautam Budh Nagar, Noida, (UP) - 201301 Phone: +91-120-4452000

Corporate Office :4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (E), Mumbai - 400 022 Phone: +91-22-6754 3456 • www.careedge.in

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CIN-L67190MH1993PLC071691

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Report of the Monitoring Agency

Name of the issuer: Morepen Laboratories Limited For quarter ended: June 30, 2025 Name of the Monitoring Agency: CARE Ratings Limited (a) Deviation from the objects: Nil

(b) Range of Deviation: Not Applicable

Declaration:

We declare that this report provides an objective view of the utilisation 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 utilisation 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.

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Signature:

Name and designation of the Authorized Signatory: Sandeep Aggarwal Designation of Authorized person/Signing Authority: Associate Director

CARE Ratings Limited

Plot no. C-001 A/2 Sector 16B, Berger Tower, Gautam Budh Nagar, Noida, (UP) - 201301 Phone: +91-120-4452000

Corporate Office :4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (E), Mumbai - 400 022 Phone: +91-22-6754 3456 • www.careedge.in

CIN-L67190MH1993PLC071691

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1) Issuer Details:

Name of the issuer Name of the promoter Industry/sector to which it belongs

: Morepen Laboratories Limited

: Sushil Suri

: Pharmaceuticals

Issue Details

Issue Period Type of issue (public/rights) Type of specified securities IPO Grading, if any Issue size (in crore)

: 01/08/2024 to 05/08/2024 : QIP : Equity : - : Rs. 200.00 crore

2) 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 utilisation is as per the disclosures in the Offer Document?	Yes	CA Certificate*, Offer document, BankStatements	The issue proceeds of the QIP have been utilised in accordancewiththe objects givenas perofferdocument	No comments received
Whether shareholder approval has been obtained in case of material deviations# fromexpenditures disclosedinthe Offer Document?	No material deviation	CA Certificate*, Bank Statements	NA	No comments received
Whether the means of finance for the disclosed objects of the issue have changed?	No	CA Certificate*	NA	No comments received
Is there any major deviation observed over the earlier monitoring agencyreports?	No	CA Certificate*, Bank Statements	No, there are no deviations observed from the last monitoring agencyreport	No comments received
Whether all Government/statutory approvals related to the object(s) have beenobtained?	NA	CA Certificate*	NA	No comments received
Whether all arrangements pertaining to technical assistance/collaboration are in operation?	NA	CA Certificate*	NA	No comments received
Are there any favorable/unfavorable events affecting the viability of these object(s)?	No	BSE/NSE website, Google check, CA Certificate*	NA	No comments received
Is there any other relevant information that may materially affect the decision making of the investors?	No	BSE/NSE website, Google check, CA Certificate*	NA	No comments received

NA: Not Applicable

*CA Certificate from Virendra K Jain & Associates dated July 29, 2025 #Where material deviation may be defined to mean:

CARE Ratings Limited

Plot no. C-001 A/2 Sector 16B, Berger Tower, Gautam Budh Nagar, Noida, (UP) - 201301 Phone: +91-120-4452000

Corporate Office :4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (E), Mumbai - 400 022 Phone: +91-22-6754 3456 • www.careedge.in

CIN-L67190MH1993PLC071691

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

b) Deviation in the amount of funds actually utilised by more than 10% of the amount projected in the offer documents.

3) Details of objects to be monitored:

(i) Cost of objects –

Sr. No	Item Head	Source of information / certifications considered by Monitoring Agency for preparation of report	Original cost (as per the Offer Document) in Rs. Crore	Revised Cost in Rs. Crore	Comments of the Monitoring Agency	Comments of the Board of Directors	Comments of the Board of Directors	Comments of the Board of Directors
						Reason for cost revision	Proposed financing option	Particulars of - firm arrangements made
1	Modernisation and expansion of manufacturing units located in Baddi and Masulkhana	CA Certificate*, Placement document	122.79	122.79	NA	No comments received	No comments received	No comments received
2	Funding of Working Capital requirements of the company	CA Certificate*, Placement document	64.36	66.29^	NA	No comments received	No comments received	No comments received
Total			187.15	189.08

*CA Certificate from Virendra K Jain & Associates dated July 29, 2025

^ The usage of funds for working capital have increased from existing Rs. 64.36 crore as mentioned in the offer document, to Rs. 66.29 crore, i.e. increased by Rs. 1.93 crore resulting from the reduction in issue related expenses. This increase in ‘funding of working capital’, was driven by actual issue-related expenses being lower than anticipated, with actual expenses amounting to Rs. 10.92 crore, compared to the Rs. 12.85 crore originally projected in the offer document.

As per the offer document it is mentioned that “Our funding requirements, deployment of the Net Proceeds and the intended use of the Net Proceeds indicated above are based on internal management assessments of current and expected sectoral and market conditions, which are subject to change in the future. However, the deployment of funds described herein, has not been appraised by any bank or financial institution or any other independent agency. We may have to revise our funding requirements and deployment on account of a variety of factors such as our financial conditions, business and growth strategy and other external factors in the business eco-system such as changes in market conditions, regulatory climate, competitive environment, supply chain etc which may not be within the control of our management.”

CARE Ratings Limited

Plot no. C-001 A/2 Sector 16B, Berger Tower, Gautam Budh Nagar, Noida, (UP) - 201301 Phone: +91-120-4452000 CIN-L67190MH1993PLC071691

Corporate Office :4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (E), Mumbai - 400 022 Phone: +91-22-6754 3456 • www.careedge.in

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(ii) Progress in the objects –

Sr. No	Item Head	Source of information / certifications considered by Monitoring Agency for preparation of report							Comments of the Board of Directors	Comments of the Board of Directors
			Amount as proposed in the Offer Document in Rs. Crore	Amount utilised in Rs. Crore			Total	Comments of the Monitoring Agency
				As at beginning of the quarter in Rs. Crore	During				Reasons for idle funds	Proposed course of action
					the	At the end	unutilised i
					quarter in Rs. Crore	of the quarter in Rs. Crore	amount n Rs. Crore
1	Modernisation and expansion of manufacturing units located in Baddi and Masulkhana	CA Certificate*, Bank Statements	122.79	49.41	20.41	69.82	52.97	During Q1FY26, the company incurred Rs.20.41 crore towards modernization and expansion activities, of which Rs.12.84 crore was directly utilized from the monitoring account. Given the company’s presence across various plant and office locations, Rs.7.57 crore was transferred from the monitoring account to multiple current, cash credit (CC), and overdraft (OD) accounts to facilitate local disbursements. These accounts recorded numerous debit and credit transactions, which are in line with the reported utilization for Q1FY26. However, due to the volume of entries across multiple accounts, we were not directly able to ascertain the utilisation of issue proceeds. The company has confirmed that the funds were utilised in accordance with the objectives stated in the offer document, as supported by a management representationand CAcertificate.	No comments received	No comments received
2	Funding of Working Capital requirements of the company	CA Certificate*, Bank Statements	66.29	64.65	1.64	66.29	0.00	The company has incurred Rs.1.64 crore from monitoring account and ICICI bank OD account. Same is verified through bankstatements and CAcertificate.	No comments received	No comments received
**Total **			189.08	114.06	22.05	136.11	**52.97 **

*CA Certificate from Virendra K Jain & Associates dated July 29, 2025

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CARE Ratings Limited

Plot no. C-001 A/2 Sector 16B, Berger Tower, Gautam Budh Nagar, Noida, (UP) - 201301 Phone: +91-120-4452000

Corporate Office :4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (E), Mumbai - 400 022 Phone: +91-22-6754 3456 • www.careedge.in

CIN-L67190MH1993PLC071691

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(iii) Deployment of unutilised proceeds:

Sr. **No. **	Type of instrument and name of the entity invested in	Amount *invested **	Maturity date	Earning	Return on Investment (%)	Market Value as at the **end of quarter **
1	Debt Mutual Funds-ICICI Pru Money Market-G	20.13	On Demand	0.83	-	20.96
2	DebtMutual Funds-Kotak MoneyMarketReg-G	25.37	On Demand	1.26	-	26.63
3	Debt Mutual Funds-Invesco India Liquid Fund-G	9.86	On Demand	0.46	-	10.32
4	Balance in Monitoring Account of ‘Morepen Laboratories Limited’ with Kotak Mahindra bank(AccountNo. 2805197200)	1.44	NA	-	-	1.44
	Total	56.80^		2.55		59.35

*CA Certificate from Virendra K Jain & Associates dated July 29, 2025

^This is inclusive of income generated from the deployment of QIP funds amounting to Rs.3.84 crore during Q2FY25, Q3FY25, Q4FY25 and Q1FY26. This income includes both interests earned, and capital gains realized from the investments.

As per the offer document, the company will have flexibility in deploying the Net Proceeds received by it from the Issue in accordance with applicable laws. Pending utilisation for the issue objects, it may temporarily invest funds in creditworthy instruments, including money market mutual funds and deposits with banks.

– (iv) Delay in implementation of the object(s)

	Completion Date	Completion Date		Comments of the Board of Directors	Comments of the Board of Directors
			Delay (no. of days/
Objects	As per the offer				Proposed course of
		Actual	months)	Reason of delay
	document				**action **
Modernisation and expansion of manufacturing units located in Baddi and Masulkhana	March 31, 2026 (for Rs.33.97crore)	Ongoing	-	No comments received	No comments received
	March 31,2025 (for Rs. 88.83 crores)	Ongoing	*As per the offer document there was a delay. However same has been extended by the QIP committee resolution	, , No comments received	No comments received
Funding of Working Capital requirements of the company	March 31,2025 (for Rs.64.36 crore)	Completed	-	No comments received	No comments received
	No timeline defined (for Rs.1.93 crore)^	Completed	-	No comments received	No comments received

Based on QIP committee timelines for utilisation of objects revised for both the objects.

*As per the offer document, Rs.88.83 crore was to be utilised by FY25. However, due to ongoing civil and infrastructure work for modernization and expansion, Rs.49.41 crore was utilised by FY25, with the balance to be used in FY26 as per the QIP Committee resolution dated April 22, 2025.

^On account of reduced issue related expenses, the total net proceeds have been increased by Rs.1.93 crore and are to be utilised for the working capital purposes. As a result, funds allocated for working capital have been increased from Rs.64.36 crores to Rs.66.29 crores, which were fully utilised in Q1FY26. The same has been approved under the QIP committee resolution (QIP Resolution Dated April 22, 2025) of the company.

CARE Ratings Limited

Plot no. C-001 A/2 Sector 16B, Berger Tower, Gautam Budh Nagar, Noida, (UP) - 201301 Phone: +91-120-4452000 CIN-L67190MH1993PLC071691

Corporate Office :4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (E), Mumbai - 400 022 Phone: +91-22-6754 3456 • www.careedge.in

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4) Details of utilisation of proceeds stated as General Corporate Purpose (GCP) amount in the offer document: Not Applicable

			Source of information / certifications
		Amount
Sr. No	Item Head^		considered by Monitoring Agency for	Comments of Monitoring Agency	Comments of the Board of Directors
		in Rs. Crore
			preparation of report
1	Not Applicable	Not Applicable	Not Applicable	Not Applicable	No comments received
	Total	Not Applicable	Not Applicable	Not Applicable	No comments received

CARE Ratings Limited

Plot no. C-001 A/2 Sector 16B, Berger Tower, Gautam Budh Nagar, Noida, (UP) - 201301 Phone: +91-120-4452000 CIN-L67190MH1993PLC071691

Corporate Office :4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (E), Mumbai - 400 022 Phone: +91-22-6754 3456 • www.careedge.in

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Disclaimers to MA report:

a) This Report is prepared by CARE Ratings Ltd (hereinafter referred to as “Monitoring Agency/MA” ). 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 peer reviewed audit firm 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 peer reviewed audit firm (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.

CARE Ratings Limited

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Corporate Office :4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (E), Mumbai - 400 022 Phone: +91-22-6754 3456 • www.careedge.in

Plot no. C-001 A/2 Sector 16B, Berger Tower, Gautam Budh Nagar, Noida, (UP) - 201301 Phone: +91-120-4452000

CIN-L67190MH1993PLC071691

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