Rushil Decor Limited — Capital/Financing Update 2023

Aug 10, 2023

••• ••• •••

RUSHIL DECOR LIMITED W E'LL MAKE IT

RDL/50/2023-24 Date: 10.08.2023

To, National Stock Exchange of India Ltd. Exchange Plaza, Bandra - Kurla Complex, Bandra (E), Mumbai - 400051 NSE EQUITY SYMBOL: RUSHIL

To, BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400001 BSE SCRIP CODE: 533470

ISIN: INE573K01017

Dear Sir/Madam,

Ref: Regulation 32(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with Regulation 414) and 82(4) of the SEBI (ssue of Capital and Disclosure Requirements) Regulations, 2018

Subject: Monitoring Agency Report for the Quarter ended June 30, 2023

In accordance with Regulation 32 (6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended from time to time, Regulation 41 (4) and 82 (4) of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, we are enclosing herewith the Monitoring Agency Report dated July 31, 2023 issued by CARE Ratings Limited, Monitoring Agency, for the Quarter ended June 30, 2023 in respect of utilization of proceeds of the Rights Issue of the Company.

Further, we wish to inform you that the entire proceeds raised through the Rights Issue of the Company have been fully utilized towards the objects as mentioned in the Offer Document and there have been no deviations or variations in the use of proceeds raised from the Rights Issue.

Please take the same into your record and do the needful.

Thanking you,

Yours faithfully,

For Rushil Decor Limited

HASMUKH Digitally signed by HASMUKH KANUBHAI KANUBHAI MODI Date: 2023.08.10 MODI 18:31:56 +05'30' Hasmukh K. Modi Company Secretary

Encl.: a/a

RUSHIL DECOR LTD., RUSHIL HOUSE, NEAR NEELKANTH GREEN BUNGALOW, OFF SINDHU BHAVAN ROAD, SHILAJ, AHMEDABAD-380058, GUJARAT, INDIA.

•••

REGO. OFFICE: S. NO. 125, NEAR KALYANPURA PATIA, VILLAGE ITLA, GANDHINAGAR-MANSA ROAD, TA. KALOL, DIST. GANDHINAGAR-382845, GUJARAT, INDIA. I GIN: L25209GJ1993PLC019532

PH: +91-79-61400400 I FAX: +91-79-61400401 I EMAIL: INFO@RUSHIL.COM I WWW.RUSHIL.COM

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No. CARE/ARO/GEN/2023-2024/1087

Mr. Krupesh Thakkar Managing Director

Rushil Decor Limited

Rushil House, Near Neelkanth Green Bungalow, Off Sindhu Bhavan Road, Shilaj, Ahmedabad, Gujarat – 380058

July 31, 2023

Dear Sir,

- Monitoring Agency Report for the quarter ended June 30, 2023 in relation to the Rights Issue of Equity Shares of Rushil Decor Limited (“the Company”)

We write in our capacity of Monitoring Agency for the Rights Issue of Equity Shares for the amount aggregating to Rs.107.49 crore of the Company and refer to our duties cast under 82 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, 2023 as per aforesaid SEBI Regulations and Monitoring Agency Agreement dated March 22, 2023.

Request you to kindly take the same on records.

Thanking you, Yours faithfully,

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Anuja Parikh

Assistant Director anuja.parikh@careedge.in

CARE Ratings Limited

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32, Titanium, Prahaladnagar Corporate Road 4th Floor, Godrej Coliseum, Somaiya Hospital Satellite, Ahmedabad - 380 015 Road, Off Eastern Express Highway, Sion (East), Phone: +91-79-4026 5656 Mumbai - 400 022 Phone: +91-22-6754 3456

Email: care@careedge.in • www.careedge.in

CIN-L67190MH1993PLC071691

Report of the Monitoring Agency

Name of the issuer: Rushil Decor Limited For quarter ended: June 30, 2023 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 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 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.

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Signature:

Name and designation of the Authorized Signatory: Anuja Parikh Designation of Authorized person/Signing Authority: Assistant Director

CARE Ratings Limited

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32, Titanium, Prahaladnagar Corporate Road Satellite, Ahmedabad - 380 015 Phone: +91-79-4026 5656

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

CIN-L67190MH1993PLC071691

1) Issuer Details: Name of the issuer : Rushil Decor Limited Name of the promoter : Mr Krupesh Ghanshyambhai Thakkar, Ms. Krupa Krupesh Thakkar, M/s. Rushil International, Partnership Firm and Mr. Krupesh Ghanshyambhai Thakkar (HUF) Industry/sector to which it belongs : Laminates and MDF Boards

2) Issue Details

Issue Period : May 02, 2023 to May 12, 2023 Type of issue : Rights Issue Type of specified securities : Equity shares IPO Grading, if any : Not applicable Issue size (in Rs. crore) : Rs.107.49 crore of rights issue (Note 1)

Note 1:

Particulars	Remarks
Total shares issued and subscribed aspart of Rights issue	6,635,421
Totalproceeds received from Rights issue(in Rs.)	1,074,938,202
Details of expenses incurred related to rights issue*(in Rs.)	6,500,000
Netproceeds available for utilisation(in Rs.)	1,068,438,202

*The amount mentioned as expense was earmarked for cost of issue as per the offer document.

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

Particulars	Particulars	Reply	Source of information / certifications considered by Monitoring Agency for preparation of report	Comments of the Monitoring Agency	Comments the Board of Directors
Whether all utilization is as per the disclosures in the Offer Document?		Yes	Chartered Accountant certificate*; Bank statement	Yes	Yes
Whether shareholder approval has been obtained in case of material deviations# from expenditures disclosed in the Offer Document?		Not applicable	Not applicable	Not applicable	Not applicable
Whether the means of finance for the disclosed objects of the issue have changed?		Not applicable	Not applicable	Not applicable	No
Is there any major deviation observed over the earlier monitoring agency reports?		First report, no earlier report available.	Not applicable	Not applicable	Not applicable
Whether all Government/statutory approvals related to the object(s) have been obtained?		No such approval needed	Not applicable	Not applicable	Not applicable
Whether all arrangements pertaining to technical assistance/collaboration are in operation?		There is no such arrangement	Not applicable	Not applicable	Not applicable
Are there any favorable/unfavorable events affecting the viability of these object(s)?		No	Not applicable	No	No
Is there any other relevant information that may materially affect the decision making of the investors?		No	Not applicable	No	No
	CARE Ratings Limited * Chartered Accountant certificate from M/s. Pankaj R. Shah & Associates dated July 25, 2023

Where material deviation may be defined to mean:

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

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

4) Details of objects to be monitored:

(i) Cost of objects –

Sr. No		Source of
						Comments of the Board of Directors
		information /
			Original cost
		certifications		Revised	Comments
			(as per
		considered by		Cost	of the	Reason		Particulars of
	I Hd		h Off				Proposed
	tem ea	Monitoring	te er	in Rs.	Monitoring	for		firm
			D				financing
		Agency for	ocument)	Crore	Agency	cost		arrangements
			in Rs. Crore				option
		preparation of				revision		made
		report
1	Repayment or pre-payment in full or part, of certain identified unsecured loans availed by the Company from the Promoter and members of the Promoter Group.	Chartered Accountant certificate*, Bank statements, Offer Document	54.90	Not applicable	Nil	Not Applicable	Not Applicable	Not Applicable
2.	To augment the existing and incremental working capital requirement of the Company	Chartered Accountant certificate*, Bank statements, Offer Document	42.30	Not Applicable	Nil	Not Applicable	Not Applicable	Not Applicable
3	General corporate purposes	Chartered Accountant certificate*, Bank statements, Offer Document	9.64	Not Applicable	Nil	Not Applicable	Not Applicable	Not Applicable
Total			106.84

• Chartered Accountant certificate from M/s. Pankaj R. Shah & Associates dated July 25, 2023

(ii) Progress in the objects –

Sr. No		Itm Hd	Source of information / certifications considered by	Amount as proposed in the Offer	Amount utilised in Rs. Crore	Amount utilised in Rs. Crore	Amount utilised in Rs. Crore		Comments of the Board of Directors	Comments of the Board of Directors
					As at beginning	During	At the	Comments of the	Reasons for idle funds	Proposed course of action
		e ea	Monitoring Agency for preparation of report	Document in Rs. Crore	of the quarter in Rs. Crore	the quarter in Rs. Crore	end of the quarter in	Monitoring Agency
							Rs. Crore
1		Repayment or pre- payment in full or part, of certain identified unsecured loans availed by the	Chartered Accountant certificate*, Bank statements, Offer Document	54.90	-	54.90	54.90	Nil	Not Applica ble	Not Applic able
		CARE Ratings Limited

Sr. No	It Hd	Source of information / certifications considered by	Amount as proposed in the Offer	Amount utilised in Rs. Crore	Amount utilised in Rs. Crore	Amount utilised in Rs. Crore	Comments of the Monitoring Agency	Comments of the Board of Directors	Comments of the Board of Directors
				As at beginning	During	At the		Reasons for idle funds	Proposed course of action
	em ea	Monitoring Agency for preparation of report	Document in Rs. Crore	of the quarter in Rs. Crore	the quarter in Rs. Crore	end of the
						quarter in Rs. Crore
	Company from the Promoter and members of the Promoter Group.
2	To augment the existing and incremental working capital requirement of the Company	Chartered Accountant certificate*, Bank statements, Offer Document	42.30	-	42.30	42.30	Nil	Not Applica ble	Not Applic able
3	General corporate purposes	Chartered Accountant certificate*, Bank statements, Offer Document	9.64	-	9.64	9.64	Nil	Not Applica ble	Not Applic able
Total			106.84	-	106.84	106.84

• Chartered Accountant certificate from M/s. Pankaj R. Shah & Associates dated July 25, 2023

(iii)Deployment of unutilised Rights Issue 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	Not applicable	Not applicable	Not applicable	Not applicable	Not applicable	Not applicable

• *Where the market value is not feasible, provide NAV/NRV/Book Value of the same

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

					Comments of the Board of	Comments of the Board of
		Completion Date
				Delay (no. of	Directors
Objects		As per the		days/
					Reason of	Proposed course of
		offer	Actual*	months)
					delay	action
		document
Repayment or pre-payment in full or part, of certain identified unsecured loans availed by the Company from the Promoter and members of the Promoter Group.		FY24	On Schedule	Not Applicable	Not Applicable	Not Applicable
To augment the existing and incremental working capital requirement of the Company		FY24	On Schedule	Not Applicable	Not Applicable	Not Applicable
General corporate purposes		FY24	On Schedule	Not Applicable	Not Applicable	Not Applicable
	CARE Ratings Limited *In case of continuing object(s), please specify latest/revised estimate of the completion date

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

			Source of information /
		Amount
Sr.			certifications considered	Comments of	Comments of the Board of
No	Item Head	in Rs.	by Monitoring Agency for	Monitoring Agency	Directors
		Crore	preparation of report
1.	Salary and wages	4.33	Bank Statements	Nil	Nil
2.	Advance Tax	1.96	Bank Statements	Nil	Nil
3.	Advertising Expense	1.51	Bank Statements	Nil	Nil
4.	GST Payments	0.55	Bank Statements	Nil	Nil
5.	Software Purchases	0.50	Bank Statements	Nil	Nil
6.	Other*	0.79	Bank Statements	Nil	Nil
	Total	9.64

*Others include upgradation of IT, logistics, stationary, administrative expense, rent, pest control, bank charges etc.

CARE Ratings Limited

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32, Titanium, Prahaladnagar Corporate Road Satellite, Ahmedabad - 380 015 Phone: +91-79-4026 5656

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

CIN-L67190MH1993PLC071691