Sanathan Textiles Limited — Capital/Financing Update 2025

Aug 8, 2025

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Date: August 08, 2025

To, National Stock Exchange of India Limited BSE Limited Exchange Plaza, Plot No. C/1, G Block, Phiroze Jeejeebhoy Towers, Bandra-Kurla Complex, Dalal Street, Bandra (East), Mumbai-400051. Mumbai-400001.

Trading Symbol: SANATHAN Scrip Code: 544314

Ref. No: - 2025-2026/Aug25/069

Dear Sirs/Madam,

Sub: Monitoring Agency Report issued by I C R A Limited for the utilization of funds raised through Initial Public Offer, for quarter ended June 30, 2025

We hereby submit, pursuant to Regulation 32(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with Regulation 41 (4) of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, the Monitoring Agency Report for the quarter ended on June 30, 2025 issued by the ICRA Limited, Monitoring Agency, appointed by the Company for monitoring the utilization of funds raised through Initial Public Issue.

The said report for the quarter ended June 30, 2025, is duly reviewed by the Audit Committee at its meeting held on August 07, 2025.

We request you to take the same on your record.

Thanking You, Yours faithfully, For Sanathan Textiles Limited JUDE PATRICK Digitally signed by JUDE PATRICK DSOUZA DSOUZA Date: 2025.08.08 18:33:19 +05'30' Jude Patrick Dsouza Company Secretary and Compliance Officer

Encl: As above

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June 2025

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MONITORING AGENCY REPORT

Name of the Issuer: Sanathan Textiles Limited

For quarter ended: June 30, 2025

Name of the Monitoring Agency: ICRA Limited

(a) Deviation from the objects of the issue:

No deviation - the utilization of the issuance proceeds is in line with the objects of the issue.

(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 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

Signature:

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Parul Goyal Narang Vice President & Head-Process Excellence

Analyst : Adrita Sadhukhan

Quality Analyst : Parul Narang

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June 2025

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1. Issuer Details

Name of the Issuer : Sanathan Textiles Limited

Name(s) of the promoters:

Promoters

Nimbus Trust Trustee Sonali Ajaykumar Dattani

D&G Family Trust Trustee Geeta Dinesh Dattani P&B FAMILY Trust Trustee Beena Paresh Dattani A&J Family Trust Trustee Jayshree Anilkumar Dattani Anilkumar Vrajdas Dattani Dineshkumar Vrajdas Dattani Ajaykumar Vallabhdas Dattani Paresh Vrajlal Dattani

Source: Bse.com

Industry/ sector to which it belongs :

• Textiles & Apparels

2. Issue Details

Issue Period : Opening date- December 19, 2024

Closing date- December 23, 2024

Type of Issue : Initial Public Offer

Type of specified securities : Equity shares

IPO Grading, if any : No credit rating agency registered with SEBI has been appointed in respect of obtaining grading for the offer.

Issue Size (Rs. Crore): INR 550.000 Crore

With OFS portion : INR 150.000 Crore

Excluding OFS portion : INR 400.000 Crore.

Net proceeds: INR 370.952 (Excluding Issue Related Expenses) *

*ICRA will be monitoring gross proceed of INR 400.000 Crore in Q1FY2026.

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June 2025

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3. Details of the arrangement made to ensure the monitoring of issue proceeds.

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Source of information,
Comments of
certifications considered
Comments of the Monitoring
Particulars Reply by the Monitoring
Agency Board of
Agency for the
Directors
preparation of report
-Peer Reviewed CA-
Certificate
Whether all utilization is as per
-Confirmation from
the disclosures in the Offer Yes No deviation observed No comments
management
Document?
-Bank statement of the
proceeds account
Whether shareholder approval
has been obtained in case of
Not As confirmed by the
material deviations [#] from No comments No comments
Applicable
expenditures disclosed in the
Offer Document?
Whether the means of finance
As confirmed by the
for the disclosed objects of the No No comments. No comments
issue has changed?
Is there any major deviation No comments
observed over the earlier No No deviation observed . Not Applicable
monitoring agency reports?
Whether all Government/ No comments
statutory approvals related to Not As confirmed by the
Not Applicable
the object(s) have been Applicable
obtained?
Whether all arrangements No comments
pertaining to technical Not As confirmed by the
Not Applicable
assistance/ collaboration are in Applicable
operation?
Are there any favorable events No comments
As confirmed by the
improving the viability of these No
management
object(s)?
Are there any unfavorable No comments
As confirmed by the
events affecting the viability of No
management
the object(s)?
Is there any other relevant No comments
information that may materially As confirmed by the
No
affect the decision making of the management
investors?
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June 2025

4. Details of the object(s) to be monitored.

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(i)Cost of object(s)

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Source of
information
,certificatio
ns Original
Comments of
considered cost (as per
Revised cost the Particulars of
S.N. Item Head by the the offer Proposed
[Rs. Crore] Monitoring Reason for firm
Monitoring document financing
Agency cost revision arrangement
Agency for [Rs. Crore] option
s made
the
preparation
of report
Repayment or pre-
payment, in full or in
part, of certain of
1 Prospectus 160.000 Not applicable Not applicable No comments No comments No comments
outstanding
borrowings availed by
Company
Investment in
subsidiary viz.
Sanathan
Polycot Private
Limited, for
repayment
and/ or pre-payment,
2 Prospectus 140.000 Not applicable Not applicable No comments No comments No comments
in full or part, of
certain borrowings
availed by
subsidiary viz.
Sanathan Polycot
Private
Limited
General corporate
3 Prospectus 70.952 Not applicable Not applicable No comments No comments No comments
purposes
Total 370.952
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June 2025

(ii) Progress in the object(s)

S.N. Item Head Source of information, certifications considered by the Monitoring Agency for the preparation of report*	S.N. Item Head Source of information, certifications considered by the Monitoring Agency for the preparation of report*	S.N. Item Head Source of information, certifications considered by the Monitoring Agency for the preparation of report*	Amount as proposed in the offer document [Rs. Crore]	A	mount utilized [Rs. Crore]	mount utilized [Rs. Crore]	Total		of Directors	of Directors
					[Rs. Crore]
				As at the beginning of the quarter					Reasons for idle funds	Proposed course of action
						At the	unutilized	Comments of the
					During the	end of	amount	Monitoring Agency
					quarter	the	[Rs. Crore]
						quarter
1 Issue Related Expenses -Bank statement of the public issue a/c -ICA certificate -Monitoring A/c			29.048	20.212	1.424	21.636	7.412	No comments	The Company is awaiting invoices/supporting workings/documents from service providers.	The Company will follow up with the service vendors and process the payments on priority
Objects for utilization of Net Proceeds
1	Repayment or pre- payment, in full or in part, of certain of outstanding borrowings availed by Company	- prospectus -Bank statement of the proceeds account - Peer Reviewed CA Certificate	160.000	160.00	-	160.000	Nil	No comments	No comments	No comments
2	Investment in subsidiary viz. Sanathan Polycot Private Limited, for repayment and/ or pre-payment, in full orpart,of	Same as above	140.000	140.000	-	140.000	Nil	No comments	No comments	No comments

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June 2025
certain borrowings
availed by
subsidiary viz.
Sanathan Polycot
Private
Limited
3 General corporate Same as above 70.952 70.952 - 70.952 Nil No comments No comments No
purposes comments
Total 400.00 391.164 1.424 392.588 7.412
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June 2025

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(iii) Deployment of unutilized proceeds

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Amount Market Value as
Return on
Type of instrument and name invested. Earning at the end of
S.N. Maturity date Investment
of the entity invested in [Rs. [Rs. Crore] quarter
[%]
Crore] [Rs. Crore]
Balance in monitoring a/c ICICI
1 Bank account as on 30 [th] June 0.080 - - - 0.080
2025
Balance in Public issue a/c as on
2 0.913 - - - 0.913
30 [th] June 2025
Balance in Bank account with
3 Bank of Baroda as on 30th 6.500 - - - 6.500
Total 7.492 7.492
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Source: As certified by JMT & Associates

*Pertains to interest earned from FDs

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

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Completion date
Delay
As per the offer Proposed course of
Object(s) Actual [Number of days Reason for delay
document action
or months]
Repayment or pre-payment,
in full or in
part, of certain of
FY2025- FY2026 Completed NA No comments No comments
outstanding
borrowings availed by
Company
Investment in subsidiary viz.
Sanathan
Polycot Private Limited, for
repayment
and/ or pre-payment, in full
or part, of FY2026 Completed NA No comments No comments
certain borrowings availed
by
subsidiary viz. Sanathan
Polycot Private
Limited
General corporate purposes FY2025 Completed NA No comments No comments
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June 2025

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

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Source of information,
Comments of
certifications considered Comments of the
Amount
S.N. Item Head by the Monitoring Monitoring
[Rs. Crore] Board of
Agency for the Agency
Directors
preparation of report
-Peer reviewed CA
1 Working Capital (Q3FY2025) 0.827 certificate No Comments No comments
- Bank statement
-Peer reviewed CA
2 Working Capital (Q4FY2025) 70.125 certificate No Comments No comments
- Bank statement
Total 70.952
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