Monitoring Agency Report

@) | Vardhman VARDHMAN SPECIAL STEELS LIMITED - | Delivering Excellence. Since 1965. CHANDIGARH ROAD “eran LUDHIANA-141010, PUNJAB T: +91-161-2228943-48 F: +91-161-2601048 E: secretarial.lud@vardhman.com Ref. VSSL:SCY:0CT:2026-27 Dated: 30.10.2026 BSE Limited, Nat ional Stock Exchange of India Ltd, New Trading Ring, Exchange Plaza, Bandra-Kurla Complex, Rotunda Building, P.J. Towers, Bandra (East), Dalal Street, MUMBAI-400001. MUMBAI-400 051 Scrip Code: 534392 Scrip Code: VSSL SUB: MONITORING AGENCY REPORT FOR THE QUARTER ENDED 307 SEPTEMBER, 2026 Pursuant to Regulation 32(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Regulation 162A of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, please find enclosed herewith Monitoring Agency Report for the quarter ended 30‘ September, 2026, issued by CRISIL Ratings Limited, the Monitoring Agency, in respect to utilization of the proceeds raised by the Company through issuance of equity shares by way of Preferential Issue. This is for your information and records. Thanking you, Yours faithfully, FOR VARDHMAN SPECIAL STEELS LIMITED (SONAM DHINGRA) COMPANY SECRETARY YARNS | FABRICS | THREADS | GARMENTS | FIBRES | STEELS CIN: L27100PB2010PLC033930 WWW.VARDHMANSTEEL.COM | WWW. VARDHMAN - Com Monitoring Agency Report Vardhman Special Steels Limited for the quarter ended September 30, 2026 CRL/MAR/VSS/2026-27/2024 October 29, 2026 Vardhman Special Steels Limited C-58, Phase-III, Focal Point, Ludhiana – 141010, Punjab Dear Sir, Monitoring Agency Report for the quarter ended September 30, 2026 - in relation to the Preferential Issue (“PI”) of Vardhman Special Steels Limited (“the Company”) Pursuant to Regulation 162A of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (“SEBI ICDR Regulations”) and Monitoring Agency Agreement dated June 04, 2025, enclosed herewith the Monitoring Agency Report, issued by Crisil Ratings Limited, Monitoring Agency, as per Schedule XI of the SEBI ICDR Regulations towards utilization of proceeds of PI for the quarter ended September 30, 2026. Request you to kindly take the same on records. Thanking you, For and on behalf of Crisil Ratings Limited Shounak Chakravarty Director, Ratings (LCG) Report of the Monitoring Agency (MA) Name of the issuer: Vardhman Special Steels Limited For quarter ended: September 30, 2026 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 Statutory 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: Shounak Chakravarty Designation of Authorized person/Signing Authority: Director, Ratings (LCG) 1) Issuer Details: Name of the issuer: Vardhman Special Steels Limited Names of the promoter: Vardhman Textiles Limited Industry/sector to which it belongs: Steel 2) Issue Details Issue Period: 4th July, 2025 Type of issue (public/rights): Preferential Issue (PI) Type of specified securities: Equity shares IPO Grading, if any: NA Issue size: Rs 3,849,088,060/-* (Rupees three billion eight hundred and forty-nine million, eighty-eight thousand and sixty) *Crisil Ratings shall be monitoring the Issue proceeds amount. 3) Details of the arrangement made to ensure the monitoring of issue proceeds: Source of information/ certifications Comments Comments of the considered by of the Particulars Reply Monitoring Monitoring Agency Board of Agency for preparation of Directors report Management undertaking, Peer The utilization review Independent during the quarter Whether all utilization is as per the Chartered is as per the No disclosures in the Offer Document? Accountant’s disclosures in the Comments Certificate^, Notice to Notice to Shareholders, Bank Shareholders Statements Whether shareholder approval has been obtained in case of material deviations No NA No Comments from expenditures disclosed in the Offer Comments Document? Whether the means of finance for the disclosed objects of the issue has No No Comments Comments changed? Is there any major deviation observed over the earlier monitoring agency NA No Comments Comments reports? Whether all Government/statutory Management approvals related to the object(s) have NA Undertaking, Peer No Comments Comments been obtained? Reviewed Independent Whether all arrangements pertaining to Chartered Accountants technical assistance/collaboration are in NA Certificate No Comments Comments operation? Are there any favorable events No No No Comments improving the viability of these object(s)? Comments Are there any unfavorable events No No No Comments affecting the viability of the object(s)? Comments Is there any other relevant information that may materially affect the decision No No Comments Comments making of the investors? NA represents Not Applicable ^Certificate dated October 14,2026 issued by M/s S.S. Periwal & Co., Chartered Accountants (Firm Registration Number: 001021N), Peer Reviewed Independent Chartered Accountants. Details of object(s) to be monitored: i. Cost of the object(s): Source of Comments of the Board of information/ Original cost Directors Comment certification (as per the Particular Sr. Revised Cost of the Item Head considered by Offer Reason Proposed s of firm No. (Rs) Monitoring MA for Document) of Cost financing arrange- Agency preparation of (Rs) revision option ments report made Capital expenditure for setting up a green field steel 1 1,349,088,060 - - manufacturing Management plant at undertaking, Ludhiana, Peer Reviewed No revision Punjab Independent during Capital Chartered reported expenditure Accountants quarter 2 requirements at 1,000,000,000 - - Certificate^, the existing Notice to plant shareholders Repayment of 3 working capital 1,500,000,000 - - borrowing Total - 3,849,088,060 - - - - - ^ Certificate dated October 14,2026 issued by M/s S.S. Periwal & Co., Chartered Accountants (Firm Registration Number: 001021N), Peer Reviewed Independent Chartered Accountants. 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