Monitoring Agency Report

Date: August 11, 2026 To, To, The Manager The Manager Listing Department Corporate Relationship Department National Stock Exchange of India Limited BSE Limited Exchange Plaza, Bandra Kurla Complex Floor 25, Phiroze Jeejeebhoy Towers, Bandra (East), Dalal Street, Mumbai - 400 051 Mumbai - 400 001 NSE Symbol: DIFFNKG BSE Scrip Code - 544264 Dear Sir/Madam, Subject: Report of Monitoring Agency for the quarter ended June 30, 2026. Pursuant to Regulation 32(6) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with Regulation 41(4) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, please find enclosed herewith Monitoring Agency Report issued in respect of the utilization of the proceeds of the Initial Public Offer (“IPO”) of the Company for the quarter ended June 30, 2026 by CRISIL Ratings Limited, the Monitoring Agency. This report will also be hosted on the Company’s website viz. https://www.diffusionengineers.com/investors-relation We request you to take the above on record. Thanking You. Yours faithfully, For Diffusion Engineers Limited Chanchal Jaiswal Company Secretary and Compliance Officer ICSI Membership no. A67136 Enclosed as above Monitoring Agency Report Diffusion Engineers Limited for the quarter ended June 30, 2026 CRL/MAR/GDS4651/2026-27/1936 August 11, 2026 Diffusion Engineers Limited T-5 and T-6, Nagpur Industrial Area, MIDC, Hingna, Nagpur, Maharashtra, 440016 Dear Sir/Madam, Monitoring Agency Report for the quarter ended June 30, 2026- in relation to the Initial Public Offer (“IPO”) of Diffusion Engineers Limited (“the Company”) Pursuant to Regulation 41(2) of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (“SEBI ICDR Regulations”) and Monitoring Agency Agreement dated September 16, 2024, 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 IPO for the quarter ended June 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: Diffusion Engineers Limited For quarter ended: June 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 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: Shounak Chakravarty Designation of Authorized person/Signing Authority: Director, Ratings (LCG) 1) Issuer Details: Name of the issuer: Diffusion Engineers Limited Names of the promoter: Mr. Prashant Garg, Ms. Chitra Garg, Mr. Nitin Garg Industry/sector to which it belongs: Other Industrial Products 2) Issue Details Issue Period: Thursday, September 26, 2024, to Monday, September 30, 2024 Type of issue (public/rights): Initial Public Offer (IPO) Type of specified securities: Equity Shares IPO Grading, if any: NA Issue size: Rs 1579.64 million Particulars of the Issue Size Amount (Rs. million) Gross proceeds of the Fresh Issue 1579.64# Less: Issue Expenses 157.69 Net Proceeds 1,421.95 #Crisil Ratings shall be monitoring the gross proceeds amount. 3) Details of the arrangement made to ensure the monitoring of issue proceeds: Source of information/ Comments certifications Comments of the of the Particulars Reply considered by Monitoring Board of Monitoring Agency Agency Directors for preparation of report Management undertaking, Proceeds were statutory auditors utilized towards certificate^, Funding capital Whether all utilization is as per the Prospectus dated No Yes expenditure, disclosures in the Offer Document? 30/09/2024 Comments general corporate (“hereinafter purposes and issue referred as “Offer expenses document”), Bank Statements Source of information/ Comments certifications Comments of the of the Particulars Reply considered by Monitoring Board of Monitoring Agency Agency Directors for preparation of report Whether shareholder approval has been obtained in case of material deviations from No NA No Comments expenditures disclosed in the Offer Comments Document? Whether the means of finance for the No No No Comments disclosed objects of the issue has changed? Comments Is there any major deviation observed over No No No Comments the earlier monitoring agency reports? Comments Management Whether all Government/statutory undertaking, approvals related to the object(s) have been NA statutory auditors No Comments Comments obtained? certificate^ Whether all arrangements pertaining to technical assistance/collaboration are in NA No Comments Comments operation? Are there any favorable events improving No No No Comments the viability of these object(s)? Comments Are there any unfavorable events affecting No the viability of the object(s)? N o No Comments Comments Is there any other relevant information that may materially affect the decision making of No No Comments Comments the investors? NA represents Not Applicable ^Certificate dated August 04, 2026, issued by M/S PGS & ASSOCIATES, Chartered Accountants (Firm Registration Number: 122384W), Statutory Auditors of the Company. 4) Details of object(s) to be monitored: i. Cost of the object(s): Source of Comments of the Board of information/ Original cost Directors Revised Comment of certification (as per the Particular Sr. Cost the Item considered Offer Reason Proposed s of firm No. (Rs in Monitoring Head by MA for Document) of Cost financing arrangem million) Agency preparation (Rs in million) revision option ents of report made Funding capital expenditure requirements towards 1 Proposed Expansion of 713.80 NA No revision No Comments the existing manufacturing facility at Unit IV Setting up of a new manufacturing facility at Hingna, Sonegaon 2 303.85 NA No revision No Comments District, Nagpur, Manageme [Showing first 8,000 characters — download PDF for full document]