Monitoring Agency Report

KRN HEAT EXCHANGER AND REFRIGERATION LIMITED Registered & Work Office: Plot No.: F-46,47,48,49, EPIP, RIICO Industrial Area, Neemrana – 301705 (RJ) CIN No.: L29309RJ2017PLC058905 Contact No. 9116629184 Date: 12th August, 2026 To, To, BSE Ltd National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Dalal Street, Exchange Plaza, C-I Block G, Bandra Kurla Mumbai- 400001, Maharashtra, India Complex, Bandra (East), Mumbai-400051, Maharashtra, India Script Code: 544263 Script Symbol: KRN ISIN: INE0Q3J01015 Subject: Regulation 32(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015-Monitoring Agency Report Dear Sir/Madam, Pursuant to the Regulation 32(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Regulation 41(4) of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, please find enclosed herewith the Monitoring Agency Report for the quarter ended on 30th June, 2026, issued by Crisil Ratings Limited, the Monitoring Agency appointed in respect of utilization of proceeds of the Initial Public Offer (IPO) of the Company. The Monitoring Agency Report shall also be uploaded on the website of the Company at www.krnheatexchanger.com Kindly take the above information on your record. Thanking You, For KRN Heat Exchanger and Refrigeration Limited Santosh Kumar Yadav Chairman & Managing Director DIN: 07789940 (+91)-9116629184 info@krnheatexchanger.com www.krnheatexchanger.com Monitoring Agency Report KRN Heat Exchanger and Refrigeration Limited for the quarter ended June 30, 2026 CRL/MAR/KRHERL/2026-27/1931 August 12, 2026 KRN Heat Exchanger and Refrigeration Limited Plot No. F -46, 47, 48, 49 EPIP, RIICO Industrial Area, Neemrana, Ajmer, Rajasthan-301705, India Dear Sir/Ma’am, Monitoring Agency Report for the quarter ended June 30, 2026 - in relation to the Initial Public Offer (“IPO”) of KRN Heat Exchanger and Refrigeration 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 August 28, 2024, enclosed herewith the Final 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 record. Thanking you, For and on behalf of Crisil Ratings Limited Shounak Chakravarty Director, Ratings (LCG) Final Report of the Monitoring Agency (MA) Name of the issuer: KRN Heat Exchanger and Refrigeration 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: KRN Heat Exchanger and Refrigeration Limited Names of the promoter: Mr. Santosh Kumar Yadav Mr. Manohar Lal Mrs. Anju Devi Industry/sector to which it belongs: Other Industrial Products 2) Issue Details Issue Period: Wednesday, December 25, 2024, to Friday, December 27, 2024 Type of issue (public/rights): Initial Public Offer (IPO) Type of specified securities: Equity Shares IPO Grading, if any: NA Issue size: Rs 34,194.60 lakhs (Refer Note 1) Note 1 Particulars Amount (Rs. lakhs) Gross proceeds of the Fresh Issue 34,194.60* Less: Issue Expenses 3082.94 Net Proceeds 31,111.66 *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/ certifications Comments of Comments of considered by the Particulars Reply the Board of Monitoring Agency Monitoring Directors for preparation of Agency report Management Proceeds were undertaking, Statutory utilized auditor certificate^, towards Whether all utilization is as per the disclosures Yes Prospectus dated capital No Comments in the Offer Document? December 27, 2024 expenditure (“offer document”), and issue bank statements expenses Whether shareholder approval has been obtained in case of material deviations from NA No Comments No Comments expenditures disclosed in the Offer Document? Whether the means of finance for the disclosed No No Comments No Comments objects of the issue has changed? Is there any major deviation observed over the No No Comments No Comments earlier monitoring agency reports? Factory license, GST, Whether all Government/statutory approvals Pollution Yes No Comments related to the object(s) have been obtained? department Management approval undertaking, obtained Statutory auditor Whether all arrangements pertaining to certificate^ technical assistance/collaboration are in NA No Comments No Comments operation? Are there any favorable events improving the No No Comments No Comments viability of these object(s)? Are there any unfavorable events affecting the No No Comments No Comments viability of the object(s)? Is there any other relevant information that may materially affect the decision making of No No Comments No Comments the investors? NA represents Not Applicable ^Certificate dated August 07, 2026, issued by M/s Keyur Shah & Co., Chartered Accountants (Firm Registration Number: 141173W), Statutory Auditors of the Company. 4) Details of object(s) to be monitored: i. Cost of the object(s): Source of Original Comments of the Board of information/ cost Directors Revised Comment Sr. certification (as per the Particulars Cost of the No Item considered Offer Reason Proposed of firm (Rs in Monitoring . Head by MA for Document) of Cost financing arrange- lakh) agency preparation (Rs in revision option ments of report lakh) made Investment in wholly owned subsidiary, KRN HVAC Products Private Limited in the form of 1 equity for setting up a 23,575.66 NA No Comments Revisi [Showing first 8,000 characters — download PDF for full document]