Clarification regarding observation on Deviation in Utilization of IPO proceed as Reported by the Monitoring Agency.

Subject: Clarification regarding observation on deviation in utilization of IPO proceeds as reported by the Monitoring Agency Dear Shareholders, With reference to the Monitoring Agency Report for Q1 FY27, the Company clarifies that the reported deviation of ₹0.015 crore (₹1.50 lakh) does not represent any diversion of IPO proceeds from the objects stated in the RHP. The shortfall arose solely due to premature closure of Fixed Deposits with Axis Bank, pursuant to which the Bank, without prior intimation to the Company, deducted/adjusted a penalty of ₹0.015 crore from the FD proceeds. We would like to further clarify that the aforesaid amount does not represent any diversion or utilization of the IPO proceeds towards any object other than the objects specified in the Red Herring Prospectus (RHP). The Company will replenish the shortfall at the earliest and utilize the same towards the stated objects of the Issue. For Patel Chem Specialties Limited Bhupesh Patel Managing Director Date: 14-08-2026 TTBPTMS u g u h e SS h i r oo w eu r i p s t 1 4 , 2 0 2 6 e c r e t a r y L i m i t e d z e J e e j e e b h or s , D a l a l S t r e e tb a i – 4 0 0 0 0 1 C o d e : 5 4 4 4 6 0