Statement of Deviation or Variation For the Quarter Ended June 30, 2026.

ISIN: INE194R01017 Date: 14.08.2026 BSE Limited Corporate Relationship Department Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai – 400 001 Scrip Code: 539730 Subject: Regulation 32(3) – Statement of Deviation or Variation for the quarter ended 30th June 2026 for the Funds raised through Preferential Issue Respected Sir/Madam, Pursuant to Regulation 32 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with applicable SEBI circulars, we hereby con(cid:976)irm that during the quarter ended 30th June 2026, there was no deviation or variation in the utilisation of proceeds raised through Preferential Issue. A statement of deviation, stating that there is no deviation or variation in the utilisation of these proceeds, is annexed herewith, had been placed before and approved by the Audit Committee and the Board of Directors in their meeting held through Video Conferencing (VC). Further, pursuant to Regulation 32(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with Regulation 162A of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, we are enclosing herewith the Monitoring Agency Report dated 14th August, 2026 for the quarter ended 30th June 2026 issued by Care Ratings Limited, in respect of use of proceeds raised through Preferential Allotment, for the quarter ended 30th June 2026, which was placed before the Audit Committee and Board at their Meeting held on today i.e., August 14, 2026. Kindly take the same on your record. FOR FREDUN PHARMACEUTICALS LIMITED FREDUN MEDHORA MANAGING DIRECTOR PLACE: MUMBAI DATE: 14.08.2026 Regulation 32(3) — Statement of Deviation or Variation Fredun Pharmaceuticals Limited Name of the listed entity Preferential Issue (Equity Shares & Convertible Mode of Fund Raising Warrants) Date of Raising Funds December 29, 2025 Amount Raised ₹111.53 Crore (received up to June 31, 2026) Report filed for Quarter ended June 30, 2026 Monitoring Agency Yes Monitoring Agency Name, if applicable CARE Ratings Limited Is there a Deviation / Variation in use of funds raised If yes, whether the same is pursuant to change in terms of a contract or objects, which was Not Applicable approved by the shareholders If Yes, Date of shareholder Approval Not Applicable The Monitoring Agency has recorded observations, inter alia, in relation to classi(cid:976)ication of certain expenditures under the respective objects, availability of supporting documentation, routing Comments of the of funds through operating accounts and the Monitoring Agency treatment of certain amounts under Working Capital. The Monitoring Agency has also recorded an observation regarding reconciliation of the unutilised proceeds. There has been no change in the objects or purposes for which the proceeds were raised, the means of (cid:976)inance or the terms of the fund raising. Explanation for the Deviation / Variation Accordingly, the Company does not consider the aforesaid matters to constitute a deviation or variation in the utilisation of the issue proceeds. 1. The disclosure relating to the object of CAPEX contemplated capital expenditure towards Plant, Machinery and Infrastructure. The loan repayment relates to (cid:976)inancing availed for capital expenditure purposes and the acquisition of the premises has been classi(cid:976)ied by the Management as infrastructure/capital expenditure. Accordingly, the Company considers the aforesaid utilisation to be within the disclosed CAPEX object. The Monitoring Agency's observation regarding the speci(cid:976)ic sub-items not being expressly enumerated is respectfully noted. 2. The object Contingency / Miscellaneous was disclosed as a broad residual head, with the amount thereunder being indicative and intended, inter alia, for unforeseen expenditure and contingencies arising during implementation. Having regard to the nature and context of the expenditure, the Management classi(cid:976)ied the fund- raise and CSR related expenditure under the said head. The Monitoring Agency's interpretation is duly noted; however, the Company considers the Comments of the Audit Committee after matter to be one of classi(cid:976)ication within the review disclosed object and not a change in the object for which the proceeds were raised. 3. The approved object itself includes “Strategic & Statutory Reserves.” Accordingly, payments towards taxes, provident fund and other statutory dues were classi(cid:976)ied by the Management under this object having regard to their statutory nature. The Monitoring Agency's observation has been duly noted. The Company considers such classi(cid:976)ication to be consistent with the nature of the disclosed object. 4. The expenditure of ₹1.50 crore pertains to Formulation Development & R&D and has accordingly been classi(cid:976)ied under the corresponding approved object and re(cid:976)lected in the Management and CA Certi(cid:976)icates. The observation of the Monitoring Agency regarding availability of the underlying supporting documents is noted. The relevant supporting records are being collated and were made available to the Monitoring Agency for its review on the 14th August 2026. 5. The transfer of proceeds through the Company's Current/Operating Accounts was undertaken for operational purposes. The Company has maintained records and internal tracking enabling the utilisation to be traced to the respective objects. The Committee noted that such routing did not alter the purpose for which the proceeds were ultimately applied. 6. The Committee noted the observation of the Monitoring Agency. As clari(cid:976)ied in the Company's response to the earlier Monitoring Agency Report, the amount of ₹2.65 crore represented funds parked in the Cash Credit Account but not applied towards meeting Working Capital requirements. Accordingly, the Company had not considered mere parking of the said amount as utilisation of issue proceeds. The difference presently appearing in Working Capital utilisation therefore arises from the respective treatment of the said amount. The Monitoring Agency's treatment is respectfully noted, while the Company has continued with the treatment re(cid:976)lected in its Management and CA Certi(cid:976)icates. 7. The Company is in the process of reconciling the (cid:976)igures of funds received, utilisation of proceeds and the corresponding unutilised amount in consultation with the Monitoring Agency and the Statutory Auditor. The apparent difference in the unutilised proceeds is on account of reconciliation of the utilisation (cid:976)igures reported by the Company, the Monitoring Agency and the amount certi(cid:976)ied by the Chartered Accountant. The Company is undertaking a detailed reconciliation of the underlying transactions and supporting records to ensure that the (cid:976)igures reported are accurate and duly matched. Comments of the auditors, if any Not Applicable Objects for which funds have been raised and where there has been a deviation, in the following table Original Funds Modified Modified Amount of Allocatio Utilise Remarks Original Object Object, if allocation, Deviation/ n (₹ in d (₹ in if Any any if any Variation Crore) Crore) for the quarter It shall be utilized as Brand Marketing & Not 49.00 – Not 3.65 NIL per the Distribution Applicable 50.00 Applicable proposed timeline. It shall be utilized as Not 6.00 – Not CAPEX 6.98 NIL per the Applicable 7.00 Applicable proposed timeline. It shall be Formulation utilized as Not 7.00 – Not Development & 1.50 NIL per the Applicable 8.00 Applicable R&D proposed timeline. It shall be utilized as Strategic & Not 22.00 – Not 7.78 NIL per the Statutory Reserves Applicable 23.00 Applicable proposed timeline. It shall be utilized as Contingency / Not 7.00 – Not 3.95 NIL per the Miscellaneous Applicable 7.50 Applicable proposed timeline. It shall be utilized as Not 53.00 – Not Working Capital 53.29 NIL per the Applicable 54.00 Applicable proposed ti [Showing first 8,000 characters — download PDF for full document]