Updates on Company''s Operations

KERNEX MICROSYSTEMS (INDIA) LTD. (An ISO 9001-2015 Certified Company) Registered Office : CIN: L3000lTG1991PLC013211 e..,~~ "TECHNOPOLlS", Plot Nos : 38-41, Tel: +91 8414-667600 ~ Hardware Technology Pari<, Fax: +91 8414-667695 UKAS TSIIC Layout, Raviryal (V), email: kemex@kemex.in 1509001 -- 001 ~-501 510. TeB-g<n!, India. Website: www.kemex.in Date: 17th Au gust 2026 To To The Listing / Compliance Department The Listing / Compliance Department Bombay Stock Exchange Limited National Stock Exchange of India Ltd Phiroze Jeejeebhoy Towers Plot No.CIl, G Block, Exchange Plaza Dalal Street Bandra - Kurla Complex, Bandra (E) Mnmbai - 400001 Mnmbai - 400 051 BSE Scrip Code: 532686 NSE Symbol: KERNEX Snbject: Update on the OperationsiPerformance ofthe Company Dear Sir/Madam, With reference to the subject cited above, we hereby give the update on the company's OperationslPerformance of the Company. 1. Regarding Outliue of CLW Order Executiou The total order received from Chittaranjan Locomotive Works (CLW) under the CLW-II order is for 3,024 units. The status of the order is as follows: Particulars IIQuantity (Uuits)1 ITotal Order Quantity 113,024 I ISupplied during FY 2025-26 and up to 13 August 2026111,360 I IBalance Quantity to be Supplied 111,664 I In continuation of the information published in the Notes to the Financial Statements on 13 August 2026, the Company has, as on date, 1,360 units supplied under the CLW-II order. Of the balance 1,664 units, 175 units have been completed and are currently undergoing the pre dispatch process and are expected to be dispatched during the current month. In addition, 1,025 units are approximately 95% complete and are planned for dispatch during September and October 2026, with a minimum of 500 units planned for dispatch in each month. (i.KERNEX MICRO SYSTEMS (INDIA) L1 D. Continuation Sheet ... The Company is targeting to complete the remaining balance quantity which are under various stages of production and is planned to be completed and dispatched as per the project schedule i.e. November 2026. Upon completion of the dispatches, the Company will have a further period of approximately two months, up to 5 February 2027, to complete the balance installation and commissioning formalities. Based on the current level of completion and the planned production and dispatch schedule, the Company expects to complete the entire dispatches under the CLW-Il order by November 2026 and complete the related installation and commissioning formalities within the stipulated timeline, i.e., by S February 2027. 2. Warranty Provision As per the terms of the order received from CLW, the Company is required to provide a warranty for a period of four (4) years from the date of issue of the completion certificate. The contract price is inclusive of the warranty obligation, and no separate consideration is payable to the Company towards the warranty. Accordingly, in accordance with the applicable requirements ofInd AS 37 - Provisions, Contingent Liabilities and Contingent Assets, the Company recognises a provision towards its warranty obligations based on the estimated costs expected to be incurred in fulfilling such obligations, rather than recognising the cost only when actual warranty claims arise. The warranty provision is reviewed periodically, including at each quarter-end and year-end, based on the Company's assessment of the expected warranty-related costs. Any provision that is no longer required is reversed/written back, as appropriate. Upon completion of the warranty period, the Company expects to earn Annual Maintenance Contract CAMC) revenue at approximately 3% of the capital cost per annum for a period of 11 years, subject to the applicable contractual terms. 3. Other Verticals I Diversification The Company is also in the process of diversifying its business into other verticals. As part of this initiative, the Company has secured an order amounting to approximately Rs.IS.90 crore (as our earlier intimation dated 28.05.2026) ~KERNEX MICROSYSTEMS (INDIA) LTD. Continuation Sheet ... Certain statements made above may constitute "forward-looking statements" within the meaning of applicable securities laws and regulations. These statements, including those relating to the expected production and dispatch schedule, completion of the CLW-IJ order, installation and commissioning time lines, warranty obligations, foture AMC revenue, diversification plans, order execution and expected revenue contribution, are based on the Company's current expectations, estimates, assumptions and available information as on the date of this communication. Accordingly, actual results, performance, achievements, time lines or outcomes may differ materially from those expressed or implied in such forward-looking statements. The Company does not undertake any obligation to publicly update, revise or otherwise modify any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable laws and regulations. The information contained herein should not be construed as a guarantee, assurance or representation regarding the foture performance or outcome of the Company's business or projects. Investors and stakeholders are advised to exercise due caution and conduct their own independent assessment before making any investment or other decision based on this communication. Kindly take the above information on records. For Kernex Microsystems (India) Limited M B Narayana Raju Whole-Time Director DIN: 07993925