Escorts Kubota Limited has submitted a regulatory filing dated May 07, 2026, confirming that there is no deviation or variation in the utilisation of proceeds raised through its preferential issues, as required under Regulation 32 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The statement pertains to the quarter ended March 31, 2026, and has been duly reviewed by the company's Audit Committee.

Preferential Issue Fund Utilisation Overview

The filing provides a detailed account of the funds raised and their utilisation status. The key parameters of the preferential issue are summarised below:

Allocation and Utilisation of Funds

The net proceeds from the preferential issue, after deducting Rs. 17.440 crores incurred towards issue and allotment expenditure, stood at Rs. 1,855.306 Crores. These funds were earmarked for the expansion of the company's agri-machinery business. As of the quarter ended March 31, 2026, Rs. 545.219 Crores have been utilised toward the stated objects, with no deviation reported.

The following table presents the object-wise allocation and utilisation details:

*Net proceeds post deduction of expenditure of Rs. 17.440 crores incurred towards preferential issue and allotment.

Scope of Agri-Machinery Business Expansion

The funds are designated for the expansion of Escorts Kubota's agri-machinery business, encompassing manufacturing, assembly, sales, marketing, financing, servicing, research and development across a broad range of product categories. The stated objects include:

• Tractors
• Combine harvester and rice transplanter
• Utility vehicles
• Turf equipment
• Construction machinery
• Engines
• Implements
• Transmission for tractors, construction equipment, and implements
• Other farm mechanisation equipment
• Spare parts of the items listed above

Regulatory Compliance and Audit Committee Review

The statement was signed by Bharat Madan, Whole-time Director and Chief Financial Officer of Escorts Kubota Limited, on May 07, 2026, from the company's registered office in Faridabad, Haryana. The Audit Committee reviewed the utilisation statement and offered no adverse comments. The filing reaffirms that the proceeds have been deployed strictly in accordance with the objects disclosed in the Letter of Offer, with no change in contract terms or shareholder-approved modifications reported for the quarter.

Escorts Kubota Limited announced on May 07, 2026, that its Board of Directors approved revisions to two key corporate governance policies at their board meeting held on the same date. The updated policies have been filed with the stock exchanges and made available on the company's official website at www.escortskubota.com .

Policy Revisions Approved by the Board

The Board accorded approval for updation of the following two policies:

• Policy on Materiality of Related Party Transactions (RPTs) and on Dealing with RPTs
• Policy on Preservation of Documents Records of Escorts Kubota Limited

Both policies have been revised in accordance with the Companies Act, 2013, and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended from time to time.

Related Party Transactions Policy: Key Provisions

The Policy on Materiality of Related Party Transactions, first adopted by the Board on February 11, 2015, has been updated to reflect current regulatory requirements. The policy governs the identification of related parties, materiality thresholds, approval mechanisms, and disclosure obligations.

A key definition under the updated policy specifies that Material Modifications to any approved related party transaction shall mean any change where the financial effect results in an increase in the per annum value of the relevant transaction by 20% (twenty percent) or Rs. 50 Crore, whichever is higher.

The omnibus approval framework under the policy includes the following limits:

The policy also mandates that all Material Related Party Transactions require prior approval of the Audit Committee, Board of Directors, and Shareholders. Directors and Key Managerial Personnel with a potential interest in any related party transaction are required to abstain from discussion and voting on such matters.

Document Preservation Policy: Retention Framework

The revised Policy on Preservation of Records establishes a structured framework for the retention, maintenance, and destruction of company documents. The policy applies to all corporate and business operations of Escorts Kubota Limited.

The retention schedule under the updated policy is as follows:

The policy further provides that destruction of documents shall be suspended in the event of any actual or potential litigation, dispute, or order by an administrative or judicial authority. Such documents shall be retained until released by the Head of the Legal Department.

Governance and Compliance Framework

Both policies include provisions stating that in the event of any conflict between the policy and applicable statutory enactments or regulations, the statutory provisions shall prevail. The policies are subject to automatic modification upon any amendment to the relevant regulations, without requiring a separate act by the Company. The Related Party Transactions policy is to be reviewed at least once every three years, while the Document Preservation Policy is subject to periodic review by the Board. The intimation was signed by Arvind Kumar, Company Secretary of Escorts Kubota Limited.