Symphony Limited has made a strategic investment of AUD 25 million (approximately ₹165 crores) in its wholly owned Australian subsidiary Climate Holdings Pty Limited (CHPL) on March 27, 2026. The investment represents a significant step in the company's debt rationalization strategy for its Australian operations.

Investment Allocation and Purpose

The AUD 25 million equity infusion will be strategically allocated to address the debt structure of Symphony's Australian subsidiaries:

The investment is fully funded through Symphony's surplus treasury, reflecting the company's strong financial position and strategic capital allocation approach.

Treasury Optimization Strategy

Symphony's decision stems from a comprehensive treasury optimization initiative. The company generated optimal returns on treasury investments supported by favorable monetary policy measures by the Reserve Bank of India during the investment period. With forward yields on these instruments now falling below the borrowing costs of Australian subsidiaries, Symphony undertook measured redemption of such investments.

The strategic reallocation is particularly timely given the recent cumulative 50 basis point policy rate hikes by the Reserve Bank of Australia in 2026, making the prepayment of higher-cost financing more attractive.

Australian Operations Transformation

Climate Holdings was incorporated in June 2018 to facilitate the acquisition of Climate Technologies Pty Ltd (CTPL) and its U.S. subsidiary Bonaire USA LLC. Over the years, Symphony undertook comprehensive transformation of Australian operations, including:

• Transition to asset-light model
• Expansion of product offerings and distribution reach
• Substantial reduction in Cost of Doing Business (CODB)

The transformation pace was moderated by external factors including COVID-related disruptions, housing-led macroeconomic weakness, and regulatory changes affecting gas-based ducted heating products in Victoria.

Financial Impact and Balance Sheet Changes

Following the Board's decision in January 2026 to roll back the divestment process due to valuation and strategic considerations, this capital allocation addresses residual financial issues of Australian subsidiaries. Upon completion, CHPL will be completely long-term debt-free, while CTPL's working capital borrowings will reduce to approximately AUD 14 million (₹92 crores).

*Net of provision for impairment (₹50 crores) in March 2025 quarter
^Considering forex rate as on 31/12/25

Company Profile and Performance

Climate Holdings maintains a paid-up share capital of AUD 33,400,000 divided into 33,400,000 equity shares of AUD 1 each. The subsidiary reported consolidated turnover of AUD 31,511,258 for the financial year ended March 31, 2025.

The company's recent financial performance shows:

Symphony remains committed to undertaking further strategic measures to reduce residual working capital borrowings at CTPL, demonstrating its long-term commitment to optimizing the Australian operations' financial structure.

Symphony Limited has successfully obtained a waiver from the National Stock Exchange of India (NSE) for a fine that was imposed due to delayed submission of Related Party Transactions disclosure. The development marks a positive resolution to the regulatory compliance issue that had been pending since the half year ended September 30, 2025.

Background of the Compliance Issue

The fine was originally levied by NSE for Symphony's delayed submission of Related Party Transactions Disclosure as required under Regulation 23(9) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure pertained to the half year ended September 30, 2025, and the company had previously communicated about this matter through its disclosure dated January 28, 2026.

Company's Response and Clarifications

Following the imposition of the fine, Symphony took proactive steps to address the situation:

• Submitted clarifications to NSE on November 7, 2025
• Provided additional clarifications on November 28, 2025
• Formally applied for waiver of the levied fine on December 19, 2025

NSE's Favorable Decision

The NSE has now favorably considered Symphony's waiver request through its official communication. The key details of the approval are:

Regulatory Compliance Advisory

While granting the waiver, NSE has advised Symphony to ensure compliance with Listing Regulations and other applicable regulations in future. This standard advisory emphasizes the importance of timely regulatory filings and adherence to disclosure requirements.

Company Communication

The disclosure was signed by Mayur Barvadiya, Company Secretary and Head - Legal of Symphony Limited, on March 12, 2026. The company has provided a copy of NSE's approval letter as Annexure-A for stakeholder reference, demonstrating transparency in its regulatory communications.