DRC Systems India Limited has announced a significant change in its corporate structure following stake dilution in its subsidiary company. The development affects the company's relationship with Inexture Solutions Limited and has regulatory implications for both entities.

Stake Dilution Details

The company has informed stock exchanges that its shareholding in Inexture Solutions Limited has been reduced due to an equity share allotment by the subsidiary. The dilution has resulted in a decrease of DRC Systems' stake from 50.02% to 49.18%, representing an indirect reduction in ownership.

Corporate Classification Change

The stake dilution has triggered a change in the corporate relationship between the two companies. With DRC Systems' ownership falling below the 50% threshold, Inexture Solutions Limited will no longer be classified as a subsidiary company. Instead, it will be reclassified as an associate company under applicable corporate governance norms.

This reclassification carries important implications for:

• Financial reporting and consolidation requirements
• Corporate governance structures
• Regulatory compliance obligations
• Strategic decision-making processes

Regulatory Compliance

DRC Systems has fulfilled its disclosure obligations under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has formally notified both major stock exchanges about this corporate development.

The intimation has also been made available on the company's official website at www.drcsystems.com , ensuring transparency and accessibility for stakeholders. Company Secretary Jainam Shah has signed the regulatory filing, confirming the accuracy of the disclosed information.

DRC Systems India Limited has filed its quarterly compliance statement under Regulation 32 of SEBI Listing Regulations, confirming no deviation in the utilization of funds raised through preferential issue for the quarter ended December 31, 2025. The company successfully raised Rs. 25,00,00,000 through preferential issue on October 28, 2025, and has deployed these funds in accordance with the original objectives stated in the Annual General Meeting notice dated August 26, 2025.

Fund Utilization Details

The company's fund utilization across various objectives demonstrates disciplined capital allocation:

Regulatory Compliance and Governance

The statement was duly reviewed by the company's Audit Committee and received approval from the Board of Directors at their meeting held on February 04, 2026. Both the Audit Committee and auditors provided no adverse comments on the fund utilization, indicating proper adherence to the stated objectives.

Key Compliance Parameters

The filing confirms several important regulatory aspects:

Fund Deployment Strategy

Out of the total Rs. 25 crore raised, the company has utilized Rs. 21.25 crore across three key areas. The major portion of Rs. 13 crore was allocated toward prepayment and repayment of liabilities, demonstrating the company's focus on strengthening its balance sheet. Additionally, Rs. 2 crore was deployed for working capital requirements, while Rs. 6.25 crore was used for general corporate purposes.

Notably, the company has not yet utilized the Rs. 3.75 crore allocated for investments, including potential investments in subsidiary companies. This suggests a cautious approach toward expansion activities during the quarter.

Board Oversight and Transparency

The compliance filing underscores DRC Systems' commitment to regulatory transparency and corporate governance. The statement is available on the company's website at www.drcsystems.com , ensuring stakeholder accessibility to this information. Company Secretary Jainam Shah signed the compliance documents, confirming adherence to all regulatory requirements under the amended SEBI Master Circular dated January 30, 2026.