Adon Agro Commodities Ltd.

• Funding incremental working capital requirements₹32.0 Cr
• General corporate purpose₹6.4 Cr

Except as stated in this section, there are no outstanding criminal proceedings, actions taken by statutory or regulatory authorities, claims related to direct and indirect taxes, disciplinary actions including penalties imposed by SEBI or stock exchanges against the Promoter in the last five financial years, or any other outstanding litigation involving the Company, Directors, Promoters, and Subsidiaries. The Board determined that outstanding legal proceedings involving the Company, its Directors and Promoter will be considered as material litigation if the aggregate monetary amount of claim/dispute amount/liability involved is in excess of the lower of 2% of the net worth (Rs. 73.44 lakhs), 2% of turnover (Rs. 574.32 lakhs), or 5% of the average of absolute value of profit or loss after tax (Rs. 38.31 lakhs). The lower threshold is Rs. 38.31 lakhs. The disclosure made in other pending litigation is in compliance with the above threshold limit or such matters which may have a significant effect on the business, operations, financial condition, prospects, reputation, results of operations or cash flows of the Company irrespective that the amount involved in such litigation may not meet the materiality threshold, or such matters where the aggregate monetary amount of claim/dispute amount/liability involved is not quantifiable. This will also include civil litigations where the decision in one case is likely to affect the decision in similar cases even though the amount involved in an individual litigation may not exceed the materiality threshold. Further, any such proceedings wherein a monetary liability is not quantifiable, or which does not fulfil the threshold as specified in (a) above, but the outcome of such a proceeding could have a material adverse effect on the financial position, business, operations, prospects, or reputation of the Company, in the opinion of the Board; or The decision in such a proceeding is likely to affect the decision in similar proceedings, such that the cumulative amount involved in such proceedings exceeds the Threshold, even though the amount involved in an individual proceeding does not exceed the Threshold. A. LITIGATION INVOLVING THE COMPANY a) Criminal Proceedings Against the Company Nil b) Criminal Proceedings Filed by the Company 325

• The substantial portion of our revenues has been dependent upon few customers, with which we do not have any firm commitments. The loss of any one or more of our major customers would have a material adverse effect on our business, cash flows, results of operations and financial condition.(Customer Concentration)

• Our Company is involved in a pending writ petition before the Hon'ble Bombay High Court regarding the alleged undervaluation of imported goods, which may result in a significant financial liability of up to Rs. 444.45 lakhs including potential differential duty, penalty and redemption fines.(Legal and Regulatory)

• The procurement and storage of our products, spoilage and damage to such products or any contamination in our products are subject to regulatory action and damage our reputation and have adverse effect on our business results in operations and financial conditions.(Operational)

• We are exposed to various costs, including shipping charges, transportation fees and warehouse expenses, which can impact our overall operational expenses and profitability.(Operational)

• We face competition from both organized suppliers—large, established businesses with formal structures, processes and resources—and unorganized local suppliers, which are typically smaller, informal entities with less structure. This competition may result in a loss of market share, leading to a negative impact on our net revenue and profitability.(Competition)

• Any shortcomings in the procurement, storage, or handling of our products—whether due to negligence, human error, or other factors—could damage the products and lead to non-compliance with regulatory standard. Allegations that our products are contaminated, even if unfounded, could harm our reputation, adversely affect sales, and potentially lead to legal actions.(Operational)

• We rely on third-party suppliers for sourcing products for both trading and processing activities, including imported goods. Our business operations are subject to significant financial obligations related to logistics and warehousing.(Operational)

• Any adverse fluctuations such as increases in fuel prices, revision in shipping tariffs, higher port charges, or increases in storage rental rates could adversely impact our cost structure and profitability.(Operational)