Disclosure of material issue

**Issue:** Race Eco Chain Limited has invested ₹4.67 Cr (₹4,66,89,500) in cash to subscribe to 93,379 Compulsorily Convertible Cumulative Preference Shares (CCPS) of face value ₹10 each in its material subsidiary, Ganesha Recycling Chain Private Limited, maintaining its 51% ownership stake. **Possible Impact:** This capital infusion supports the subsidiary's growth in the recycling sector as part of broader corporate expansion goals, while keeping control levels steady without diluting or increasing ownership percentage. **Company’s Response / Mitigation Plan:** The investment is executed at arm’s length as a related party transaction to fund business expansion in the recycling market.