Somany Ceramics Limited has entered into a Joint Venture Agreement dated August 22, 2023 with Persons (Other Shareholders) and Cerapro Nepal Private Limited (CNPL) (CNPL) ("Proposed Transaction"). The JV Agreement records the understanding of the parties in relation to operation of CNPL as a joint venture between the Company and Other Shareholders and terms of governance and management of CNPL. The details of the aforesaid Proposed Transaction were duly intimated vide in earlier intimation dated February 8, 2023 and May 24, 2023.

Subject to fulfilment of the conditions precedent as set out in the JV Agreement, SCL shall subscribe to 3,000,000 Equity Shares having face value of NPR 100 amounting to NPR 300,000,000 in CNPL aggregating to 30% of the issued share capital of the CNPL. The shareholding of the Other Shareholders and SCL shall be in the ratio of 70:30.