Sobha Limited announced that the Company has received assessment orders from the Income Tax Department for the Assessment Year (AY) 2016-17 and AY 2022-23. Name of the Authority: Deputy Commissioner of Income Tax, Central Circle- 1(4), Bengaluru. Nature and details of the action: Assessment Order under section 147 read with section 143(3) and section 148B for the AY 2016-17.

Assessment order under Sec 143(3) for the AY 2022-23. Date of receipt of communication from the authority: March 31, 2024. The Company has received demand notices under section 156 of the Income Tax Act, 1961 for INR 131.2 million and INR 326.8 million related to AY 2016-17 and AY 2022-23 respectively, due to disallowances of certain expenses and other additions.

The Company is in the process of filing an appeal before the Commissioner of Income Tax (Appeals), against the said orders within the prescribed timelines. The Company has legal and factual grounds to substantiate its case. The Company is in the process of evaluating the implications of these orders on the financial statements.

There is no impact on operations or other activities.