Zydus Lifesciences Limited has received a Demand Order-In-Original ("O-I-O") for the financial year 2018-19 on the issue pertaining to excess claim of Input Tax Credit ("ITC") and shortfall in liability. Name of the authority Office of the Sales Tax Officer, Class-II, State Delhi. Demand Order In Original passed under section 73 of CGST Act, 2017.

Issue pertains to Excess claim of ITC credit and difference in liability. Details of alleged demand and penalty imposed are as under: Total Demand INR 32,37,164, Total Penalty INR 3,23,717 Total Interest INR 30,25,196. Total is INR 65,86,077.

ZLL intends to challenge the order by filing an appeal against the said order. There is no material financial impact on the Company.