a) The sales tax collected on domestic sales of Company's products is treated as interest free sales tax loan from the AP State Government in accordance with the State Government incentive scheme. The amount credited to the loan account is based on the amounts collected as sales tax.

b) IPCA Laboratories Ltd-ICD (Inter Company Deposit)bearing rate of Interest@8%

c) 1,30,00,000 9% Non convertible, Redeemable, Non-cumulative preference shares issued @ Rs.100/- each without premium to IPCA Laboratories limited. These preference shares does not have any voting rights. As per Ind AS 32, Non Convertible Redeemable Preference Shares to be classified as Debt under Term Loans.

Disclosure in accordance with Ind AS - 19 "Employee Benefits", of the Companies (Indian Accounting Standards) Rules, 2015.

The company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/ termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The Gratuity plan is a non funded plan. The following table summarizes the components of net benefit expense recognised in the Statement of Profit and Loss and the amounts recognised in the Balance Sheet as per Actuarial Valuation.

Note on RBL Bank Ltd (FDOD) availed on 20th November 2023. Type, amount, nature of facility:- Overdraft against Fixed deposit (ODFD), amount of Rs.10 Crores, on revolving nature, to meet working capital requirement/for meeting cash flow mismatches Rate of interest:-8.20% p.a linked to 6M T.Bill with quarterly reset. Margin:- 110% of the value of the Fixed Deposit.

Security:- 1) Fixed deposit to the extent of 110% of the facility to be duly lien marked in favour of the Bank to be placed under lien by Ipca Laboratories Ltd till the tenure of the credit facilities.

2) Exclusive charge on Plant & Machinery of the borrower laying or stored in the borrower's facilities, premises and godowns or any other place, both present and future.

Other terms:- As per revised sanction letter dt.20th November 2023.

Contingent Liabilities :

The following contingent liabilities are not provided for.

(i) Income Tax: Various demands raised by the Income Tax authorities for Tax liability of Rs.729.87 Lacs (Out of that Amount of Rs. 197.28 Lacs adjusted against IT Refunds of later years) & Interest Rs.329.29 Lacs (Previous Year Tax liability of Rs.299.39 Lacs) for which the company filed an appeal with Honourable High Court of Judicature at Hyderabad for the State of Telangana and CIT (appeals).

(ii) (a) Customs Duty: Advance licence : Various demands raised by Chennai Customs authorities against Advance license (DEEC) amounting to Rs.144.58 Lacs (Tax Amount of Rs.37.21 Lacs & Interest of Rs.107.37 Lacs), Out of that Amount of Rs. 37.21 Lacs deposited in favour of Commissioner of customs (Seaport), Customs House, Chennai as "Paying under Protest"

(ii) (b) EPCG Licence: against EPCG license amounting to Rs.4.25 Lacs (Tax Amount of Rs.1.06 Lacs & Interest of Rs. 3.19 Lacs) towards non submission of EODC for which the company filed an appeal with Commissioner of Customs (Chennai Sea Port) & Pre deposit made Rs.0.07 Lacs

(iii) Employee Provident Fund: Damages u/s 14B amounting to Rs. 129.93 Lacs (Rs. 76.07 Lacs for Vizag Unit and Rs. 53.86 Lacs for Nellore Unit respectively) were raised by PF authorities. Pending disposal of appeals, the company has deposited an amount of Rs 17.50 Lacs based on interim directions.

(iv) Employee State Insurance: Damages u/s 85B amounting to Rs.18.30 Lacs, Interest u/s 39(5) amounting to Rs.4.16 Lacs for Vizag unit were raised by ESIC authorities for which the company filed an appeal with higher authority.

NOTE- 31

The amount receivable from N V R Co-Operative Sugar Factory towards the Development of Factory and Cane Development Expenses etc., has been treated as Advance recoverable since the company is claiming the same from Government of Andhra Pradesh / N V R Co-Operative Sugar Factory.

NOTE- 34

The company has not created any Deferred Tax Asset during the financial year since the company has brought forward un absorbed depreciation losses and is not expecting any taxable profits in foreseeable future.

NOTE- 35

Calculation of earnings per share :

Disclosure as required by Accounting Standard - Ind AS 33 Earning Per Share of the Companies (Indian Accounting Standards) Rules 2015.

The earning per share is calculated by dividing the profit after tax by weighted average number of shares outstanding for basic and diluted EPS.

NOTE- 36

Segment Information: The company is operating in only one segment business of Pharma and there is no geographical segment to be reported.

NOTE- 37

The balances of trade receivables, trade payables, long term loans & advances, short term loans & advances, other current assets & other current liabilities are subject to confirmation from respective parties.

NOTE- 38

During the year, the company has made provision for gratuity on actuarial valuation and the company did not make any contribution to a scheme administered by the insurer to discharge the gratuity liability to its employees.

NOTE- 39

Figures have been rounded off to nearest thousand. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.