Sula Vineyards , India's leading wine producer, has recently encountered a significant tax assessment and reported a decline in quarterly revenue. The company is navigating these challenges while maintaining growth in its wine tourism segment.

Tax Assessment Order

Sula Vineyards received a tax assessment order from the Deputy Commissioner of State Tax, Nashik, demanding ₹6.45 crore under the Central Sales Tax Act for the financial year 2022-2023. The order, received on September 25, includes:

• ₹3.57 crore for non-submission of F-Forms and C-Forms
• ₹2.88 crore in interest

In response to this demand, Sula Vineyards has stated that it does not expect any financial implications at this stage. The company plans to file an appeal against the assessment order, demonstrating its commitment to addressing the issue through proper channels.

Quarterly Financial Performance

Alongside the tax assessment news, Sula Vineyards reported its recent quarterly results, which showed mixed performance across different segments:

The company attributed the decline in own-brand wine revenue to a slowdown in urban consumption. However, the wine tourism segment showed robust growth, driven by higher footfalls and record resort occupancy.

Stock Performance

Sula Vineyards' shares closed at ₹264.80, down 1.73%, reflecting investor reaction to the mixed news.

Trading Window Closure

In a separate announcement, Sula Vineyards informed that the trading window for dealing in the company's securities will be closed from October 1 until 48 hours after the declaration of Unaudited Financial Results for the quarter ending September 30. This closure applies to all Directors, Designated Persons, and Connected Persons as defined under the company's Internal Code on Prohibition of Insider Trading.

As Sula Vineyards navigates these regulatory and market challenges, the company continues to focus on its core business while exploring growth opportunities in the wine tourism sector. The upcoming quarterly results will be closely watched by investors for signs of recovery in the wine segment and continued growth in tourism revenues.

Sula Vineyards , India's leading wine producer, has firmly denied recent media reports suggesting its entry into the premium spirits market through an acquisition. The company issued a clarification to address the speculation that had been circulating in the market.

Official Denial

In an official statement to the stock exchanges, Sula Vineyards categorically refuted the claims made in a news article published on www.cnbctv18.com on August 20. The article, titled "Sula Vineyards eyes entry into premium spirits market via acquisition," was described by the company as "factually incorrect and has no basis."

Shalaka Koparkar, Company Secretary and Compliance Officer of Sula Vineyards, stated, "We categorically state that no negotiations or discussions have taken place with respect to any acquisition or entry into the premium spirits market, as reported in the article."

Market Speculation and Stock Movement

The company addressed the recent fluctuations in its stock price, attributing them to market forces rather than any strategic shifts or potential deals. "The price movement appears to be purely market driven," the statement clarified, dispelling any connection between the stock performance and the rumored expansion plans.

Commitment to Transparency

Sula Vineyards reaffirmed its commitment to transparency and adherence to regulatory requirements. The company assured stakeholders that it remains dedicated to keeping shareholders and stakeholders informed of all material developments, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Conclusion

As India's wine market leader, Sula Vineyards continues to focus on its core business. The company's prompt and clear denial of the speculative reports underscores its commitment to maintaining open and honest communication with investors and the public.

Investors and market watchers are reminded to rely on official company statements and regulatory filings for accurate information about Sula Vineyards' business strategies and potential market expansions.