Sula Vineyards Ltd Auditor Reports

To the Members of Sula Vineyards Limited

Report on the Audit of the Standalone Financial

Statements

Opinion

1. We have audited the accompanying standalone
financial statements of Sula Vineyards Limited (the
Company), which comprise the Standalone Balance
Sheet as at 31 March 2026, the Standalone Statement
of Profit and Loss (including Other Comprehensive
Income), the Standalone Statement of Cash Flow
and the Standalone Statement of Changes in
Equity for the year then ended, and notes to the
standalone financial statements, including material
accounting policy information and other explanatory
information.

2. In our opinion and to the best of our information
and according to the explanations given to us, the
aforesaid standalone financial statements give
the information required by the Companies Act,
2013 (the Act) in the manner so required and give
a true and fair view in conformity with the Indian
Accounting Standards (Ind AS) specified under
Section 133 of the Act read with the Companies
(Indian Accounting Standards) Rules, 2015 and other
accounting principles generally accepted in India, of
the state of affairs of the Company as at 31 March
2026, and its profit (including other comprehensive
income), its cash flows and the changes in equity for
the year ended on that date.

Basis for Opinion

3. We conducted our audit in accordance with the
Standards on Auditing specified under Section
143(10) of the Act. Our responsibilities under those
standards are further described in the Auditors
Responsibilities for the Audit of the Standalone
Financial Statements Section of our report. We are
independent of the Company in accordance with the
Code of Ethics issued by the Institute of Chartered
Accountants of India (ICAI) together with the
ethical requirements that are relevant to our audit
of the standalone financial statements under the
provisions of the Act and the rules thereunder, and
we have fulfilled our other ethical responsibilities in
accordance with these requirements and the Code
of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a
basis for our opinion.

Key Audit Matters

4. Key audit matters are those matters that, in our
professional judgment, were of most significance in
our audit of the standalone financial statements of
the current period. These matters were addressed in
the context of our audit of the standalone financial
statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion
on these matters.

5. We have determined the matters described below
to be the key audit matters to be communicated in
our report.

Key audit matter	How our audit addressed the key audit matter
(a) Assessment of impairment of non-current investment in and non-current loans to subsidiary (refer Note 5 and 6)
The Company, as at 31 March 2026, has investment (net of impairment) and loans amounting to INR 33.56 crore and INR 13.96 crore, respectively, in its wholly owned subsidiary i.e. Artisan Spirits Private Limited (ASPL).	Our audit procedures relating to impairment assessment of investment in and loans given to subsidiary included, but were not limited to, the following procedures:
The investments are carried at cost less impairment, if any, while the loans are carried at amortized cost less impairment, if any.	- Obtained an understanding of the management process and evaluated the design and tested the operating effectiveness of controls on identification of indicators of impairment of the carrying value of investment and recoverability of loans in accordance with Ind AS 36 and Ind AS 109.;
As on 31 March 2026, ASPLs net-worth has been substantially eroded as a result of accumulated losses. Such conditions have been identified by the management as impairment indicators of the carrying value of the investments as per Ind AS 36, Impairment of Assets (Ind AS 36). Further, the carrying value of loan given to subsidiary has been assessed to identify any significant increase in credit risk since initial recognition in accordance with the requirements of Ind AS 109, Financial Instruments (Ind AS 109).	- Assessed the appropriateness of accounting policies adopted by the management in respect of impairment assessment and expected credit loss determination in accordance with Ind AS 36 and Ind AS 109., respectively;
The management has assessed the recoverability of the aforesaid amounts by carrying out a valuation of the subsidiary s business with the help of an external valuation expert using the discounted cashflow method, which requires management to make significant estimates and assumptions related to forecast of future growth prospects, and selection of the discount rate to determine the recoverable amount to be considered for impairment testing of the carrying value of the aforesaid balances.	- Assessed the professional competence, and objectivity of the valuation experts engaged by management;
Based on the report from the independent valuation 2026 has recorded an impairment of INR 811 crore representing the difference between the recoverable value and the carrying value of Companys investment in ASPL.	- Involved auditors valuation specialists to assist in evaluating the appropriateness of valuation methodology and key assumptions used by the managements expert;
Due to the significance of carrying amount of the investment and loans, significant management judgements and assumptions involved in carrying out the impairment assessment which are inherently subjective, and the significant auditor attention required to test such managements judgement, this is considered as a key audit matter for the current year audit.	- Evaluated and challenged managements assumption used in the impairment assessment, particularly those related to forecast revenue, margins and weighted average cost of capital based on our own understanding plans;
	- Tested the mathematical accuracy of the projections;
	- Evaluated the appropriateness and adequacy of the disclosures made by the management in the standalone financial statements in accordance with applicable accounting standards.
(b) Revenue Recognition
Refer Note 21 (xii) to the accompanying standalone financial statements for the material accounting policy information on revenue recognition and Note 22 for the details of revenue recognised during the year.	Our audit procedures related to revenue recognition included, but were not limited to the following procedures:
The Company derives its revenue from sale of products to a wide network of government corporations and private parties. Further, revenue from sale of services represents revenue from wine tourism services.	- Understood the process of revenue recognition and evaluated the appropriateness of the accounting policy adopted by the management on revenue recognition including determination of transaction price and satisfaction of performance obligations, in accordance with Ind AS 115;
Revenue recognition for sale of products and services in accordance with the principles of Ind AS 115, "Revenue from Contracts with Customers" (Ind AS 115), for the Company involves certain key judgements, such as, identification of performance obligations in a contract, determination of transaction price including variable consideration in the form of rebates, discounts and payouts under various promotional schemes offered by the Company, and assessment of satisfaction of the performance obligations represented by the transfer of control of the products sold and services rendered to the customers.	- Evaluated the design and tested the operating effectiveness of relevant key controls around recognition and measurement of revenue including determination of variable consideration including general and specific IT controls;
Owing to the significance of amounts, multiplicity of Companys products and revenue streams, volume of transactions, size of distribution network, nature of customers with varied terms of contracts, audit of revenue recognised during the year required significant auditor attention and industry knowledge, and accordingly, revenue recognition has been considered as a key audit matter in the current year audit.	- Performed substantive testing, on a sample basis, on revenue transactions recorded during the year, and transactions recorded before and after year end by inspecting supporting documents such as customer contracts/ purchase orders, invoices, proofs of dispatch/ delivery to ensure revenue is recorded at the correct amount and in the correct period;
	- Reviewed the terms of the contracts with customers, on a sample basis, to assess the appropriateness of the Companys identification of performance obligations, its determination of transaction price and identification of the point of revenue recognition;
	- Performed analytical procedures such as variance analysis, trend analysis on revenue to identify any unusual variances or trends;
	- Performed substantive testing by selecting a sample of discounts, rebate and other pay-out transactions with distributors recorded during the year as well as period end accrual basis the promotion schemes offered by the Company;
	- Evaluated the appropriateness and adequacy of disclosures made in the accompanying standalone financial statements in respect of revenue recognition in accordance with applicable accounting standards;

Information other than the Standalone Financial

Statements and Auditors Report thereon

6. The Companys Board of Directors are responsible
for the other information. The other information
comprises the information included in the Directors
Report, but does not include the standalone financial
statements and our auditors report thereon.

Our opinion on the standalone financial statements
does not cover the other information and we do not
express any form of assurance conclusion thereon.

In connection with our audit of the standalone
financial statements, our responsibility is to read the
other information and, in doing so, consider whether
the other information is materially inconsistent
with the standalone financial statements or our
knowledge obtained in the audit or otherwise
appears to be materially misstated. If, based on the
work we have performed, we conclude that there is a
material misstatement of this other information, we
are required to report that fact. We have nothing to
report in this regard.

Responsibilities of Management and Those Charged

with Governance for the Standalone Financial

Statements

7. The accompanying standalone financial statements have
been approved by the Companys Board of Directors.
The Companys Board of Directors are responsible for the
matters stated in Section 134(5) of the Act with respect
to the preparation and presentation of these standalone
financial statements that give a true and fair view of the
financial position, financial performance including other
comprehensive income, changes in equity and cash flows
of the Company in accordance with the Ind AS specified
under Section 133 of the Act and other accounting
principles generally accepted in India. This responsibility
also includes maintenance of adequate accounting
records in accordance with the provisions of the Act
for safeguarding of the assets of the Company and for
preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting
policies; making judgments and estimates that are
reasonable and prudent; and design, implementation and
maintenance of adequate internal financial controls, that
were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the
preparation and presentation of the financial statements
that give a true and fair view and are free from material
misstatement, whether due to fraud or error.

8. In preparing the standalone financial statements,
the Board of Directors is responsible for assessing
the Companys ability to continue as a going
concern, disclosing, as applicable, matters related
to going concern and using the going concern
basis of accounting unless the Board of Directors
either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do
so.

9. The Board of Directors is also responsible for
overseeing the Companys financial reporting
process.

Auditors Responsibilities for the Audit of the

Standalone Financial Statements

10. Our objectives are to obtain reasonable assurance
about whether the standalone financial statements
as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditors
report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance
with Standards on Auditing will always detect a
material misstatement when it exists. Misstatements
can arise from fraud or error and are considered
material if, individually or in the aggregate, they
could reasonably be expected to influence the
economic decisions of users taken on the basis of
these standalone financial statements.

11. As part of an audit in accordance with Standards on
Auditing, specified under Section 143(10) of the Act
we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:

- Identify and assess the risks of material
misstatement of the standalone financial
statements, whether due to fraud or error,
design and perform audit procedures responsive
to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher
than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal
control;

- Obtain an understanding of internal control
relevant to the audit in order to design
audit procedures that are appropriate in the
circumstances. Under Section 143(3)(i) of the
Act we are also responsible for expressing our
opinion on whether the Company has adequate
internal financial controls with reference to
financial statements in place and the operating
effectiveness of such controls;

- Evaluate the appropriateness of accounting
policies used and the reasonableness of
accounting estimates and related disclosures
made by management;

- Conclude on the appropriateness of Board of
Directors use of the going concern basis of
accounting and, based on the audit evidence
obtained, whether a material uncertainty exists
related to events or conditions that may cast
significant doubt on the Companys ability to
continue as a going concern. If we conclude that

a material uncertainty exists, we are required
to draw attention in our auditors report to the
related disclosures in the standalone financial
statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date
of our auditors report. However, future events
or conditions may cause the Company to cease
to continue as a going concern; and

- Evaluate the overall presentation, structure and
content of the standalone financial statements,
including the disclosures, and whether the
standalone financial statements represent the
underlying transactions and events in a manner
that achieves fair presentation.

12. We communicate with those charged with
governance regarding, among other matters, the
planned scope and timing of the audit and significant
audit findings, including any significant deficiencies
in internal control that we identify during our audit.

13. We also provide those charged with governance with
a statement that we have complied with relevant
ethical requirements regarding independence, and
to communicate with them all relationships and
other matters that may reasonably be thought to
bear on our independence, and where applicable,
related safeguards.

14. From the matters communicated with those
charged with governance, we determine those
matters that were of most significance in the audit
of the standalone financial statements of the current
period and are therefore the key audit matters. We
describe these matters in our auditors report unless
law or regulation precludes public disclosure about
the matter or when, in extremely rare circumstances,
we determine that a matter should not be
communicated in our report because the adverse
consequences of doing so would reasonably be
expected to outweigh the public interest benefits of
such communication.

Report on Other Legal and Regulatory Requirements

15. As required by Section 197(16) of the Act, based
on our audit, we report that the Company has paid
remuneration to its directors during the year in
accordance with the provisions of and limits laid
down under Section 197 read with Schedule V to the
Act.

16. As required by the Companies (Auditors Report)
Order, 2020 (the Order) issued by the Central
Government of India in terms of Section 143(11) of
the Act we give in the Annexure I, a statement on the
matters specified in paragraphs 3 and 4 of the Order,
to the extent applicable.

17. Further to our comments in Annexure I, as required
by Section 143(3) of the Act based on our audit, we

report, to the extent applicable, that:

a. We have sought and obtained all the information
and explanations which to the best of our
knowledge and belief were necessary for the
purpose of our audit of the accompanying
standalone financial statements;

b. Except for the matters stated in paragraph
17(h)(vi) below on reporting under Rule 11(g)
of the Companies (Audit and Auditors) Rules,
2014 (as amended), in our opinion, proper books
of account as required by law have been kept
by the Company so far as it appears from our
examination of those books;

c. The standalone financial statements dealt with
by this report are in agreement with the books
of account;

d. In our opinion, the aforesaid standalone financial
statements comply with Ind AS specified under
Section 133 of the Act;

e. On the basis of the written representations
received from the directors and taken on record
by the Board of Directors, none of the directors
is disqualified as on 31 March 2026 from being
appointed as a director in terms of Section
164(2) of the Act;

f. The qualification relating to the maintenance
of accounts and other matters connected
therewith are as stated in paragraph 17(b) above
on reporting under Section 143(3)(b) of the Act
and paragraph 17(h)(vi) below on reporting
under Rule 11(g) of the Companies (Audit and
Auditors) Rules, 2014 (as amended);

g. With respect to the adequacy of the internal
financial controls with reference to financial
statements of the Company as on 31 March
2026 and the operating effectiveness of such
controls, refer to our separate report in Annexure
II wherein we have expressed an unmodified
opinion; and

h. With respect to the other matters to be included
in the Auditors Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules,
2014 (as amended), in our opinion and to the
best of our information and according to the
explanations given to us:

i. The Company, as detailed in Note 32(A) to the
standalone financial statements, has disclosed
the impact of pending litigations on its financial
position as at 31 March 2026;

ii. The Company did not have any long-term
contracts including derivative contracts for
which there were any material foreseeable
losses as at 31 March 2026;

iii. There were no amounts which were required to
be transferred to the Investor Education and
Protection Fund by the Company during the year
ended 31 March 2026;

iv. a. The management has represented that, to
the best of its knowledge and belief as disclosed
in Note 49(v) to the standalone financial
statements, no funds have been advanced or
loaned or invested (either from borrowed funds
or securities premium or any other sources or
kind of funds) by the Company to or in any
person(s) or entity(ies), including foreign entities
(the intermediaries), with the understanding,
whether recorded in writing or otherwise, that
the intermediary shall, whether, directly or
indirectly lend or invest in other persons or
entities identified in any manner whatsoever
by or on behalf of the Company (the Ultimate
Beneficiaries) or provide any guarantee, security
or the like on behalf of the Ultimate Beneficiaries;

b. The management has represented that, to
the best of its knowledge and belief as disclosed
in Note 49(vi) to the standalone financial
statements, no funds have been received by
the Company from any person(s) or entity(ies),
including foreign entities (the Funding Parties),
with the understanding, whether recorded in
writing or otherwise, that the Company shall,
whether directly or indirectly, lend or invest in
other persons or entities identified in any manner
whatsoever by or on behalf of the Funding
Party (Ultimate Beneficiaries) or provide any
guarantee, security or the like on behalf of the
Ultimate Beneficiaries; and

c. Based on such audit procedures performed
as considered reasonable and appropriate in
the circumstances, nothing has come to our
notice that has caused us to believe that the
management representations under sub-
clauses (a) and (b) above contain any material
misstatement.

v. The final dividend paid by the Company during
the year ended 31 March 2026 in respect of such
dividend declared for the previous year is in
accordance with Section 123 of the Act to the
extent it applies to payment of dividend. Further,
as stated in Note 39 to the accompanying
standalone financial statements, the Board of
Directors of the Company have proposed final
dividend for the year ended 31 March 2026 which
is subject to the approval of the members at the
ensuing Annual General Meeting. The dividend
declared is in accordance with Section 123 of
the Act to the extent it applies to declaration of
dividend.

vi. As stated in Note 48 to the standalone financial

statements and based on our examination which
included test checks, except for the instances
mentioned below, the Company, in respect
of financial year commencing on 1 April 2025,
has used accounting softwares for maintaining
its books of account which have a feature of
recording audit trail (edit log) facility and the
same have been operated throughout the year
for all relevant transactions recorded in the
softwares. Further, during the course of our audit
we did not come across any instance of audit trail
feature being tampered with. Furthermore, the
audit trail has been preserved by the Company
as per the statutory requirements for record
retention from the date the audit trail was
enabled for the accounting softwares:

a. The accounting software used by the Company
for maintenance of all accounting records is
operated by a third-party software service
provider. In the absence of any information on
existence of audit trail (edit logs) for any direct
changes made at the database level in the
Independent Service Auditors Assurance Report
on the Description of Controls, their Design and
Operating Effectiveness (Type 2 report issued in
accordance with ISAE 3402, Assurance Reports on
Controls at a Service Organization), we are unable
to comment on whether audit trail feature with
respect to the database of the said software was
enabled and operated throughout the period.

b. The accounting software used by the Company
for maintenance of sales records relating to
wine tourism (resort operations) did not have a
feature of recording audit trail (edit log) facility
during the period as stated in Note 48(b) to the
standalone financial statements. Further, during
the current year, the Company has migrated
to a new accounting software operated by a
third party software service provider. However,
in the absence of any information on existence
of audit trail (edit logs) for any direct changes
made at the database level in the Independent
Service Auditors Assurance Report on the
Description of Controls, their Design and
Operating Effectiveness (Type 2 report
issued in accordance with American Institute of
Certified Public Accountants (AICPA) Statement
on Standards for Attestation Engagements
No. 18, Attestation Standards: Clarification and
Recodification (SSAE 18)), we are unable to
comment on whether audit trail feature with
respect to the database of the said software was
enabled and operated throughout the period..

c. The accounting software used by the
Company for maintenance of sales records for
the wine tourism (other than resort operations)
is operated by a third party software service
provider. In absence of an Independent Service

Auditors Assurance Report on the Description of Controls, their Design and Operating Effectiveness (Type
2 report issued in accordance with SAE 3402, Assurance Reports on Controls at a Service Organization), we
are unable to comment if the audit trail feature at the database level of the said software was enabled and
operated throughout the period for all relevant transactions.

For Walker Chandiok & Co LLP

Chartered Accountants

Firms Registration No.: 001076N/N500013

Rohan Jain

Partner

Membership No.: 139536
UDIN: 26139536HZBITI5377

Place: Mumbai
Date: 6 May 2026

Annexure I referred to in paragraph 16 of the
Independent Auditors Report of even date to the
members of Sula Vineyards Limited on the standalone
financial statements for the year ended 31 March 2026.

In terms of the information and explanations sought by
us and given by the Company and the books of account
and records examined by us in the normal course of
audit, and to the best of our knowledge and belief, we
report that:

i. (a) (A) The Company has maintained proper records
showing full particulars, including quantitative details
and situation of property, plant and equipment,
capital work-in-progress, and relevant details of
right-of-use assets.

(B) The Company has maintained proper records
showing full particulars of intangible assets.

(b) The Company has a regular programme of
physical verification of its property, plant and
equipment, capital work-in-progress, and relevant
details of right-of-use assets under which the assets
are physically verified in a phased manner over a
period of 3 years, which in our opinion, is reasonable
having regard to the size of the Company and
the nature of its assets. In accordance with this
programme, certain property, plant and equipment,
capital work-in-progress, and relevant details of
right-of-use assets were verified during the year
and no material discrepancies were noticed on such
verification.

(c) The title deeds of all the immovable properties
held by the Company (other than properties where
the Company is the lessee and the lease agreements
are duly executed in favour of the lessee), disclosed
in Note 3 to the standalone financial statements, are
held in the name of the Company. For title deeds
of immovable properties in the nature of land and
building situated at Maharashtra with gross carrying
values of INR 75.55 crores as at 31 March 2026,
which have been mortgaged as security for loans
or borrowings taken by the Company, confirmations
with respect to title of the Company have been

directly obtained by us from the respective lenders.
For properties where the Company is a lessee, the
lease arrangements have been duly executed in
favour of the Company.

(d) The Company has adopted cost model for its
Property, Plant and Equipment (including right-
of-use assets) and intangible assets. Accordingly,
reporting under clause 3(i)(d) of the Order is not
applicable to the Company.

(e) No proceedings have been initiated or are
pending against the Company for holding any
benami property under the Prohibition of Benami
Property Transactions Act, 1988 (as amended) and
rules made thereunder.

ii. (a) The management has conducted physical
verification of inventory at reasonable intervals during
the year, except for inventory lying with third parties.
In our opinion, the coverage and procedure of such
verification by the management is appropriate and
no discrepancies of 10% or more in the aggregate for
each class of inventory were noticed as compared to
book records. In respect of inventory lying with third
parties, these have substantially been confirmed by
the third parties.

(b) As disclosed in Note 15.6 to the standalone
financial statements, the Company has been
sanctioned a working capital limit in excess of INR
5 crores by banks based on the security of current
assets. The quarterly statements, in respect of
the working capital limits have been filed by the
Company with such banks and such statements
are in agreement with the books of account of the
Company for the respective periods which were
subject to review.

iii. The Company has not made investments in,
provided any guarantee or security or granted any
loans or advances in the nature of loans to firms or
limited liability partnerships during the year. Further,
the Company has also not provided any security
or granted any advances in the nature of loans to
any Company or others. However, the Company

has made investments in, provided guarantees and
granted unsecured loans to companies and others
(employees) during the year, in respect of which:

(a) The Company has provided guarantees to its
subsidiaries and granted loans to its subsidiaries and
others (employees) during the year as per details
given below:

Particulars	Guarantees	Loans
Aggregate amount provided/granted during the year (INR in crores):
- Subsidiaries	40.89	39.69
- Others	Nil	2.10
Balance outstanding as at balance sheet date (INR in crores):
- Subsidiaries	41.96	21.24
- Others	Nil	3.76

(b) In our opinion, and according to the information
and explanations given to us, the investments made,
guarantees provided, and terms and conditions of
the grant of all loans are, prima facie, not prejudicial
to the interest of the Company.

(c) In respect of loans granted by the Company, the
schedule of repayment of principal and payment of
interest has been stipulated and the repayments/
receipts of principal and interest are regular.

(d) There is no amount which is overdue for
more than 90 days in respect of loans granted to
such companies (subsidiaries) or other parties
(employees).

(e) The Company has granted loans which had fallen
due during the year and were repaid on or before the
due date. Further, no fresh loans were granted to any
party to settle the overdue loans.

(f) The Company has not granted any loans, which
are repayable on demand or without specifying any
terms or period of repayment.

iv. In our opinion, and according to the information
and explanations given to us, the Company has
complied with the provisions of Section 186 of the
Act in respect of loans and investments made and
guarantees and security provided by it, as applicable.
Further, the Company has not entered into any
transaction covered under Section 185 of the Act.

v. In our opinion, and according to the information
and explanations given to us, the Company has not
accepted any deposits or there are no amounts
which have been deemed to be deposits within the
meaning of Sections 73 to 76 of the Act and the

Companies (Acceptance of Deposits) Rules, 2014 (as
amended). Accordingly, reporting under clause 3(v)
of the Order is not applicable to the Company.

vi. The Central Government has not specified
maintenance of cost records under sub-section (1)
of Section 148 of the Act, in respect of Companys
products/ services / business activities. Accordingly,
reporting under clause 3(vi) of the Order is not
applicable.

vii. (a) In our opinion, and according to the information
and explanations given to us, undisputed statutory
dues including goods and services tax, provident
fund, employees state insurance, income-tax, sales-
tax, service tax, duty of customs, duty of excise, value
added tax, cess and other material statutory dues, as
applicable, have generally been regularly deposited
with the appropriate authorities by the Company,
though there have been slight delays in a few cases.
Further, no undisputed amounts payable in respect
thereof, were outstanding at the year-end for a
period of more than six months from the date they
became payable.

viii. (b) According to the information and explanations
given to us, we report that there are no statutory
dues referred in sub-clause (a) which have not
been deposited with the appropriate authorities on
account of any dispute except for the following: (INR
in crores)

Name of the statute	Nature of dues	Gross Amount	Amount paid under Protest	Period to which the amount relates	Forum where dispute is pending
Finance Act, 1994	Service Tax	3.67	0.28	FY 2015 -16 and 2016- 17	Customs, Central Excise and Service Tax Appellate Tribunal
Karnataka Stamp Act, 1957	Stamp duty	1.54	0.65	FY 2017 -18	The High Court of Karnataka
Central Goods and Services Tax Act, 2017	Goods and Services Tax	4.02	0.41	FY 2017-18 to 2021-22	Office of the Commissioner (Appeals), CGST and Central Excise
Central Sales Tax Act, 1956	Central Sales tax	0.35	0.16	FY 2018 -19
Central Sales Tax Act, 1956	Central Sales tax	0.16	0.08	FY 2019 -20	Joint Commissioner of State Tax - Maharashtra
Central Sales Tax Act, 1956	Central Sales tax	1.29	0.04	F.Y. 2020 -21
Income Tax Act, 1961	Tax Deducted at Source	0.09	-	F.Y. 2023 -24	Commissioner of Income Tax (Appeals)
Income Tax Act, 1961	Tax Deducted at Source	0.20	0.04	FY 2018 -19	Commissioner of Income Tax, TDS
Central Goods and Services Tax Act, 2017	Goods and Services Tax	0.02	-	FY 2022-23	Superintendent, CGST & Central Excise, Nashik
Central Sales Tax Act, 1956	Central Sales tax	0.48	-	FY 2022-23	Joint Commissioner of State Tax - Maharashtra

viii. According to the information and explanations
given to us, we report that no transactions were
surrendered or disclosed as income during the year
in the tax assessments under the Income Tax Act,
1961 (43 of 1961) which have not been previously
recorded in the books of accounts.

ix. (a) in our opinion and according to the information
and explanations given to us, the Company has not
defaulted in repayment of its loans or borrowings or
in the payment of interest thereon to any lender.

(b) According to the information and explanations
given to us including representation received from
the management of the Company, and on the basis
of our audit procedures, we report that the Company
has not been declared a willful defaulter by any
bank or financial institution or government or any
government authority.

(c) In our opinion and according to the information
and explanations given to us, money raised by way of
term loans were applied for the purposes for which
these were obtained.

(d) In our opinion and according to the information
and explanations given to us, and on an overall
examination of the financial statements of the
Company, funds raised by the Company on short
term basis have, prima facie, not been utilised for
long term purposes.

(e) In our opinion and according to the information
and explanations given to us and on an overall
examination of the financial statements of the
Company, the Company has not taken any funds
from any entity or person on account of or to meet

the obligations of its subsidiaries.

(f) In our opinion and according to the information
and explanations given to us, the Company has not
raised any loans during the year on the pledge of
securities held in its subsidiaries.

x. (a) The Company has not raised any money by way of
initial public offer or further public offer (including
debt instruments), during the year. Accordingly,
reporting under clause 3(x)(a) of the Order is not
applicable to the Company.

(b) According to the information and explanations
given to us and on the basis of our examination of the
records of the Company, the Company has not made
any preferential allotment or private placement of
shares or (fully, partially or optionally) convertible
debentures during the year. Accordingly, reporting
under clause 3(x)(b) of the Order is not applicable
to the Company.

xi. (a) To the best of our knowledge and according to
the information and explanations given to us, no
fraud by the Company or no fraud on the Company
has been noticed or reported during the period
covered by our audit.

(b) According to the information and explanations
given to us including the representation made to
us by the management of the Company, no report
under sub-Section 12 of Section 143 of the Act
has been filed by the auditors in Form ADT-4 as
prescribed under rule 13 of Companies (Audit and
Auditors) Rules, 2014, with the Central Government
for the period covered by our audit.

(c) According to the information and explanations
given to us including the representation made to us
by the management of the Company, there are no
whistle-blower complaints received by the Company
during the year.

xii. The Company is not a Nidhi Company and the Nidhi
Rules, 2014 are not applicable to it. Accordingly,
reporting under clause 3(xii) of the Order is not
applicable to the Company.

xiii. In our opinion and according to the information and
explanations given to us, all transactions entered
into by the Company with the related parties are
in compliance with Sections 177 and 188 of the
Act, where applicable. Further, the details of such
related party transactions have been disclosed in the
standalone financial statements, as required under
Indian Accounting Standard (Ind AS) 24, Related
Party Disclosures specified in Companies (Indian
Accounting Standards) Rules 2015 as prescribed
under Section 133 of the Act.

xiv. (a) In our opinion and according to the information
and explanations given to us, the Company has an
internal audit system which is commensurate with
the size and nature of its business as required under
the provisions of Section 138 of the Act.

(b) We have considered the reports issued by the
Internal Auditors of the Company till date for the
period under audit.

xv. According to the information and explanation given
to us, the Company has not entered into any non-cash
transactions with its directors or persons connected
with its directors and accordingly, reporting under
clause 3(xv) of the Order with respect to compliance
with the provisions of Section 192 of the Act are not
applicable to the Company.

xvi. The Company is not required to be registered under
Section 45-IA of the Reserve Bank of India Act, 1934.
Accordingly, reporting under clauses 3(xvi)(a), (b) and

(c) of the Order are not applicable to the Company.
Further, based on the information and explanations
given to us and as represented by the management
of the Company, the Group (as defined in Core
Investment Companies (Reserve Bank) Directions,
2016) does not have any CIC. Accordingly, reporting

under clause 3(xvi)(d) of the Order is not applicable
to the Company

xvii. The Company has not incurred any cash losses in
the current financial year as well as the immediately
preceding financial year.

xviii. There has been no resignation of the statutory
auditors during the year. Accordingly, reporting
under clause 3(xviii) of the Order is not applicable
to the Company.

xix. According to the information and explanations
given to us and on the basis of the financial ratios,
ageing and expected dates of realisation of
financial assets and payment of financial liabilities,
other information in the standalone financial
statements, our knowledge of the plans of the
Board of Directors and management and based
on our examination of the evidence supporting the
assumptions, nothing has come to our attention,
which causes us to believe that any material
uncertainty exists as on the date of the audit report
indicating that Company is not capable of meeting
its liabilities existing at the date of balance sheet
as and when they fall due within a period of one
year from the balance sheet date. We, however,
state that this is not an assurance as to the future
viability of the company. We further state that our
reporting is based on the facts up to the date of
the audit report and we neither give any guarantee
nor any assurance that all liabilities falling due
within a period of one year from the balance sheet
date, will get discharged by the company as and
when they fall due.

xx. According to the information and explanations
given to us, the Company does not have any
unspent amounts towards Corporate Social
Responsibility in respect of any ongoing or other
than ongoing project as at the end of the financial
year. Accordingly, reporting under clause 3(xx) of
the Order is not applicable to the Company.

xxi. The reporting under clause 3(xxi) of the Order is
not applicable in respect of audit of standalone
financial statements of the Company. Accordingly,
no comment has been included in respect of said
clause under this report.

For Walker Chandiok & Co LLP

Chartered Accountants

Firms Registration No.: 001076N/N500013

Rohan Jain

Partner

Membership No.: 139536
UDIN: 26139536HZBITI5377
Place: Mumbai
Date: 6 May 2026

Annexure II to Independent Auditors Report on
the internal financial controls with reference to the
standalone financial statements under Clause (i) of
Sub-Section 3 of Section 143 of the Companies Act,
2013 (the Act)

1. In conjunction with our audit of the standalone
financial statements of Sula Vineyards Limited
(the Company) as at and for the year ended 31
March 2026, we have audited the internal financial
controls with reference to financial statements of
the Company as at that date.

Responsibilities of Management and Those Charged
with Governance for Internal Financial Controls

2. The Companys Board of Directors is responsible
for establishing and maintaining internal financial
controls based on the internal financial controls
with reference to financial statements criteria
established by the Company considering the
essential components of internal control stated in the
Guidance Note on Audit of Internal Financial Controls
over Financial Reporting (the Guidance Note)
issued by the Institute of Chartered Accountants
of India (the IC AI). These responsibilities include
the design, implementation and maintenance
of adequate internal financial controls that were
operating effectively for ensuring the orderly
and efficient conduct of the Companys business,
including adherence to the Companys policies,
the safeguarding of its assets, the prevention and
detection of frauds and errors, the accuracy and
completeness of the accounting records, and the
timely preparation of reliable financial information,
as required under the Act.

Auditors Responsibility for the Audit of the Internal
Financial Controls with Reference to Financial
Statements

3. Our responsibility is to express an opinion on the
Companys internal financial controls with reference
to financial statements based on our audit. We
conducted our audit in accordance with the Standards
on Auditing issued by ICAI prescribed under Section
143(10) of the Act, to the extent applicable to an
audit of internal financial controls with reference to
financial statements, and the Guidance Note issued
by the ICAI. Those Standards and the Guidance Note
require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable
assurance about whether adequate internal financial
controls with reference to financial statements were
established and maintained and if such controls
operated effectively in all material respects.

4. Our audit involves performing procedures to
obtain audit evidence about the adequacy of the
internal financial controls with reference to financial
statements and their operating effectiveness. Our

audit of internal financial controls with reference
to financial statements includes obtaining an
understanding of such internal financial controls,
assessing the risk that a material weakness exists,
and testing and evaluating the design and operating
effectiveness of internal control based on the
assessed risk. The procedures selected depend on
the auditors judgement, including the assessment
of the risks of material misstatement of the financial
statements, whether due to fraud or error.

5. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for
our audit opinion on the Companys internal financial
controls with reference to financial statements.

Meaning of Internal Financial Controls with
Reference to Financial Statements

6. A companys internal financial controls with reference
to financial statements is a process designed
to provide reasonable assurance regarding the
reliability of financial reporting and the preparation
of financial statements for external purposes in
accordance with generally accepted accounting
principles. A companys internal financial controls
with reference to financial statements include
those policies and procedures that (1) pertain to
the maintenance of records that, in reasonable
detail, accurately and fairly reflect the transactions
and dispositions of the assets of the company; (2)
provide reasonable assurance that transactions
are recorded as necessary to permit preparation of
financial statements in accordance with generally
accepted accounting principles, and that receipts
and expenditures of the company are being
made only in accordance with authorisations of
management and directors of the company; and (3)
provide reasonable assurance regarding prevention
or timely detection of unauthorised acquisition, use,
or disposition of the companys assets that could
have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls
with Reference to Financial Statements

7. Because of the inherent limitations of internal
financial controls with reference to financial
statements, including the possibility of collusion or
improper management override of controls, material
misstatements due to error or fraud may occur and
not be detected. Also, projections of any evaluation
of the internal financial controls with reference to
financial statements to future periods are subject
to the risk that the internal financial controls with
reference to financial statements may become
inadequate because of changes in conditions, or
that the degree of compliance with the policies or
procedures may deteriorate

Opinion

8. In our opinion, the Company has, in all material respects, adequate internal financial controls with reference to
financial statements and such controls were operating effectively as at 31 March 2026, based on the internal financial
controls with reference to financial statements criteria established by the Company considering the essential
components of internal control stated in the Guidance Note issued by the ICAI

For Walker Chandiok & Co LLP

Chartered Accountants

Firms Registration No.: 001076N/N500013

Rohan Jain

Partner

Membership No.: 139536

UDIN: 26139536HZBITI5377

Place: Mumbai

Date: 6 May 2026