Allied Blenders and Distillers Limited (ABDL), a leading manufacturer of alcoholic beverages in India, has informed the stock exchanges that it has received Assessment Orders for Assessment Years 2014-15 to 2024-25 from the Income Tax Department. Additionally, its wholly owned subsidiary, Madanlal Estates Private Limited, has received an Assessment Order for Assessment Year 2021-22. The disclosure, made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, was filed with both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

Key Details of the Assessment Orders

As per the information provided by Ritesh Shah, Company Secretary & Compliance Officer, the orders were issued by the Deputy Commissioner of Income Tax, Central Circle 8(2), Mumbai. The details of the orders are as follows:

1. Assessment Orders Received by Allied Blenders and Madanlal Estates

• Allied Blenders and Distillers Limited received Assessment Orders for the period 2014-15 to 2024-25, with a tax demand raised amounting to ₹352.31 Crores along with interest of ₹249.14 Crores.

• Madanlal Estates Private Limited, a wholly owned subsidiary, received an Assessment Order for the Assessment Year 2021-22 with a tax liability demand of ₹0.39 Crore and an interest amount of ₹0.19 Crore.

• The orders were received by Allied Blenders on March 28, 2025, and by Madanlal Estates on March 29, 2025.

2. Search Operation and Assessment Proceedings

The Income Tax Department had conducted a search operation in December 2023 at multiple premises associated with Allied Blenders and its subsidiary. Following the search, the assessment proceedings were initiated and subsequently completed, resulting in the issuance of the current Assessment Orders.

3. Details of the Tax Demand and Disallowances

The tax demand of ₹352.31 Crores and interest of ₹249.14 Crores raised for Allied Blenders arises from additions and disallowances made by the Income Tax Department to the company’s previously filed returns. Similarly, the tax liability for Madanlal Estates arises from disallowances made in its income tax filing for Assessment Year 2021-22.

4. Company's Response and Plan of Action

Allied Blenders and Distillers Limited has evaluated the assessment orders and has stated that the orders do not have any significant financial impact on the company. The company intends to file appeals against the assessment orders as soon as possible and is confident of securing a favorable outcome.

5. Promoter’s Assurance to Safeguard Financial Stability

In a noteworthy move to protect investor interests and ensure financial stability, the Promoter Chairman of Allied Blenders has assured investors that if there is any ultimate financial impact due to the tax liability, it will be fully funded by him personally through permissible instruments. This assurance is intended to mitigate any potential adverse financial impact on the company.

Impact on Financials and Operations

According to the company’s assessment, the outcome of the orders is unlikely to affect the ongoing operations or financial stability of the business. The company has reiterated its commitment to ensuring that the financials remain stable despite the demand raised by the tax authorities.

Key Regulatory Compliance and Disclosures

The disclosure was made under Clause 20 of Para A of Part A of Schedule III of the Listing Regulations and was filed with both BSE (Scrip Code: 544203) and NSE (Symbol: ABDL). Allied Blenders also confirmed that the disclosure has been made available on the company's website for public access.

Background: Allied Blenders and Distillers Limited

Allied Blenders and Distillers Limited (ABDL) is one of India’s leading manufacturers and marketers of alcoholic beverages. The company’s flagship brand, Officer’s Choice, has been a market leader in the Indian whisky segment. With a strong presence across India and in international markets, Allied Blenders continues to maintain a dominant position in the alcoholic beverages sector.

Legal and Regulatory Compliance in Focus

Given the scale of the tax demands and the potential implications, Allied Blenders is actively engaging with its legal and financial advisors to pursue appeals and challenge the assessment orders. The company is committed to complying with all regulatory requirements and ensuring that its shareholders are kept informed about any material developments.

Next Steps and Future Outlook

• Appeals Against Assessment Orders: The company is in the process of preparing appeals against the assessment orders and expects to submit them within the stipulated timeframe.

• Ensuring Financial Stability: With the promoter’s assurance to personally fund any ultimate financial impact, the company remains confident that its financial performance will remain unaffected.

• Continued Focus on Compliance: Allied Blenders will continue to engage with regulatory authorities and ensure that it meets all legal and compliance obligations going forward.

Conclusion

The receipt of Income Tax Assessment Orders by Allied Blenders and Distillers Limited and its subsidiary Madanlal Estates Private Limited has been duly disclosed to the stock exchanges, and the company has initiated steps to file appeals against the orders. The company has expressed confidence that the appeals will result in a favorable outcome and has assured investors that any financial impact will be absorbed by the promoter, safeguarding the company’s financial stability.

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