Sapphire Foods India Ltd Directors Report

Dear Members,

Your directors are pleased to present the 16^th Annual Report on the business and operations of Sapphire Foods India

Limited ("Company") together with the audited financial statements for the financial year ended 31 st March 2025.

Financial Results and Performance

The financial statements of the Company have been prepared in accordance with the applicable provisions of Indian Accounting Standards ("Ind AS"), Companies Act, 2013 and Rules made thereunder ("Companies Act"), Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations") and such other applicable rules, regulations, guidelines, etc., as amended from time to time.

The Companys financial (standalone and consolidated) performance during the financial year ended31 st March 2025 as compared to the previous financial year, is summarized below:

( in Millions)

	Standalone		Consolidated
Particular	F.Y. 2024 -25	F.Y. 2023-24	F.Y. 2024- 25	F.Y. 2023-24
Total Income	24,838.82	22,676.55	29,190.79	26,277.21
Less: Total Expenses	24,658.29	22,022.95	28,806.48	25,578.12
Profit/ (Loss) before tax	(27.86)	653.60	231.36	699.09
Less: Total tax expense/(credit)	35.34	145.92	64.32	179.53
Profit/ (Loss) after Tax	(63.20)	507.68	167.04	519.56
Total Comprehensive Income/(Loss) for the year, net of tax	(77.66)	494.97	207.75	568.38

During the year under review, the total income of your Company was 24,838.82 million on a standalone basis and 29,190.79 million on a consolidated basis as compared to the previous financial year total income of 22,676.55 million on a standalone basis and 26,277.21 million on a consolidated basis. The net loss for the year under review after total tax expense stood at 63.20 million on a standalone basis, whereas, the net profit on a consolidated basis stood at 167.04 million.

The Company has not transferred any amount to the general reserves. There was no change in the nature of the business of the Company during the year under review.

Business Operations and State of Companys

Sapphire Foods India Limited, directly and through its subsidiaries, is one of the largest franchisees of Yum!

Brands Inc. in Indian sub-continent with a track record of successfully operating 963 Restaurants of KFC, Pizza Hut and Taco Bell across India and Sri Lanka.

For complete detail on Business Operations and State of Companys Affairs, please refer to the section of ‘Management Discussion and Analysis Report which forms an integral part of this Annual Report.

Dividend

During the financial year under review, your directors have not recommended any dividend to the shareholders of the Company.

The Board of Directors of your Company has adopted

Dividend Distribution Policy based on the parameters as specified under Listing Regulations. The Policy can be accessed from the website of the Company at https:// www.sapphirefoods.in/investors-relation/corporate-governance.

The Company has not transferred any amount to the

Investor Education & Protection Fund (IEPF) and no amount is lying in Unpaid Dividend Account of the Company.

Subsidiaries, Joint Venture and Associate Companies

As at the close of the financial year 31 st March 2025, your Company has two wholly-owned subsidiary companies viz., Gamma Pizzakraft Lanka (Private) Limited, Sri Lanka & French Restaurants (Private) Limited, Sri Lanka and one subsidiary / joint venture viz., Gamma Island Food Private Limited, Maldives.

Apart from the above, no other company has become or ceased to be a subsidiary, joint venture or associate of the Company during the financial year under review.

In pursuance of Section 136 of the Companies Act, the annual report of the Company containing its standalone and consolidated financial statements has been uploaded on the website of the company. Further, financials of the subsidiaries, are available on the website of the Company at https://www.sapphirefoods.in/investors-relation/annual-reports.

The highlights of performance and financial position of each of the subsidiary company for the financial year ended 31st March 2025, are provided in form AOC-1, in accordance with the provisions of Section 129 of the Companies Act, 2013 read with Rule 5 of the Companies (Accounts) Rules, 2014. The form AOC-1 is enclosed with the Consolidated Financial Statements and forms an integral part of this Annual Report.

Your Company, in accordance with the Listing Regulations, has formulated and adopted the policy for determining material subsidiaries. The said policy is available on the website of the Company at https://www.sapphirefoods. in/investors-relation/corporate-governance.

Share Capital

Sub-Division/ Split of Equity Shares

During the financial year under review, the Board of Directors at their meeting held on 19th June 2024, has approved the sub-division/ split of the existing equity shares of the Company from 1 (One) equity share having face value of 10/- (Rupees Ten) each fully paid up, into 5 (Five) equity shares having face value of 2/- (Rupees Two) each fully paid-up. Consequently, the shareholders of the Company at their 15th Annual General Meeting held on 9^th August 2024 approved the said sub-division/ split of equity shares. Following necessary approvals from the Stock Exchanges i.e. BSE Limited and National Stock Exchange of India Limited and the Depositories i.e. National Securities Depository Limited and Central Depository Services (India) Limited, new ISIN (INE806T01020) was allotted to the Company. The change in face value of the Equity shares of the Company were reflected on the share price on the Stock Exchanges with effect from the Record Date i.e. 5^th September 2024.

Authorised Share Capital

Consequent to the sub-division/ split of equity shares of the Company, the authorised share capital of the Company was altered and stands at 467,01,20,000 divided into 233,50,60,000 Equity shares of face value 2 each.

Issued, Subscribed and Paid-up Share Capital

As on 31st March 2025, the issued, subscribed and paid-up capital of the Company stands at 64,23,81,788 comprising of 32,11,90,894 equity shares of face value of 2 each.

During the year under review, your Company had issued and allotted 26,68,814 equity shares to its eligible employees pursuant to the exercise of stock options under Employee Stock Option Schemes.

The Company has not issued any shares with differential rights and hence no information as per provisions of Section 43(a)(ii) of the Act read with Rule 4(4) of the Companies (Share Capital and Debenture) Rules, 2014 is furnished.

Employee Stock Option Plan / Schemes

With a view to attract, reward and retain talented and key employees in the competitive environment and encourage them to align their individual performance with Company objectives, your Company has implemented Sapphire Foods Employees Stock Option Plan 2017 ("ESOP Plan") which was originally approved by the Board of Directors and the Shareholders of the Company on 24th May 2018 and 30th May 2018 respectively and subsequently ratified by the shareholders of the Company post IPO. Sapphire Foods Employees Stock Option Scheme 2019 Scheme III Management other than CEO ("Scheme III"), Sapphire Foods Employees Stock Option Scheme 2019 Scheme IV CEO ("Scheme IV"), Sapphire Foods Employee Stock Option Scheme 2022 Scheme IIIA Management other than CEO ("Scheme IIIA") and Sapphire Foods Employee

Stock Option Scheme 2022 Scheme IVA CEO ("Scheme IVA") (hereinafter collectively referred to as "ESOP Schemes") forms an integral part of the ESOP Plan. With a view to reward loyalty for past services with the Company, retention of critical employees and align employees interest with companys performance and shareholders interest, the Company has granted, from time to time, stock options to the eligible employees under the said ESOP Plan / Schemes. During the year under review, there were no material changes in the Employee Stock Option Plan / Schemes (ESOPs) of the Company.

The Nomination and Remuneration Committee is entrusted with the responsibility of implementation and administration of the ESOP Plan / Schemes.

The details of ESOP are provided in the notes to accounts in the financial statements forming part of this Annual

Report and the disclosures as mandated under Securities and Exchange Board of India (Share Based Employee

Benefits and Sweat Equity) Regulations, 2021 ("SEBI SBEB & SE Regulations") are made available on the website of the Company at https://www.sapphirefoods.in/investors-relation/Updates. Certificate from M/s. Alwyn Jay & Co.

LLP, Secretarial Auditors of the Company, with respect to the implementation of ESOP Plan / Schemes in accordance with SEBI SBEB & SE Regulations shall be placed before the members at the ensuing Annual General Meeting of the Company.

The Company has not issued any sweat equity shares during the year under review and hence no information as per the provisions of the Companies Act and SEBI SBEB & SE Regulations is furnished thereto.

Credit Rating

As at the end of the financial year 31st March 2025, long-term rating on the bank lines of your company is [ICRA]A (Stable) and the long term/short term unallocated limits is [ICRA]A (Stable) / [ICRA]A2+.

Deposits

The Company has not accepted or renewed any amount falling within the purview of provisions of Section 73 of the Companies Act, 2013 read with the Companies (Acceptance of Deposit) Rules, 2014 during the year under review. Hence, the requirement for furnishing details relating to deposits covered under Chapter V of the

Companies Act or the details of deposits which are not in compliance with Chapter V of the Companies Act is not applicable.

Management Discussion and Analysis Report

The Management Discussion and Analysis Report for the financial year under review, as prescribed under Listing

Regulations, is presented as a separate section which forms an integral part of this Annual Report.

Report on Corporate Governance

Your Company is committed to maintain the highest standards of Corporate Governance and adhere to the Corporate Governance requirements set out by Securities and Exchange Board of India. A separate report on Corporate Governance for the financial year ended 31 ^st March 2025 is appended to this report and forms an integral part of this Annual Report.

A certificate from Practicing Company Secretary confirming compliance with the conditions of Corporate Governance under Listing Regulations is also annexed to the report on

Corporate Governance.

Environment, Social and Governance &

Corporate Social Responsibility Practices

e, law, accountancy, retailfinanc Environment,Social andGovernance(ESG)haslongbeen other related skills and an integral to our journey and your company recognize it as a continuous path that requires a clear strategy and roadmap. As part of the ESG journey, your company is committed for integrating environmental, social, and governance (ESG) considerations into our business operations, guided by our four strategic pillars - Food, People, Planet and Governance. These pillars serve as the foundation for our ESG approach, emphasizing on sustainability, responsible practices, and long-term value creation for our stakeholders.

During the financial year under review, S&P Global Ratings had assigned ESG Score of 50 (Methodology Year: 2024) to the Company. Your Company was ranked No.1* QSR Brand in India for the second consecutive year and at 97th percentile amongst QSR globally on Dow Jones Sustainability Index (DJSI).

The ESG Report for FY2025 is published alongside this

Annual Report and can be accessed at https://www. sapphirefoods.in/investors-relation/annual-reports.

In accordance with the provisions of Section 135 of the Companies Act, 2013 and Rules made thereunder, your Company has formed the CSR Committee (widely known as CSR & ESG Committee) to monitor CSR & ESG activities of the Company. The details of the Committee and its terms of reference are set out in the Corporate

Governance Report forming part of this Report.

The Board of Directors has approved a CSR Policy for the Company which provides a broad framework with regard to implementation of CSR activities carried out by the Company in accordance with Schedule VII of the Act. The CSR Policy is available on the Companys website at https://www.sapphirefoods.in/investors-relation/ corporate-governance.

The Business Responsibility and Sustainability Report ("BRSR") as mandated under Listing Regulations, detailing the various initiatives taken by your Company from the Environmental, Social and Governance perspective, forms part of this annual report and is appended hereinbelow. The Annual Report on CSR activities as prescribed under the Companies Act and Rules made thereunder is also annexed to this report.

Directors and Key Managerial Personnel

The Board of Directors is constituted in accordance with the provisions of the Companies Act and Listing Regulations and Articles of Association of the Company. The Company has received relevant disclosures and declarations from the Directors and none of them are disqualified from being appointed as Director in terms of Section 164(2) of the Companies Act and Listing Regulations.

Your Board consists of eminent personalities with considerable professional expertise and credentials in

fields. Their wide experience and professional credentials help the Company with strategy formulation and its implementation, thereby enabling its growth objectives. This is detailed in the Corporate Governance Report which is annexed hereto.

As on 31st March 2025, the composition of Board of Directors of your Company was as under:

Sr. No. Name of Director	Designation	DIN
1. Mr. Sunil Chandiramani	Chairman & Independent Director	00524035
2. Mr. Sanjay Purohit	Whole Time Director & Group CEO	00117676
3. Mr. Sumeet Narang	Non-Executive Nominee Director	01874599
4. Mr. Vikram Agarwal	Non-Executive Nominee Director	03038370
5. Mr. Kabir Thakur	Non-Executive Nominee Director	08422362
6. Mr. Vinod Nambiar	Non-Executive Nominee Director	07290613
7. Ms. Anu Aggarwal	Independent Director	07301689
8. Ms. Deepa Wadhwa	Independent Director	07862942
9. Mr. Rohitt Mutthoo	Non- Executive Nominee Director	10386059

During the period under review, Mr. Norbert Fernandes (DIN: 06716549), Non-Executive Nominee Director had resigned from the Board of Directors of the Company effective from 28th September 2024. Consequently, the Board of Directors at their meeting held on 28^th October 2024 based on the recommendation of Nomination and Remuneration Committee, had appointed Mr. Rohitt Mutthoo (DIN: 10386059) as an Additional Director in the capacity of Non- Executive Non-Independent Nominee Director which was regularized by the members of the Company through postal ballot dated 3rd January 2025.

Further, as on the date of this report, Mr. Vikram Agarwal, Non-Executive Nominee Director has resigned from the Board of Directors of the Company effective from 28 ^th May 2025. Consequently, pursuant to the recommendation of Nomination and Remuneration Committee, Mr. Vijay

Jain was appointed as an Additional Director, designated as Executive Director and Chief Financial Officer ("ED & CFO") by the Board of Directors on 28th May 2025. The regularization of Mr. Vijay Jain as Executive Director and Chief Financial Officer shall be placed before the shareholders at the ensuing 16th Annual General Meeting of the Company.

Except as stated above, there were no other changes in the Directorship of the Company.

Retirement by Rotation

In terms of Section 152 of the Companies Act, 2013 and Articles of Association of the Company, Mr. Kabir Thakur and Mr. Vinod Nambiar, Non-Executive Nominee Directors of the Company, retires by rotation and being eligible, offers themselves for re-appointment at the ensuing 16^th Annual General Meeting of the Company.

The brief profile in terms of Regulation 36 of Listing Regulations and the Secretarial Standards on General Meetings (SS-2), in respect of the directors seeking appointment/re-appointment has been annexed to the notice of the 16th Annual General Meeting.

Independent Directors

Mr. Sunil Chandiramani, Ms. Anu Aggarwal and Ms. Deepa

Wadhwa were appointed as Independent Directors of the

Company, effective 5 th August 2021, for a fixed term of five years from the date of their respective regularization by the shareholders. Mr. Sunil Chandiramani has been designated as the Chairperson of the Board of Directors.

The Company has received declarations from the Independent Directors of the Company confirmingthat they continue to meet the criteria of independence, as prescribed under applicable provisions of the Companies Act and Listing Regulations. The Independent Directors have also confirmed

Code of Conduct of the Company and that they have registered themselves as an Independent Director in the data bank maintained with the Indian Institute of Corporate Affairs. The Independent Directors of the Company are not liable to retire by rotation.

The Board is of the opinion that the Independent

Directors of the Company possess requisite qualifications, experience and expertise in the fields and execution, management and leadership, functional and managerial experience, legal and risk management, corporate governance systems and practices, finance, banking and accounts, retail, etc. and they hold highest standards of integrity and are independent of the management.

Key Managerial Personnel

Pursuant to the provisions of Sections 2(51) and 203 of the Companies Act, 2013 read with the Companies

(Appointment and Remuneration of Managerial Personnel)

Rules, 2014, the following persons are the Key Managerial Personnel ("KMP") of your Company:

Name of the KMP	Designation
Mr. Sanjay Purohit	Whole Time Director & Group CEO
Mr. Vijay Jain	Executive Director & Chief Financial Officer
Mr. Sachin Dudam	Company Secretary & Compliance Officer

During the year under review, there has been no change in the Key Managerial Personnel of the Company.

Board Meetings

During the financial year 2024-25, five Board of Directors were convened and held. The meetings were held as per the business requirements and the maximum gap between any two Board Meetings is within the permissible limits as prescribed under the Companies

Act and Listing Regulations.

The details of the composition of the board, meetings held during the year and the attendance of the directors at the Board Meetings, inter-alia, are provided at Report on Corporate Governance, forming part of this Report.

The Company has complied with the Secretarial Standards issued by the Institute of Company Secretaries of India (ICSI) on meetings of Board of Directors and General Meetings.

Board Committees

The Board of Directors of the Company has constituted the following Committees in ordertoeffectively carry out some of the diverse functions of the Board:

Audit Committee

Nomination and Remuneration Committee that theyhavecompliedwiththe Stakeholders Relationship Committee

Risk Management Committee

CSR & ESG Committee

Operations Committee

The details of the composition of these committees of the

Board, meetings held during the financial year, etc. are set out in the Report on Corporate Governance, forming part of this Report.

Board Evaluation

In accordance with the provisions of the Companies Act and Listing Regulations, the Board of Directors conduct formal evaluation, on annual basis, of its own performance and that of its committees and individual directors including chairperson. The Nomination and Remuneration

Committee is mandated for formulating criteria for evaluation of performance of the Board of Directors and its Committees and Directors.

The details of board evaluation during the financial year under review are set out in the report on Corporate Governance, forming part of this Report.

Nomination and Remuneration Policy

In compliance with Section 178 of the Companies Act, 2013 and Regulation 19 of Listing Regulations, the Board of Directors have formulated and adopted Nomination and Remuneration Policy for the Company, covering following objectives:

To lay down criteria and terms and conditions for identifying persons who are qualified to become

Directors & KMPs and who may be appointed / reappointed in Senior Management of the Company.

To provide framework for remuneration of Directors and Employees and align with the Companys business strategies, values, key priorities and goals.

To provide for rewards linked directly to the effort, performance and achievement of Companys targets by the employees.

Formulating the criteria for performance evaluation of all Directors.

Succession Planning for Board and Senior Management.

Board Diversity.

The salient features of this policy have been disclosed in the Report of Corporate Governance, forming part of this Report. The Nomination and Remuneration Policy of the Company can be accessed on the website of the Company at https://www.sapphirefoods.in/investors-relation/corporate-governance.

Particulars of Employees

The disclosures pertaining to remuneration and other required information pursuant to Section 197(12) of the Companies Act read with Rule 5(1) of The Companies

(Appointment and Remuneration of Managerial Personnel)

Rules, 2014, in respect of Directors, Key Managerial

Personnels and Employees of the Company, is appended to this report and forms part of this Annual Report.

The disclosure pertaining to remuneration as required under provisions of Section 197(12) of the Companies Act read with Rule 5(2) & 5(3) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 forms part of this Annual Report. In terms of Section 136(1) of the Act and the rules made thereunder, the Report and Financial Statements are being sent to the shareholders excluding the said information. Any shareholder interested in obtaining copy of the aforesaid information, may send an email to the Company Secretary and Compliance Officer at investor@sapphirefoods.in.

Auditors

Statutory Auditors

M/s. S R B C & Co. LLP, Chartered Accountants (Registration No. 324982E/E300003) were re-appointed as Statutory Auditors of the Company at Annual General Meeting held on 15th October 2020, for a term of five consecutive years to hold office from the conclusion of 11th Annual General Meeting (AGM) till the conclusion of 16th Annual General Meeting of the Company.

The second term of five years of M/s. S R B C & Chartered Accountants will expire upon conclusion of the 16th Annual General Meeting ("AGM") of the Company.

The Board of Directors on the recommendation of the

Audit Committee have considered and recommended the appointment of M/s. Deloitte Haskins & Sells, Chartered Accountants (Firm Registration No. 117365W) as the Statutory Auditors of the Company for term of five consecutive years, commencing from conclusion of the ensuing 16th Annual General Meeting till conclusion of 21st Annual General Meeting of the Company, subject to approval of the shareholders of the Company at the ensuing 16th Annual General Meeting of the Company.

The Company has received requisite disclosures from the proposed Statutory Auditors to the effect that their appointment, if made, shall be in compliance with the provisions of Section 139 and 141 of the Act. The proposed auditors have also confirmed that they hold a valid certificate issued by the Peer Review Board of the Institute of Chartered Accountants of India as required under Listing

Regulations. Necessary resolution seeking approval of the members for the appointment of Statutory Auditors has been incorporated in the Notice of AGM convening the 16th AGM.

The report given by the incumbent Statutory Auditors on the Financial Statements (Standalone and Consolidated) of the Company for the financial year ended 31^st March 2025 is annexed to the Financial Statements, forming an integral part of this Annual Report. The Auditors Report read together with Annexures referred to in the Auditors

Report for the financial year ended 31st March 2025 does not contain any qualification, reservation, adverse remark or disclaimers.

During the year under review, the Statutory Auditors have not reported any matter of fraud under Section 143(12) of the Companies Act.

Internal Auditors

The Company had appointed M/s. Protiviti India Member Private Limited, Chartered Accountants, as Internal Auditor Partner for carrying out the activities of Management

Testing of Internal Financial Controls and Internal Audit of various business/ functions process for the financial year 31st March 2025.

The Company had designated Mr. Balkrishna Chaturvedi as

Internal Auditor of the Company, in compliance with the provisions of Section 138 of the Companies Act, 2013 and Rules framed thereunder.

Internal Audit Reports are reviewed by the Audit Committee of the Company at their meetings held during quarterly intervals. The Internal Auditor/Partner carry out their functions as per the scope of work assigned and place their reports at the meetings of the Audit Committee, during quarterly intervals.

Secretarial Auditors

Pursuant to Section 204 of the Companies Act, 2013, the Board of Directors, has appointed M/s. Alwyn Jay & Co., Practicing Company Secretaries (Firm Registration No. P2010MH021500) as Secretarial Auditor for carrying out secretarial audit and requisite certifications as mandated under Companies Act and Listing Regulations.

The Secretarial Audit Report for the financial year ended 31^st March 2025 received from M/s. Alwyn Jay & Co., Secretarial

Auditor of the Company is annexed to this report and forms an integral part of this Annual Report. The Report does not contain any qualifications, reservations, adverse remarks, disclaimers or reporting of fraud.

Further, as per recently amended Regulation 24A of Listing

Regulations and based on the recommendation of the

Audit Committee, the Board of Directors has approved appointment of M/s. Alwyn Jay & Co., Practicing Company Secretaries (Firm Registration No. P2010MH021500) as Secretarial Auditors of the Company for a period of five (5) consecutive years commencing from the financial year 2025-26 to hold office from the conclusion of 16^th

Annual General Meeting till conclusion of 21^st Annual General Meeting of the Company, subject to approval of the shareholders of the Company at the ensuing Annual

General Meeting of the Company.

Cost Auditors

The Company is not required to maintain cost records, as specified by the Central Government under section 148 of the Companies Act, 2013 and Rules made thereunder.

Particulars of Investments, Loans, Guarantees and Securities

The full particulars of the loan, investments, guarantees and securities, in accordance with the applicable provisions of the Companies Act, 2013 and Listing Regulations made by your Company during the financial year 2024-25, has been furnished at the Notes to Accounts of the Financial Statements forming an integral part of this Annual Report.

Particular of Contracts or Arrangements with Related Parties

The Related Party Transactions are placed at the meetings of the Audit Committee for their respective approval. Prior omnibus approval of the Audit Committee is obtained by the Company on an annual basis for Related Party Transactions that are foreseeable and repetitive in nature.

A detailed statement of such Related Party Transactions entered into pursuant to the omnibus approval so granted are placed at the meetings of the Audit Committee for their review on a quarterly basis. The half yearly statement on the Related Party Transactions are also filedwith the respective stock exchanges on which the equity shares of the Company are listed.

The Related Party Transactions entered during the financial year under review were in the ordinary course of business and on arms length basis. There were no significant material related party transactions entered into by the

Company with any related party during the financial year under review. Thus, the disclosure under Section 134 of the Companies Act, 2013 as per specified form AOC-2 is not applicable to the Company.

The details of Related Party Transactions as per Indian Accounting Standard 24 (Ind AS 24) are given under Note 37 forming part of the Notes to Account of the Standalone Financial Statements to this Report.Pursuant to the provisions of the Companies Act and

Listing Regulations, your company has formulated a policy on Related Party Transactions for the purpose of identification and monitoring of such transactions, which is available on the website of the Company at https://www. sapphirefoods.in/investors-relation/corporate-governance.

Annual Return

Pursuant to the provisions of Section 134(3)(a) and Section 92(3) of the Companies Act, 2013, the copy of the Annual Return of the Company for the financial year ended 31^st March 2025 is placed at the Companys Website and can be accessed at https://www.sapphirefoods.in/investors-relation/updates.

Risk Management Policy

Adequate Risk Management Framework is a necessity for the purpose of Risk Assessment and minimization/ mitigation of risks involved in business activity. The Company has laid down a robust risk management framework for identification and management of risks that could adversely affect the Company. The Company has formulated Risk Management Policy in order to achieve the following objectives, inter-alia:

To ensure that all the current and future material risk exposures of the Company are identified, appropriately mitigated, minimized and managed i.e. to ensure adequate systems for risk management.

To establish a framework for the companys risk management process and to ensure its implementation.

To enable compliance with appropriate regulations, wherever applicable, through the adoption of best practices.

To assure business growth with financial

In terms of the provision of Regulation 21 of Listing Regulations, the Board of Directors has constituted a Risk Management Committee. The details with respect to its terms of reference, composition and meetings held during the part of the financial year under review are set out at the Report on Corporate Governance, annexed to this Report. The Audit Committee has additional oversight in the area of financial risks and controls. The major risks identified by the businesses and functions are systematically addressed through mitigating actions on a continuing basis.

The Risk Management Policy is also available on the website of the Company at https://www.sapphirefoods.in/ investors-relation/corporate-governance. For more details on risk management framework, please refer to the section of ‘Management Discussion and Analysis Report which forms an integral part of this Annual Report.

Vigil Mechanism

The Company believes in the conduct of the affairs of its constituents in a fair and transparent manner by adopting the highest standards of professionalism, honesty, integrity and ethical behavior.

Your Company has adopted a Whistle Blower Policy to provide a mechanism for the employees, vendors and suppliers to report genuine concerns about any unethical behavior, actual or suspected fraud or violation of your Companys Code of Conduct.

The constituents concerned, including employees of the

Company, are encouraged to voice their concerns internally and at a high level and to disclose information which the individual believes shows malpractice or impropriety. A designated email id whistleblower@sapphirefoods.in has been created and disseminated through this policy/code to the concerned stakeholders to voice their grievances.

The access of this designated email id is mapped and made available to the members of the Audit Committee including its Chairperson.

The provisions of this policy are in line with the provisions of Section 177 (9) of the Companies Act, 2013 and Regulation 22 of Listing Regulations. All cases registered under the whistle blower policy of the Company are subject to review assessed, by the Audit Committee. The Whistle Blower policy of the Company is available on the Companys website at https:// www.sapphirefoods.in/investors-relation/corporate-governance.

Disclosure under Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

stability. In line with the requirements of the Sexual Harassment of Women at the Workplace (Prevention, Prohibition and Redressal) Act, 2013 ("POSH Act"), your Company has in place a policy on prevention, prohibition and redressal of sexual harassment at workplace. All employees (permanent, contractual, temporary, trainees) including at store level, are covered under this policy.

As per the rules made under the POSH Act, the Company has constituted an Internal Complaints Committee (ICC) to redress the complaints received pertaining to sexual harassment at workplace. The Committee meets, as and when required, to discuss various cases received and to address the same uniformly across the organization.

The details of the complaints received during the financial year 2024-25 are as follows:

Particulars	No. of Complaints
Complaints pending as on start of the financial year i.e. 1st April 2024	2
Complaints received during the financial year under review	5
Complaints disposed off during the financial year under review	6
Complaints pending as on end of the financial year i.e. 31st March 2025	1

An update on the aforesaid complaints received and disposed off are placed at the meetings of the Audit Committee during quarterly intervals.

Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo

The activities of the Company are not energy intensive as the Company is not engaged in any manufacturing activity. Further, no technology has been developed and / or imported by way of foreign collaboration.

For complete details, please refer to the section of ‘Business Responsibility and Sustainability Report which forms an integral part of this Report. The particulars with regard to Foreign Exchange Earnings and Outgo are given in Standalone and Consolidated Financial Statements, forming part of this Annual Report.

Disclosure of Orders Passed by Regulators or Courts or Tribunal

During the financial year under review, there were no significant/ material orders passed by the Regulator, Courts, Tribunals, etc. which could have an impact on the going concern status and the Companys operations in future.

Internal Financial Controls

Your Company has aligned its current systems of internal financial control with the requirement of the Companies Act, 2013. The Internal Control Framework is intended to increase transparency and accountability in an organizations process of designing and implementing a system of internal control. Your Company has successfully laid down the framework and ensured its effectiveness. The internal controls are commensurate with the size of the Company and the nature of its operations. These have been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information, complying with applicable statutes, safeguarding assets from unauthorized use, executing transactions with proper authorization and ensuring compliance with corporate policies.

M/s. S R B C & Co LLP, Statutory Auditors of the Company have audited the financial statements included in this annual report and have issued an attestation report on our internal control over financial reporting (as defined section 143 of Companies Act 2013).

The internal audit department along with the external partners/ consultants carry out internal audit of the

Companys business/ functional activities. The audit is based on an internal audit plan, which is reviewed each year in consultation with and approved by the audit committee. The audit committee reviews reports submitted by the internal auditor, internal audit partner and statutory auditor. Basis inputs received from the audit committee, suggestions for improvement are considered and the audit committee follows up on corrective action.

Based on the framework of internal financial controls and compliance systems established and maintained by the Company, the work performed by the internal auditor, statutory auditors and external partner/consultant, including the audit of internal financial controls over financial reporting by the statutory auditors and the reviews performed by management and the relevant board committees, including the audit committee, the Board is of the opinion that the Companys internal financial controls were adequate and effective during the financial year ended 31st March 2025.

Directors Responsibility Statement

In terms of Section 134(5) of the Companies Act, 2013, the Board of Directors hereby confirms that:

a. in the preparation of the annual accounts, the applicable accounting standards have been followed and there are no material departures;

b. they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs Company as on 31st March 2025 and of the profit/loss of the Company for that year;

c. they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d. they have prepared the annual accounts of the

Company on a going concern basis;

e. they have laid down internal financial controls to be followed by the Company and such internal financial controls are adequate and operating effectively;

f. they have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.