Sapphire Foods India Limited , a major player in the quick-service restaurant industry, has received a show cause notice from the Delhi Sales Tax authorities regarding alleged discrepancies in its GST returns for the fiscal year 2021-22. The notice, amounting to INR 51.00 million, includes an interest component of INR 19.53 million and a penalty of INR 2.88 million.

Details of the Notice

The notice was issued under Section 73 of the Central Goods and Services Tax Act, 2017. According to the company's disclosure to the stock exchanges, the tax authorities have highlighted differences observed in the returns filed by Sapphire Foods for FY 2021-22.

Company's Response

In response to the notice, Sapphire Foods has stated that the claim is not maintainable. The company expressed confidence that this development will not have any material impact on its financial, operational, or other activities.

Next Steps

Sapphire Foods is currently evaluating the notice and has assured stakeholders that it will respond appropriately to the authorities. The company's management appears to be taking a proactive approach in addressing the issue.

Financial Implications

Despite the significant amount involved in the notice, Sapphire Foods remains optimistic about its financial position. The company's recent financial results show a revenue from operations of INR 7,768.28 million on a consolidated basis, indicating a strong market presence.

Investor Relations

In light of this development, Sapphire Foods has scheduled an analyst and institutional investor meeting. This virtual meeting will likely address any concerns and provide further clarity on the company's position regarding the GST notice.

Market Response

As of the latest trading session, there has been no significant impact on the company's stock price, suggesting that investors are not overly concerned about the GST notice at this time.

Sapphire Foods India Limited, known for operating KFC and Pizza Hut outlets in India, continues to focus on its core business operations while addressing regulatory matters. The company's transparent communication with stakeholders and proactive approach to resolving the GST issue demonstrates its commitment to maintaining investor confidence.

Sapphire Foods India Limited , a major player in the quick-service restaurant industry, has received a show cause notice from the Delhi Sales Tax authorities regarding alleged discrepancies in its GST returns for the fiscal year 2021-22.

Details of the Notice

The notice, issued under Section 73 of the Central Goods and Services Tax Act, 2017, amounts to INR 51.00 million. This sum includes:

• Interest of INR 19.53 million
• Penalty of INR 2.88 million

The authorities have highlighted differences observed in the company's filed returns, prompting this action.

Company's Response

Sapphire Foods has stated that the claim is not maintainable and expects no material impact on its financial, operational, or other activities. The company is currently evaluating the notice and plans to respond appropriately.

Official Disclosure

In compliance with regulatory requirements, Sapphire Foods has made an official disclosure to the stock exchanges. The company secretary, Sachin Dudam, signed the disclosure document, providing details as mandated under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Investor Relations

Sapphire Foods continues to maintain transparency with its investors. The company recently held an earnings call to discuss its financial results. The audio recording of this call has been made available on the company's website for investors' reference.

Market Impact

While the company asserts that the notice will not have a material impact, investors and market analysts will likely monitor the situation closely. The outcome of Sapphire Foods' response to the tax authorities and any potential financial implications will be of interest to stakeholders.

Sapphire Foods India Limited, known for operating KFC and Pizza Hut outlets in India, continues to navigate regulatory challenges while maintaining its focus on business operations and investor relations.