Annual Business Responsible Report

Section A: General information about the company:

GROUP PROFILE

A.JAFFE's legacy dates back to its founding in New York City in 1892. The brand's rich heritage spans across the Jazz Age and Art Deco period, through two world wars and into a new millennium. The historic American bridal brand is recognized for its iconic Signature Shank™ and Quilts^® Interior, design features that provide superior balance, a luxurious fit, and minimize twisting of the ring on the finger.

Section B: Financial compliance of the Group:

2.1 Money Laundering, Terrorism Financing, Other Financial Offences

Current Status

• A.JAFFE recognizes the fact that entities in the gems and jewelry sector have to take on the onus of analyzing their potential vulnerabilities to money laundering and implement specific steps that are required for protection against abuse by criminals.
• Strict compliance is ensured at all the entities and a compliance officer has been appointed at entity level who in turn reports to the group CFO on compliance status on an annual basis.
• Know Your Counterparty and other compliance of Due Diligence is followed in line with OECD guidance
• Ongoing monitoring is carried out along with all stakeholders.

Area of concern & remedial measures

• Nil as on date.

2.2 Kimberley Process and System of Warranties

• A.JAFFE is fully committed to complying with all the requirements specified in the Kimberley Process Certification Scheme of World Diamond Council’s (WDC) System of Warranties Declaration.
• Day to day monitoring and compliance of SOW is done by entity compliance officers.
• Group is committed towards conflict free sourcing and zero tolerance policy is followed at group level.

Area of concern & remedial measures

• Nil as on date.

2.3 Anti Bribery and Facilitation Payment Policy:

• The A.JAFFE shall ensure complete prohibition Bribery and facilitation payment across organizations and in all the entities.
• Group has published compliance team contact details on the website to receive any grievance or complaints.

Area of concern & remedial measures

• Nil as on date.

2.4 Ethical Sourcing of Loose Diamonds, Gold, Silver & PGM studded Jewelry Policy:

• Our company is concerned about the environment and social impacts of irresponsible mining.
• Group has identified the risk of supply chain with respect to the Conflict Affected High Risk Area.
• Group ensures all its supplies are screened for conflict free supplies.
• We have published the OECD based ethical sourcing policy and we are communicating our policies to all the supply chain partners and pushing them to adopt the same.

Area of concern & remedial measures

• Current concern is lack of awareness about OECD regulation and requirements of sourcing.
• We have started creating awareness about our ethical sourcing requirements for our supply chain.
• We started engagement with our global supply chain for obtaining further supply chain information to ensure ethical and conflict free sourcing in the metal business.

2.5 Social Compliance

• We ensure full compliance with all applicable national and, where appropriate, international laws/regulations with respect to employment and labour codes in all our establishments.
• We respect all regulation for child labour, forced labour, non-discrimination, non-retaliation etc.
• All work man rights are respected and adhere to freedom of association and collective bargaining regulations.

Area of concern & remedial measures

• No point has been reported in the social compliance of the group where remedial measures at group level are required.
• Entity level remedial measures are taken based on internal and external audits conducted by reputed agencies.

2.6 Health and Safety

• We at A.Jaffe are concerned about the health and safety of employees and are constantly studying about whether any adverse impact of our business processes are identified and eliminated. Towards this end, we will systematically review our operations to identify sources of health and safety related risks.
• This review will use appropriate standards as required by prevailing laws, expert opinion and our knowledge of best practices.
• All our staff will be trained in the manner required to adhere to these work practices and drills.
• The health of our staff, exposed to certain hazardous processes, are monitored periodically through appropriate medical checks, and reviewed using expert inputs for improvements.
• All workplaces are constructed to meet safety standards with local regulations as the minimum standards that will be applicable.

Area of concern & remedial measures

• Nil as on date, as no accidents are reported in last one year
• Organization has been blessed and we did not have any fire or any other incidents leading to dangerous circumstances.

2.7 Human Rights

• A.JAFFE is not and will not interfere in the right of employees to observe tenets or practices based on caste, race, national origin, gender, religion, disability, union membership, or political affiliation.
• The Company strongly discourages any form of sexually coercive, threatening, abusive or exploitative behaviour.
• Any reported incidents relating to direct or indirect physical, sexual, racial, religious, psychological, verbal, or any other form of harassment or abuse, or any other form of intimidation or degrading treatment will not be tolerated by the company.
• A.JAFFE ensures that none of its suppliers and stakeholder have engaged in any activity which can violate the Human Right Principles.
• We have carried out the Human Right Due Diligence of suppliers and other stakeholders & based on risk assessment where necessary.

Area of concern & remedial measures

• No area of concern & remedial measures has been raised in the human right for any of our operating units.
• Supplier’s further upstream compliance with respect to human right compliance for conflict free sourcing is a new development, where the company is heading and would require more focus on the same.

2.8 Environment Protection

• A.JAFFE is complying with all applicable environmental laws and regulations.
• The impact of each of our operations on the environment are studied systematically and assessed for compliance with appropriately defined standards and reviewed periodically to mitigate or eliminate such impact.
• Disposal procedures for waste generated are followed in line with the applicable national and international regulations.
• Improvement is seen in employee's environmental awareness and performance with the help of detailed policies and procedures, training, and recognition of excellence.

Area of concern & remedial measures

• Emerging need for sustainable growth and responsible manufacturing is the area for improvements and management has suggested a step by step approach to grow in these direction.