About the Report

This is an integrated annual report that covers the operations of Sunshine Holdings PLC and its three core segments and various subsidiaries and partnerships (collectively referred to as the Group) based in Sri Lanka for the period of 1 April 2023 to 31 March 2024.

The Report presents both financial and non-financial information, reflecting the activities of the Group in both domestic and international spheres, unless indicated otherwise. These activities span across the Group’s three primary sectors: Healthcare, Consumer Goods, and Agribusiness.

This year’s report delves deeply into the operations and performance of all nine business units, examining the Group’s operating environment, its value chain and the considerations of internal and external stakeholders.

This report and its many different facets such as financial statements rely on a number of guiding frameworks and industry standards to ensure accurate and stringent reporting.

Stakeholder analysis

Stakeholders are defined as individuals or groups whose lives, activities, or interests may be significantly affected by our actions, products, or services. We acknowledge the substantial impact that the insights and behaviours of our stakeholders can have on our ability to achieve our strategic objectives.

Our process of engaging stakeholders

Recognising and engaging with our stakeholders effectively aids us in better understanding and addressing their concerns, while also enabling us to balance the equitable distribution of created value.

Every member of Sunshine Holdings bears the responsibility of engaging with stakeholders at every interaction. This engagement not only prepares us for the future but also fuels innovation and provides valuable insights for our strategic planning process.

Key stakeholders	Method	Frequency	Material issues/concerns
Investors	Investor forums Annual Report Annual General Meeting Extraordinary General Meeting Press releases	Quarterly Biannually Annually	Operational viability and returns Ethical and responsible corporate conduct Timely disclosures
Employees`	Staff meetings Performance reviews Training Staff circulars Newsletters Employee surveys Awards Networking events Intranet	Daily Monthly Quarterly Biannually Annually	Fair labour practices Industry competitive compensation and benefits Skills development Career development
Customers	One-to-one meetings Correspondence Direct marketing Advertising on print and electronic media Official website Brochures and leaflets Press releases	Regularly	Quality and standards of products and services Product information Customer service Ethical business practices
Government, statutory and regulatory bodies	Meetings Correspondence Filing disclosures Audits	Regularly	Compliance with statutory and regulatory requirements Uphold good governance and effective risk management practices
Business partners	Meetings Correspondence Site visits Conferences Workshops Roadshows Training Annual Report	Regularly	Corporate reputation and standing Financial performance Ethical business practices Risk management
Society	Sponsorships National Campaigns Awareness programmes Discussions with policy makers, community leaders and not-for-profit organisations Community projects	As and when required	Creating business opportunities Employment Philanthropy Environmental best practices Policy advocacy

Materiality

As a responsible corporate citizen, our strategy revolves around value creation: delivering value to stakeholders and, in turn, deriving value from them. We strive to create value responsibly by understanding stakeholder needs within the broader context of trends that affect our operations, as detailed on page 17 under Strategy and Future Outlook.

We have mapped out matters that are material to the Company – those that notably affect our capacity to generate value in the short, medium, and long term. They’ve been categorised based on their impact on both stakeholders and the Company itself. The materiality of each topic is determined by its relevance, the extent of its impact, and the likelihood of occurrence. These matters were subsequently categorised as risks, opportunities, or both.

Following this analysis, we pinpointed four strategic imperatives, as outlined on page 17, necessary to seize opportunities, mitigate risks, and sustain our journey of value creation.

Management approach

We manage our material topics through our strategic planning process. Responsibility is assigned to the relevant business heads, and resources are allocated as needed, taking into account the significance of each material topic in achieving our strategic imperatives.

Goals and targets, where applicable, are integrated into the Key Performance Indicators (KPIs) of the Key Management Personnel, ensuring that the Organisation meets its objectives concerning its material topics. These are regularly reviewed to monitor progress and make any necessary adjustments.

Our employees are guided by various policies aimed at cultivating an environment where activities are carried out in a responsible, transparent, and ethical manner in handling material topics. These policies are endorsed by the Board of Directors and are subject to regular review to keep the Company aligned with evolving trends in the environment.

Where applicable, grievance mechanisms are in place, with divisional heads assigned responsibility for managing, addressing, and resolving grievances. Internal and external audits are conducted to verify compliance with prescribed internal controls, policies, and procedures. Audit findings are regularly reported to the Board of Directors and/or management committees for appropriate corrective measures.