Andhra Sugars Ltd Directors Report

To

The Shareholders

Your Directors have pleasure in presenting this SEVENTY NINETH ANNUAL REPORT along with the Audited Statement of Accounts for the year ending 31st March, 2026.

Financial Summary:

Particulars	This Year	Last Year
Sales	143732.19	117136.77
Other Income	2540.70	4308.03
	146272.89	121444.80
Profit for the year	19021.51	11691.85
Depreciation	7784.76	7507.46
Profit after depreciation Add: Income Tax Refund received	11237.15	4184.39
Short / (Excess) Provision of last year	101.33	(28.69)
Less:
Provision for Current Tax	2368.22	861.00
Provision for Deferred Tax	519.18	202.97
Profit after Tax	8248.42	3149.11
Profit after Tax from discontinued operation	119.05	-
Total Profit after Tax	8367.47	3149.11
Add: Balance brought forward from last year	17868.72	26074.96
Profit available for utilisation	26236.19	29224.07
UTILISATION
Equity Dividend for 2024-25	1084.28	-
Equity Dividend for 2023-24	-	1355.35
Transfer to General Reserve	10000.00	10000.00
Balance carried forward to next year	15151.91	17868.72
TOTAL:	26236.19	29224.07

PERFORMANCE:

Your Directors report that for the year 2025-26, your Company made a Profit of Rs.112.37 Crores (before tax) against a Profit of Rs.41.84 Crores made last year. The Net Profit (After Tax) was Rs.83.67 Crores against Rs. 31.49 Crores made last year. The increase in profitability is on account of increase in the selling price of Caustic Soda and other chemicals and also due to lower losses on account of discontinuation of operations at all the Sugar Units.

DIVIDEND:

Your Directors are glad to recommend a Dividend of Rs. 1.20 per Equity Share i.e., 60% (Face Value of Rs.2/-) Normal dividend of Rs. 1/- (50%) and special dividend of Rs. 0.20 (10%) of the company for the year 2025-26. With this Dividend, if approved, your Company would have the distinction of rewarding its Shareholders continuously for the past 6 decades. The outflow towards Dividend payment would be Rs. 16,26,42,468/-.

The URL link of Dividend Distribution Policy is https://theandhrasugars.com/wp-content/uploads/didvidend-distri- bution-policy.pdf

CAPITAL & RESERVES:

Authorised and Paid-Up Capital:

As on 31.3.2026, the Authorised Capital of the Company is Rs.30.00 Crores and the Paid-up Capital is Rs. 27.11 Crores.

Reserves:

With the transfer of Rs. 100 Crores during the year under report, the total General Reserve as on 31.3.2026 stands at Rs. 1,293.30 Crores against Rs. 1193.30 Crores on 31.3.2025.

CHANGE IN THE NATURE OF BUSINESS:

The operations of the Sugar Unit at Tanuku have been permanently closed with effect from 01.04.2025. The Net Power generated at Ramagiri Windmills during this year is 872399 KWH. The operations of this Unit were permanently closed from 01.10.2025 onwards.

REVIEW OF OPERATIONS:

SUGAR UNITS:

Crushing operations at Sugar Unit, Taduvai and at Sugar Unit, Bhimadole have been suspended during the year. PERFORMANCE OF CHEMICAL DIVISION:

During the year under report the performance of Caustic Soda Division at Saggonda was reasonable. Turnover of Rs.682.49 Crores was achieved. Profit after depreciation achieved this year was Rs. 65.61 Crores against Rs.16.84 Crores last year.

Sulphuric Acid division at Kovvur and Saggonda locations together posted a Profit of Rs.32.98 Crores as against Rs.19.78 Crores last year. Sulphur Price is constantly raising on account of Global Scenario.

POWER UNITS:

There are no operations at Power Generation Unit, Taduvai in view of no Sugar Cane Crushing there.

The Net Power generation at the Tamil Nadu Windmills during the year under report is 32447188 KWH. This Power is being fed into the Tamil Nadu State Electricity Board Grid.

The Power generated by 33 MW Coal Based Captive Power Plant set up by the Company at Saggonda during this year is 227234000 KWH. The entire Power is being used at our Chemical Plants at Saggonda.

The Power generated by at 2.5 MW Solar Captive Power Plant set up by the Company at Kovvur during this year is 3054777 KWH. The entire Power is being used at our Chemical Plants at Kovvur.

PROJECTS:

A. Caustic Soda:

At present 600 TPD Caustic Soda facility is being operated at our Chemical Complex at Saggonda. This Plant is based on the latest 6th Generation Membrane Technology which is Energy Efficient & Environmentally friendly. Sodium Sulphate recovery plant works are in progress and it is expected that this plant will be operational during the year 2026-27.

B. Sodium Hypochlorite:

Your Company is setting up a Project at J.N. Pharmacity, Parawada, Visakhapatnam in the non-SEZ area to manufacture 100 TPD Sodium Hypochlorite. Required statutory approval was obtained for setting up the Plant. The estimated project cost was about Rs.18.00 Crores. The required raw materials viz., Sodium Hydroxide and Chlorine gas will be supplied from our Chemicals Division Operations at Saggonda.

We planned to utilize the 42.28 acres site completely in a phased manner and have obtained CFE from APPCB for setting up a Chlor-alkali project.

Your Company has filed a writ petition in the Honble High Court of Andhra Pradesh against cancellation orders given by APIIC. However, the matter is being pursued with APIIC for Restoration of Allotment and Extension of time for Completion of the Projects. As Suggested by APIIC, the Writ petition in the Honble High Court of Andhra Pradesh has been withdrawn. While APIIC and the State Government are considering our proposal, the developer Visakha Pharma City India Pvt. Limited(earlier known as Ramky Pharma City India Private Limited) has filed writ petition in the High Court of Andhra Pradesh and the matter is pending at the division bench.

Under the present circumstances, your Company has temporarily suspended the construction and commissioning activities at Parawada Site.

C. The following Projects are under progress:

(i) 1.5 MW Solar Power Plant at Tanuku is expected to be commissioned by the end of June, 2026.

(ii) Solar Power Plant of 12 MW will be implemented at Saggonda during the year 2026-27.

(iii) Board of Directors have approved setting up a 10 MT Compressed Bio-Gas Plant at Taduvai. Discussions are going on with the vendors, and the project will be taken up accordingly after evaluating the proposals.

DEMATERIALISATION OF EQUITY SHARES:

As of 31st March 2026 Equity Shares representing 93.32 % of the Share Capital have been dematerialised. AUDITORS:

The Audit Committee and the Board at their meeting held on May 28, 2022 approved the appointment of M/s. Brahmayya & Co., Chartered Accountants as Statutory Auditors for a second term of five (5) years i.e. from conclusion of the 75th Annual General Meeting till the conclusion of 80th Annual General Meeting.

Their remuneration for the Financial Year 2026-27 of Rs. 23,00,000/- is being sought for your approval at the ensuing Annual General Meeting.

COST AUDITORS:

For the year 2025-2026 M/s. Narasimha Murthy & Co., Cost Accountants, Hyderabad were the Cost Auditors of the Company for the 7 No. of Products, which are subject to Cost Audit. For the year ended 2026-27, your Board of Directors have approved the appointment of M/s. Narasimha Murthy & Co., Hyderabad as Cost Auditors and recommend to Shareholders to ratify the remuneration of Rs. 8,25,000/- as fixed by the Board on the recommendation of Audit Committee.

The Company maintains applicable cost records as specified by the Central Government. Cost Auditors report for the Financial Year 31st March, 2025 has been filed with the Ministry of Corporate on 03.09.2025 i.e., within the stipulated time.

SECRETARIAL AUDITORS:

Shareholders have approved for M/s Nekkanti S.R.V.V.S.Narayana & Co., Company Secretaries (CP No. 7839), Hyderabad for a period of 5 years from 01.04.2025 to 31.03.2030.

CORPORATE GOVERNANCE:

As per the amended provisions of the SEBI Listing Regulations from time to time, a Report on Corporate Governance along with Management Discussion and Analysis forming part of the Directors Report is annexed.

The Rank by Market Capitalization as per National Stock Exchange as on 31.03.2026 is 1375. As suggested by the Board and as per Regulation 3(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Business Responsibility & Sustainability Report is annexed.

COMPLIANCE CERTIFICATE OF THE AUDITORS:

The Statutory Auditors have certified that the Company has complied with the conditions of Corporate Governance as stipulated in the Listing Agreement with the Stock Exchanges and the same is annexed to the Report of Directors.

AUDIT COMMITTEE:

Audit Committee comprises of Three Non-Whole time and Independent Directors and One Whole-time Director, Sri G.S.V. Prasad, Sri P Venkateswara Rao, Sri K. Rama Seshayya and Sri P Achuta Ramayya respectively with Sri G.S.V. Prasad as the Chairman of this Committee.

DIRECTORS AND KMP:

Directors Sri Mullapudi Thimmaraja and Sri P.S.R.V.K. Ranga Rao retire by rotation at the ensuing 79th Annual General Meeting and, being eligible, offer themselves for re-appointment.

Statements of declaration as per Section 149(6) of the Companies Act, 2013 have been given by the Independent Directors.

Sri V.N Rao, Independent Director has completed his tenure at the Annual General Meeting on 25.09.2025. Shareholders have approved the Appointment of Sri K. Rama Seshayya as an Independent Director for a period of 5 years at the Annual General Meeting held on 25.09.2025.

Sri P Narendranath Chowdary, Chairman and Managing Director and Sri P.V.S. Viswanadha Kumar, Vice President (Finance) & Addl. Secretary, CFO & Company Secretary have been designated as Key Managerial Personnel.

COMPLIANCE UNDER COMPANIES ACT, 2013:

Pursuant to Sec.134 of the Companies Act, 2013 read with Companies (Accounts) Rules, 2014, your company has complied with the compliance requirement and the details of which are enumerated hereunder.

DIRECTORS RESPONSIBILITY STATEMENT:

Pursuant to the requirements of Section 134(1) (c) of the Companies Act, 2013 and based on the explanation and compliance certificate given by the executives of the Company, and subject to disclosures in the Annual Accounts and

The Andhra Sugars Limited

on the basis of discussions with the Statutory Auditors of the Company from time to time, we state as under:

a) that in the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departure.

b) that the directors selected such accounting policies and applied them consistently and made judgments and estimates that those are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for that period.

c) that the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

d) that the Directors have prepared the annual accounts on a going concern basis.

e) that the Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively.

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

BOARD MEETINGS:

The Board of Directors met 4 times during the financial year 2025-2026 on 29.05.2025, 09.08.2025, 05.11.2025 and 05.02.2026.

INDEPENDENT DIRECTORS MEETING:

A Meeting of the Independent Directors was held on 13th March 2026. The Independent Directors have evaluated the performance of the Non-independent Directors, the Board as a whole and Chairman of the Board. The Board was briefed by Lead Independent Director on the deliberations made at the Independent Directors Meeting.

FAMILIARISATION PROGRAMME:

Your Company through a Policy has in place a familiarisation programme to all the Directors with a view to update them on the Companys Policies and Procedures. Independent Directors make a periodical visit to plants to keep themselves abreast of the plant operations. Respective Plant Heads interact with the Independent Directors and explain to them about the various processes and operations.

FORMAL ANNUAL EVALUATION OF THE BOARD:

Pursuant to the Provisions of Section 134 of the Companies Act, 2013, the Board evaluated its own performance and that of its Committees and Directors in terms of:

? Measured and appropriate contribution by the Directors to the discussions on the Agenda Items.

? Each Director exercising the responsibilities in a bonafide manner. Understanding of the Companys business, strategic plans and other key issues.

? Special Skills and expertise of each Director contributing to the Boards overall effectiveness.

? Respecting the confidentiality of the Companys business information and Boards deliberations.

? Satisfactory attendance and active participation of each Director at the meetings of the Board and Committee. The Board members were of the opinion that the Board as a whole and the Directors have performed effectively as per the terms of the above parameters. The respective Committee performed as per its terms of reference.

VIGIL MECHANISM / WHISTLE BLOWER POLICY:

As required Under Section 177 of the Companies Act, 2013 as a part of Vigil Mechanism, a Whistle Blower Policy has been established and approved by the Board. This Policy envisages reporting of wrong doing or un-ethical activities observed by Employees at any level directly to the Chairman of the Audit Committee or to the Chairman & Managing Director. The matter whenever reported is investigated and if the wrong doer is found guilty, disciplinary action is initiated depending upon the materiality of the unethical doings. During the year under report there have been no instances which required reporting. https://theandhrasugars.com/wp-content/uploads/Whistle-Blower- Policy.pdf

NOMINATION AND REMUNERATION COMMITTEE:

As required by the Provisions of the Section 134 of Companies Act, 2013 and Listing Agreement, a Nomination and Remuneration Committee comprising of Independent Directors Justice Sri Challa Kodandaram Chowdary (Chairman), Smt. D. Lakshmi Parthasarathy and Sri G.S.V. Prasad was constituted by the Board.

This Nomination and Remuneration Committee has formulated a Nomination and Remuneration Policy which has been approved by the Board. This Nomination & Remuneration Policy has laid down criteria and terms and conditions about identifying persons who are qualified to become Directors (Executive and Non-Executive) and

persons who may be appointed in Senior Management and Key Managerial positions and to determine their remuneration based on the Companys size and financial position and trends and practices on remuneration prevailing in the industry. Appointment of Managing Director / Whole-time Director / KMP and Functional Heads are placed before Nomination and Remuneration Committee for its consideration and recommendation to the Board.

CORPORATE SOCIAL RESPONSIBILITY (CSR):

As required by the Provisions of the Companies Act, 2013, a Corporate Social Responsibility (CSR) Committee has been constituted by the Board of the Company. Sri P Narendranath Chowdary, Chairman and Managing Director is the Chairman of The Committee. Sri Mullapudi Thimmaraja, Joint Managing Director and Sri P Venkateswara Rao, Independent Director are Members of the Committee. This Committee has formulated a CSR Policy pursuant to Section 134(3)(o) which has been approved by the Board. This Policy envisages CSR Activities to be taken up, the amount of expenditure to be incurred and monitoring of CSR Activities from time to time. This Policy aims to achieve the CSR objectives by undertaking one or more of the activities to be in alignment with Schedule VII of the Companies Act, 2013 either on its own or through any Trust / Society or any other recognized Agency.

As per the provisions of Section 135(5) of the Companies Act, 2013, the company should spend in every Financial Year at least 2% of the average net profits of the company made during the three immediately preceding Financial Years. In pursuance of its Corporate Social Responsibility Policy, the company gives preference to the local area and areas around it, where it operates or any other permissible location for spending the amount earmarked for Corporate Social Responsibility activities.

Accordingly, for achieving its CSR objectives through the implementation of meaningful and sustainable CSR programmes, your Company allocates at least 2% of its average Net Profits calculated as per Section 198 of the Companies Act, 2013, as its Annual CSR Budget in each Financial Year.

From the Annual CSR Budget allocation, a provision is made towards the expenditure to be incurred on identified areas, for undertaking CSR activities on a year-to-year basis.

Allocation of the Annual Budget for CSR activities in any given year would be as per the provisions of the Companies Act, 2013 and rules made thereunder as amended from time to time. Any unspent/unutilised CSR allocation of a particular year will be carried forward to the next year, i.e., the CSR budget will be non-lapsable in nature.

As required by Rule 8 of the Companies (CSR Policy) Rules, 2013, a Report on CSR Activities and the amount of expenditure incurred are annexed to this Report as Annexure-VI.

RISK MANAGEMENT COMMITTEE:

As required by the Provisions of the Companies Act, 2013 and SEBI (LODR) Regulations, 2015 the Board constituted Risk Management Committee and the Meetings were held at the Registered Office of the Company, Venkatarayapuram, Tanuku on 04.09.2025 and 31.03.2026. Risk Management Committee comprises of the fol-

¦ectors Name of the Director	Category	Designation
Sri P Venkateswara Rao	Chairman	Non-Executive and Independent Director
Sri Mullapudi Narendranath	Member	Joint Managing Director
Sri P Achuta Ramayya	Member	Joint Managing Director
Sri P.S.R.V.K. Ranga Rao	Member	Executive Director

RISK MANAGEMENT POLICY:

The Risk Management Committee has formulated a Risk Management Policy pursuant to Section 134(3)(n) which has been approved by the Board, which envisages the following:

• Identification of areas of Risk

• Assessing the impact of Risks

• Steps taken to mitigate the Risk.

The Major Segments of operations of the Company at present are Chlor Alkali and Chemicals.

The Chlor Alkali segment is power intensive where Power constitutes a major input cost. Restricted power supply and increased power costs have become a cause of concern. To mitigate this impact, a Solar Power Plant has been commissioned at Kovvur. At Saggonda a 33 MW Coal Based Captive Power Plant has been operative.

The Andhra Sugars Limited

Company is also making efforts for setting up of Solar Power at various locations including Saggonda. The Company is also following up with the State Government and other Regulatory Authorities for Categorization of Chlor- Alkali Industry in to "Energy Intensive Category". This will have the power cost for the Plants at Saggonda. Volatile market conditions and disposal of Chlorine constitute a major risk factor for the segment.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS:

The Company has duly complied with the provisions of Section 186 of the Companies Act, 2013. Particulars of loans given under section 134(3)(g) and section 186(4) of the Companies Act, 2013 Para A(2) of Schedule V to Listing Regulations.

Name of the Compny	Amount	Period	Remarks
Sree Akkamamba Textile Ltd.,	150 Lakhs	Given and Repaid during the year	Temporary unsecured loan

CREDIT RATING:

ICRA has rated the Credit Limits of the Company and re-affirmed the rating as stated below:

Facility	Rated Value Crores (Rs.)	Period	Rating Assured
Total Bank Loan facility	160.00	Long-term Rating	[ICRA] A+ (Stable)
		Short-term Rating	[ICRA] A1 +

The rating assigned above shows safety regarding timely servicing of financial obligations and low credit risk. INDUSTRIAL RELATIONS:

Relations with employees continue to be cordial and harmonious during the year under report.

PREVENTION OF SEXUAL HARASSMENT AT WORKPLACE POLICY:

The Company has in place a Prevention of Sexual Harassment Policy in line with the requirements of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (Act.) An Internal Compliance Committee (ICC) has been set up to redress the complaints received regarding sexual harassment. All employees are covered under this Policy. As of the date of this report, there were no complaints received by the ICC.

SAFETY, HEALTH, AND ENVIRONMENT:

Safety, Occupational Health, and Environment Protection continue to be accorded with high priority.

ANNUALRETURN:

As required by Section 92 of the Companies Act, 2013 and relevant rules, an Extract of Annual Return in MGT-7 is placed on the Companys website. It can be found on www.theandhrasugars.com.

RELATED PARTY TRANSACTIONS:

There is no transaction with Related Party which requires disclosure under Section 134(3) (h) of the Companies Act, 2013 and Rule 8(2) of the Companies (Accounts) Rules, 2014. Form AOC-2 is annexed as Annexure - V.

SECRETARIAL AUDIT REPORT:

As required by Provisions of Companies Act, 2013, Secretarial Audit Report as provided by Nekkanti S R V V Satyanarayana & Co., Hyderabad, Company Secretaries in practice is annexed to this Report. There are no qualifications, reservations or adverse remarks in the Audit Report issued by them for the Financial Year ended 31st March, 2026.

PARTICULARS OF EMPLOYEES:

Information in accordance with the provisions of Section 197(12) of the Companies Act, 2013, read with Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014, regarding employees is annexed as Annexure-I forming part of this Report.

RATIO OF REMUNERATION OF EACH DIRECTOR:

Information in accordance with the provisions of Section 197(12) of the Companies Act, 2013, read with Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014, details of ratio of Remuneration of each Director to the median employees remuneration is annexed as Annexure - II.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS OF THE COMPANY:

There are no significant and material orders passed by the Regulators or Courts or Tribunals which would impact the going concern status of the Company.

No application has been made under the Insolvency and bankruptcy Code. The requirement to disclose the details of application made or any proceeding pending under the Insolvency and Bankruptcy Code, 2016 (31 of 2016) during the year along with their status as at the end of the financial year is not applicable.

The requirement to disclose the details of difference between amount of the valuation done at the time of one-time settlement and the valuation done while taking loan from the Banks of Financial Institutions along with the reasons thereof, is not applicable.

MATERIAL CHANGES AND COMMITMENTS, IF ANY AFFECTING THE FINANCIAL POSITION OF THE COMRANY THAT OCCURRED AFTER 31ST MARCH, 2026:

There were no material changes and commitments affecting the financial positiong of the Company, which have occurred between the end of the Financial Year 2025-26 to which the Financial Statements relate and on the date of this Report.

EXPLANATION OR COMMENTS ON QUALIFICATIONS, RESERVATIONS OR ADVERSE REMARKS OR DISCLAIMERS MADE BYTHE STATUTORY AUDITORS, COST AUDITORS AND PRACTISING COMPANY SECRETARY IN THEIR REPORTS:

For the year under review, there are no qualifications, reservations or adverse remarks made either by the statutory Auditors, Cost auditors or Practising Company Secretary in their respective Reports. The Report of the Statutory Auditors forms part of the Financial Statements.

Further, no frauds are reported by Statutory Auditors / Cost auditors / Practising Company Secretary under Section 143(12) of the Companies Act, 2013.

CONSERVATION OF ENERGYTECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNING AND OUTGO:

Information pursuant to Section 134(3)(m) of the Companies Act, 2013 read with relevant rules is given in Annexure - III forming part of this Report.

FIXED DEPOSITS:

As required by the Companies Act, 2013 the details of Fixed Deposits as on 31.3.2026 are given hereunder.

Particulars	2025-26	2024-25
(a) Accepted during the year.	NIL	NIL
(b) Remained unpaid or unclaimed as at the end of the year.	1,40,000	1,40,000
(c) Whether there has been any default in repayment of deposits or payment of interest thereon during the year and if so, number of such cases and the total amount involved.	NO	NO
i) at the beginning of the year	NOT APPLICABLE	NOT APPLICABLE
ii) maximum during the year	-do-	-do-
iii) at the end of the year	-do-	-do-
(d) Details of deposits which are not in compliance with the requirements of Chapter V of the Act.	NIL	NIL

TRANSFERS TO I.E.P.F:

During the year 55,965 no. of shares of 37 Shareholders have been transferred to I.E.P.F Authority. An unclaimed dividend amounting to Rs 14,88,870/- of 734 Shareholders for the year 2018-19 has been transferred to I.E.P.F Account.

CONSOLIDATED ACCOUNTS:

In accordance with the accounting standards, consolidated financial statements of the Company and its Subsidiaries form part of the Report and Accounts. These consolidated statements have been prepared based on Audited Results received from the Subsidiary Companies as approved by their respective Boards.

The Andhra Sugars Limited

The Accounts of the Subsidiary Companies for the year 2025-26 have not been attached to the Companys Accounts. However, Shareholders desirous of obtaining the Annual Accounts of the Subsidiaries may obtain them upon request. The Annual Report and the Accounts of the Subsidiary Companies will be kept for inspection at the Companys Registered Office as well as at the offices of our Subsidiary Companies.

The details of Pursuant to Section 129 of the Companies Act, and Rule 5 of Companies (Accounts) Rules, 2014 in Form No. AOC-I are Annexed as Annexure-IV.

SUBSIDIARIES AND ASSOCIATE:

There are no Companies which have become or ceased to be subsidiaries, joint ventures or associate Companies during the year 2025-26.

JOCIL LIMITED:

For the Financial Year ending 31.3.2026 your subsidiary Company, JOCIL Ltd., posted a profit of Rs.1142.33 Lakhs (before taxation) against Rs. 134.06 Lakhs (before taxation) last year. The Board of Directors of this Company has recommended a Dividend of Rs.3.50 per Share to Shareholders for the Financial Year 2025-26.

THE ANDHRA FARM CHEMICALS CORPORATION LIMITED:

The Company incurred a Loss of Rs.1.05 Lakhs as against the Profit of Rs.24.84 Lakhs during last year. HINDUSTAN ALLIED CHEMICALS LIMITED:

This Company during the year has earned a profit of Rs.77.16 Lakhs (After Tax) against a profit of Rs.74.65 Lakhs (After Tax) during last year.

THE ANDHRA PETROCHEMICALS LIMITED:

The Company achieved sales of Rs. 45580.28 Lakhs against Rs. 50188.75 Lakhs last year and incurred loss of Rs.1562.75 Lakhs against a loss of Rs. 1813.05 Lakhs last year. This Company has not declared any dividend for the year 2025-26.

MERGER OF UN-LISTED SUBSIDIARIES:

Board of Directors have accorded in principle approval for the merger of Un-Listed Subsidiaries The Andhra Farm Chemicals Limited and Hindustan Allied Chemicals Limited with holding Company The Andhra Sugars Limited. A Scheme is to be prepared in this regard subject to the approval of Regulatory and Statutory Authorities.

INTERNALCONTROLSYSTEM:

Your Company conducts a periodical review of the financial and operating controls of the various Units. The Internal Control System of your Company is commensurate with its size and nature of business. The Board has also laid down a policy on Internal Financial Control as required by the provisions of the Companies Act, 2013. The same has been posted on Companys Website www.theandhrasugars.com

MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OF THE COMPANY:

There have been no material changes and commitments affecting the financial position of the Company which have occurred between the end of the Financial Year of the Company to which the Financial Statements relate and the date of this report.

COMPLIANCE WITH SECRETARIAL STANDARDS:

The Company has complied with the applicable Secretarial Standards issued by the Institute of Company Secretaries of India and approved by the Central Government.

LISTING ON STOCK EXCHANGE:

Companys Equity Shares are listed on the National Stock Exchange and Annual Listing Fee for the Financial Year 2026-27 has been paid.

ACKNOWLEDGEMENT:

Your Directors wish to place on record their appreciation for the co-operation extended by the State & Central Government authorities, Banks, Farmers and all the concerned associated with the Company in its Business process. They also express their appreciation to the employees at all levels for the successful working of the Company.

	For and on behalf of the Board
TANUKU	P. NARENDRANATH CHOWDARY
30.05.2026	Chairman and Managing Director