1.12 Provisions:

A provision is recognized if, as a result of a past event, the company has a present legal or constructive
obligation that is reasonably estimable, and it is probable that an outflow of economic benefits will be
required to settle the obligation. Provisions are determined by discounting the expected future cash
flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks
specific to the liability. Provisions are reviewed at each reporting date and adjusted to reflect the
current best estimate.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation
that may, but probably will not require an outflow of resources embodying economic benefits or the
amount of such obligation cannot be measured reliably.

When there is a possible obligation or a present obligation in respect of which, in the likelihood of
outflow of resources embodying economic benefits is remote, no provision or disclosure is made.

1.13 Cash and cash equivalents:

Cash and cash equivalents include cash on hand and at bank, deposits held at call with banks, other
short term highly liquid investments with original maturities of three months or less that are readily
convertible to a known amount of cash which are subject to an insignificant risk of changes in value
and are held for meeting short-term cash commitments. Equity investments and bank borrowings are
excluded from cash equivalents. However, bank overdrafts which are repayable on demand are
included as a component of cash and cash equivalents.

1.144 Impairment of assets:

The company assesses, at each reporting date, whether there is an indication that an asset may be
impaired. If any indication exists, or when annual impairment testing for an asset is required,
the company estimates the asset's recoverable amount. An asset's recoverable amount is the
higher of its fair value less costs of disposal and value in use. Recoverable amount is determined
for an individual asset, unless the asset does not generate cash inflows that are largely independent
of those from other assets or groups of assets. When the carrying amount of an asset or CGU
exceeds its recoverable amount, the asset is considered impaired and is written down to its
recoverable amount.

1.15 Income Taxes:

Income tax expense comprises current and deferred income tax. Income-tax expense is recognized in
net profit in the statement of profit and loss except to the extent that it relates to items recognized
directly in equity, in which case it is recognized in other comprehensive income. Current income tax
for current and prior periods is recognized at the amount expected to be paid to or recovered from
the tax authorities, using the tax rates and tax laws that have been enacted or substantively
enacted by the balance sheet date.

Deferred income tax assets and liabilities are recognized for all temporary differences arising
between the tax bases of assets and liabilities and their carrying amounts in the financial statements.
Deferred tax assets are recognized to the extent that it is probable that future taxable profit will be
available against which the deductible temporary differences and tax losses can be utilized. The company
offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the
recognized amounts and where it intends either to settle on a net basis, or to realize the asset and settle
the liability simultaneously.

as per our report ot even date

For C.V.Ramana Rao & Co., THE ANDHRA PETROCHEMICALS LIMITE

Chartered Accountants

P.Narendranath Chowdary

Firm Regn. No: 002917S

Managing Director
DIN:00015764

G.RAJASEKHAR M.S.R.V.K.Ranga Rao

Partner Director

Membership No:236023 DIN_: 00031720

Place : Hyderabad

Date : 24-05-2025 G.Adinarayana

CFO & Company Secretary

as per our report ot even aate

For C.V.Ramana Rao & Co., THE ANDHRA PETROCHEMICALS LIMITED

Chartered Accountants

P.Narendranath Chowdary

Firm Regn. No: 002917S

Managing Director
DIN:00015764

G.RAJASEKHAR M.S.R.V.K.Ranga Rao

Partner Director

Membership No:236023 DIN_: 00031720

Place : Hyderabad

Date : 24-05-2025 G.Adinarayana

CFO & Company Secretary

As per our report of even date for and on behalf of Board of Directors of

For C.V.Ramana Rao & Co., THE ANDHRA PETROCHEMICALS LIMITED

Chartered Accountants

P.Narendranath Chowdary

Firm Regn. No: 002917S

Managing Director
DIN:00015764

G.RAJASEKHAR M.S.R.V.K.Ranga Rao

Partner Director

Membership No:236023 DIN_: 00031720

Place : Hyderabad

Date : 24-05-2025 G.Adinarayana

CFO & Company Secretary

1) Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a
non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses
associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the
Company are segregated.The above Statement of Cash Flows has been prepared under the ‘Indirect Method’ as set out in Ind AS
7, ‘Statement of Cash Flows’ as noted under Companies Act, 2013.

2) Fixed deposits with original maturity of more than 3 months are grouped under ‘other bank balances’ and is not considered as
part of cash and cash equivalents in the statement of cash flows.

3) Components of cash and cash equivalents:

Cash flows, cash and cash equivalents include cash on hand, deposits held at call with financial institutions/banks, other short¬
term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of
cash and which are subject to an insignificant risk of changes in value.

As per our report of even date for and on behalf of Board of Directors of

For C.V.Ramana Rao & Co., THE ANDHRA PETROCHEMICALS LIMITED

Chartered Accountants

P.Narendranath Chowdary

Firm Regn. No: 002917S

Managing Director
DIN:00015764

G.RAJASEKHAR M.S.R.V.K.Ranga Rao

Partner Director

Membership No:236023 DIN_: 00031720

Place : Hyderabad

Date : 24-05-2025 G.Adinarayana

CFO & Company Secretary

Note 2.01a:

No Property, plant and equipment was kept temporarily idle during the year under report.

Note 2.01b:

All the Property, plant & equipments are owned by the company. Further, no proceedings have been initiated or
pending against the company

for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 (as amended from
time to time) and the rules made thereunder
Note 2.01c:

The company has not revalued its Property, plant & equipment (including Right of Use assets) and intangible assets
during the year under report and the immediately preceeding previous year.

Note 2.01d:

The title deeds of all the immovable properties are held in the name of the company.

Note 2.01e:

There are no intangible assets under development as at 31st March 2025. (Previous year - Nil)

*The management of APGPCL has declared Layoff with effect from 01.11.2022 due to cancellation of allocation of
Natural Gas under Advance Price Mechanism to the Company with effect from 01.09.2022. Accordingly, there is no
supply of power to the APL since October, 2022 and also there is no certainty of supply of power by APGPCL in
future. Based on the available unobservable inputs i.e. zero supply of units of power resulting in nil savings in the
power cost, the fair market value as on 31.03.2025 is considered as Nil.

Reasons for Investments designated to measure at FVTOCI:

The Company has elected an irrevocable option of classifying at fair value through Other Comprehensive Income as
they are not held primarly for trading.

A. The company provides for gratuity to the employees as per Payment of Gratuity Act,1972. Employees who are in
continous service for a period of 5 years are eligible for gratuity. The amount of gratuity is payable on retirement/
resignation. The gratuity plan is a funded plan and the company makes contributions to recognised funds in India.
The Company has a policy on compensated absences which are both accumulating and non-accumulating in nature.
The expected cost of accumulating compensated absences is determined by actuarial valuation performed by an
independent actuary at each balance sheet date using “Projected Unit Credit Method” on the additional amount
expected to be paid/availed as a result of the unused entitlement that has accumulated at the balance sheet date.
Expense on non-accumulating compensated absences is recognized in the period in which the absences occur.

B. The employees’ gratuity fund scheme managed by a Trust is a defined benefit plan. The present value of obligation
is determined based on actuarial valuation using the “Projected Unit Credit Method” which recognizes each period of
service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up
the final obligation. The obligation for compensated absences is recognized in the same manner as gratuity.

Pending the decision of Hon’ble High Court of AP on the writ petition filed by the company, challenging the decision of Visakhapatnam Port Authority (VPA) in
considering the leased land as commercial land in fixing the annual rent, instead of Industrial land, as considered in the earlier lease agreement. The company is paying
the annual lease rent to VPA computed considering the Land taken on lease as Industrial land. If Hon’ble High Court of AP decides against the company, the company
will be liable to pay the lease rent applicable at commercial rates, instead of the rate applicable to industrial rate, amounted to Rs 1286.90 lakhs.

Note 2.36B

The Hon’ble Andhra Pradesh Electricity Regulatory Commission (APERC), Kurnool has issued orders for levying Fuel & Power Purchase Cost Adjustment (FPPCA)
for the financial years 2022-2023 and 2023-2024. The estimated liabilities towards the aforesaid FPPCA charges amounted to Rs. 308.27 lakhs & Rs 332.18 lakhs
respectively. The Company has challenged the aforesaid orders before Appellate Tribunal for Electricity (APTEL). The Company has decided to make a provision for
FY 2023-24 of Rs.332.18 lakhs towards FPPCA charges and for the FY2022-23 of Rs.308.27 lakhs which has not been provided for in the books of account and same
is considered as contingent liabilities.

Note 2.36C Contingent Asset: Fire Loss of Profit (FLOP) Insurance Arbitration Award

Oriental Insurance Co. Ltd has filed under section 34 of the Arbitration Act, 1996 “a challenge petition” before the Hon’ble Commercial Court (C.C.C.) against the
arbitration award given in favour of the company on 09.10.2020. Since the arbitration award is under judicial review, income in respect of the same has not been
recognised in the books of account.

Decommissioning Liability: This provision has been created for estimated costs of dismantling and removing the
movable assets and restoring the site in respect of leased premises on which the plant is super structured. The lease
agreement is for a period of 30 years which was valid upto 26th June, 2019. The company has initiated the process
of renewal of lease and estimated the decommisioning liability for a further period of 30 years, i.e., upto 27th June,
2049.

Provision for FPPCA Charges:

FPPCA Charges Provision: This provision has been created for estimated liability towards Fuel & Power Purchase Cost
Adjustment (FPPCA) Charges related to FY 2023-24. (Refer to note no.2.36B)

Note 2.39 Segment information

The Company operates only in one business segment being the manufacture of Oxo-Alcohols and there are no
geographical segments to be reported.

Note 2.40 As per Indian Accounting Standard 24 "Related parties disclosure" the disclosure of Related parties as
defined in the Standard are given hereunder:

During the Financial Year 2019-20, the Company (APL) has initiated the process of renewal of the Land Lease on which the plant is located with Visakhapatnam Port
Autthority (VPA) for a further period of 30 years with effect from 27.06.2019. APL has submitted its Technical & Financial Bid against the tender floated by VPA. As
APL was the sole bidder for the Tender, VPA accepted both Technical Bid & Financial Bid. Later -on, VPA has cancelled the tender and issued re-tender. Aggrieved
by the action of VPA, APL has filed a writ petition under Article 226 before the Hon’ble High Court of Andhra Pradesh.

The Hon’ble High Court of Andhra Pradesh has allowed the writ Petition filed by the APL seeking the cancellation of the order dated 18.08.2020 cancelling the tender
notification dated 07.08.2019 and fresh tender notification dated 24.08.2020 issued by VPA towards the lease of the land and directed VPA to execute the lease deed,
vide its order dated 25th February 2022. Further, on 19th March 2022, APL has written a letter to the Chief Engineer, VPA requesting him to kindly finalise the land
lease deed and fix-up the date for execution of the said lease deed. VPA has preferred an appeal against the Hon’ble High Court of Andhra Pradesh order dated
25.02.2022 before division bench of Hon’ble High Court of Andhra Pradesh and the same is pending.

Pending execution of the lease deed, APL has considered provisionally its bid amount for accounting of “Leases” in accordance with Ind AS 116, till the lease deed is
executed.

Note 2.48 Other additional Regulatory information

a) The company has no transactions with struck off companies undersection 248 of the Companies Act, 2013 or
section 560 of Companies Act,1956.

b) In respect of various loans charges/ satisfaction of charges have been registered with Registrar of Companies
within the statutory period prescribed under the Act.

c) The Company has no subsidiary companies and accordingly, the provisions of clause (87) of the section 2 of the
Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017 are not applicable.

d) There is no Scheme of Arrangements that has been approved in terms of sections 230 to 237 of the Companies
Act, 2013.

e) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other
sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities

(“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall
lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not
received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether,
directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate
Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

f) The company has not granted any Loans or advances in the nature of loans to promoters, directors, KMPs and the
related parties (as defined under Companies Act, 2013,) either severally or jointhly with any other person that are
repayable on demand or without specifying any terms or period of repayment.

g) There are no transactions that are not recorded in the books of account and have been surrendered or disclosed as
income during the year in the tax assessments under the Income Tax Act, 1961.

h) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.

Note 2.49 Recent Accounting Pronouncements

Ministry of Corporate Affairs (“MCA”) has not issued any notifications for new standards or amendments to the the
existing standards which will be effective from thereporting periods beginning on or after 1st April 2025.

Note 2.50 Previous year’s figures have been regrouped and rearranged wherever necessary to make them comparable
with the current year figures.

As per our report of even date for and on behalf of Board of Directors of

For C.V.Ramana Rao & Co., THE ANDHRA PETROCHEMICALS LIMITED

Chartered Accountants

_. „ .. P.Narendranath Chowdary

Firm Regn. No: 002917S ......

Managing Director

DIN:00015764

G.RAJASEKHAR M.S.R.V.K.Ranga Rao

Partner Director

Membership No:236023 DIN_: 00031720

Place : Hyderabad

Date : 24-05-2025 G.Adinarayana

CFO & Company Secretary