Your Directors are pleased to present the Forty first Annual Report on the operational and business performanc
of the Company together with the Audited Financial Statements for the Financial Year ended 31^st March, 2025

CORPORATE OVERVIEW:

Your Company is the manufacturer of Oxo-Alcohols that consist of the Products viz., 2 Ethyl Hexanol, Normal
Butanol and Iso Butanol. Your Company is an Associate of The Andhra Sugars Ltd., and has its Regd. Office
at Venkatarayapuram, Tanuku.

FINANCIAL RESULTS:

The summary of the financial results, which have been prepared as per the Indian Accounting Standards
(Ind AS), for the Year under review along with the Previous Year’s figures are given below:

(Rs. in lakhs)

OPERATIONAL AND FINANCIAL PERFORMANCE:

During the Financial Year 2024-25 under review, your Company has produced 51,489 MTs (Previous year
70,209 MTs) of Oxo-Alcohols. Sales made were 49,032 MTs (Previous year 72,730 MTs) and incurred a Net
Loss of Rs. 18.13 Crores during the Financial year 2024-25 as compared to Net Profit of Rs.63.40 Crores
during the previous year.

Your Company experienced a decline in overall financial performance under review year compared to the previous year due to lower
production in view of short supply of Propylene by HPCL & sharp drop in international oxo-alcohols prices effected the product price
realization, subdued market demand & Lower GDP effected the overall performance.

DIVIDEND:

Due to loss incurred during the year under report, your Directors are unable to recommend any dividend for
the Financial Year 2024-25.

Pursuant to the provisions of Regulation 43A of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 the Company has formulated its Dividend Distribution Policy which is available on the
website of the Company at the link www.theandhrapetrochemicals.com.

CONTRIBUTION TO EXCHEQUER:

Over the years, your Company has been significant contributor to the Government Exchequer in the form of
Duties and Taxes, during the Year under review Rs.7.95 crores was paid to the Exchequer as against
Rs.53.65 crores in the Previous Year.

CAPITAL & RESERVES:

Authorised and Paid-up Capital:

The Authorised Capital of the Company is Rs.125.00 crores and the Paid-up Capital is Rs.84.97 crores
Reserves:

The total Reserves position as on 31.3.2025 stood at Rs.435.77 crores as against Rs. 470.72 crores for the Previous
Year.

General Reserve:

During the Year under review, no amount has been transferred to the General Reserve.

MANAGEMENT DISCUSSION AND ANALYSIS:

INDUSTRY STRUCTURE AND DEVELOPMENTS:

The Company’s main business is manufacture and sale of Oxo-Alcohols. Your Company’s installed capacity
is 80,000 MT Per Annum. The expected growth rate for Oxo-Alcohols is around 8% to 10% per annum.

The Oxo-Alcohols market is experiencing significant growth given by increasing demand from various
industries like, plasticizers, solvents and lubricants. However, challenges like fluctuations in raw material
prices and stringent environmental regulations could impact the Company’s operations.

At present, the demand supply gap is fulfilling by our Company, Bharat Petroleum Corporation Ltd (BPCL),
Indian Oil Corporation Ltd., (IOCL), Imports and with substitute product of INA.

OPPORTUNITIES AND THREATS:

Your Company is having tie up with M/s Hindustan Petroleum Corporation Ltd., (HPCL) for supply of propylene.

Your Company is having Anti-Dumping Duties facility on imports from certain countries and hence, expecting
the improvement of sales realisation. The Oxo-Alcohols market has robust demand in applications like
plasticizers and lubricants. Oxo alcohols are a key ingredient in the production of plasticizers, which are
essential for making plastics flexible and durable, especially in the automotive and construction
industries. Oxo-Alcohols are used as intermediaries in the production of various chemicals and are crucial
for manufacturing process in industries like paints, coatings and lubricants. Oxo-Alcohols like Iso Butanol
are also used in the pharmaceutical and pesticide industries. Your Company presently is facing competition
ith M/s Bharat Petroleum Corporation Ltd, M/s Indian Oil Corporation Ltd., in addition to imports & substitute
product of INA.

The prices of raw materials like Propylene, Naphtha and other derivatives which are used in the production
of Oxo-Alcohols can fluctuate significantly impacting profitability. Stringent environmental regulations related
to the production and use of oxo alcohols can also pose challenges to market expansion. The market is
characterized by both large Multi National Companies and regional players with the potential for price
competitive and innovative of applications.

In addition to the above, your Company’s results may affect in view of the ongoing Russia-Ukraine war,
Israel - Hamas War, US tariff conflicts with various countries in general and in particular with China coupled
with geopolitical tensions.

INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY:

As required by the provisions of Companies Act, 2013 Internal Control Systems Report has been appended
to Independent Auditor’s Report given by Statutory Auditors regarding Financial Year 2024-25. The Company
has internal control systems commensurate with the size of the business operations. A Chartered Accountants
firm is engaged to carry out internal audit covering the entire operations. The audit firm submits internal
audit report periodically with their suggestions and/or corrections. Audit Committee critically deliberates
and reviews such internal audit reports and ensures effectiveness of the control systems through necessary
recommendations.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS:

In the area of Human Resources, the employees are being trained to meet the Plant requirements from time
to time by motivating them in a positive way and the Industrial Relations continued to be cordial throughout
the Year.

The total number of employees employed as on 31.3.2025 is 317.

FUTURE OUTLOOK:

Your Company’s performance is expected to be reasonably good in view of the forecast of reasonably better
GDP growth for India. However, the disrupted business environment due to Russia -Ukraine War, Israel -
Hamas War and US trade tariff conflicts etc., & geopolitical tensions may impact the performance to some
extent.

Though Company signed Natural Gas (NG) term sheet agreement with GAIL, in the year 2019, the progress
in the GAIL/APGDCL Natural gas pipe laying work got held up & finally the project has been cancelled. New
tenders have been called for laying Natural gas pipeline from Kakinada to Visakhapatnam / Srikakulam.

The Company’s performance to a large extent is dependent on international supply and demand for the
Oxo-Alcohols products and their prices are influenced by crude oil prices, exchange rate fluctuations and
dumping from the countries which are not covered under Anti-Dumping Duty.

RISKS AND CONCERNS:

Your Company is depending on supply of major raw material i.e., Propylene from a single source, HPCL
Refinery, Visakhapatnam. However, the risk is built in the project evaluation. The Management of the
Company has diluted the risk slightly by developing two alternative sources i.e., BPCL & GAIL for supplying
Propylene in case of emergency need. However, sourcing Propylene from BPCL & GAIL is not economical
due to high logistic costs. Crude oil prices, Exchange rate fluctuations and imports are a matter of concern.

CAUTIONARY STATEMENT:

The statements describing the Company’s outlook, objectives, projections, expectations, estimations or
predictions may be forward-looking statements based on certain assumptions of future events. Actual
results may differ materially from those expressed or implied, since the Company’s operations are influenced
by external or internal factors. Your Company closely monitors all major developments likely to affect the
Operations and will respond to meet the potential threats and to gain from any possible opportunities.

DEPOSITS:

During the Year under review, your Company did not accept any deposits within the meaning of provisions
of the Companies Act, 2013 read with the Companies (Acceptance of Deposits) Rules, 2014.

SAFETY, HEALTH AND ENVIRONMENT:

Your Company has in place Safety, Health and Environment Policy.

? Company has completed: 20.11 million accident free Man hours in the last 16 years.

? Total 9120 man-hours during the last year have been used for conducting Safety talks, Safety
induction training and refresher trainings for employees including Contract / Contractor workmen
and truck drivers.

? Safety of Human and Plant assets are of top priority of the company. Continuous training of personnel
at various levels on safety and strict compliance of regulations is ensured which resulted in another
accident-free year.

? Company received National Safety Award - 2024 - CERTIFICATE OF APPRECIATION in
Manufacturing Sector from National Safety Council of India (NSCI).

Health:

Health monitoring of all employees including contract labour & canteen workers is done on regular basis.The
health & wellbeing of our employees became a top priority for the company.

Environment:

Online emission, Ambient air & effluent monitoring are in place. Data is being transmitted online to Central
Pollution Control Board (CPCB) and Andhra Pradesh Pollution Control Board (APPCB) for monitoring.

Insurance:

All the insurable assets of the Company including Plant and Machinery, Buildings and Inventories are insured
on reinstatement value basis.

Land taken on Lease from Visakhapatnam Port Trust

Your Company has taken on lease 75.00 Acres of land from Visakhapatnam Port Trust (VPT) on which the
Oxo-Alcohol Plant has been established. The land is located adjacent to HPCL, Visakha Refinery which
supplies major Raw Materials. In this connection, a Lease Agreement was entered into on 27.6.1989 with
VPT for a period of 30 years which expired on 26.6.2019. 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 VPT for a
further period of 30 years with effect from 27.6.2019. Company has submitted its Technical & Financial Bid
against the Tender floated by VPT. As Company was the sole bidder for the Tender, VPT accepted both
Technical Bid & Financial Bid. Later on, VPT has cancelled the tender and issued re-tender. Aggrieved by
the action of VPT, Company 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 Company seeking the
cancellation of the VPT’s order dated 18.8.2020, cancelling the Tender Notification dated 7.8.2019 and
fresh Tender Notification dated 24.8.2020 issued by VPT towards the Lease of the Land and directed VPT
to execute the Lease Deed, vide its Order dated 25.2.2022. Further, on 19.3.2022, Company has written a
letter to the Chief Engineer, VPT requesting him to kindly finalise the Land Lease Deed and fix-up the date
for execution of the said Lease Deed. Visakhapatnam Port Trust has filed an Appeal (WA No. 688 of 2022)
on 7.9.2022 before the Hon’ble High Court of Andhra Pradesh. Arguments were completed and reserved
for Judgement.

Pending execution of Lease Deed, Company has considered provisionally its bid amount for accounting of
“Leases” in accordance with Ind AS 116, till the Lease Deed is executed. However, the Company is making
lease rental payments by way of depositing the cheques in Visakhapatnam Port Authorities’ Bank Account
(i.e., State Bank of India) as per Company’s Tender.

FPPCA Charges relating to the Financial Years 2022-23 & 2023-24

The Hon’ble Andhra Pradesh Electricity Regulatory Commission (APERC), Kurnool has issued orders for
levying Fuel & Power Purchase Cost Adjustment charges (FPPCA) for the Financial Years 2022-2023 and
2023-2024. The estimated liabilities towards the aforesaid FPPCA charges amounting to Rs 308.27 lakhs &
Rs 332.18 lakhs respectively and collecting the same monthly installments along with the regular power

consumption charges. Aggrieved by the Orders, your Company has filed Petitions before the Appellate
Tribunal for Electricity (APTEL), New Delhi.

Pending disposal of above petitions, the Board of Directors have decided to make a provision for Rs.332.18
lakhs for the F.Y. 2024-25 and the balance amount of Rs.308.27 lakhs is considered as ‘Contingent Liabilities’.

LISTING:

The Equity Shares of your Company are listed on the BSE Limited, Mumbai. The Annual Listing Fees for the
year 2024-25 has been paid.

ANNUAL RETURN:

Pursuant to the provisions of Section 92(3) and 134(3)(a) of the Companies Act, 2013, read with Rule
12(1) of the Companies (Management and Administration) Rules, 2014, copy of the Annual Return of the
Company as at 31^st March, 2024 is available on the Company’s website
www.theandhrapetrochemicals.com.

Details of Designated Officer under Section 89 of the Companies Act, 2013 read with Rule 9 of the Companies
(Management and Administration) Rules, 2014:

Sri G. Adinarayana, CFO & Company Secretary

DIRECTORS:

In accordance with the provisions of the Companies Act, 2013 and Articles of Association of the Company,
Directors Sri Ravi Pendyala (DIN 03375555) and Sri M S R V K Ranga Rao (DIN 00031720) who were
retired by rotation at the 40^th AGM held on 6.7.2024 and being eligible, were reappointed as Directors.

Sri V Raghunath (DIN 10405110), Nominee Director of M/s APIDC Ltd., was appointed as Director on the
Board of the Company at the 40^th AGM held on 6.7.2024.

Sri M Gopalakrishna, I.A.S., (Retd) (DIN 00088454) and Sri P Venkateswara Rao (DIN 06387165),
Independent Directors were reappointed for a further period of 5 years, for Second Term, from the conclusion
of the 40^th AGM, held on 6.7.2024.

Sri Y S S Suresh (DIN 08589605) will be retiring at the ensuing 41^st AGM and being eligible, offers himself
for being re-elected.

In accordance with the provisions of the Companies Act, 2013 and Articles of Association of the Company,
Director Sri V Raghunath (DIN 10405110) retire by rotation at the ensuing 41^st AGM, and being eligible has
offered himself for reappointment as Director. His reappointment is being placed for the approval of the
Shareholders at the ensuing 41^st AGM.

Smt (Dr.) D Manjulata (DIN 02788338), Independent Director, who was appointed as Independent Director
(Second Term) will be ceased to be the Director after conclusion of the 41^st AGM. The Board has proposed
her Candidature for appointment as Non-Executive & Non-Independent Director from the date of conclusion
of 41^st AGM.

Dr V N Rao (DIN 00861884), Independent Director who was appointed as Independent Director in the 36^th
AGM for a period of 5 years will ceased to be the Director after conclusion of the 41^st AGM.

Sri G S V Prasad (DIN 08797795) Independent Director who was appointed as Independent Director in the
36^th AGM for a period of 5 years, i.e., upto the conclusion of 41^st AGM. The Board has proposed his
Candidature for reappointment from the conclusion of the 41^st AGM as Independent Director for a further
period of 5 years (Second Term).

None of the Directors is disqualified for appointment / re-appointment under Section 164 of the Companies
Act, 2013. Certificate issued by the Practising Company Secretary regarding non-disqualification of Directors
is enclosed (Annexure - A). As required by law, this position is also reflected in the Auditors’ Report. Details
with regard to the composition of the Board, Meetings of the Board held during the Year and the attendance
of the Directors have been mentioned in the Corporate Governance Report which forms part of this Report.

KEY MANAGERIAL PERSONNEL:

Details of Key Managerial Personnel (KMP) of the Company are as under:

CODE OF CONDUCT:

The Board of Directors enunciated a Code of conduct for the Directors and Senior Management Personnel
which was circulated to all concerned and was also hosted on the Company’s website
www.theandhrapetrochemicals.com. The Directors and Senior Management Personnel have affirmed
compliance with the Code of Conduct for the Financial Year 2024-25.

AUDIT COMMITTEE:

Audit Committee comprises Non-Executive Independent Directors, Sri P Venkateswara Rao, Dr. Pamidi Kotaiah, and
Dr. (Smt.) D Manjulata, Dr. V N Rao, Sri G S V Prasad and Sri Ravi Pendyala, Non-Executive Non-Independent
Director, as its Members. Sri P Venkateswara Rao is the Chairman of the Committee. The details of the number of
meetings of the Audit Committee held during the Financial Year 2024-25 are given in the Corporate Governance
Report which forms part of this Report.

SECRETARIAL AUDIT:

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and Rules made thereunder, the Board of
Directors have appointed M/s Nekkanti S R V V S Narayana & Co., Company Secretaries (CP No.7839), Hyderabad,
to undertake the Secretarial Audit of the Company. The Secretarial Audit Report for the Financial Year 2024-25 is
included as Annexure - ‘B’ and forms an integral part of this Report. The Secretarial Audit Report does not contain
any qualification or reservations or adverse remarks.

BOARD EVALUATION:

Pursuant to the provisions of the Companies Act, 2013 and Securities & Exchange Board of India (Listing Obligations
and Disclosure Requirements) Regulations, 2015, your Board has carried out annual evaluation of its own performance,
working of its Committees and the individual Directors during the Year 2024-25.

The performance was evaluated based on the parameters such as structure, meetings, functions, risk evaluation process
adopted, stakeholder value and responsibility, corporate culture, ethics, effectiveness of Board / Committee process
and functioning, contribution of Board / Committee Members to overall effectiveness of the Board / Committee,
avoiding conflict with the Company’s interests, bonafide discharge of responsibilities in the interest of the Company
and upholding ethical standards, integrity etc.

In terms of Regulation 25 of the SEBI Listing Regulations, 2015, Board took on record the declarations and
confirmations received from Independent Directors.

Independent Directors met on 11.5.2024 & 19.3.2025 for annual evaluation of their own performance and
the performance of the Non-Independent Directors, the Chairman, the Committees, the Board as a whole
and the adequacy of flow of information to the Board and its Committees.

FAMILIARIZATION PROGRAMME FOR INDEPENDENT DIRECTORS:

The details of Familiarization Programme for the Independent Directors are furnished in the Corporate
Governance Report which forms part of this Report.

NUMBER OF MEETINGS OF THE BOARD:

The details of the number of Meetings of the Board held during the Financial Year 2024-25 are given in the Corporate
Governance Report which forms part of this Report.

CREDIT RATING:

ICRA Ltd., has retained the Company’s long-term rating as ‘[ICRA]A-‘ and short- term rating reaffirmed at
‘[ICRA]A2 ’, Outlook on the long-term Rating is ‘Stable’, assigned earlier to the Rs.94.18 crores Line of
Credit of our Company.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS BY THE COMPANY:

During the Year under review, your Company has not given any loans or guarantees covered under the provisions of
Section 186 of the Companies Act, 2013 and details of the Investments covered under the provisions of Section 186
of the Companies Act, 2013, are given in the Notes to the Financial Statements.

VIGIL MECHANISM / WHISTLE BLOWER POLICY:

As per the provisions of the Companies Act, 2013 and Securities & Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015, your Company has established a Vigil Mechanism / Whistle Blower
Policy for Directors and employees to report genuine concerns on unethical behaviour, actual or suspected fraud or
violation of the Company’s Code of Conduct in prescribed manner.

The Policy provides adequate safeguards against victimisation of the complainant and direct access to the Chairman
of the Audit Committee. The protected disclosures, if any, reported under this Policy will be appropriately and
expeditiously investigated.

The Whistle Blower Policy may be accessed on the Company’s website at the link: http://
www.theandhrapetrochemicals.com/wp-content/uploads/Whistle-Blower-Policy-1.pdf

RISK MANAGEMENT:

The Risk Management framework of the Company defines the Risk Management approach of the Company, includes
periodic review of such risks, Risk Mitigation measures and reporting mechanism of such Risks. Risk Management
Policy of your Company can be viewed by entering the URL http://www.theandhrapetrochemicals.com/wp-content/
uploads/POLICY-ON-CORPORATE-RISK-MANAGEMENT.pdf in the web browser.

Risk Management Committee comprises Sri P Narendranath Chowdary, Managing Director, as Chairman
of the Committee, Sri M S R V K Ranga Rao and Sri Ravi Pendyala, Non-Executive and Non-Independent
Directors, and Dr. V N Rao and Sri P Venkateswara Rao, Independent Directors, as its Members.

The details of the number of meetings of the Risk Management Committee held during the Financial Year
2024-25 are given in the Corporate Governance Report which forms part of this Report.

Sustainability:

Sustainability is at the core of your Company’s business development strategy. Your Company firmly believes
in the idea that progress should not come at the expense of the environment and natural ecosystems. The
Company focuses on key sustainability areas such as Decarbonization & Air Emission Control, Water &
Biodiversity Conservation, Health & Safety and Community Development to ensure the long-term sustainability
of its business operations and improve the well-being of communities, preserving the environment and
ensuring long-term economic prosperity.

Your Company recognizes its role in promoting Environmental, Social and Governance (ESG) practices
through its operating devices. Your Company is reviewing its sustainability plan from time to time. Your
Company committed to reduce green house gas emissions. The Company has adopted several key standards
to demonstrate dedication to ESG Principles. The Company has also adopted energy management techniques
such as energy audits and usage of renewable energy to reduce the risk & GHG emissions. Your Company
has certification of ISO 9001:2014 & ISO 45001:2018 and Bureau of Indian Standard Certification for all its
products.

CORPORATE SOCIAL RESPONSIBILITY (CSR) COMMITTEE:

Details of composition of CSR Committee are given in the Corporate Governance Report which forms part
of this Report.

As per the provisions of Section 135 and Schedule VII of the Companies Act, 2013 and the Company’s CSR
Policy, Company had spent an amount of Rs. 2,68,64,978/- towards CSR expenditure for the Financial Year
2024-25. The Report on CSR activities as required under the Companies (CSR Policy) Rules, 2014 is set
out as Annexure - “C” to this Report.

NOMINATION & REMUNERATION COMMITTEE:

Nomination & Remuneration Committee comprises Dr. (Smt.) D Manjulata, Independent Director, as Chairperson,
Sri M S R V K Ranga Rao, Non-Independent and Non-Executive Director and Dr. V N Rao and Sri G S V Prasad,
Independent Directors, as its Members.

NOMINATION & REMUNERATION POLICY:

The Board of Directors of your Company has, on recommendation of the Nomination & Remuneration Committee,
adopted a Nomination & Remuneration Policy which lays down the framework in relation to the criteria for selection
and appointment of Board Members and remuneration of Directors / Key Managerial Personnel and Senior Management
of the Company. This Policy can be accessed on the Company’s website at the link: http://
www.theandhrapetrochemicals.com/wp-content/uploads/NOMINATION -REMUNERATION-POLICY.pdf

AUDITORS:

M/s C V Ramana Rao & Co., Chartered Accountants, Visakhapatnam, were appointed as Statutory Auditors
of the Company for a second term of five consecutive Financial Years from 2022-23 to 2026-27 by the
Shareholders at the 38^th Annual General Meeting (AGM). Fixation of their remuneration for the Year 2025¬
26 is being placed at the ensuing 41^st AGM for the approval of Members. The total fees paid by the Company
for the Year 2024-25 to the Statutory Auditors for all services rendered by them is Rs. 9.45 lakhs.

COST RECORDS:

Company has complied with the requirement with regard to maintenance of Cost Records as specified by
the Central Government under Section 148(1) of the Companies Act, 2013 read with the Companies (Cost
Records and Audit) Rules, 2014.

COST AUDITORS:

M/s Narasimha Murthy & Co., Cost Accountants, Hyderabad, were appointed by the Board, on the
recommendation of the Audit Committee, as Cost Auditors of the Company for conducting the audit of cost
records for the Financial Year 2025-26 on a remuneration of Rs.2.00 lakhs and appropriate Resolution in
this connection has been included in the Notice calling the ensuing 41^st Annual General Meeting of the
Company for the purpose of your ratification of the said remuneration. Cost Auditors’ Report for the Financial
Year ended 31^st March, 2024 has been filed with the Ministry of Corporate Affairs on 12.6.2024 i.e., within
the stipulated time.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS
AND OUTGO:

Particulars prescribed under Section 134 (3) (m) of the Companies Act, 2013 read with the Rule 8 (3) of the
Companies (Accounts) Rules, 2014 are given below:

I) CONSERVATION OF ENERGY

1. Steps taken or impact on conservation of energy: New Green Energy Steam Turbine 510 KW
installed. Installation of LED lights and operating less Number of Air Compressors.

2. Steps taken by the Company for utilising Alternate Sources of Energy: Company is buying
power from Open Access.

3. Capital investment on Energy Conservation Equipments: 3.30 Crores

II) TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION:

a) Efforts made & Benefits derived:

Technology has been fully absorbed and various innovative ideas enabled the Company to operate the
Plant even above 105% load.

b) Imported Technology: NIL

c) Expenditure incurred on Research & Development: NIL

III) Foreign Exchange Earnings and Outgo: (On cash basis)

(Rs. in lakhs)

PARTICULARS OF EMPLOYEES:

The particulars of employees of your Company drawing a remuneration requiring disclosure under Section
197 (12) of the Companies Act, 2013 read with Rule 5 of the Companies (Appointment and Remuneration

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None of the employees holds (by himself or along with his spouse and dependent children) more than 2% of
the Equity Shares of the Company.

DEMATERIALISATION OF SHARES:

As on 31^st March, 2025, out of the total number of 8,49,71,600 Equity Shares of the Company, 8,16,18,812
Equity Shares constituting 96.05% stand dematerialised.

RELATED PARTY TRANSACTIONS:

As per the provisions of Regulation 23 of the Securities & Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015, your Company has established a Policy on Materiality of
Related Party Transactions and on dealing with the Related Party Transactions and do not attract the
provisions of Section 188 of the Companies Act, 2013.

The Policy on Related Party Transactions as approved by the Board of Directors is available on the website
of the Company. The weblink of the same is http://www.theandhrapetrochemicals.com/wp-content/uploads/
POLICY-ON-RELATED-PARTY-TRANSACTIONS.pdf

There were no materially significant Related Party Transactions entered by the Company with the Promoters,
Directors and Key Managerial Personnel which may have a potential conflict with the interests of Company
at large.

All other Related Party Transactions are placed before the Audit Committee and the Board for approval.
Omnibus approval is granted by the Audit Committee on yearly basis for the said transactions. A statement
giving details of all Related Party Transactions is placed before the Audit Committee and the Board for
review and ratification on a quarterly basis. All transactions entered with the Related Parties during the Year
under review were in the ordinary course of business and on Arm’s Length basis.

Since there were no materially significant Related Party Transactions during the Year under review, the
requirement with regard to the details required in AOC-2 is not applicable to the Company.

DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION,
PROHIBITION AND REDRESSAL) ACT, 2013:

Your Company has in place a Prevention of Sexual Harassment Policy in line with the requirement of the
Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. In compliance
with the provisions of the said Act, an Internal Complaints Committee (ICC) was set up to redress complaints
received regarding sexual harassment. During the Year 2024-25, there were no complaints received by the
ICC.

PARTICULARS OF REMUNERATION:

The information required under Section 197 of the Act and the Rules made thereunder in respect of employees
of the Company, is as follows:-

(a) the ratio of the remuneration of each director to the median remuneration of the employeeof
the company for the Financial Year:

Our Directors draw remuneration only by way of Sitting Fees. The details of the same are provided
in Corporate Governance Report which forms an Annexure to this Report. No other remuneration
is drawn by them. Managing Director does not draw any remuneration. Hence, the ratio of
remuneration of each Director to the median remuneration is not required to be given.

(b) the percentage increase in remuneration of each Director, Chief Executive Officer, Chief
Financial Officer, Company Secretary or Manager, if any, in the Financial Year:

Company was paying Sitting Fees of Rs. 30,000/- for attending each Meeting of the Board and Rs.
25,000/- for attending each Meeting of Committee of the Board (as approved by the Board of Directors
at its Meeting held on 5.11.2020). Other details are as follows:

(c) the percentage increase in the median remuneration of employees in the Financial Year:

2.08%

(d) the number of permanent employees on the rolls of Company: 317

(e) average percentile increase already made in the salaries of employees other than the
managerial personnel in the last Financial Year and its comparison with the percentile increase
in the managerial remuneration and justification thereof and point out if there are any
exceptional circumstances for increase in the managerial remuneration.

The average increase in salaries of employees other than managerial personnel in 2024-25 was
2.08%. Percentage increase in the managerial remuneration for the Year was Nil.

(f) affirmation that the remuneration is as per the Remuneration Policy of the Company:

The Company’s Remuneration Policy is driven by the success and performance of the individual
employees and the Company through its compensation package, the Company endeavours to
attract, retain, develop and motivate a high performance staff. The Company follows a compensation
mix of fixed pay, benefits and performance based variable pay.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS:

There are no significant and material orders passed by the Regulators / Courts that would impact the going
concern status of the Company and its future operations.

MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING THE FINANCIAL POSITION OF THE
COMPANY THAT OCCURRED AFTER 31^st MARCH, 2025:

There were no material changes and commitments affecting the financial position of the Company, which
have occurred between the end of the Financial Year 2024-25 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 BY THE 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 under Section 143(12) of the Companies Act, 2013.
DIRECTORS’ RESPONSIBILITY STATEMENT:

To the best of knowledge and belief and according to the information and explanations obtained by them,
your Directors make the following statement in terms of Section 134(3)(c) of the Companies Act, 2013:

i) that in the preparation of the Annual Accounts for the year ended 31^st March, 2025, the applicable
Accounting Standards have been followed along with proper explanation relating to material departures,
if any;

ii) that Accounting Policies have been selected and applied consistently and that judgements and estimates
made are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company
as at 31^st March, 2025 and of the Loss of the Company for the year ended on that date;

iii) 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;

iv) the annual accounts have been prepared on a going concern basis;

v) that the Directors had laid down internal financial controls to be followed by the Company and that such
internal financial controls are adequate and were operating effectively; and

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

COMPLIANCE WITH SECRETARIAL STANDARDS:

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

REPORT ON CORPORATE GOVERNANCE:

As required under Regulation 34(3) of Securities & Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015, the Report on Corporate Governance and the Auditors’
Certificate on the compliance of Corporate Governance are annexed (Annexure-”D”) and form part of the
Directors’ Report.

ACKNOWLEDGEMENTS:

Your Directors acknowledge the co-operation and continued valuable support received from Central and
State Government authorities, the Promoters - The Andhra Sugars Limited and Andhra Pradesh Industrial
Development Corporation Ltd., (APIDC), Banks, Shareholders, Customers, Hindustan Petroleum
Corporation Ltd., (HPCL) and other Suppliers. Your Directors place on record their deep sense of appreciation

of the valuable contribution made by the employees at all levels.

Place : Hyderabad On behalf of the Board

Date : 24.5.2025 Dr. Pamidi Kotaiah

Chairman