r) Provisions and contingent liabilities

i)Provision\

A provision is recorded when the Company has a present legal or constructive obligation as a result of past
events,it is probable that an outflow of resources will be required to settle the obligation and the amount can be

reasonably estimated. The estimated liability for product warranties is recorded when products are sold based on
technical evaluation.

Provisions are measured at the present value of management’s best estimate of the expenditure required to
settle the present obligation at the end of the reporting period. Provisions are discounted when time value of
money is material. The discount rate used to determine the present value is a pre-tax rate that reflects current
market assessments of the time value of money and the risks specific to the liability. The increase in the
provision due to the passage of time is recognized as interest expenses.

ii) Contingent liabilities:

Wherever there is a possible obligation that arises from past events and whose existence will be
confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly
within the control of the entity or a present obligation that arises from past events but is not recognized
because (a) it is not probable that an outflow of resources embodying economic benefits will be required
to settle the obligation; or (b) the amount of the obligation cannot be measured with sufficient reliability.
Show cause notices are not considered as Contingent Liabilities unless converted into demand.

iii) Contingent assets:

Wherever there is a possible asset that arises from past events and whose existence will be confirmed
only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the
control of the entity. A contingent asset is disclosed when the inflow of economic benefit is probable.

s) Fair value measurement:

In determining the fair value of its financial instruments, the company uses a variety of methods and
assumptions that are based on market conditions and risks existing at each reporting date. The methods
used to determine fair value include discounted cash flow analysis, available quoted market prices and
dealer quotes. All methods of assessing fair value resulting general approximation of value, and such value
may never actually be realized.

t) Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable and net of returns, trade
allowances rebates and amounts collected on behalf of third parties. It excludes Goods and Services Tax.

Sale of products:

As per Ind AS 115, “Revenue from contracts with customers” Revenue from sale of products is recognized, when
the performance obligation is satisfied, by transferring promised goods to the customer. An asset is transferred
when (or as) the customer obtains control to the Asset, as per the terms of contract and it is probable that the
economic benefits associated with the transaction will flow to the Company.

Internal Transfers from one unit to the other unit are recognized at Market value of the Product/Service at the
Time of Transfer.

Interest Income:

Interest income from debt instruments is recognized using the effective interest rate method and is accrued on
a time basis. The effective interest rate is the rate that exactly discounts estimated future cash receipts through
the expected life of the financial asset to the gross carrying value of a financial asset. While calculating the
effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms
of the financial instrument (for example, prepayment, extension, call and similar options), but does not consider
the expected credit losses.

Dividends:

Dividends are recognized in profit or loss only when the right to receive payment is established, it is probable that
the economic benefits associated with the dividend will flow to the Company, and the amount of dividend can be
reliably measured.

u) Government Grants

Grants from the government are recognized at their fair value where there is a reasonable assurance that
the grant will be received and the Company will comply with all attached conditions.

Grants related to revenue items are presented as part of profit or loss under general heading such as
other income or they are deducted in reporting the related expenses.

Government grants relating to the purchase of property, plant and equipment are included in non-current
liabilities as deferred income and are credited to profit or loss on a straight-line basis over the expected
lives of the related assets and presented within other income.

Government grants that are receivable as compensation for expenses or losses already incurred or for
the purpose of giving immediate financial support to the company with no future related costs are recognized
in profit or loss in the period in which they become receivable.

The benefit of a government loan at a below-market rate of interest is treated as a government grant,
measured as the difference between proceeds received and the fair value of the loan based on prevailing
market interest rates.

Exceptional Items

An item of income or expense which by its size, nature, type or incidence requires disclosure in order to improve
an understanding of the performance of the Company is treated as an exceptional item and disclosed as such
in the financial statements.

v) Employee benefits

i) Short term obligations:

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly
within 12 months after the end of the period in which the employees render the related service are recognized
in respect of employees’ services upto the end of the reporting period and are measured at the amounts
expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit
obligations in the balance sheet.

ii) Other long-term employee benefit:

The liabilities for earned leave are not expected to be settled wholly within 12 months after the end of the
period in which the employees render the related service. They are therefore measured as the present value
of the expected future payments to be made in respect of services provided by employee upto the end of
reporting period using the projected unit credit method. The benefits are discounted using the market yields
at the end of the reporting period that have terms approximating to the terms of the related obligation. Re¬
measurements as a result of experience adjustments and changes in actuarial assumptions are recognized
in profit or loss.

The obligations are presented as current liabilities in the balance sheet if the entity does not have an
unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when
the actual settlement is expected to occur.

iii) Post-employment obligation:

The Company operates the following post-employment schemes:

a) Defined benefit plans such as gratuity for its eligible employees,

b) Defined contribution plans such as provident fund and

c) Superannuation

Gratuity obligation:

The liability or asset recognized in the balance sheet in respect of defined benefit pension and gratuity plan is
the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan
assets. The defined benefit obligation is calculated annually by Actuaries using the projected unit credit
method.

The present value of the defined benefit obligation denominated in INR is determined by discounting the
estimated future cash outflows by reference to market yields at the end of the reporting period on the Government
Bonds that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit
obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement
of profit and loss.

Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions
are recognized in the period in which they occur, directly in other comprehensive income (net-off deferred tax).
They are included in retained earnings in the statement of changes in equity and in the balance sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments
are recognized immediately in profit or loss as past service cost.

Provident Fund and Employees’ state Insurance Scheme:

Eligible employees of The Andhra Sugars Limited receive benefits from a provident fund and Employees’ State
Insurance scheme which is a defined contribution plan. Both the eligible employee and the company make
monthly contributions to the Provident Fund and Employees’ State Insurance equal to a specified percentage
of the covered employee’s salary.

Superannuation:

Certain employees of The Andhra Sugars Limited are participants in a defined contribution plan. The Company
has no further obligations to the Plan beyond its monthly contributions which are periodically contributed to a
trust fund, the corpus of which is invested with the Life Insurance Corporation of India.

w) Taxes on income:

Tax expense comprises of current and deferred taxes. The income tax expense(income) for the period is the
tax payable on the current period’s taxable income based on the applicable income tax rate for each jurisdiction
adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused
tax losses.

The current income tax is the amount of income taxes payable in respect of the taxable profit (tax loss) for
a period.Management periodically evaluates positions taken in tax returns with respect to situations in
which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on
the basis of amounts expected to be paid to the tax authorities.

Deferred income tax is provided in full, using the liability method, on temporary differences arising between
the tax bases of assets and liabilities and their carrying amounts in the financial statements.

However, deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill.
Deferred income tax is also not accounted for if it arises from initial recognition of an asset or liability in a
transaction other than a business combination that at the time of the transaction affects neither accounting
profit nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been
enacted or substantially enacted by the end of the reporting period and are expected to apply when the
related deferred income tax asset is realised or the deferred income tax liability is settled.

Deferred tax assets are recognized only if it is probable that future taxable amounts will be available to
utilise those temporary differences and losses.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax
assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax
assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends
either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Current and deferred tax is recognized in profit or loss, except to the extent that it relates to items recognized
in other comprehensive income or directly in equity. In this case, the tax is also recognized in other
comprehensive income or directly in equity, respectively.

x) Leases

The Company has adopted Ind AS 116-Leases effective from 1st April, 2019, using the modified retrospective
method. The company has applied the standard to its lease with the cumulative impact recognised on the
date of initial application (1^st April, 2019). Accordingly, previous period information has not been restated.

The Company’s lease asset consists of lease for Building. The Company assesses whether a contract is or
contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right

to control the use of an identified asset for a period of time in exchange for consideration. To assess whether
a contract conveys the right to control the use of an identified asset, the Company assesses whether:

(i) the contract involves the use of an identified asset

(ii) the Company has substantially all of the economic benefits from use of the asset through the period of the
lease and

(iii) the Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company recognises a right-of-use asset (“ROU”) and a
corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term
of twelve months or less (short-term leases) and leases of low value assets.

The right-of-use assets are initially recognised at cost, which comprises the initial amount of the lease liability
adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial
direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation
and impairment losses, if any. Right-of-use assets are depreciated from the commencement date on a straight¬
line basis over the shorter of the lease term and useful life of the underlying asset.

The lease liability is initially measured at the present value of the future lease payments. The lease payments
are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental
borrowing rates. The lease liability is subsequently remeasured by increasing the carrying amount to reflect
interest on the lease liability, reducing the carrying amount to reflect the lease payments made.

A lease liability is remeasured upon the occurrence of certain events such as a change in the lease term or a
change in an index or rate used to determine lease payments. The remeasurement normally also adjusts the
leased assets.

Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments
have been classified as financing cash flows.

y) Dividend:

Final dividends on shares are recorded as liability on the date of approval by the shareholders and interim
dividends are recorded as a liability on the date of declaration by the company’s board of directors.

z) Expenditure on approved Research and Development Programme:

In respect of approved Research and Development Programme expenditure of capital nature is included in
Property, Plant and Equipment and other expenditure is charged off to revenue in the year in which such
expenditure is incurred.

aa) Segment reporting

Operating segments are defined as components of our entity for which discrete financial information is available
that is evaluated regularly by the chief operating decision maker, in deciding how to allocate resources and
assessing performance, the company’s chief operating decision maker is the Chairman and Managing Director.

The company has identified business segments (industry practice) as reportable segments. The business
segments comprise 1) Sugars, 2) Chlor Alkali, 3) Power Generation, 4) Industrial Chemicals -such as Suphuric
Acid, UH 25 and MMH, Liquid Hydrogen, HTPB and 5) Others such as bulk drugs and Cattle Feed,
Superphosphate etc.,

Revenue and expenses directly attributable to segments are reported under each reportable segment. Expenses
which are not directly attributable to each reporting segment have been allocated on the basis of associated
revenue of the segment. All other expenses which are not attributable or allocable to segments have been
disclosed as un-allocable expenses.

Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable
segment. All other assets and liabilities are disclosed as un-allocable. Property, Plant and equipment that are
used interchangeably among segments are not allocated to reportable segments.

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

for Brahmayya & Co., of THE ANDHRA SUGARS LIMITED,

Chartered Acco untants

^{Firm Regn}. ^N°. ^000513S p. Narendranath Chowdary Chairman & Managing Director

DIN:00015764

T.V Ramana G.S.V. Prasad Independent Director

Partner DIN:08797795

Membership No: 200523
UDIN:25200523BMLEYC8356

Tanuku P.V.S. Viswanadha Kumar Chief Financial Officer & Company Secretary

Date: 29.05.2025 Date: 29.05.2025