General Updates

79th ANNUAL REPORT 2025 - 2026 THE ANDHRA SUGARS LIMITED THE ANDHRA SUGARS LIMITED Regd. Office: Venkatarayapuram, Tanuku – 534215 CIN: L15420AP1947PLC000326 Ph : 08819-224911, Fax : 08819-224168 E-mail: info.tnk@theandhrasugars.com Website : www.theandhrasugars.com BOARD OF DIRECTORS : Sri P.V.S. Viswanadha Kumar, F.C.A., F.C.M.A., A.C.S. Vice President (Finance) & Addl. Secretary, CFO, Company Secretary & Compliance Officer. Sri P. Narendranath Chowdary, B.Sc. Chairman and Managing Director BANKERS : Union Bank of India Sri Mullapudi Narendranath, B.Sc.(Ag.) State Bank of India Joint Managing Director Axis Bank STATUTORY AUDITORS : Sri Mullapudi Thimmaraja, B.Tech., M.B.A.(Florida) M/s. Brahmayya & Co., Joint Managing Director Chartered Accountants, D.No. 33-25-33-B, Govindarajulu Naidu Street, Suryarao peta, Sri P. Achuta Ramayya, B.Com., M.B.A.(New York) Vijayawada - 520 002. Joint Managing Director COST AUDITORS : Sri P.S.R.V.K. Ranga Rao, B.Com. M/s. Narasimha Murthy & Co. Executive Director Cost Accountants 104, Pavani Estate, 3-6-365, Himayat Nagar, Hyderabad - 500029. Sri P. Venkateswara Rao Independent Director SECRETARIAL AUDITORS : M/s. Nekkanti S.R.V.V. Satyanarayana & Co. Smt. D. Lakshmi Parthasarathy, I.A.S. (Rtd.) Plot No. 29, 2nd Floor, Gafoor Nagar, Independent Director Madhapur, Hyderabad - 500 081. Sri G. S. V. Prasad REGISTERED OFFICE : Independent Director Venkatarayapuram, Tanuku - 534 215, Justice Sri Challa Kodandaram Chowdary West Godavari District, Andhra Pradesh. Independent Director REGISTRAR & SHARE TRANSFER AGENTS: Dr. V.N. Rao XL Softech Systems Ltd., Independent Director (upto 25.9.2025) 3, Sagar Society, Road No. 2 Sri K. Rama Seshayya Banjara Hills, Hyderabad - 500 034. Independent Director (From 25.9.2025) The Andhra Sugars Limited CONTENTS PAGE NOS. Management 1 Contents 2 Directors’ Report 3 Business Responsibility and Sustainability Report 49 Auditors Report 78 Balance Sheet 88 Statement of Profit & Loss 90 Cash Flow Statement 91 Accounting Policies 93 Notes forming part of Accounts 106 CONSOLIDATED FINANCIAL STATEMENTS : Auditors Report 158 Consolidated Balance Sheet 167 Consolidated Statement of Profit & Loss 169 Consolidated Cash Flow Statement 171 Accounting Policies 173 Notes forming part of Consolidated Accounts 183 Statement regarding Subsidiary Companies 236 Notice to Shareholders 237 Proxy Form 246 The Andhra Sugars Limited DIRECTORS REPORT 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: (Rupees in lakhs) 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 7784.36 7507.46 Profit after depreciation 11237.15 4184.39 Add: Income Tax Refund received 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 continu- ously 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-distribution-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. The Andhra Sugars Limited 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 Hon'ble 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 Hon'ble 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) [Showing first 8,000 characters — download PDF for full document]