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 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) 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 Auditor's 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 Company's 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 Company's business, strategic plans and other key issues.
? Special Skills and expertise of each Director contributing to the
Board's overall effectiveness.
? Respecting the confidentiality of the Company's business information
and Board's 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 Company's 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 Company's 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
employee's 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 Company's 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 Company's
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 Company's 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:
Company's 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 |
|