Dear Members,

Your Directors are pleased to present the Thirty Ninth Annual Report on the operational and business performance of the Company together with the Audited Financial Statements for the Financial Year ended 31st March, 2023.

Your Company is 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.

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)

During this Financial Year 2022-23, Plant produced 59,616 MTs (Previous Year 72,405 MTs) of Oxo-Alcohols. Sales during the Year were 58,388 MTs (Previous Year 70,937 MTs). Company posted Net Profit of Rs.20.40 crores during the Financial Year 2022-23 as compared to Net Profit of Rs.226.73 crores during the previous Financial Year.

During the Year under review, shut-down of the Plant for 41 days for annual maintenance and insufficient supply of Propylene from Hindustan Petroleum Corporation Limited (HPCL) are the main reasons for lower production of 12,789 MTs.

Considering the Company's performance for the Financial Year 2022-23 and the need to conserve the Funds to meet its Long-Term growth objectives, your Board of Directors at their Meeting held on 20.5.2023 has declared Dividend of Rs.1.50 (Rupee one and paise fifty only) per Share (@15% on 8,49,71,600 Equity Shares of face value of Rs.10/- each) involving a total cash outflow of Rs.12.75 crores. The Dividend, if approved by the Members at the ensuing Annual General Meeting of the Company, will be paid to all the eligible Members, involving a total cash outflow of Rs.12.75 crores. The Dividend shall be subject to deduction of Income Tax at source. 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.

The payout of Dividend is in line with the Company's Dividend Distribution Policy.

Over the years, the Company has been significant contributor to the Government Exchequer in the form of Duties and Taxes. During the Year under review, Rs.28.34 crores was paid to the Exchequer as against Rs.136.70 crores in the Previous Year, a decrease of Rs.79.27 crores over the Previous Year.

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

The total Reserves position as on 31.3.2023 stood at Rs.420.26 crores as against Rs. 418.69 crores for the Previous Year.

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

Continued Russia-Ukraine conflict, depressed Chinese economy and recessionary conditions prevailing in most parts of the world effected global economy including Indian economy.

Due to the poor global economy, International product prices got effected, which has effected Profitability of your Company. The disturbed International economies has led to increased Dumping of the Product.

The health and well-being of our employees are a top priority for the company.

Estimated demand of Oxo-Alcohols is at about 3,30,000 MTs per annum, which is growing at a healthy growth rate of 8% to 10% per annum. The Company with its existing capacity of 80,000 MTs per annum is well placed though competition exists from indigenous manufacturers and Imports. As such, there are no constraints in the Company's production capability subject to HPCL's ability to meet the full Propylene requirement of the Company. Sales realization is also expected to improve in view of the policies of the Govt. of India and forecast of better Indian GDP growth.

However, commencement and stabilization of production by M/s BPCL, Kochi, a public sector enterprise, and availability of its Oxo-Alcohols at competitive prices, dumping of the products and currency fluctuations may impact the Company's performance to some extent.

Ongoing Russia-Ukraine war and geopolitical tensions may effect on the business environment which is going to be a big challenge.

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 2022-23. 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.

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 31.3.2023 is 303.

Your Company Performance is expected to be reasonably good in view of the forecast of better GDP growth for India. However, the disrupted business environment due to Russia -Ukraine War & 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 pipeline laying work got held up since more than one year due to internal/finance issues.

The Company's performance to a large extent is dependent on international supply and demand for these products and their prices which are influenced by crude prices, exchange fluctuations and dumping by sources other than that covered by Anti-Dumping Duty.

Your Company is depending for its major raw material i.e., Propylene from a single source, HPCL Refinery. However, the risk is built in the project evaluation. Risk is slightly diluted to some extent by sourcing Propylene from GAIL-PATA .

Crude prices, Exchange rate fluctuations are also a matter of concern.

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.

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.

Your Company has evolved Safety, Health and Environment Policy.

Company has been completed 17.93 million accident free Man hours in last 14 years.

Total 4180 man-hours used for conducting Safety PEP 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 has won PRASHANSA PATRA in Manufacturing Sector at National level from National Safety Council for the year 2022.

Health monitoring of all employees including contract labour & canteen workers is done on regular basis.

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.

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

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 finalise the Land Lease Deed and fix-up the date for execution of the said Lease Deed. VPT has preferred an Appeal against the Hon'ble High Court of Andhra Pradesh Order dated 25.2.2022 before division bench of the Hon'ble High Court of Andhra Pradesh and the same is pending.

Pending execution of the 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.

The Equity Shares of your Company are listed on the BSE Limited, Mumbai. The Annual Listing Fees for the Year 2022-23 has been paid.

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 31st March, 2023 is available on the Company's website www.theandhrapetrochemicals.com.

M/s Andhra Pradesh Industrial Development Corporation Ltd., (APIDC) has withdrawn its Nominee Director, Sri R Karikal Valaven, I.A.S., Chairman & Managing Director of APIDC, with effect from 22.11.2022 and nominated Sri C Rami Reddy, Joint Director, Industries Department, Govt. of Andhra Pradesh, in his place. The Board of Directors, on the recommendation of the Nomination and Remuneration Committee (NRC), co-opted him as Additional Director with effect from 20.2.2023. As Additional Director he holds office till the date of the ensuing 39th Annual General Meeting.

In accordance with the provisions of the Companies Act, 2013 and Articles of Association of the Company, Directors Sri Mullapudi Thimmaraja and Sri Y S S Suresh retire by rotation at the ensuing 39th AGM.

As Sri Mullapudi Thimmaraja has not offered himself for reappointment as Director owing to his pre-occupation, he is not to be reappointed as Director. As Joint Managing Director of The Andhra Sugars Ltd., Promoter of the Company, he has been associated with the Company right from the project stage. The Board wishes to place on record its deep appreciation for the advice, guidance and valuable contribution provided by Sri Mullapudi Thimmaraja to the growth and development of the Company during his tenure with the Company.

Sri Y S S Suresh, being eligible, has offered himself for reappointment as Director. His reappointment is being placed for the approval of the Shareholders at the ensuing 39th AGM.

The first term of Dr. Pamidi Kotaiah, who was appointed as Independent Director for a period of 5 years with effect from the conclusion of the 34th AGM, is valid upto the conclusion of the 39th AGM. To avail his experience and expertise, Board of Directors at their Meeting held on 20.5.2023 have reappointed him, on the recommendation of the NRC, for a further period of 5 years. His reappointment is being placed for the approval of the Shareholders at the ensuing 39th AGM.

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.

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

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 2022-23.

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 2022-23 are given in the Corporate Governance Report which forms part of this Report.

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 2022-23 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.

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 2022-23.

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 19.5.2023 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.

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

The details of the number of Meetings of the Board held during the Financial Year 2022-23 are given in the Corporate Governance Report which forms part of this Report.

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.

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.

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

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 constituted by the Board of Directors on 24.6.2021 comprises Sri P Narendranath Chowdary, Managing Director, as Chairman of the Committee and Sri Mullapudi Thimmaraja 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 2022-23 are given in the Corporate Governance Report which forms part of this Report.

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.2,45,10,349.93 towards CSR expenditure for the Financial Year 2022-23 and transferred an amount of Rs.41,66,000.07 to "Unspent Corporate Social Responsibility Account for the Financial Year 2022-23" opened with the Union Bank of India, Venkatarayapuram on 28.4.2023. 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 comprises Dr. (Smt.) D Manjulata, Independent Director, as Chairperson, Sri Mullapudi Thimmaraja, Non-Independent and Non-Executive Director and Dr. V N Rao and Sri G S V Prasad, Independent Directors, as its Members.

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

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 38th Annual General Meeting. Fixation of their remuneration for the Year 2023-24 is being placed at the ensuing 39th AGM for the approval of Members. The total fees paid by the Company for the Year 2022-23 to the Statutory Auditors for all services rendered by them is Rs. 7.75 lakhs.

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.

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 2023-24 on a remuneration of Rs.2.00 lakhs and appropriate Resolution in this connection has been included in the Notice calling the ensuing 39th Annual General Meeting of the Company for the purpose of your ratification of the said remuneration. Cost Auditors' Report for the Financial Year ended 31st March, 2022 has been filed with the Ministry of Corporate Affairs on 3.6.2022 i.e., within the stipulated time.

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:

1. Steps taken or impact on conservation of energy:

(a) INTERCHANGER (Kaizen Project ): Butyraldehyde & tempered water Interchanger - 02 E137 C (New) erected & taken on line on 14.10.2022. Expected savings in steam with this interchanger is around Rs.50.00 lakhs per year. Savings achieved till 31.3.2023 is Rs.23.00 lakhs.

(b) AIR PRE-HEATERS FOR REFORMERS: To improve the performance of Reformers (01 & 06 Areas) & to save energy, we have installed Air pre-heaters in the month of September. The expected energy savings in this project is around Rs.1.00 crore per annum. Savings achieved till 31.3.2023 is around Rs.34.00 lakhs (for six months operation).

(c) Recycle of Heavy Purge from Refining column bottom to Vapouriser: We have installed new energy efficient pump & recycled heavies to Vapouriser which has helped us to improve the productivity & energy savings. We expect savings around Rs.1.00 crore with this project. We have achieved energy savings up to Rs.56.00 lakhs during this year (for six months operation in this year).

(d) Improvement (Energy) in DM pump operation: We used to run 2 DM pumps for meeting the Plant requirement. We modified Pump impeller & which has given more flow sufficient to feed the Plant. Due to this modification, we could operate only one pump & saved the energy to the extent of Rs.50,000/- per year.

2. Steps taken by the Company for utilising Alternate Sources of Energy. Company could not initiate any steps in this regard in view of the non-viability.

3. Capital investment on Energy Conservation Equipments: Rs.86.65 lakhs.

II) TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION:

a) Efforts made & Benefits derived:

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

b) Imported Technology: NIL

c) Expenditure incurred on Research & Development: NIL

There is no employee 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 of Managerial Personnel) Rules, 2014 as amended from time to time. 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.

As on 31st March, 2023, out of the total number of 8,49,71,600 Equity Shares of the Company, 8,11,63,230 Equity Shares constituting 95.52% stand dematerialised.

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.

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 2022-23, there were no complaints received by the ICC.

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

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.

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: 18.15%

(d) the number of permanent employees on the rolls of Company: 303

The average increase in salaries of employees other than managerial personnel in 2022-23 was 18.15%*. Percentage increase in the managerial remuneration for the Year was Nil.

* the increased percentage in the median remuneration compared to previous year due to pay revision.

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.

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.

There were no material changes and commitments affecting the financial position of the Company, which have occurred between the end of the Financial Year 2022-23 to which the Financial Statements relate and on the date of this Report.

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.

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 31st March, 2023, 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 31st March, 2023 and of the Profit 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.

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

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.

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), Gas Authority of India Ltd., (GAIL), Bharat Petroleum Corporation Ltd., (BPCL) and other Suppliers. Your Directors place on record their deep sense of appreciation of the valuable contribution made by the employees at all levels.