Your Directors have pleasure in presenting the Forty Seventh Annual Report on the Business and Operations of
the Company together with the Audited Financial Statements for the Financial Year ended 31^st March 2025.

The turnover of the company for the year at '863.36 crores increased by 14.97% from '750.92 crores
of the previous year. During the year, the sales volume of Fatty acids decreased by 12.34% and Toilet
Soap & Soap products increased by 18.92%. The Profit Before Tax (PBT) decreased to '1.34 crores as
compared to '2.65 crores in the previous year. The main reason for decrease in PBT is decrease in sales
volume of Fatty Acids due to severe competition and also due to decrease in other income.

The appropriations from the profit are as detailed below.

* In accordance with the requirements of Ind AS, dividend is to be accounted in the year of payment. Hence,
dividend paid during the year is given instead of dividend declared during the year.

2. DIVIDEND & RESERVES

Considering the profits of the Company the Board of Directors have recommend for the approval of the
shareholders of the Company for payment of dividend for the year ended 31-03-2025, at '0.50 per
equity share of '10 each, which aggregates to '44,40,575 on 88,81,150 equity shares of the Company.
In the previous year, the Company paid dividend at '1.50 perequity share of '10 each on 88,81,150
shares amounting to '1,33,21,725. Your Directors do not propose to transfer any amount to reserves
for the Financial Year ended on March 31, 2025.

3. OPERATIONS 2024-25 2023-24

MT MT

4. BUSINESS REVIEW AND OUTLOOK

Your Company has not changed its nature of business during the period under review. Division wise
performance and outlook is described as given below.

Fatty Acids and Soap

There is an improvement in sales volume of Soap Noodles. However, the profitability of the year under
review is lower when compared to previous year due to the reasons afore stated. GST refund/benefit is
continuing for North-eastern states and Jammu & Kashmir and will be available upto June 30, 2027.
However, these benefits may not be attractive enough to overcome the increased logistical costs for
marketing in the south. As a result, the opportunities have improved for manufacturers in non-exempt
areas especially for those catering to the Southern markets. However, due to intense competition, the
Company is able to market short of its full capacity and that too with meagre margins. Also, in order to
survive in the competing business for Stearic Acid, Company reduced the prices of various grades of
Stearic Acid. The Company is continuing to explore the market for its products from medium to small
customers with reasonable success.

Cost of raw materials is a major component in total cost of production and the fluctuation in their prices
is a serious cause of concern to the company particularly when the customers demand long term forward
contracts while the same is not possible with the raw material suppliers. There is stiff competition from
manufacturers particularly from those having backward integration which gives them a cost advantage.
The Company is able to source the raw materials largely from local suppliers. However, to meet the
urgent requirements of major customers, Company may have to import PFAD and RBD Palm Stearine in
case of shortage in local market.

The Company enters into contracts for supply of Fatty Acids, Soap Noodles and Toilet Soap for major
customers wherein the price of raw materials is factored into the selling price of the products. The
customers themselves supply/cover raw materials required for the total process and the Company
receives processing charges for the manufacture of final products. This system provides meagre margins
but helps to safeguard against fluctuations in raw material prices and thereby avoids losses.

M/s. Hindustan Unilever Ltd, one of Company's major customer expressed its interest to procure additional
quantity of Soap Noodles. As such Company increased the capacity of Soap Noodles production by
1500 MT per month by investing an amount of Rs.6.5 Crores. Commercial production of the expanded
capacity commenced from 15 May 2025. The market for Toilet Soap and Soap Noodles is expected to
increase compared to the year under review due to increase in capacity of Soap Noodles Plant. For
Stearic Acid there may be a slight increase in demand in the forth coming period due to offering of
competitive prices to customers.

Biomass Power Plant

The generation from the Plant during the year decreased to 253 lakh units from 272 lakh units achieved
in the previous year, a 7% drop when compared to the previous year. However, sale of Biomass Power

improved to 53 lakh units a 9% rise when compared to the previous year. The main reason for increase
in sales is due to sale of additional units of Power to Indian Energy Exchange (IEX) when compared to the
previous year due to decrease in internal consumption.The revenue from Biomass Power Plant is expected
to decrease slightly compared to the year under review due to additional requirement of Power for
internal consumption for the anticipated higher production of Fatty Acids and Soap Noodles.

Wind Energy Generators (WEG)

Power generation during the year from the four Wind Energy Generators (WEGs) of 6.3 MW capacity
has increased as compared to the previous year. During the year, the power generation from all the four
WEGs was 115.72 lakh units as compared to 95.96 lakh units in the previous year due to decrease of
grid failure from13.12% to 4.67%. The backdown of WEGs for want of evacuation facilities amounts to
3.14% of available time during the year 2024-25 as compared to 4.26%in the previous year.

5. SUBSIDIARY/ASSOCIATE COMPANIES

Your Company has no subsidiary/associate/joint venture companies. During the year under review,
your company has not added any subsidiaries, joint ventures or associate companies.

6. FINANCE AND STATUTORY COMPLIANCES

The Company availed working capital facilities under consortium arrangement with Union Bank of India
and State Bank of India and the accounts are in order. The company complied with all the legal
requirements and there are no outstanding statutory dues as on 31st March 2025.

During the year there have been no significant and material orders passed by the regulators or courts or
tribunals impacting the going concern status and company's operations in future.

7. CREDITRATING

During the year the Credit Rating Agency CARE re-affirmed the credit rating for working capital facilities
as detailed hereunder.

8. DEPOSITS

Your Company has not accepted any deposits covered under Chapter V of the Companies Act, 2013 i.e.
within the meaning of Section 2(31) of the Companies Act, 2013 read with Rule 2(1)(c) of the Companies
(Acceptance of Deposits) Rules, 2014 and as such there are no such overdue deposits outstanding as on
31 March 2025.

9. MATERIAL CHANGES AND COMMITMENTS AFFECTING FINANCIAL POSITION BETWEEN THE END OF
THE FINANCIAL YEAR AND DATE OF REPORT.

There are no material changes and commitments affecting financial position of the Company, which
occurred after the end of the financial year i.e. 31 March 2025.

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

The Company has in place an Anti-Sexual Harassment Policy in line with the requirements of The Sexual
Harassment of Women at the Workplace (Prevention, Prohibition & Redressal) Act 2013. All women
employees whether permanent, temporary or contractual are covered under the said policy. The Company
has complied with provisions relating to the constitution of Internal Complaints Committee under the
Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. During
the year the Company has not received any complaints on sexual harassment of women at the workplace.

11. VIGIL MECHANISM/WHISTLE BLOWER POLICY

The Company has established Vigil Mechanism as required under Section 177 of the Companies Act,
2013 for directors and employees to report genuine concerns as prescribed in the policy. The policy
provides adequate safeguards against victimization of persons who use such mechanism and makes
provision for direct access to the Chairperson of the Audit Committee in appropriate or exceptional
cases.

12. DIRECTORS AND KEY MANAGERIAL PERSONNEL (KMP)

In accordance with the provisions of the Companies Act 2013 and Articles of Association of the Company,
Sri Mullapudi Thimmaraja and Sri Mullapudi Mrutyumjaya Prasad, Directors retire by rotation at the
ensuing Annual General Meeting and being eligible offers themselves for re-appointment. Sri K. Rama
Seshyya was re-appointed as Non-Executive Independent Director, by the shareholders by way of a
Special Resolution at their Annual General Meeting held on September 19, 2024 for the second term of
5 consecutive years from 21-9-2024 up to 20-9-2029 after completion of his first term of appointment
on September 20, 2024.

a. In the opinion of the Board, Independent Directors appointed during the year possess the requisite
integrity, expertise and experience (including proficiency),

b. During the year under review, none of the Directors resigned from the Board.

c. The Company held Four Board Meetings during the year. Board Meeting dates and attendance
particulars are available in the report on Corporate Governance.

d. The Company has received declarations from all Independent Directors confirming that he/she
meets the criteria of independence as provided under sub-section 6 of Sec.149 of the Companies
Act, 2013 at the first meeting of the Board in which he/she participated as a Director and there after
at the first meeting of the Board in every financial year or whenever there is any change in the
circumstances that may affect his/her status as an Independent Director.

e. The Audit Committee as on 31 March 2025 consisted of 6 Non-Executive Directors of which 4 are
Independent Directors. Sri PA. Chowdary, Independent Director is the Chairman of the Audit
Committee. The remaining 5 members are Sri Mullapudi Thimmaraja, Non-Executive Director,
Sri VS. Raju, Non-Executive Director, Sri P Kesavulu Reddy, Independent Director, Sri G.S.V Prasad,
Independent Director and Dr. VN. Rao, Independent Director. The Board accepted all the
recommendations of the Audit Committee during the year.

During the year under review, the Company is having the following persons as Key Managerial Personnel
under Sec.203 of the Companies Act, 2013.

13. MEETING OF INDEPENDENT DIRECTORS

A separate meeting of Independent Directors as required under Schedule IV of the Companies Act, 2013
was held on 5 February 2025, without the presence of Non-Independent Directors. This meeting was
conducted to review and evaluate (a) the performance of Non-Independent Directors and the Board as
a whole, (b) the performance of the Chairperson of the company, taking into account the views of
Executive Directors and Non-Executive Directors and (c) assess the quality, quantity and timeliness of
flow of information between the Company Management and the Board that is necessary for the Board
to effectively and reasonably perform their duties. The Independent Directors expressed their satisfaction
with the performance of Non-Independent Directors and the Board as a whole and Lead Independent
Director Sri P Kesavulu Reddy briefed the outcome of the meeting to the Board.

14. INTEGRITY, EXPERTISE AND EXPERIENCE OF THE INDEPENDENT DIRECTORS

All the Independent Directors appointed by your Company are selected from the Independent Directors
Data bank maintained by the Indian Institute of Corporate Affairs (IICA). All Independent Directors of
the Company have passed/been exempted from the online Proficiency Self Assessment Test conducted
by IICA.

All the Independent Directors of the Company have given their respective declarations/disclosures
under Section 149(7) of the Companies Act, 2013 and Regulation 25(8) of the Listing Regulations and
have confirmed that they fulfill the independence criteria as specified under Section 149(6) of the Act

and Regulation 16 of the Listing Regulations and have also confirmed that they are not aware of any
circumstance or situation, which exist or may be reasonably anticipated, that could impair or impact their
ability to discharge their duties with an objective independent judgement and without any external
influence. Further, the Board after taking these declarations/disclosures on record and acknowledging
the veracity of the same, concluded that the Independent Directors are persons of integrity and possess
the relevant expertise and experience to qualify as Independent Directors of the Company and are
Independent of the Management.

15. AUDITORS

M/s. Chevuturi Associates, Chartered Accountants, Vijayawada were appointed as Auditors for a period
of 5 years at the 44th Annual General Meeting held on 24 September 2022 till the year 2026-27. There
are no qualifications, reservations or adverse remarks in the audit report issued by them for the financial
year ended 31st March 2025.

16. COST RECORDS AND COST AUDITORS

Company is maintaining cost records as specified by the Central Government under sub section (1) of
Section 148 of the Companies Act, 2013. M/s. Narasimha Murthy & Co., Cost Accountants, Hyderabad
are conducting the cost audit for applicable products during the year. They are eligible for re-appointment
as Cost Auditors for the year 2025-26. Cost Audit for the Financial Year 2024-25 is expected be
completed before the due date i.e., 30 September 2025. There are no qualifications, reservations or
adverse remarks in the audit report issued by them for the financial year ended 31st March 2024.

17. SECRETARIAL AUDIT

M/s. Nekkanti S.R.VVS. Narayana & Co., Company Secretaries, Hyderabad were appointed as Auditors
for secretarial audit for the year 2024-25 under Section 204 of the Companies Act, 2013 and they have
submitted their report. There are no qualifications, reservations or adverse remarks in the audit report
issued by them for the financial year ended 31st March 2025.

18. ANNUAL RETURN

Pursuant to Section 92(3) of the Companies Act, 2013, Annual Return has been placed in the website of
the Company and weblink for the same is www.//jocil.in/AnnualReturn2024-25.pdf

19. DECLARATION AS PER SECTION 134 (3)(ca) OF COMPANIES ACT, 2013

During the year, the auditors have not reported any instance of frauds committed by or against the
Company by its Directors/Officers/Employees to the Audit Committee or Board under Section143(12)
of the Companies Act, 2013 and rules made there under. Therefore no details are required to be
disclosed under Section 134(3)(ca) of the Act.

20. SIGNIFICANT MATERIAL ORDERS PASSED BY THE REGULATORS

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

Your company has complied with all the Acts, Rules, Regulations and Guidelines issued/prescribed by
the Securities Exchange Board of India, Reserve Bank of India, Ministry of Corporate Affairs and other
statutory authorities.

21. No application has been made under the Insolvency and Bankruptcy Code. As such 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.

22. 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 or Financial Institutions
along with the reasons there of, is not applicable as no such loans were obtained from any Banks or
Financial Institutions.

23. INTERNAL FINANCIAL CONTROLS AND ITS ADEQUACY

Your Company has adequate Internal Financial Controls as per Section 134(5)(e) of the Companies Act,
2013 that commensurate with the size of the business and nature of its operations, designed to provide
reasonable assurance with regard to the accuracy and completeness of the accounting records and
timely preparation and provision of reliable financial statements.

The Board has inter alia reviewed the adequacy and effectiveness of the Company's internal financial
controls relating to its financial statements, the major financial risk exposures if any and steps taken by
the management to monitor and control such exposures, overseen and reviewed the functioning of the
Whistle Blower Mechanism.

Your Company has adopted necessary policies and procedures for ensuring the orderly and efficient
conduct of its business, including adherence to Company's policies, the safeguarding of its assets, the
prevention and detection of frauds and errors, the accuracy and completeness of the accounting records
and the timely preparation of financial information.

During the year no fraud by the Company or with the Company by its officers or employees has been
noticed/reported.

24. COMPLIANCE WITH SECRETARIAL STANDARDS

During the year under review, the Company has complied with the applicable Secretarial Standards
issued by the Institute of Company Secretaries of India.

25. The information required to be included in the Board of Directors Report under the Companies Act,
2013 and Rules made there under is annexed and forms part of this report, details of which are as
follows.

24. INFORMATION UNDER LISTING REGULATIONS

The Company is committed to maintain the standards of Corporate Governance prescribed under SEBI
(Listing Obligations and Disclosure Requirements) Regulations 2015 (Listing Regulations). The
information required to be included in the Annual Report under Schedule V of the Listing Regulations
are as follows.

The Company is having a policy to deal with Related Party Transactions and the same may be viewed in

the Company's website www.jocil.in. Accounts for disclosures in compliance with the Accounting

Standards on "Related Party Disclosures" are given in note no. 34.

25. DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to the requirement under Section 134(3)(c) of the Companies Act, 2013, with respect to

Directors' Responsibility Statement, it is hereby confirmed that -

a. in the preparation of the annual accounts, the applicable accounting standards had been followed
along with proper explanation relating to material departures;

b. the Directors had selected such accounting policies and applied them consistently and made
judgments and estimates that 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 and loss of the
company for that period;

c. the Directors had taken proper and sufficient care for the maintenance of adequate accounting
records in accordance with the provisions of this Act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities;

d. the Directors had prepared the annual accounts on a going concern basis;

e. 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;

Explanation : For the purpose of this clause, the term "internal financial controls" means the policies
and procedures adopted by the company for ensuring the orderly and efficient conduct of its
business including adherence to company's policies, the safeguarding of its assets, the prevention
and detection of frauds and errors, the accuracy and completeness of the accounting records, and
the timely preparation of reliable financial information.

f. and, 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.

26. PERSONNEL

The Directors wish to place on record their appreciation to all the employees of the Company for their
sustained efforts and valuable contribution to the performance of the Company during the year.

27. ACKNOWLEDGEMENTS

The Directors wish to place on record their appreciation for the wholehearted and sincere cooperation
the Company received from various departments of Central and State Governments, Bankers, Auditors,
Dealers and Suppliers of the Company. The Directors also would like to express their grateful appreciation
for the guidance and cooperation received from the Holding Company, M/s. The Andhra Sugars Limited,
Tanuku.

For and on behalf of the Board of Directors

Place : Dokiparru FI NARENDRANATH CHOWDARY

Date : 26 May 2025 Chairman