It is my privilege to present the annual report and detail the progress of the Companyduring the financial year 2020-21.
Globally this year was very challenging due to the outbreak of COVID-19 pandemicworldwide and resulting in disruption of regular business operations. GBL was fortunatethat these business uncertainties due to the outbreak of the Covid-19 crisis in FY 2020-21did not affect the liquid storage business of the Company. However the Chemicaldivision's business was affected for about six weeks due to initial nationwide lockdownimposed by the Indian Government.
The Central Government announced various economic packages for industries to revive andboost the economy. The Liquid industry is further poised for growth on a regular basis dueto the emphasis on Make in India programme of the Govt. of India and increaseddemand from domestic sector. Accordingly capacity growth has been planned in major portsin India. The Company is now the leading Liquid Storage provider for chemicals/oil and itsclients includes most of the prominent (Non-PSU) importers. Your Company efforts have beenrecognized by JNPT's award of Highest Liquid Cargo Handled in Non-PSU sector from lastmany years.
Your Company had a good year on financial front and during the financial year ended onMarch 31 2021 the Company achieved a total income of Rs2595.65 Millions as againstRs2466.72 Millions in the previous year ended on March 31 2020 with an increase of 5.23%YTY. The standalone profit before tax is reported at Rs506.60 Millions as against Rs336.66Millions for the previous year ended on March 31 2020 with an increase of 50.47% YTY.Standalone profit after current tax for the year is
Rs416.07 Millions as against Rs336.66 Millions for the previous year ended on March 312020 with an increase of 23.58% YTY. Net profit for the current year is reduced due to theinitial large (non cash) provision of Deferred tax liability of Rs180.20 Millions asavailable carry forward income tax losses are fully utilized.
Chemical division performance was also good this year and PBIT (before Exceptionalitem) of chemical division for the current year is Rs114.57 Millions as compared toRs.61.03 Millions of previous year.
During the financial year 2020-21 the Company acquired 86.52% stake in InfrastructureLogistic Systems Limited (ILSL) (Formerly known as Stolt Rail Logistic Systems Limited)which is an unlisted Public Company engaged in Rail logistic and bulk liquid storage andtransportation facilities. ILSL has storage tank facilities at Daund (Pune) and Butibori(Nagpur). This has been significant synergies with GBL's LST Business as it enables higherturnover (throughout) at JNPT. With this acquisition by GBL the customers will get end toend logistic solutions for transportation of liquid cargo from various ports and inlandlocations of India to their plants in a very economical safe and timely manner.
Further as per the approval of the Board in their meeting held on September 01 2021and subject to approval of members in this AGM the Company will conduct the chemicalbusiness between the parent company - Ganesh Benzoplast Limited and its 100% subsidiary(Wholly Owned Subsidiary) GBL Chemical Limited without transferring any immovableproperty owned by the company. Under this arrangement the purchase of raw materialnecessary for the manufacture of the chemicals and the sale of finished chemical productswill be handled by the WOS GBL Chemical Limited and the parent company (Ganesh BenzoplastLimited) will continue to carry on the manufacturing of chemicals on job work exclusivelyfor the WOS (GBL Chemical Limited).
The Company is also providing EPC and consultancy services to its customers. Under EPCit provides complete range of Engineering Procurement and Construction (EPC) services fortheir client projects including technical consultancy design & engineeringprocurement construction & implementation of projects from concept to commissioningfor industrial and other service sectors. Recently company has incorporated a 100%subsidiary GBL Infra Engineering Services Private Limited for handling EPC projects whichwill provide quality services in technical consultancy design & engineeringprocurement construction & implementation of projects from concept to commissioningfor industrial and other service sectors. With the current developments in theinfrastructure eld both by the government and private sector the company has opportunityto grow.
The Company has also incorporated a 100% subsidiary -GBL Clean Energy Private Limitedfor dealing in clean energy fuels viz. ethanol bioethanol butanol bioalcohol methanoland other clean energy and biodiesel fuels and other agro based products etc. Usingethanol and other alternative bio-fuels is highly promoted by the Government these daysand various initiatives are taken by the Government for using environmentally friendlysources of fuel and by this industry has a huge demand which can be capitalized by thecompany with the existing experience of the its parent company.
To conclude I take this opportunity to extend our gratitude to the Government ofIndia Port Authorities various regulatory authorities and our bankers associatessuppliers members and all other stakeholders for their support faith and continuedassociation.
I would like to extend my gratitude to the Company's employees and the board for theirconsistent commitment engagement support and encouragement in our journey.
|With warm regards |
|Rishi Pilani |
|Chairman & Managing Director |