AFFLUENCE

STATE OF COMPANYS AFFAIRS:   a. Performance of the Company:   The standalone total income of the Company during the year stood at Rs.19,912.51 Million compared to the total income of Rs.23,821.41 Million during the previous year. The standalone total income thus decreased by Rs.3908.90 Million compared to previous year.   The consolidated total income during the year stood at Rs.22,355.37 Million compared to the total income of Rs.25,162.93 Million during the previous year. The consolidated revenue thus decreased by Rs.2807.56 Million compared to previous year.   As per the standalone financials, the Company earned a net profit before tax of Rs.712.52 Million in the year under review as against a net profit before tax of Rs.205.38 Million in the previous year.   i. Petroleum Products & Speciality Oil   The turnover of Oil segment increased from Rs.13,720.10 Million to Rs.17,523.56 Million in current year and achieved a growth of 27.72 %.   ii. Non-coking Coal   The turnover of Coal segment decreased to Rs.2,265.91 Million from Rs.9,898.80 Million in current year.   iii. Others   The turnover of other segment decreased to Rs.44.31 Million from Rs.54.54 Million in current year.   b. Performance of Subsidiary Companies/Associate Companies/Joint Ventures:   Domestic Subsidiary:   Gandhar Shipping and Logistics Private Limited:   During the year under review the Gross revenue of the Company was Rs.124.36 Million compared to total revenue of Rs.969.85 Million in the previous year. Profit After Tax (PAT) stood at Rs.0.07 Million compared to Rs.9.84 Million in the Previous Year.   Overseas Subsidiaries:   Gandhar Oil & Energy DMCC:   During the year under review the total income of the Company was Rs.2,559.13 Million compared to Rs.1,257.10 Million for the previous year. The Net Profit after tax was stood at Rs.143.45 Million compared to Rs.11.52 Million for the previous year.   Overseas Joint Venture:   Texol Lubritech FZC:   The Company has a joint venture Company namely Texol Lubritech FZC at Sharjah in which the Company has invested in 50% shares along with the JV Partner ESPE Petrochemicals FZC. Texol Lubritech has started its manufacturing operations in the year 2019-20. The company is engaged in the business to manufacture speciality oils and lubricants including liquid paraffin, industrial oil and greases, transformer oils, petroleum jelly, automotive lubricants, rubber processing oils and other petrochemical products.   During the year under review the Gross revenue of the Company was Rs.3,402.36 Million compared to total revenue of Rs.1461.17 Million in the previous year. The Company has earned profit of Rs.205.83 Million compared to loss  of Rs.63.29 Million in the previous year.   In accordance with the Section 129(3) of the Companies Act, 2013 read with Rule 5 of Companies (Accounts of Companies) Rules, 2014, the Company has prepared consolidated financial statements of the Company and all its subsidiary companies which forms part of the Annual Report.  A statement containing the salient features of the financial statement of the subsidiaries of the Company in the prescribed format AOC-1 is enclosed as annexure to the financial statements provided in the Annual Report.   The said Form also highlights the financial performance of each of the subsidiaries/associates companies included in the Consolidated Financial Statement pursuant to Rule 8(1) of the Companies (Accounts) Rules, 2014.   Further, pursuant to the provisions of Section 136 of the Act, the financial statements of the Company, consolidated financial statements along with relevant documents and separate audited financial statements in respect of subsidiaries, are available on the website of the Company viz. www.gandharoil.com.   The Company does not have any Holding or Associate Company.     

The information pertaining to conservation of energy, technology absorption, Foreign exchange Earnings and outgo as required under Section 134 (3)(m) of the Act, read with Rule 8(3) of the Companies (Accounts) Rules, 2014 is furnished in Annexure D and forms part of this Report.   ANNEXURE D   STATEMENT OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO PURSUANT TO PROVISIONS OF SECTION 134 OF THE COMPANIES ACT, 2013 READ WITH THE COMPANIES (ACCOUNTS) RULES, 2014   A. CONSERVATION OF ENERGY:   i) Energy conservation measures taken.   The Company continues its efforts to improve methods of energy conservation and its utilization.   a) Following Steps are taken for Conservation of Energy:   1. Compressor air leakages & steam leakages monitored regularly, leakages if noticed were arrested with upgraded sealant to avoid wastage of energy.   2. Power factor is maintained at 0.99 throughout the year.   3. All employees & workers are aware about using various gadgets to be put off during non-operations to conserve energy.   4. We have run trial installation of jet mixing in Tank at taloja plant for mixing which has reduced the power consumption by one-third.   5. To consume less electricity, energy saver LED light has replaced tube lights/halogen fitting after proper monitoring including lux levels.   6. To avoid carbon emission at work place & reduction of energy consumption battery operated fork lifts and electric stackers are being used.   b) Impact of above measures:   The above energy conservation measures have helped to reduce the overall energy consumption and fuel usage of the Company.   c) Steps taken by the Company for utilising alternate source of energy:   1) Solar panels are under planning to be implemented at both plants located at Taloja and Silvassa.   2) Taloja Plant will start using PNG (Pipe Natural Gas) for its entire Heat requirement.   ii) Total Energy Consumption.   Particulars 2020-21 2019-20 Electricity 1,552,530.00 1,405,591.00 Amount Paid   13,597,328.63 11,915,318.50 Average rate   8.76 8.48 Fuel (LDO/Furnace Oil/ Diesel) 164,512.28 128,599.58 Amount Paid 5,608,489.24 5,707,937.14 Average rate 34.09 44.39    

The information pertaining to conservation of energy, technology absorption, Foreign exchange Earnings and outgo as required under Section 134 (3)(m) of the Act, read with Rule 8(3) of the Companies (Accounts) Rules, 2014 is furnished in Annexure D and forms part of this Report.    ANNEXURE D   STATEMENT OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO PURSUANT TO PROVISIONS OF SECTION 134 OF THE COMPANIES ACT, 2013 READ WITH THE COMPANIES (ACCOUNTS) RULES, 2014     B. TECHNOLOGY ABSORPTION AND RESEARCH & DEVELOPMENT   (i) Efforts taken towards technology absorption:-   a. The Company has provided continuous & adequate training to all employees to absorb the technology;   b. New processes and up gradation of existing processes has been carried out to absorb the technology;   c. Automatic small packing system started for automotive grades like Engine oils & Gear Oils.   (ii) Benefits derived from such technology absorption:    a. Our company has maintained the better productivity & quality with zero defects.   b. Our Company has maintained customer satisfaction & zero complaints.   c. Expansion of Transformer Oil plant with new percolation column & filtration system.   (iii) Research and Development   Since Inception of the company and in pursuit of R & D endeavours the company is regularly incurring expenditure on R & D on the following activities   a) Continuous on-going process for continual improvements of process, products & cost effective formulations.   b) Optimisation of petroleum jelly formulations for various applications such as ointments   c) Development of white oil for various grades of polymer applications   d) Design optimization using advanced software packages for CAE (Computer Aided Engineering) for setting up tanks & pilot plant;-   e) Formulation & Development of New Products;   f) Reduction of rejections   g) Improving New Product Development (NPD) lead time;   h) Testing and validation of new products;   i) Cost reduction of existing products   (iv) Benefits derived as a result of R&D activities   Benefits derived as a result of R & D has improved the quality of the products and reduced operation cost. Upgradation of products to meet customers new requirements has been possible because of R & D done in the company since inception on a continuous basis. This has resulted in customers’ satisfaction and new business opportunities have evolved with lower cost, better quality and latest technology.   (v)  Expenditure on R & D         (Rs. In Million)   TURNVOER OF COMPANY 31-Mar-21 31-Mar-20 Expenditure on R & D     19809 23638   Particulars     a) Capital 7.92 9.76 b) Revenue 21.84 25.79 c) Total (a) + (b) 29.76 35.56 d) Total R & D Expenditure as a percentage of total turnover 0.15% 0.15%  

The information pertaining to conservation of energy, technology absorption, Foreign exchange Earnings and outgo as required under Section 134 (3)(m) of the Act, read with Rule 8(3) of the Companies (Accounts) Rules, 2014 is furnished in Annexure D and forms part of this Report.   ANNEXURE D   STATEMENT OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO PURSUANT TO PROVISIONS OF SECTION 134 OF THE COMPANIES ACT, 2013 READ WITH THE COMPANIES (ACCOUNTS) RULES, 2014     C. FOREIGN EXCHANGE EARNINGS AND OUTGO       (Rs. In Million) Particulars 2020-21 2019-20 Foreign Exchange Earnings 4,306.75 4,274.54   Foreign Exchange Outgo 2020-21 2019-20 Raw Material (CIF) 7,594.89 7,574.71 Trading Materials (CIF) 4,268.63 7,423.01 Capital Goods 2.51 8.54 Others 307.38 306.74 Total 12,173.41 15,312.99      

Pursuant to the provisions of Section 134(3)(c) of the Act, the Board of Directors state and confirm that:   a. in the preparation of the annual accounts for the year ended March 31, 2021, the applicable accounting standards had been followed along with proper explanation relating to material departures, if any;   b. the directors have 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 of the company for that period;   c. the directors have 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 have prepared the annual accounts on a going concern basis;   e. 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; and   f. the directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.