It has been brought to our attention that an unauthorized bank account was opened and operated in the name of Ganesh Benzoplast Limited's wholly-owned subsidiary i.e. GBL Chemical Limited and the Management have also been made aware of certain unauthorised borrowings (wherein the Company is also shown as alleged co-borrower with its WOS) in the said unauthorised bank account.

“We are investigating the matter and are taking all requisite legal steps in this regard. We have already issued written communication to the concerned bank to freeze the operations in the said bank account with immediate effect,” the company informed Stock Exchange.

In the meantime, to ensure a fair investigation and as a good corporate governance practice, Ramakant Pilani, Chief Executive Officer of the Company (who is responsible for the affairs of the chemical division of the Company as well as the 100% WOS of the Company i.e. GBL Chemical Limited) has offered his resignation from the company and which is accepted by the Company with immediate effect.

Currently, the exact amount is yet to be ascertained. However, to the best of our knowledge, the company presently estimates the amount involved to be approx. Rs. 20 crores.