INDIAN RAYON AND INDUSTRIES LIMITED - Aditya Birla Nuvo, Ltd

DEPOSITORY SYSTEM
As you are aware that your Company has entered into an agreement with the National Securities Depository Limited (NSDL) and the Central
Depository Services (India) Limited (CDSL). This enables you to hold your shares in a dematerialised form with either of these depositories. In
order to expedite the demat process further, the Company is installing necessary equipment at the Registered Office at Veraval for having direct
connectivity with NSDL.
The delivery of equity shares of your Company is now mandatory in the dematerialised form in all exchanges where your shares are listed.
Since this move facilitates quick transfers and prevents forgery, those shareholders who have not opted for this facility are advised to dematerilise
their shares in their own interest. Your Company has also made arrangements for simultaneous dematerilisation of the physical shares lodged for
transfer.
HUMAN RESOURCES DEVELOPMENT AND INDUSTRIAL RELATIONS
The integration of the Indian economy with the global economy has led to a shift in focus of the skills sets of people, which is now an
imperative to run a business enterprise successfully.
To meet with this change, your Company has charted a human resource policy that integrates the people, their skills and the needs of the
organisation.
Your Company firmly believes that people constitute the strength of an organisation. Proactive initiatives have been take to establish systems
that foster performance, transparency, fairness and empowerment at all levels. The work processes in the Company are team driven. Your Organisation
has created a culture of knowledge sharing and is endeavouring to make it a way of life. The appraisal system has been institutionalised.
Performance based reward mechanism is being evolved. Individual achievements and attainment of team objectives have been inter-linked.
These initiatives of your Company have facilitated extremely cordial industrial relations at practically all the Units of your Company barring
a brief aberration at the Viscose Filament Yarn Plant. An illegal and unjustified strike by a section of the workers at the Viscose Filament Yarn
Plant affected operations from the 11th of March to 22nd March, 2000.
JOINT VENTURE COMPANIES
From time to time we have invested Rs. 209.08 crores in our joint venture companies encompasses Indo Gulf Corporation Limited, Mangalore
Refinery & Petrochemicals Limited, Birla AT&T Communications Limited & Bina Power Supply Company Limited.
Indo Gulf’s performance for the year has been exemplary. It has achieved new highs in both its fertiliser and copper businesses. The profits
of the company are rising year after year.
Mangalore Refinery & Petrochemicals Limited is making serious efforts to curtail losses and create its competitive edge in the deregulated
Hydro Carbon Sector.
With the announcement of the new telecom policy, Birla AT&T has already started making operating profits. The future outlook is promising.
To take advantage of synergies and to expand the foot print, the Company has entered into a Memorandum of Understanding with Tata Industries
Limited for merger of Tata Cellular Ltd.(the cellular licensee of Andhra Pradesh Circle) with Birla AT&T.
Bina Power is setting up a 578 MW Coal Based Power Generation facility at Bina in MP in Joint Venture with M/s. PowerGen of UK. While
all Project Contracts and Agreements had been executed / finalised, the ongoing litigation for Escrow allocation had put a brake on the very fast
progress that was achieved. However, the Company has now received a favourable Supreme Court verdict and are hopeful to achieve Financial
closure within this calendar year.
28