INDIAN RAYON AND INDUSTRIES LIMITED - Aditya Birla Nuvo, Ltd

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Uses of Cash123 18Capital ExpenditureThe Company has invested Rs.21.4 Crores in its normal capital expenditure plan in its all the business segment. However the majoramount was spent on the installation of Desalination Plant.Debt RepaymentThe Company has repaid long term debt of Rs.19.2 Crores and a short term borrowing of Rs.121 Crores during the year.DividendThe Company paid a sum of Rs.6.7 Crores towards dividend for the year 1999-00. The Board has proposed a dividend of Rs.3 pershare for the year 2000-01.RISK MANAGEMENTThe Company is exposed to risks from market fluctuations of foreign exchange, interest rate and commodity prices.Foreign Exchange RiskThe Company’s policy is to hedge its foreign exchange risk for long term as well as short term exposures. Currently, Company do es nothave long term forex liability and short term is covered time to time. The Company’s exports during the year were Rs.397.15 cro resand imports were Rs.264.79 Crores. Due to excess of exports over imports the Company is long on US $ and this position at timesremains unhedged. However, considering the rupee depreciation in the past there seems no risk in keeping exports un-hedged.Interest Rate RiskThe Company’s long-term borrowings are at fixed interest rates and short term borrowings are at floating interest rates. Accordingly,Company does not perceive any Interest Rate Risk.Commodity Price RiskThe Company is exposed to risk on raw material as well as finished goods price of all its products. As presently there is no hedgingmechanism available, the Company is exposed to price fluctuation of input as well as output.JOINT VENTURE COMPANIES:Our investments in our joint venture companies total Rs.292.08 Crores. These encompass Indo Gulf Corporation Limited, MangaloreRefinery & Petrochemicals Limited, Birla AT&T Communications Limited, Bina Power Supply Company Limited, Rosa Power SupplyCompany Limited and Birla Sunlife Insurance Company Limited.Indo Gulf Corporation Ltd.Indo Gulf’s “SHAKTIMAN UREA” continues to be the preferred choice of farmers in its entire marketing territory. Theperformance of its Copper Smelter Plant has been exemplary. During the year, D-Ammonium Phosphate (DAP) wascommissioned along with the Precious Metal Refinery (PMR) at its Copper Smelter plant at Dahej. The operations at boththese plants have been fully stabilised. Consequently the Company expects a significant increase in the profit and revenue inthe coming years.Mangalore Refinery & Petrochemicals Ltd. (MRPL)To curtail losses, the restructuring of MRPL is on the anvil. Two alternate strategies are being seriously explored. Firstly, scoutingfor a third strategic partner, besides HPCL and the Aditya Birla Group and secondly divesting of the Group’s stake and exiting thebusiness.Birla AT&T Communications LimitedThe year 2000-01 witnessed Birla AT&T Communications Limited (BACL) emerge as one of the dominant Cellular Operations inIndia through its merger with Tata Cellular Limited (TCL) and the acquisition of RPG Cellcom Limited, the Cellular Service Provider inMadhya Pradesh Telecom Circle. On completion of the merger with TCL, the operations of the company would extend to four TelecomCircles – Maharashtra, Gujarat, Andhra Pradesh and Madhya Pradesh. This would cover about 28% of total population of India andnearly 30% of potential cellular market of the country.
Birla Sunlife Insurance Company Ltd.Insurance Regulatory Development Authority (IRDA) has granted licence to Birla Sunlife Insurance Company Ltd in February 2001.The life insurance business has started towards end of March 2001.Bina Power Supply Company LimitedBina Power Supply Company Ltd. is setting up a 578 MW coal based Power generation facility at Bina in Madhya Pradesh in a jointventure with M/s. Power Gen of U.K.Consequent to division of the State of Madhya Pradesh and formation of Chattisgarh State Electricity Board, CRISIL has beenrequested to undertake a fresh study on the availability and allocation of Escrow Circles. In the meantime, Bina Power has been grantedEscrow Circles worth Rs.38 Crores monthly on a provisional basis.The project will gather momentum once the payment security mechanism is finalised by Ministry of Power.Rosa Power Supply Company LimitedRosa Power Supply Company Limited is setting up a 567 MW coal based thermal power plant at Rosa, Dist. Shahjahanpur, U.P. Allthe major project contracts and agreements have been executed / in an advanced stage of execution. The Company is targeting to achievefinancial closure within this calendar year.INTERNAL CONTROL SYSTEMManagement Information Systems (MIS) is the backbone of our control mechanism. Clearly defined roles and responsibilities downthe line for all managerial positions have been institutionalised. All operating parameters are monitored and controlled. Regularinternal audits and checks ensure that responsibilities are executed effectively and that the MIS is flawless among a well-conceived annualplanning and budgeting system.Any material change in the business outlook is reported to the Board. Material deviations from the annual planning and budgetingare reported on a quarterly basis to the Board. An effective budgetary control on all capital expenditure ensures that actual spending isin line with the capital budget.HUMAN RESOURCE MANAGEMENTThe Company presently has 11,002 employees on its rolls. These – its human resource assets, are integral to the Company‘s ongoingsuccess. They have been instrumental in uplifting the Company to its performance levels. The Company‘s Human Resource processes havebeen explained in depth in the Director‘s Report.CONCLUSIONTo sum up, all our key businesses except carbon black have demonstrated significant improvement in performance during the year.Going forward, the Garments business will continue to be the key driver of growth, despite short-term challenges faced by the Company.Insulators business has demonstrated improvement during the year under review and is expected to report further improvement inoperations next year. VFY should regain its past glory as well. However, the carbon black business is witnessing sharp fluctuations in thedomestic and export markets, but softening of global oil prices is a positive development for the business. With focus on all roundimprovements in marketing, assets utilizations and cost control, we are confident of delivering superior results in the years to come andenhancing shareholder value.CAUTIONARY STATEMENTStatements in this “Management’s Discussion and Analysis” describing the Company’s objectives, projections, estimates, expectationsor predictions may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results coulddiffer materially from those expressed or implied. Important factors that could make a difference to the Company’s operations includeglobal and Indian demand supply conditions, finished goods prices, feed stock availability and prices, cyclical demand and pricing in theCompany’s principal markets, changes in Government regulations, tax regimes, economic developments within India and the countrieswithin which the Company conducts business and other factors such as litigation and labour negotiations.19
Page 1 and 2: BOARD OF DIRECTORSShri Kumar Mangal
Page 3 and 4: Simultaneously, we will concentrate
Page 5 and 6: Mavoor, which were rendered unviabl
Page 7 and 8: SEGMENTAL ANALYSIS AND REVIEWThe ne
Page 9 and 10: On the upside is the structural cha
Page 11 and 12: Benefiting from the shifting focus
Page 13 and 14: • Volume Enhancement: Efforts on
Page 15 and 16: Outlook for Indian Rayon’s Insula
Page 17: Net ProfitNet Profit has gone up fr
Page 21 and 22: 1 Independent director means direct
Page 23 and 24: 5. The Board meetings should be hel
Page 25 and 26: 13. The Company should provide a br
Page 27 and 28: Social ReportBeyond Business - Reac
Page 29 and 30: Environment ReportENVIRONMENTAL PRO
Page 31 and 32: Directors’ Report to the Sharehol
Page 33 and 34: Forays Into New Business Segments a
Page 35 and 36: AWARDS AND RECOGNITIONDuring the ye
Page 37 and 38: ii)iii)Insulator Division• Instal
Page 39 and 40: ANNEXUREForm-AForm for disclosure o
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Page 43 and 44: Profit & Loss Account for the year
Page 45 and 46: SCHEDULE ‘3’ As at 31st As at 3
Page 47 and 48: SchedulesSCHEDULE ‘6’ (Contd.)I
Page 49 and 50: SCHEDULE ‘8’ As at 31st As at 3
Page 51 and 52: SCHEDULE ‘13’ 2000-01 1999-2000
Page 53 and 54: SchedulesSCHEDULE ‘19’SIGNIFICA
Page 55 and 56: SchedulesSCHEDULE ‘19’SIGNIFICA
Page 57 and 58: SchedulesANNEXURE IINFORMATION PURS
Page 59 and 60: BALANCE SHEET ABSTRACT AND COMPANY
Page 61 and 62: STATEMENT PURSUANT TO SECTION 212 O
Page 63 and 64: BALANCE SHEET AT 31 DECEMBER 2000IN
Page 65 and 66: BIRLA SUN LIFE INSURANCE COMPANY LI
Page 67 and 68: REVENUE ACCOUNTFor the period 4th A
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SCHEDULE-4BENEFITS PAID (NET)(Amoun
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SCHEDULE-10FIXED ASSETS(Amount in R
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Tax ProvisionThe tax provision as o
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MANAGEMENT REPORTIn accordance with
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BALANCE SHEETAs at 31st March, 2001
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STATEMENT PURSUANT TO SECTION 212 O
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BALANCE SHEETAs at 31st March, 2001
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Shareholder Information1. Annual Ge
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Relative Performance: Indian Rayon
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15. Categories of Shareholding as o
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INDIAN RAYON AND INDUSTRIES LIMITED - Aditya Birla Nuvo, Ltd

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