INDIAN RAYON AND INDUSTRIES LIMITED - Aditya Birla Nuvo, Ltd

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123 32The operational performance of each of your Company’s division has been explained in great depth in the chapter on ManagementDiscussion and Analysis Report.FINANCIAL RESULTSThe table below gives the results:(Rs. in Crores)CurrentPreviousYear endedYear ended31.3.2001 31.3.2000Operating Profit 230.20 205.81Less: Interest 74.69 74.33Gross Profit before payment of Royalty to wholly owned subsidiary 155.51 131.48Less:Less:RoyaltyDepreciation/Amortisation8.2673.081.3972.50Profit before Exceptional items and Tax 74.17 57.59Less: Exceptional Loss due to exit from Sea Water Magnesia Business - 298.82Less: Provision for Taxation 5.65 -Profit/(Loss) after Exceptional items & Tax 68.52 (241.23)Add: Transfers from Debenture Redemption Reserve - 71.11Balance brought forward 30.55 207.32Profit available for appropriation 99.07 37.20AppropriationsProposed Dividend 17.96 5.99Corporate Tax on Dividend 1.83 0.66Debenture Redemption Reserve 14.91 -General Reserve 6.85 -Balance carried to Balance Sheet 57.52 30.5599.07 37.20Your Directors would like you to bear in mind the fact that the results for the year 2000-2001 are not comparable with those ofthe previous year. This is because the previous year’s result includes the working of Madura Garments for three months which as youare aware was acquired on 1st January, 2000.DIVIDENDYour Directors recommend for your consideration a dividend of 30% on the face value of each Equity Share which after yourapproval at the Annual General Meeting will be paid in accordance with the regulations applicable at that time.Current YearPrevious YearRs. CroresRs. CroresOn 5,98,76,742 fully paid-up Equity Shares of Rs.10 each,@ Rs. 3/- per share (Previous year @ Rs.1 per share)Corporate Tax @ 10.20% (Previous Year 11%)17.961.835.990.6619.79 6.65
Forays Into New Business Segments and Acquisitions in the existing businessDuring the year, your Company ventured into the Life Insurance business teaming up with Sunlife of Canada as strategic partner,having a 69% stake. Your Company has invested Rs.83 crores towards it.Insurance Regulatory Development Authority (IRDA) has granted licence to Birla Sunlife Insurance Co. Ltd in February 2001. Thelife insurance business has started towards end of March 2001.To make its mark on the world map, your Company through its wholly owned subsidiary at Mauritius, acquired the global rightsfor Louis Philippe, Allen Solly and Peter England at a cost of US $ 2.26 Million.FINANCEEmanating from healthy cash flows, no fresh borrowings have been made by your company during the year, barring a concessionalloan of Rs.12 crores for the desalination plant at Rayon Division, Veraval. In the Insurance business the investment of Rs.83 crores wasalso met from internal accruals. This was accomplished without affecting the existing Capex and growth plans. Most of the short termborrowings have been repaid during the year. Your Company now enjoys a healthy Debt Equity Ratio of 0.28 : 1.FINANCIAL RESTRUCTURINGIn the interest of the shareholders, your Directors considered a proposal to buyback shares as a way to return the surplus cash.Your Company expects to generate cash in excess of its requirements. There are limited growth opportunities available to meet thecompany’s hurdle rate of return on investment, given the extremely difficult market environment. Your Directors therefore felt that ashare buyback would be the most tax-efficient way to return surplus cash to you. This would provide an exit route from the stock tothose of the shareholders who wish to exit, without substantially impacting either the price at which the shareholders exit, or adverselyaffecting the interest of ongoing shareholders.Consequently your Directors have decided to seek your approval in an ensuing Annual General Meeting, so that the company canbuyback up to 15% of the equity shares at a price not exceeding Rs. 95/- per Share. The details of the buyback programme will befinalised after seeking your approval and considering the then prevailing market conditions.HUMAN RESOURCES DEVELOPMENT AND INDUSTRIAL RELATIONSYour Company firmly believes that intellectual capital and people power will see organisations through successfully in today’shighly competitive global environment. Therefore employees of the Organisation will be a source of competitive advantage.To make this happen, your Company has put in place a forward-looking human resource policy that factors people, their skill setsand the business needs of the organisation in a holistic manner.Building, developing and upgrading employee competences is an ongoing endeavour. At Gyanodaya, the Aditya Birla Institute ofManagement Learning, your Company’s managers and executives undergo structured training aimed at further enhancing their skillsand equipping them to become globally competitive.As part of a proactive strategy, one that envisages a continual process of renewal, your Company has been inducting fresh talentand new skills at different management levels, attuned to the needs of the businesses.Alongside your management is ensuring more of delegation, empowerment and decentralisation in a meaningful manner, tofoster the sense of ownership among its people.To gauge employee perception of these processes and their implementation, your Company enlisted its participation in an OrganisationHealth Survey conducted by a reputed external agency on behalf of the Aditya Birla Group. The Group’s Corporate HRD facilitated theprocess. Based on the survey feedback, your management put together new and enhanced people-centric work measures.At the end of the day, people relations continue to be harmonious at all of your Company’s plants.33
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 and 18: Net ProfitNet Profit has gone up fr
Page 19 and 20: Birla Sunlife Insurance Company Ltd
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: Directors’ Report to the Sharehol
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
Page 41 and 42: xv)xvi)xvii)xviii)xix)xx)xxi)xxii)T
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
Page 69 and 70: SCHEDULE-4BENEFITS PAID (NET)(Amoun
Page 71 and 72: SCHEDULE-10FIXED ASSETS(Amount in R
Page 73 and 74: Tax ProvisionThe tax provision as o
Page 75 and 76: MANAGEMENT REPORTIn accordance with
Page 77 and 78: BALANCE SHEETAs at 31st March, 2001
Page 79 and 80: STATEMENT PURSUANT TO SECTION 212 O
Page 81 and 82: BALANCE SHEETAs at 31st March, 2001
Page 83 and 84:
Shareholder Information1. Annual Ge
Page 85 and 86:
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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