INDIAN RAYON AND INDUSTRIES LIMITED - Aditya Birla Nuvo, Ltd

Auditors’ Certificate on Compliance with Mandatory Recommendations of Kumar Mangalam Birla Committee Report onCorporate GovernanceFor LODHA & CO.Chartered AccountantsChartered AccountantsN.KISHORE BAFNASHIVJI K. VIKAMSEYPartnerPartnerMumbaiDate: 26th April, 2001A. CONSERVATION OF ENERGY• Use of better insulation for the steam line from Power Plant to Caustic Soda Plant to reduce steam losses.ii) Carbon Black Division• Modification of Annular furnace of rotary Dryer Line, from Refractory lining to ceramic wool lining• PGF timer replaced to reduce inst air consumption saving 30KWH/hriii) Insulator Division• Installation of power saving starting devices on higher HP rating motors• Use of Waste heat from kilns by realignment of hot air ducting employing single blower• Reduction of oil consumption significantly by reducing the firing cycle time in Kilns.iv) Textile Division• Variable speed drive in Humidification Plants for seasonal variationb) Additional Investment and proposals, if any, being implemented for reduction of consumption of energy:i) Rayon Division• Use of Furnace Oil in place of Light Diesel Oil (LDO) in the SKODA DG Sets.• Replacement of inefficient motors by Energy Efficient motors• Energy Saver for Cooling Tower Fans• Replacement of Combustion air blowers by Energy Efficient Blower a Caustic Flaking Unit36123Annexures to Directors’ ReportWe have reviewed the implementation of the Corporate Governance Procedures and the Report of the Corporate Governance. On thebasis of the relevant records and documents maintained by the Company and furnished to us for our review and according to theinformation and explanations given to us, we are of the opinion that the Company has complied in material respects, the conditions ofCorporate Governance as stipulated in Clause 49 of the Listing Agreements with the Stock Exchanges.For KHIMJI KUNVERJI & COInformation under Section 217(1)(e) of the Companies Act, 1956 read with Companies (Disclosures of Particulars in the Report ofBoard of Directors) Rules, 1988 and forming part of the Directors’ Report for the year ended 31 st March, 2001.a) Energy Conservation measures takenThe Company is engaged in the continuous process of further energy conservation through improved operational andmaintenance practices:i) Rayon Division• Use of Ext-II Steam of Power Plant Turbine in Continuous Spinning Machines.• Replacement of Impellers in Air Circulation Fans of After Treatment dryers by Energy Efficient impellers requiringlower HP motors.• Replacement of old motors of higher capacity by the motors of desired capacity and inefficient motors by energyefficient motors• Installation of Inverter for the drives of various equipment in Rayon Plant and Power Plant• Use of Electroflow Energy Saving System in Power Plant Load Centre.