Modern India Ltd Management Discussions

Post covid there were various challenges however our company under the able guidance of our Chairman and MD and the Board of Directors has helped the company overcome a difficult phase and we are poised for growth.

The years 2020 & 2021 were difficult however the year under review has seen various ups and downs as the world economy is in shambles due to the Ukraine Russia war, meltdown in the european union, the US facing a debt crisis, UK facing internal strife, etc post COVID-19 pandemic, IT industry has been hit by a down turn and erratic cliamtic conditions worldwide which has caused an havoc across economies of the world.

Despite the economic devastation caused by the virus, Indias agile response has been commendable, especially as the country rallied to manage a deadly second wave of the virus early in 2021. The scare in 2022 was met head on and India is moving ahead in the world economic order, we are now the 5th largest ecomony of the world and we are now seen as a global leader, wherein all countries look up to India to gauge where the wind is blowing

Spurt in construction activity, various projects are being launched and demand for flats with amenties is on the rise, though the market has been hit with an upward trend in the interest cost on home loans having risen to 8.7% from a low of 6.5%

The go to business currently is the real estate sector and our company is trying to leverage this to our advantage.

Though upheaval exists, the global trading environment is very encouraging. Indian export companies are flooded with orders and Indian economy is growing as suggested by the recent Morgan Stanley report.

Fabrics, yarn, luggage, furniture, building materials and other merchandise are the drivers for improved operations

Business of solar power has been a challenge as solar manufacturing sector is very competitive. Lack of favorable solar manufacturing policy, continued imports of solar, inequality in GST on solar equipment, introduction of manufacturing linked solar tenders, forcibly keeping solar bidding tariff down, lack of R&D and performance testing facilities in India, issues in implementing BIS certification, lack of availability of export incentive mechanism are few of the challenges that the industry.

Power generation during the current year 2022-2023 is 3371166 kwhas compared to 2021-2022 3693053Kwh, This is a

normal reduction in power generation due to monsoon, low solar radiation due to cloud cover during the year under review. This is a natural risk associated with the weather and we cant do much to mitigate the same other than ensuring that the plant is well maintained and services to maximum output.

Revenue and expenses have been identified to segments on the basis of their relationship to the operating activities of the segment.

Revenue and expenses which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis have been included under "Un-allocable/Corporate". There are no inter-segment revenues and, therefore, the basis of their measurement does not arise.

(Rs. In Lakhs)

The Company can be exposed to various business risks which might threaten its business continuity if not identified promptly and addressed on time. Therefore, the company follows a proactive risk management policy, aimed at protecting its investors, employees, assets and the environment while at the same time ensuring growth and continuity of its business.

Regular updates of perceived risks are made available to the Board at the Board Meeting and in special cases on ad-hoc basis. The Risk Management Committee is entrusted with the responsibility of evaluating the various risk faced by the organization and also consider the ways and means to mitigate the same. The Management in consultation with the Board is taking all necessary actions to mitigate the risk posed by the pandemic and the company also adopted the work from home policy and judicious mix of work from home and physical attendance in office.

Modern India Limited has a well-defined organization structure, documented policy guidelines, predefined authority levels, and an extensive system of internal controls which helps in ensuring optimal utilization and protection of resources, IT security, accurate reporting of financial transactions and compliance with applicable laws and regulations.

We have adequate systems of internal control in place. This is to ensure that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are authorized, recorded, and reported correctly.

Company has an exhaustive budgetary control system. Actual performance is reviewed with reference to the budget by the management on an on-going process basis.

The internal audit function is empowered to examine the adequacy, relevance and effectiveness of control systems, compliance with policies, plans and statutory requirements.

The top management and the Audit Committee of the Board review the findings and recommendations of the internal auditor.

As required by the Companies Act, 2013, an audit of the Internal Financial Control was also carried out by the Statutory Auditor of the Company for the year 2022-23.

Your Company firmly believes that success of a company comes from good Human Resources. Employees are considered an important asset and key to its success. HR Department has been strengthened for sourcing and developing high calibre employees providing them relevant training for encashment of their competence and facilitating their assessment process through an effective Performance Management System (PMS) and by conducting monthly presentation which helps develops the overall personality of the employees and helps to maintain inter-personal relations between the employees. Company aims to remain lean and dynamic in a continuing de-layered structure. The employee relations continued to be satisfactory.

The Company has diversified itself into various businesses and aims to make optimum utilization of the opportunities that it shall come across during the conduct of its business activities thereby eliminating or avoiding the threats posed before it with a view to ensure maximum utilization of the investors wealth.

Statement in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectation may be "forward looking statements" within the meaning of applicable statutory laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions and price conditions in the domestic and overseas markets in which company operates, changes in the Government regulations, tax laws and other statutes and other incidental factors.