Modern Threads (I) Ltd Management Discussions

The Company is one of the biggest manufacturers and exporters of wool and blended worsted yam from India. Modem Woollens Division is having its plant at Bhilwara, Rajasthan, is a highly acclaimed name, as manufacturers and exporters of wool and blended worsted yam from India. Modem Threads Division is having its plant at Raila, District Bhilwara, Rajasthan. The Company has achieved an international pre-eminence in the field of processing wool during fee course of time. Enforcing strict quality control in a well-equipped laboratory with. ‘Intel-Wool Lab accredited measuring instruments.

I) INDUSTRY STRUCTURE AND DEVELOPMENTS

The worsted yam segment ofTextile Industry is moving ahead and likely to grow fast in coming years. The turn of woollens as a fashion fabric in global as well as domestic maikets, coupled with renewed attention on speciality and high value-added yams will be growth drivers for woollen division of fee Company. The Company is proposed to capture fee growthpotential through its wide range of products ofwrostedyam by entering in foreign markets.

II) OUTLOOK

Consistent efforts are being made by fee Woollens Division of the Company to ensure sustainable leadership for its products in global market. Woollen division has also initiated efforts to retain existing customers base and contacting newel customers in overseas market with different product range in worsted yam so as to achieve impr oved performance and profitability in fee ensuing period.

DI) OPPORTUNITIES, THREATS, RISK AND CONCERNS

In fee current age of liberation and globalization your board considers it appropriate to explore new business areas / opportunities to broad base investment and industry presence, to attain its main purpose of delivering long term value to fee shareholders of new improved means as etc. Growth prospects of the Woollen & Yam divisions of the Company are blight due to ongoing efforts of management for improving operational efficiency, cost reduction and better management of available financial resources. Your company is expecting improved performance of woollen division as well as yam division in fee coming years.

Significant presence of small supplier! which has reduced the bargaining power, threat from unorganized sector & Low cost substitute products from other countries are also factor! of concern for management.

IV) CHALLENGES

Tire company is expected to encounter various challenges including Covid-lSPendamic, rising input costs, restrictive labour laws and intensified competition from other low cost counties.

V) INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

Tire company remains committed to ensure an effective internal control feat provides assurance on the efficiency of operations and security of assets. Your companys well established and robust internal audit processes, bofe at business and corporate levels, continuously monitor the effectiveness of fee internal control environment across the company and fee status of compliance wife operating systems, internal policies and regulatory requirements The company has also undertaken steps to implement new control measures in line with best global practices.

VI) HUMAN RE SOURCE DEVELOPMENT

Human Resource is fee only asset that appreciates wife time and in its continued efforts to nurture fee best human talent, during the year the management continued wife its strategy of imparting professional training to fee executives and staff at various levels with a view to upgrade their competency and remove all levels of inefficiency in order to make fee Company more competitive. This is not a luxury but a necessity, if the Company has to survive in a globally competitive market, providing better product at better cost requires additional efforts to develop skills and efficiency in the new appointees to face the challenge.