Arigato Universe Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENT:

The Company is primarily engaged in the Industrial Products segment and is listed on the Bombay Stock Exchange (BSE). The Company operates in the field of manufacturing and trading of construction-related materials and commodities, along with execution of contracts relating to real estate development and infrastructure projects.

In addition, the Company is involved in the development of immovable properties, including hospitality and recreational projects, and provides allied services in relation thereto.

During the year under review, the Company witnessed a substantial decline in its income, primarily due to prevailing market conditions, reduced project execution activity, and overall slowdown in demand in certain segments of the construction and real estate industry.

OPPORTUNITIES AND RISKS:

The Company expects growth opportunities in view of supportive government policies aimed at boosting infrastructure development, housing, and industrial expansion. The construction and real estate sector continue to remain a key focus area under various government initiatives.

However, the industry is exposed to several risks and uncertainties. One of the major factors affecting profitability in construction-related activities is the complexity of projects, which includes size, scope, design, technology adoption, geographical location, duration, and stakeholder involvement.

Further, the Companys operations are subject to several external risks, including but not limited to:

• Fluctuations in the prices of raw materials and construction inputs
• Availability of skilled and unskilled labour
• Changes in design specifications and project requirements
• Financial constraints of clients or counterparties
• Regulatory and policy changes
• Delays in approvals and execution timelines

These factors may create uncertainties and could impact project execution and profitability.

SEGMENT WISE OR PRODUCT WISE PERFORMANCE:

The Companys primary business activity continues to be manufacturing and trading of construction-related materials and commodities.

The detailed segment-wise performance, including revenue, results, and capital employed for the financial year ended March 31, 2026, is disclosed in the audited financial statements of the Company, which form an integral part of this Annual Report.

OUTLOOK:

The construction industry in India is expected to grow at approximately 5% in real terms in 2026, although this projection has been slightly revised downward due to a moderation in foreign direct investment inflows.

Despite this, the sector is expected to remain resilient, supported by:

• Continued government investment in large-scale infrastructure projects
• Increased allocation under affordable housing schemes such as Pradhan Mantri Awas Yojana
• Rising focus on green buildings and sustainable construction practices
• Urbanization and industrial development initiatives

These factors are expected to generate new opportunities, enhance demand, and create employment across the construction value chain.

The Company remains cautiously optimistic about leveraging these opportunities while maintaining operational efficiency and financial discipline.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has established a robust internal control system commensurate with the size and nature of its operations. The internal control framework ensures proper authorization, recording of transactions, safeguarding of assets, and adherence to applicable policies and regulations.

Regular internal reviews and monitoring mechanisms are in place, and the effectiveness of these systems is periodically evaluated by the management at appropriate levels.

The Company is committed to continuously strengthening and upgrading its internal control systems to align with evolving business requirements and market dynamics.

CAUTIONARY STATEMENT:

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations, or predictions may constitute forward-looking statements within the meaning of applicable laws and regulations.

These statements are based on certain assumptions and expectations of future events. Actual results may differ materially from those expressed or implied due to various factors beyond the Companys control.

Such factors include, but are not limited to:

• Global and domestic demand-supply conditions
• Price volatility of raw materials and finished goods
• Availability and cost of inputs
• Changes in government policies, regulations, and tax structure
• Economic developments in India and international markets
• Litigation, labour issues, and industrial relations

The Company does not assume any obligation to publicly update or revise any forward-looking statements in light of future developments.

By Order of the Board of Directors

For Arigato Universe Limited

(Formerly Known as Saboo Brothers Limited)

Sd/-

Rajan Kantilal Shah Managing Director

(DIN: 00932062)

Dated: 2nd September, 2026

Place: Nagpur