United Van Der Horst Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS:

Your Company is engaged in the manufacturing and reconditioning of hydraulic and pneumatic cylinders and related components, including Hydraulic Cylinders, Pneumatic Cylinders, Hydraulic Seals, Pneumatic Seals, Telescopic Cylinders, Coil Buggy Cylinders, AGC Cylinders (Automated

Gauge Controlled), Rock Breaker Cylinders, Jacking Cylinders, Buffer Cylinders, Thruster

Jacking Cylinders, Rotary Seals, Powerpacks, Control Valves and Accumulators. The Company also undertakes in-situ machining, reconditioning and repair of marine components and oilfield equipment, along with the supply of equipment and spare parts at factory premises.

The Company has a well-equipped, high-precision machine shop with facilities for grinding, honing, groove grinding, boring, chrome plating, demineralizing, welding, in-situ machining and vertical turret lathe operations, supported by horizontal boring machines, centre lathes, vertical turret lathes, crankshaft grinding machines, universal milling machines, radial drilling machines and other specialised equipment.

Over the years, UVDHL has developed expertise in specialised welding processes, including Manual Metal Arc, Open Arc and Submerged Arc welding, as well as specialised chrome-plating techniques. The Company continues to focus on delivering quality products and services, enhancing manufacturing capabilities and building long-term relationships with its customers and other stakeholders. Its emphasis on manufacturing excellence, quality and customised solutions has enabled it to strengthen its position in the industry and cater to an evolving customer base. The industry continues to witness growth driven by increasing demand for material-handling equipment, advanced agricultural machinery and hydraulic equipment across various industrial sectors. The growing adoption of hydraulic and pneumatic systems across manufacturing and other industries is expected to support the demand for hydraulic and pneumatic cylinders and related components. The Company believes that its established capabilities, specialised expertise, infrastructure and customer relationships position it well to capitalise on these emerging opportunities and sustain its growth in the years ahead.

OPPORTUNITIES AND THREATS: Opportunities:

Considering the exponential growth of the sector in which the Company is operating and continues promotional efforts and better marketing and brand building initiatives to cease the prospective business opportunities and the consumers by the management and workforce of the Company is likely to benefit in upcoming years to the Company. The company also trying to yield all available opportunities as operating in the emerging sector in the fastest growing economy which accelerates the growth of the Company. The company will strive its best to have words and solve the problems faced by the stakeholders to create a smooth flow of work.

To cease the business avenues the company indeed installs machinery that have productions more than the current capacity that will create a cost of production and fixed cost to be divided into a large number of quantities. Hence, this will create low-cost production and that will help to create market leadership, and better pricing and will increase the stakeholders value.

There will be an increasing demand for customizedandflexiblesolutionstomeetspecificindustrial requirements. Modular and adaptable systems will likely become more common to accommodate a wide range of applications.

These efforts will not only strengthen our position in the market but also contribute to sustained growth and increased shareholder value.

Threats:

The Company operates in an increasingly competitive business environment, with a growing number of market participants and suppliers offering cost-effective products. The availability of low-priced alternatives may exert pressure on product pricing, margins and revenue generation. To maintain its competitive position, the Company continues to focus on product quality, customer service, operational efficiency and technological capabilities.

The manufacturing sector is also exposed to environmental and sustainability-related challenges arising from climate change and natural calamities. Increasing emphasis on reducing carbon emissions, minimising industrial waste and improving resource efficiency requires manufacturers to adopt sustainable processes and technologies, which may entail additional investments and operating costs.

The Company remains vigilant of other potential risks such as volatile commodity prices, intensifying competition, and a possible slowdown in exports. Increased emphasis on product life cycle cost and customer expectations for reduced development time are also mounting pressure to create an ecosystem for sustainable developments. Furthermore, geopolitical tensions and supply chain disruptions pose risks to global economic stability

The industry may also be affected by challenges relating to working capital requirements, cash-flow management, availability of raw materials, inventory management and supplier quality management. While the Company continues to strengthen its operational and financial processes to address these challenges, the manufacturing sector remains exposed to economic uncertainties and evolving market conditions.

Additional challenge such as lack of cash-flow liquidity and many more have affected the market during the pandemic. Nevertheless, these challenges have not been converted into restraints for the lack of Inventory and Supplier Quality Management, However, the manufacturing sector as a whole continues to experience significant distress and hardship.

SEGMENT-WISE PERFORMANCE:

The Company is engaged in the business which are organized and managed separately by the virtue to nature of products and services provided with each segment representing a strategic business unit that offers different product and serves different markets to cater the existing and targeted consumer base. The Analysis of geographical segments is based on the areas in which major operating divisions of the Company operates.

The Company understands that the needs and requirements of its customers and to effectively address this the Company is continually evolving and works closely with them to develop customized solutions that precisely meet their specific needs.

Income & expenses which relate to the Company as a whole and not allocable to segments are included in "Un-allocable Income / Expense".

In compliance with Ind AS – 108 on Operating Segments, we provide the following information for the financial year 2025-2026 as evaluated are as follows:

(Amount in Lakhs)

Note: Previous Year figures are in italics

Expense, Assets and liabilities used in the Companys business are not identified to any of the reportable segments, as these are used interchangeably between segments. The Management believes that it is not practicable to provide segment disclosures relating to total expenses, assets and liabilities since a meaningful segregation of the available data is onerous.

OUTLOOK:

The core target of the Company is adroit to produce as per market requirements and and leverage market trends to its advantage. "Opportunities abound in growing economies and opening of economy in India has created opportunities for Indian enterprise to move beyond national boundaries as well to create productive assets".

Companys outlook remains positive as we are on the growing path and have registered significant growth. Strengthening presence with expanding our distribution network and service infrastructure will further solidify our market position and improve customer reach. The Company is presumptuous that it can utilize future opportunities and face future challenges with agility in order to meet the stakeholders expectation of sustainable growth and profitability.

Looking ahead the Company is anticipates a prodigious growth in the business in near future which will enhance the profitability and growth expectation.

1. Change in Government Laws:

Our ability to operate and compete may be adversely affected by any change in government legislation. In particular, price control, taxes, and other laws and changes in laws and regulations or the introduction of new laws and regulations relating to such matters may affect our operations.

2. We face significant competition in our business from other companies:

There are a number of competitors who have actualize greater market penetration than us. As a result, we may need to accept lower contract margins in order for us to compete against competitors that have the ability to accept the orders at lower prices. If we are unable to compete successfully in such markets, our relative market share and profits could be reduced.

3. Supply Chain Interruption:

The Organization will have an austere effect on the Manufacturing capacity of the company.

The Company cant meet delivery targets due to an interruption in its supply chain are at a greater risk of losing millions of rupees in revenue and profits, threatening the business and its reputation.

4. We require certain regulatory approvals in the ordinary course of our business, and the failure to obtain them in a timely manner may adversely affect our operations:

We require certain regulatory approvals, sanctions, licenses, registrations, and permissions for operating our businesses. In connection with our business, we may require such approvals or their renewal from time to time. We may not receive such approvals or renewals in the time frames anticipated by us, which could adversely affect our business.

5. Environmental Impacts:

India has experienced natural calamities in recent years, including earthquakes, floods, drought epidemic and tsunami. The severity and duration of these natural disasters or abnormal weather conditions determine their impact on the Indian economy. Such natural calamities may have an ornery impact on the Indian economy, which could in turn adversely affect our Companys overall business.

6. Equipment Failures:

Essential machinery along the production line can stop working at any time, posing a considerable cost to repair or replace it. Its important to interpret that mechanical breakdown may not be covered by commercial property insurance which will have a sudden impact on the productions of company and its manufacturing capacity.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

Internal Controls have been a key focus area of the company during the year. Internal Controls in the Company have been designed to further the interest of all its stakeholders by providing an environment, which is conducive to conducting its operations and at the same time putting in the appropriate checks & balances. The Board of Directors has designed and implemented various policies and procedures for internal financial controls to ensure orderly and efficient generation of reliable financial and operational information, use or losses, prevention, and detection of frauds and errors, accuracy and completeness of the accounting records, timely preparation of reliable financial information and ensuring compliance with corporate policies and applicable laws. The audit committee evaluates the internal control system periodically further Company has implemented a comprehensive internal audit system and has appointed an Independent firm of Chartered Accountants as Auditors to conduct the Internal

Audit function. The Audit Committee regularly monitors and reviews the internal audit process. The observations and recommendations made by the Internal Auditors are also reviewed by the Audit

Committee. The Company has additionally developed robust financial and management reporting systems. It constantly works on improving the systems and processes.

During the year under review, no fraud was detected by the auditors. The Company has, in all material respects, an adequateinternal financialreporting and such controlssystemover were operating effectively as at 31 internalfinancial st March, 2026, based on the essential components of internal controls over financial reporting criteria established by the Company. The company continuously improves upon existing practices for each of its major functional areas with a view to strengthen the internal control system The Company has in place Internal Financial Control system commensurate with size, scale and complexity of its operations to ensure proper recording of financial and operational information & compliance of various internal controls, statutory compliances and other regulatory compliances. During the year under review, no material or serious observation has been received from the Internal

Auditors of the Company for inefficiency or inadequacy of such controls. Some of the significant features of internal control system are: y Financial and Commercial functions have been structured to provide adequate support and control of the business; y Risk Management policy has been adopted by the Company; y The Company has an Internal Audit System conducted by the internal auditor of the Company; y Standard operating procedures and guidelines are reviewed periodically to ensure adequate control. y Management regularly monitors the effectiveness of the controls, as a control that was initially effective can become ineffective due to changes in the operating

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

To improve its operational performance, the Company relies on the expansion plans, an increasing order book, strategic tie ups, product launches and the development of larger service platforms. The Company continues to strengthen and to build a strong product line for the future and invested in bringing operational efficiencies to improve the quality of products. The Company is exploring various avenues to upgrade and modernize the technology to enhance its performance. During the year under review, your company has achieved Revenue from Operations and including other Income of Rs. 3281.54 Lakhs as compared to Rs. 3066.27 Lakhs in the previous year. After deducting Expenses and Exceptional Items the profits of Company were standing at Rs. 788.92 Lakhs as compared to Profit of Rs. 586.45 Lakhs during the previous year. After providing for and other adjustments, the current year earned profit at Rs. 521.85 Lakhs as compared to Profit

Rs. 435.75 Lakhs during the previous year. change para to "In case of Consolidated your company has achieved Revenue from Operations and including other Income of Rs. 3281.54 Lakhs. After deducting Expenses, Exceptional Items and

Share of Profit/ (loss) of Associates the profits of Company were standing at Rs. 790.10 After providing for taxes and other adjustments, the current year earned profit at Rs. 523.03 Lakhs."

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED: The Company has 25 employees on roll. The Company believes that its employees are the key to driving sustainable performance and developing competitive advantage. The Human Resources (‘HR) policies and procedures of your Company are meticulously designed towards nurturing and development of Human Capital. The Company is dedicated for providing a conducive and safe environment to its employees, enabling inclusive growth and career opportunities. In addition, the diverse talent pool is nurtured through competitive pay, merit-based career advancement, and best-in-class people policies which underscores the companys commitment to recognize and value employees contributions. Your Company has transparent processes for rewarding performance and retaining talent. Your Companys industrial relations continued to be cordial & harmonious during the year under review.

FINANCIAL RATIOS ARE AS FOLLOWS:

Sd/-Place: Navi-Mumbai Jagmeet Singh Sabharwal Date: August 06, 2026 Chairman and Managing Director DIN : 00270607

Registered Office:

E.29/30, MIDC, Taloja, Navi Mumbai- 410208, Maharashtra, India.