INDUSTRY STRUCTURE AND DEVELOPMENTS:
Your Company involved in the reconditioning and manufacturing of Hydraulic Cylinders,
Pneumatic Cylinders, Hydraulic seals, Pneumatic seals, Telescopic Cylinder, coil Buggy
Cylinder, AGC Cylinder (Automated Gauge controlled), Rock Breaker Cylinder, Jacking
Cylinder, Buffer cylinder, Thruster jacking Cylinder, Rotary Seals, Powerpacks, Control
waves and Accumulators also offering additional other services at customer factory
premises, such as in-situ machining, reconditioning to the Marine Components in Marine
Industry and oilfield equipments overall and spare part supply.
The Company also provides facilities for Grinding, Honing, Groove Grinding, Boring,
Chrome Plating, Demineralizing, Welding, In Situ Machining, Vertical Turret Lathe etc.
Gradually and in contemplating manner Company is trying to gain trust of its customers and
stakeholders and entity is in the process for setting up of edifice. For the Industry
growth and developing and their retainers they are using well equipped, high precision
machine shop with horizontal boring machines, center lathe machines, vertical turret
lathes, crank-shaft grinding machine, universal milling machine, radial drilling machine,
etc.
UVDHL has over the years mastered specialized welding process such as Manual Metal
Arc, Open Arc and Submerged Arc and patented chrome plating techniques.
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.
Threats:
Threats faced by the company in todays world are huge competition in the market due to
the ease of doing business. The more numbers of participants result in stiff competition
in the industry, The Company is not an exception to the same. This creates a market where
there is a large number of suppliers who manufacture and supply low-cost products which
are not so quality based affecting the companies in the market in generating revenue as
well as competing with them.
The Globe is suffering from various Natural Calamities there is intensive pressure on
the manufacturing industry in terms of reduction in carbon footprints, waste materials
which limits the potential ability of performance.
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, Manufacturing
sector is experiencing an immense distress and hardships.
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 are constantly
evolving and works closely with them to develop customized solutions that 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".
Information about business segments for the financial year 2022-23 under Ind AS 108 on
Operating
Segments as per the Chief Operating Decision Maker of the Company is as under:
(Amount in Lakhs)
A |
Revenue |
Manufacturing |
Reconditioning |
Unallocated |
Total |
|
Sales |
673.28 |
1002.19 |
Nil |
1675.47 |
|
|
460.91 |
702.58 |
Nil |
1163.49 |
|
Other Income |
Nil |
Nil |
51.47 |
51.47 |
|
|
Nil |
Nil |
68.14 |
68.14 |
|
Total Revenue |
673.28 |
1002.19 |
51.47 |
1726.94 |
|
|
460.91 |
702.58 |
68.47 |
1231.63 |
B |
Segment Results (PBIT) |
Nil |
Nil |
493.08 |
493.08 |
|
|
Nil |
Nil |
231.49 |
231.49 |
|
Interest expenses |
Nil |
Nil |
185.37 |
185.37 |
|
|
Nil |
Nil |
140.04 |
140.04 |
C |
Segment Results before tax |
Nil |
Nil |
307.71 |
307.71 |
|
|
Nil |
Nil |
91.46 |
91.46 |
OUTLOOK:
The core target of the Company is adroit to produce as per market requirements and be
able to pilot 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".
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.
The Company is anticipation a prodigious growth in the business in near future which
will enhance the profitability and growth expectation.
RISK AND CONCERNS:
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, a 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 recording and generation of reliable
financial and operational information, safeguarding of assets from unauthorised 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 adequate internal financial controls system over financial
reporting and such internal financial controls with reference to financial statements were
operating effectively as at 31 st March, 2023, based on the essential
components of internal controls over financial reporting criteria established by the
Company.
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:
• Financial and Commercial functions have been structured to provide adequate
support and control of the business;
• Risk Management policy has been adopted by the Company;
• The Company has an Internal Audit System conducted by the internal auditor of
the Company;
• Standard operating procedures and guidelines are reviewed periodically to ensure
adequate control.
• Management regularly monitors the effectiveness of the controls, as a control
that was initially effective can become ineffective due to changes in the operating
environment
DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:
To improve its operational performance, the Company relies on the expansion plans,
growing order book, strategic tie ups, product launches and 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. 1,726.94 Lakhs as compared to Rs. 1,231.63
Lakhs in the previous year. After deducting Expenses and
Exceptional Items the profits of Company were standing at Rs. 307.71 Lakhs as compared
to Profit of Rs. 91.46 Lakhs during the previous year. After providing for taxes and other
adjustments, the current year earned profit at Rs. 233.88 Lakhsascompared Profitof Rs.
173.70 Lakhs during the previous year.
MATERIAL DEVELOPMENTS IN HUMAN RESOURCES INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER
OF PEOPLE EMPLOYED: The Company has 21 employees on roll. The Company believes that
its employees are the key to driving sustainable performance and developing competitive
advantage. The HR policies and procedures of your Company are geared towards nurturing and
development of Human Capital. The Company is dedicated to 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. 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:
Particulars |
31st March, 2023 Ratio |
31st March 2022 Ratio |
Details of significant changes (i.e. change of 25% or more compared to
previous year, 2022) and reason thereof |
| Debtors Turnover Ratio |
2.82 |
2.45 |
Increase in recoverability of company |
Inventory Turnover Ratio |
0.71 |
0.93 |
Decrease due to substantial decrease in closing inventories |
Interest Coverage Ratio |
2.66 |
1.65 |
Increased due to additional loans taken during the year. |
Current Ratio |
2.36 |
4.55 |
Improvement due to increment in Current Assets. |
Debt Equity Ratio |
0.76 |
0.53 |
Increased due to additional loans taken during the year. increase due
to substantial increase in revenue made during the year |
Operating Margin |
1.56 |
1.42 |
|
Net Profit Margin |
0.14 |
0.15 |
Decrease due to increase in overheads cost during the year |
Return on Net Worth |
0.14 |
0.07 |
Increased on account of increase in profit in current year |
|
For and on behalf of the Board of Directors |
|
United Van Der Horst Limited |
|
Sd/- |
|
Jagmeet Singh Sabharwal |
|
Chairman & Managing Director |
|
DIN: 00270607 |
|
Add: C/o: E.29/30, MIDC, Taloja, |
|
Navi Mumbai-410208, |
|
Raigad, Maharashtra, India |
Place: Navi Mumbai |
|
Date : 28.07.2023 |
|
+91-9892691696
