United Van Der Horst Ltd Management Discussions.

1. INDUSTRY STRUCTURE AND DEVELOPMENTS:

Your Company involved in reconditioning and manufacturing facilities in-house by offering additional other services at customer factory premises, such as in-situ machining, equipment overall and spare part supply. The Company also provides facilities for Grinding, Honing, Groove Grinding, Boring, Chrome Plating, Demineralizing, Welding etc. Gradually and in contemplating manner Company is trying to gain trust of its customers and stakeholders and entity is in process for setting up of edifice.

2. OPPORTUNITIES AND THREATS:

The most important threat continues to be increasing competition which results into low cost products race, in order to tackle this threat Company has installed requisites parts of machinery because of this now servicing is done in much faster way and quality of same also has been flourished. Company now trying to fetch all available opportunities as doing the business in fastest growing economy accelerates business of the Company.

3. SEGMENT-WISE PERFORMANCE:

The Companys operating business are organized and managed separately according to nature of products and services provided with each segment representing a strategic business unit that offers different product and serves different markets. The analysis of geographical segments is based on the areas in which major operating divisions of the Company operates.

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 2018-19 under Ind AS - 108 on Operating Segments as per the Chief Operating Decision Maker of the Company is as under:

 

(Amount in ‘000) Previous Year figures are in italics

A Revenue Manufacturing Reconditioning Unallocated Total
Sales 18,664.31 39,897.90 Nil 58,562.21

17,762.85

20,570.43

43.62

38,376.90

Other Income

Nil

Nil

14.34

14.34

Nil

Nil

359.42

359.42

Total Revenue 18,664.31 39,897.90 14.34 58,576.54

17,762.85

20,570.43

403.04

38,736.32

B Segment Results (PBIT)

Nil

Nil

(20,331.47)

(20,331.47)

Nil

Nil

(39,010.21)

(39,010.21)

Interest Expenses

Nil

Nil

10,701.37

10,701.37

Nil

Nil

2,179.65

2,179.65

C Segment Results

Nil

Nil

(31,032.83)

(31,032.83)

before tax

Nil

Nil

(41,189.85)

(41,189.85)

1 Provision for current tax

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

2 Deferred tax

Nil

Nil

9274.49

9274.49

Nil

Nil

34705.42

34705.42

D Profit after tax

Nil

Nil

(21,758.34)

(21,758.34)

Nil

Nil

(6,484.43) (6,484.43)

4. OUTLOOK:

During the financial year 2018-2019 the management of the Company was able to catch some major projects, Company has made significant increase in its service activity i.e. Job Work & Reconditioning which has increased Companys revenue from operations 52.59% as compared to last financial year. Major revenue of the Company was generated from sale of products and sale of services.

5. 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 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 achieved 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. Any failure in our information technology systems could adversely impact our business:

Any delay in implementation or any disruptions in the functioning could disrupt our ability to track, record and analyze the work in progress, cause loss of data and disruptions of operations, including, among others, an inability to assess the progress of projects, process financial information or manage creditors / debtors or engage in normal business activities. This could have a material adverse effect on our business.

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. Natural calamities may have a negative impact on the Indian economy and harm Our Companys business.

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

6. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has in place adequate internal control systems covering all its operations. Proper accounting records highlight the economy and efficiency of operations, safeguarding of assets against unauthorized use or losses, and the reliability of financial and operational information. 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.

Further, the Audit Committee meets on a quarterly basis to review and discuss the Internal Audit reports and also taken necessary action as and when required.

7. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

The Companys revenue from operations has increased as compared to the previous financial year ended March 31,2018 for which it was Rs. 38,736.31 thousands whereas for the financial year ended March 31,2019 it is Rs. 58,576.65 thousands.

8. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:

The Company has total 14 employees and 9 workers on permanent basis and 39 workers on contract basis. 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. 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.

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,
Date : 21/05/2019 Navi Mumbai - 410208, Raigad,
Place : Mumbai Maharashtra, India