Unified Data- Tech Solutions Ltd Management Discussions

This Management Discussion and Analysis Report (MDAR) provides an overview of the global and Indian economic environment, together with an analysis of the Companys operational and financial performance during the financial year 2025 2026. The report also outlines the Companys strategic priorities, key initiatives undertaken during the year, and the measures adopted to drive sustainable growth, enhance operational efficiency, and achieve its business objectives.

GLOBAL ECONOMY OVERVIEW

Global growth is projected to be 3.0 percent in 2026 and 3.4 percent in 2027, down from the average of 3.5 percent observed in 2024 25 and broadly unchanged on a cumulative basis compared with the forecasts in the April 2026 World Economic Outlook (WEO). The modest slowdown reflects the effects of the war in the Middle East being partly offset by accelerated demand-driven momentum in the global technology cycle thanks to advances in artificial intelligence (AI) and its adoption. The impact varies widely based on countries exposure to the war and position in the technology value chain. Energy exporters outside the conflict zone benefit from favorable terms of trade, whereas economies plugged into the technology-led upturn experience stronger activity even if they are energy importers. In contrast, activity weakens for energy importers with limited participation in the technology value chain, a group that includes many low-income countries. Global headline inflation is expected to increase from 4.1 percent in 2025 to 4.7 percent in 2026 before declining to 3.9 percent in 2027. Slightly revised upward from April, these projections indicate that the disinflation trend in place since the beginning of 2024 has stalled.

Trade fragmentation could accelerate, possibly hurting output and increasing prices. A possible correction in technology-driven expectations adds to the downside risks, whereas eroded policy buffers can amplify those risks. Upside risks stem from a swifter-than-expected normalization in energy markets, stronger-than-expected technology investment, a revival of durable cooperation that lowers trade barriers, and structural reform that raises medium-term growth. Policy priorities are restoring price stability, supported by clear communication, central bank independence, and strong financial oversight, while rebuilding fiscal buffers and using fiscal tools sparingly through temporary, targeted support that preserves price signals. Structural reforms are needed to promote energy security, AI readiness, domestic rebalancing, and international cooperation should be strengthened to relieve the strain of ongoing tensions. July 2026 World Economic Outlook Update: Global Economy in Crosscurrents of War and Technology

INDIAN ECONOMIC OVERVIEW

Indias economic outlook remains robust, supported by strong macroeconomic fundamentals, resilient domestic demand and sustained investment momentum. The economy continues to rank among the fastest-growing major economies globally, driven by broad-based expansion across manufacturing, services and infrastructure, alongside steady improvement in industrial and business activity.

A stable external position, supported by a manageable current account balance and consistent capital flows, reinforces confidence in Indias long-term growth trajectory. Despite evolving global uncertainties, investor interest remains intact across key sectors, backed by policy stability and structural growth drivers.

Domestic demand continues to act as a key anchor, supported by stable inflation, rising mobility and travel activity, healthy tax collections and strong participation from domestic institutional investors.

Ongoing government initiatives to boost manufacturing, innovation, renewable energy and food security are further strengthening the foundation for sustained growth. Indian Economy Growth Rate, GDP & Economic Structure Insights IBEF

SECTOR PERFORMANCE AND TRENDS

Indias IT services sector is poised for a muted first quarter of FY26 earnings season, as persistent macroeconomic uncertainty, global tariff concerns, and geopolitical volatility weigh on enterprise spending, particularly in discretionary and engineering R&D (ER&D) segments. Issues in timely delivery of Infrastructure material due to shortage and volatility of Chip/DRAM components affecting across the infrastructure.

Clients are likely to delay new deal decisions amid global trade uncertainties, though investment in GenAI and automation remains a bright spot. To mitigate margin pressures, firms are increasingly focused on cost-take-out deals and AI-driven productivity gains. Optimising IT spends, focus towards Automation and Cloud adoption

COMPANY OVERVIEW:

Incorporated in year 2010, we are a technology company specializing in system integration. We provide comprehensive IT solutions, including data center infrastructure, virtualization, data protection, networking, cybersecurity, secure application delivery etc. Our services cater to a wide range of industries, such as Banking, Finance, Insurance, Manufacturing, Pharmaceuticals, IT and IT enabled services etc. We collaborate closely with clients to develop, implement, and manage cost-effective, secure, and high-performance IT solutions that meet their unique requirements, providing ongoing support to optimize their systems.

By focusing on quality delivery and customer satisfaction, we aim to be a trusted partner in delivering cutting-edge solutions that meet the diverse needs of our clientele.

We are of the opinion that maintaining high standards of quality in provision of goods and services is critical to our success and future growth. We have received ISO 27001:2013 (Information Security Management System) and ISO 9001:2015 (Quality Management Systems). To further our commitment of delivering quality to our clients, we encourage our employees to take certifications in different fields of our business areas. As of March 31, 2026, in our organization, our employees hold a total of more than 310 certifications/ badges which have been issued by major technology players of IT industry including IBM, Veritas, Dell, Fortinet and many others, certifying our employees capabilities in the areas of IT infrastructure support and implementation, data and network security, backup, virtualization and cloud and other serviceable areas. We have onboarded many new Vendors and services partners for working with our clients in AI, Automation and Business Processes area.

DISCUSSION ON OPERATIONAL PERFORMANCE & FINANCE HIGHLIGHTS:

The following discussions on our financial condition and result of operations should be read together with our Directors Report, audited financial statements and the notes to these statements included in the annual report. Unless otherwise specified or the context otherwise requires, all references herein to "we", "us", "our", "the Company",

"Unified" are to "Unified Data- Tech Solutions Limited".

OPPORTUNITIES

The Company is well-positioned to capitalize on multiple growth opportunities driven by evolving technology trends and changing enterprise requirements.

Expansion in Cloud Computing and AI driven Solutions Services: The increasing enterprise adoption of cloud infrastructure and artificial intelligence presents a significant opportunity to broaden our solutions. By leveraging our existing expertise in virtualization, private and hybrid cloud deployment, and secure application delivery, we can offer integrated cloud and AI-driven solutions tailored to specific industry needs. This will also allow us to deepen engagement with existing clients while expanding into new sectors and geographies.

Investment in Emerging Technologies: The Companys commitment to continuous innovation and capability building in emerging technologies such as cybersecurity, AI, data analytics, and cloud-native applications provides a platform for future growth. By proactively investing in skill development, certifications, and strategic partnerships, we are equipped to stay ahead of industry trends and deliver next-generation solutions that align with our clients digital transformation agendas.

These opportunity areas, aligned with our long-term strategic roadmap, provide a robust foundation for sustained business expansion, enhanced competitiveness, and value creation for all stakeholders.

RISKS, THREATS, AND CONCERNS

While the Company is well-positioned to leverage growth opportunities in the IT infrastructure and services space, it remains exposed to several risks and threats that could impact operational and financial performance. The management continually monitors these risks and implements appropriate mitigation strategies.

Technological Obsolescence: The IT industry is characterized by rapid technological advancements and evolving customer expectations. Failure to adapt to new technologies, or delays in updating our service offerings, may impact our competitiveness and ability to retain clients.

Cybersecurity and Data Breach Risks: As a provider of IT infrastructure and cybersecurity solutions, the Company is inherently exposed to risks related to data breaches, cyberattacks, and system vulnerabilities either within our own environment or during client engagements. Any such incidents could result in reputational damage, regulatory penalties, and potential legal liabilities.

Dependence on OEM Partnerships: A significant portion of our offerings involves products and solutions from third-party OEMs. Any changes in partner policies, pricing structures, or termination of key OEM relationships may adversely impact our business operations and margins.

Client Concentration Risk: Although we serve a diverse range of industries, a sizable portion of our revenue may be derived from key clients or specific sectors. Loss of a major client or slowdown in a particular vertical could have a material adverse effect on the Companys financials.

Talent Retention and Skill Gaps: The

Companys success is heavily reliant on the availability and retention of skilled professionals, particularly in niche areas like cybersecurity, cloud and virtualization. Increased competition for technical talent and rising attrition may lead to skill shortages and higher employee costs. customer confidence and relationships.

Regulatory and Compliance Risks: As we operate in sectors such as finance and healthcare that are subject to stringent data protection and compliance regulations, any non-compliance either on our part or by third-party partners could expose the Company to legal and financial risks.

Macroeconomic and Geopolitical Uncertainty: Broader economic conditions, inflationary pressures, currency fluctuations, and geopolitical developments could impact client spending patterns, project timelines, and procurement cycles, thereby affecting the Companys revenue visibility and growth outlook.

Semiconductor Shortages

Delays in procurement of servers, networking equipment, and storage infrastructure. Extended project timelines for infrastructure modernization and increased hardware procurement costs.

Foreign Currency Fluctuation Risk:

The Company may be exposed to risks arising from fluctuations in foreign currency exchange rates, particularly in respect of transactions denominated in foreign currencies. Any adverse movement in exchange rates may impact the Companys revenues, costs, profitability and overall financial performance.

Management is actively focused on risk mitigation through continuous monitoring, strategic diversification, strengthening internal controls, investing in employee training and certifications, and maintaining strong compliance frameworks.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREFOR:-

Sr. No.	Ratio	Numerator	Denominator	For the Period ended March 31, 2026	For the Period ended March 31, 2025	Variance	% Variance
1	Current Ratio	Current Assets	Current Liabilities	2.98	2.27	0.71	31.02
2	Debt-Equity Ratio	Debt	Total Equity	0.00	0.00	0.00	0.00
3	Debt Service Coverage Ratio	Earnings for debt service	Debt Obligations	0.00	0.00	0.00	0.00
4	Return on Equity Ratio	Profit for the year	Average total equity	0.34	0.42	-0.08	-18.25
5	Inventory Turnover Ratio	Sales of products and services	Average Inventory	0.00	0.00	0.00	0.00
6	Trade Receivables	Revenue from operations	Average trade receivables	7.62	15.31	-7.69	-50.23
7	Trade Payables Turnover Ratio	Net Credit Purchase	Average trade payables	4.70	5.82	-1.12	-19.27
8	Net Capital Turnover Ratio	Revenue from operations	Average WC (i.e. Total Current Assets - Total Current Liabilities)	3.25	4.31	-1.06	-24.56
9	Net Profit Ratio	Profit After Tax	Revenue from operations	14.15	15.47	-1.32	8.55
10	Return on Capital Employed	Earnings Before Interest and Taxes	Average Capital Employed	45.25	55.34	-10.09	18.24
11	Return on Investment	Income generated from invested funds	Average invested funds in investments	10.82	7.92	2.90	36.70
12	Operating Profit Ratio	Gross Profit	Revenue from operation	13.80	17.08	-3.28	19.19

Reasons for variation above 25%:-

1. Current Ratio The current ratio increased primarily due to higher growth in current assets as compared to current liabilities during the year, indicating improvement in short-term liquidity position of the Company.

2. Trade Receivables Turnover Ratio The ratio has declined due to an increase in average trade receivables and a slower collection cycle, with Days Outstanding rising to about 48 days from around 24 days in the prior year. This increase is mainly driven by billing patterns during FY 2025 26, including a higher concentration of invoices raised towards the end of the billing period, resulting in higher receivables outstanding as at the balance sheet date.

3. Net Capital Turnover Ratio The ratio declined due to increase in working capital base compared to the growth in revenue from operations during the year.

4. Return on Investment The variance in due to higher investment income during 25-26, driven by a significant increase in long-term and short-term capital gains, along with additional other interest income,

which more than offset the decline in dividend and fixed deposit interest income.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has a well-placed, suitable, and adequate internal control system, commensurate with the size, scale, and complexity of its operations. Company policies, guidelines and procedures provide for adequate checks and balances which are meant to ensure that all transactions are authorized, recorded, and reported correctly. The internal controls are continuously assessed and improved/modified to meet changes in business conditions, statutory and accounting requirements.

Through regular internal audits, reviews by the Audit Committee, and proactive risk assessments, the Company continuously strengthens its control environment, ensuring resilience and accountability across all levels of the organization.

DISCLOSURE OF ACCOUNTING TREATMENT:

The Company has prepared its financial statements in accordance with the prescribed Accounting Standards.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES:

As on 31st March, 2026, the Company had a total of 39 permanent employees (including management). During the year, the Company continued to strengthen its human resource practices by focusing on talent acquisition, employee engagement, learning and development, and workplace safety. Induction programmes were conducted for all new employees to ensure a smooth onboarding experience. The Company also organized various technical and behavioral training programmes, along with upskilling initiatives in emerging technologies, to enhance employee capabilities. Our HR policies continue to promote equal opportunity, diversity, continuous learning, employee well-being, and career growth while maintaining a safe, inclusive, and collaborative work environment.

CAUTIONARY STATEMENT

Certain statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations, or predictions may be forward-looking statements within the meaning of applicable securities laws and regulations. Actual results could differ from those expressed or implied. Important factors that could make a difference to the Companys operations include but are not limited to:

General economic and business conditions in the markets in which we operate and in the local, regional, national, and international economies.

Any change in government policies resulting in increases in taxes payable by us.

Changes in laws and regulations that apply to the industries in which we operate.

Occurrence of Environmental Problems & Uninsured Losses.

The performance of the financial markets in India and globally.

Global distress due to pandemic, war or by any other reason.

The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The Company assumes no responsibility to publicly amend, modify or revise forward looking statements, based on any subsequent developments, information, or events. Actual results may differ materially from those expressed in the statement. Important factors that could influence the Companys operations include changes in government regulations, tax laws, economic developments within the country and such other factors globally. :-