Unified Data- Tech Solutions Ltd Management Discussions

This Management Discussion and Analysis Report (MDAR), presents an overview of the Global Economic outlook, Indian Economic overview, operational and financial performance of the Company during Financial Year 2024-2025. It also highlights our strategy, and discusses important initiatives taken by it to achieve its growth and performance objectives.

GLOBAL ECONOMY OVERVIEW

Global growth is projected at 3.0 percent for 2025 and 3.1 percent in 2026, an upward revision from the April 2025 World Economic Outlook. This reflects front-loading ahead of tariffs, lower effective tariff rates, better financial conditions, and fiscal expansion in some major jurisdictions. Global inflation is expected to fall, but US inflation is predicted to stay above target. Downside risks from potentially higher tariffs, elevated uncertainty, and geopolitical tensions persist. Restoring particularly confidence, predictability, and sustainability remains a key policy priority.

INDIAN ECONOMIC OVERVIEW

India continued to demonstrate robust economic performance, with the National Statistical Office (NSO) estimating real GDP growth of 6.5% in FY 2024 25, following a strong 9.2% growth in FY 2023 24. While the full-year GDP growth of 6.5% marks a four-year low compared to the exceptional 9.2% growth achieved in FY23-24, India maintained its position as the fastest-growing economy globally and remains on course to become the worlds fourth-largest economy later this year, overtaking Japan.

Indian IT firms have delivery centres across the world. IT & BPM industry is well diversified across verticals als, Pharmaceutic such as BFSI, telecom and retail. Increasing strategic alliance between domestic and international players to deliver solutions across the globe. The Union Budget 2025-26 has sanctioned Rs. 2,000 crore (US$ 232 million) to accelerate AI adoption and infrastructure development. The Union Budget 2025-26 allocates Rs. ge 500 crore (US$ 58 million) for a Centre of Excellence in AI for Education, aiming to enhance skills, personalize learning, and transform education. The government prioritizes cybersecurity, hyper-scale computing, AI, and blockchain. With data costs at Rs. 10/GB (US$ 0.12/GB), India ranks among the worlds cheapest. The Ministry of Electronics and Information and Technology (MeitY) had approved 14 eligible applicants under the production linked incentive scheme (PLI) for IT hardware.

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, in discretionary and engineering R&D (ER&D) segments.

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.

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, 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- 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, 2025, 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.

DISCUSSION ON OPERATIONAL PERFORMANCE &

FINANCE HIGHLIGHTS:

The following discussions on our financial condition and result of operations should be read together with financial our Directors Report ,audited 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 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, 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.

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.

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, 2025	For the Period ended March 31, 2024	Variance	% Variance
1	Current Ratio Debt-Equity	Current Assets	Current Liabilities	2.27	3.82	-1.55	-40.57
2	Ratio	Debt	Total Equity	0.00	0.00	0.00	0.00
3	Debt Service	Earnings for debt	Debt Obligations	0.00	0.00	0.00	0.00
	Coverage Ratio service
4	Return on Equity Ratio	Profit for the year	Average total equity	0.42	0.49	-0.07	-13.60
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	15.31	32.39	-17.08	-52.74
7	Trade Payables Turnover RatioNet Credit Purchase	Turnover Ratio payables	Average trade	5.89	11.60	-5.72	-49.27
8	Net Capital Turnover	Revenue from Ratiooperations	Average WC (i.e. Total Current Assets - Total Current Liabilities)	4.31	11.08	-6.77	-61.09
9	Net Profit Ratio	Profit After Tax	Revenue from operations	15.47	9.61	5.86	60.97
10	Return on Capital Employed	Earnings Before Interest and Taxes	Average Capital Employed	55.34	65.62	-10.28	-15.67
11	Return on Investment	Income generated from invested funds	Average invested funds in investments	7.92	4.81	3.11	64.72
12	Operating Profit Ratio	Gross Profit	Revenue from operation	0.22	0.18	0.04	24.57

Reasons for variation above 25%:-

1. Current Ratio Difference is due to higher trade payables in FY25, short-term investments included under current assets ensure required liquidity.

2. Return on Equity Ratio Difference is due to higher equity base in FY25.

3. Trade Receivable Ratio Difference is due to slower collection cycle (~24 days vs ~11 days) at the time of year-end receipts.

4. Trade Payable Ratio Difference is due to longer payment cycle (~62 days vs ~ 31 days), in line with extended credit terms of 90-120 days.

5. Net Capital Turnover Ratio Difference is due to higher working capital base in FY 25 with increased trade payables and inclusion of short-term investments in current assets.

6. Net Profit Ratio Difference is due to improved cost efficiency and margin management despite 7. Return on Capital Employed Since the denominator of this ratio has increased by more than its numerator when compared with previous year, this ratio has varied negatively by 15.67%.

8. Return on Investment Since the invested funds of the company have increased by more than 1.5 times compared to previous year, this ratio has varied by 64.75%.

9. Operating Profit Ratio -Difference is due to improved cost efficiency and margin management despite lower revenues in FY25.