United Credit Ltd Management Discussions

(a) INDUSTRY STRUCTURE AND DEVELOPMENTS

As an aftermath of lockdown, the economy is facing cash crunch and business houses are frantically looking for raising funds to tide over the situation and making good the losses suffered.

(b) OPPORTUNITIES AND THREATS

Although NBFCs have a major role to play in the development of infrastructure , transport and the support system for economically weaker section, in the present scenario, NBFCs are facing lending crunch as there is substantial reduction in the disbursement of loans.

(c) PERFORMANCE OF THE COMPANY

The company is principally engaged in Non-banking financial activity. The Company has booked Profit before Tax of Rs.127.90 lakhs . During the year under review the company earned interest of Rs. 194.25 lakhs on loans given as compared to the previous year of Rs. 195.03 lakhs . The Company also earned Rs. 70.51 lakhs on property let out as against of Rs. 71.72 lakhs in the previous year.

(d) OUTLOOK

The Company has initiated several steps to diversify in other areas as the traditional business of NBFC is not very lucrative in the present scenario.

(e) RISKS AND CONCERNS

Risk is inherent in every business; but NBFCs are exposed to certain additional risks. In fact there is high risk perception on NBFC sector.

(f) INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Internal control systems of the Company commensurate with its scale of operation and complexity involved in the nature of business carried on by the Company.

(g) OPERATIONAL AND FINANCIAL PERFORMANCE

During the year under review, the gross revenue from operations was Rs. 269.57 lakhs as compared to that of Rs.271.24 lakhs for the previous financial year. Prof t before tax in the current financiali year was Rs.127.90 lakhs as compared to that of the previous financial year of Rs.119.74 lakhs.

(h) HUMAN RESOURCES/ INDUSTRIAL RELATIONS

During the financial year ended 31st March, 2022, there was no material development in human resources and industrial relations.

There were eleven permanent employees in the Company as on 31st March, 2022. The Company maintains good relations with its workers .

(i) DETAILS OF SIGNIFICANT CHANGES

Details of Significant change (i.e . change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations therefor :

SI. No. Particulars	Financial Year 2021-22	Financial Year 2020-21	Change in Financial ratio	Percentage
(i) Debtors Turnover	0.17	0.12	0.05	41.67%
(ii) Inventory Turnover	N.A.	N.A.	N.A	--
(iii) Interest Coverage Ratio	0.00	0.00	0.00	--
(iv) Current Ratio	41.95	42.35	(0.40)	(0.94%)
(v) Debt Equity Ratio	0.00	0.04	(0.04)	(100%)
(vi) Operating Profit Margin(%)	47.45	44.15	3.30	7.47%
(vii) Net Profit Margin (%)	27.97	32.22	(4.25)	(13.19%)

Explanations (Serial Number-wise) :

(i) Increase in debtors compared to last year by Rs.10,91,200/-

(ii) N.A.

{iii) N.A

(iv) Increase in Current Liabilities compared to last year by Rs.1,40,348/-

(v) Current Year Debt Liability is Nil compared to last year.

(vi) Increase in EBIT compared to last year by Rs.8, 16,068/-

(vii) Decrease in PAT by Rs. 11,97,174/- compared to last year contributed the reduced Net Profit Margin .

0) Details of any change in Return on Net Worth as compared to the immediately previous financial year along with a detailed explanation thereof .

Financial Year 2021-2022	Financial Year 2020-2021	Change in Net Worth
3.04%	3.64%	(0.60)

Explanations:

This is mainly due to the decrease in Net Income (PAT) as compared to last year by Rs. 11,97,174/-

(k) CAUTIONARY STATEMENT

This report is a forward looking statement subject to variation in real life situation. Actual results could differ substantially from those expressed or implied.

	For and on behalf of the
	Board
	Sd/-
	Ashok Kumar Dabriwala
Kolkata - 700 016	Chairman & Managing Director
May 27, 2022	DIN:00024498