United Interactive Ltd Management Discussions

At present ,your company does not have any business under information technology segment as of now, and is dependent on business of its strategic subsidiary solely, which are in to the business of trading and investment in securities. Hence, here we will discuss capital market industry rather than Information technology industry.

INDUSTRY STRUCTURE AND DEVELOPMENTS ,

Global growth in 2023 continued at an annual rate of 3%, despite tighter financial conditions and other adverse factors, including Russias war of aggression against Ukraine and the evolving conflict in the Middle East. Global GDP growth is projected at 3.1% in 2024 and 3.2% in 2025. Indias gross domestic product (GDP) during 2024-25 (FY25) is expected to grow by 7%.

BUSINESS PROSPECT

The prospects of the company and its subsidiary are linked to the performance of the stock market. The endeavor shall be to scale up the operations of this company to add value to all the stakeholders and derisk the business model.

OPPORTUNITIES & THREATS

A prolonged bear phase in the stock markets is the main threat for the company. A bull market provides opportunities to earn profits from investment and trading activity.

SEGMENT-WISE PERFORMANCE: Not Applicable

OUTLOOK

The outlook for the current financial year predominantly depends upon capital markets as revenue is generated by subsidiary company. The countrys attractiveness as an investment destination remains robust, given the size and scale of operations it has to offer to global companies, abundant skilled talent pool, and prowess in technology and innovation.

RISKS & CONCERNS

A prolonged bear market and poor choice of investment and trading positions are the major risk factors. The size of operation of your Company has always been a concern as IT &ITes , as well as Portfolio Investment player, as the industry is moving towards institutionalization. Primary market is dominated by few large players and it is increasingly difficult for small mid cap entities to penetrate.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Your Company has developed formal and well-structured internal control systems to conduct the business within the framework of Regulations. The present structure & systems are adequate and commensurate to the size of operations of your company.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The financial year 2023-24, your company has not done any capex in or any business in IT &ITes , the only income it had was in form of dividend received from subsidiary. On consolidated front, Subsidiary companys revenue is at ?603.60 lakh against the previous year of ?520.10 lakh, whereas consolidated profit stood at ? 74.21 lakh as against loss of ?137.49 lakh in the previous year.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT :

There are no material developments in human resources /industrial relations front.

DISCLOSURE OF ACCOUNTING TREATMENT

In accordance with the Companies (Indian Accounting Standards), Rules, 2015 of the Companies Act, 2013, read with Section 133 of the Companies Act, 2013, your Company has adopted the Indian Accounting Standards (Ind AS) for preparation of its financial statements.

MATERIAL FINANCIAL AND COMMERCIAL TRANSACTIONS

During the year there were no material financial or commercial transactions.

KEY FINANCIAL RATIOS* :

Ratios	Current year	Previous year	% Change	Explanation for Change being > 25%
Current Ratio (in times)	2.47	1.44	72	Due to sharp increase in other balances with banks & inventories
Debt to Equity ratio (in times)	-	-	-	-
Return on equity ratio (in %)	41%	-75%	154	On account of increase in profit during the year.
Inventory Turnover Ratio	0.80	1.35	-41	On account of increase in consumption during the year.
Return on capital employed (ROCE)	3.86	-2.11	283	On account of increase in profits for the year.
Net capital turnover ratio (in times)	0.20	0.15	29	On account of increase in revenue for the year

Note: * given on the basis of Consolidated financials FORWARD-LOOKING STATEMENTS:

This report contains forward-looking statements based on certain assumptions and expectations of future events. The Company, therefore, cannot guarantee that these assumptions and expectations are accurate or will be realized. The Companys actual results, performance or achievements can thus differ materially from those projected in any such forward-looking statements.