United Interactive Ltd Management Discussions.

INDUSTRY STRUCTURE AND DEVELOPMENTS, COMPANYS BUSINESS

At present, your company does not have any business under information technology segment as of now, and is dependent on business of its sole strategic subsidiary, 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.

Overall economic slowdown, led by the COVID-19 on set followed by stringent lockdowns severely impacted economic activity, bringing manufacturing and trading activities to a halt. Prolonged lockdown exacerbated existing vulnerabilities of the country including the weakened financial sector, private investments, and consumption demand, The Indian economy contracted by 8.0% in FY 202021. The Government announced a special comprehensive package of Rs 20 trillion, equivalent to 10% of Indias GDP to revive the countrys economic activity.

OPPORTUNITIES & THREATS

The fiscal and monetary stimulus provided by the Government and RBI would assist greatly in the recovery of the economy from the challenges posed in early FY 2020- 21. The Governments thrust on reviving the manufacturing and infrastructure sector, and the countrys increasing prominence in the global supply chain will augur well for the Company. Also, in FPIs (Foreign Portfolio Investment), the Government proposes to increase the investment limit for FPI to 15% (currently 9%)

The challenges and opportunities arising from the COVID-19 pandemic and its resulting impact on the economy is uncertain in both macro and micro terms. We believe in the investments we have made, and continue to make, in our strategy will help us as to tackle these market conditions. For fiscal 2022, we will continue to execute our strategy along the same lines.

SEGMENT-WISE PERFORMANCE

The income of the Company comprises of dividend received on investment in the subsidiary. On a consolidated basis income further comprises of dividend, interest, profits in securities trading. During the current year income from core activities was NIL, whereas the income on consolidated basis was relatively low.

OUTLOOK

The outlook for the current financial year predominantly depends upon capital markets as major revenue is generated by its subsidiary, which is engaged in capital markets operations. With a combined push by Government and private sector, Indias future seems to be vibrant in capital markets. India is expected to be the fourth largest private wealth market globally by 2030.

RISKS & CONCERNS

The size of operation of your Company has always been a concern as IT & ITes 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. With respect to stock market, at present due to sluggish interest rates, Investors with expectation of higher returns from the capital markets is one of the key contributors of fund inflows, but the pandemic-induced developments notwithstanding, as economic activities resume and gather pace, businesses should see heightened requirement of funds causing stability in interest rates.

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.

FINANCIAL PERFORMANCE AND OPERATIONAL PERFORMANCE

The financial year 2020-21, your company was unable procure any business in IT & ITes business, the only income it had was in form of dividend received from subsidiary. On consolidated front revenue is at Rs 145.73 lakh against the previous year of Rs 2312.60 lakh, whereas consolidated profits stood at Rs 53.01 lakh as against Rs 143.49 lakh in the previous year.

The total consolidated comprehensive income for the year ended March 31, 2021 stood at Rs 1339.69 lakh compared to Rs (19.73) 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.

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.