TO THE MEMBERS OF UNITED INTERACTIVE LIMITED
The Directors have pleasure to present 39th Annual Report and Audited Annual Accountsof your company for the year ended on 31st March 2022.
KEY HIGHLIGHTS OF THE FINANCIALS: -
(Rs in Lakh)
| || |
|PARTICULARS ||2021-22 ||2020-21 ||2021-22 ||2020-21 |
|Revenue from Operations ||- ||- ||90.25 ||145.73 |
|Other Income ||15.63 ||7.81 ||340.31 ||182.64 |
|Total Income ||15.63 ||7.81 ||430.56 ||328.37 |
|Operating Expenditure ||13.12 ||12.32 ||258.21 ||195.76 |
|Profit/ loss before Depreciation Finance Costs and Tax Expense ||2.51 ||-4.52 ||172.35 ||132.61 |
|Less: Depreciation/ Amortisation / Impairment ||- ||- ||39.95 ||53.52 |
|Less: Finance Costs ||- ||- ||- ||1.89 |
|Profit /loss before Tax Expense ||2.51 ||-4.52 ||132.40 ||77.20 |
|Less: Provision for Current Tax ||- ||- ||- ||23.50 |
|Less: Provision for Deferred Tax (credit)/charge ||- ||- ||8.28 ||0.69 |
|Profit after Tax (A) ||2.51 ||-4.52 ||124.12 ||53.01 |
|Total Other Comprehensive Income/Loss (B) ||- ||- ||405.36 ||1286.68 |
|Total (A+B) ||2.51 ||- 4.52 ||529.48 ||1339.69 |
|Shareholders of the company ||2.51 ||- 4.52 ||263.61 ||677.20 |
|Non-controlling interest ||NA ||NA ||265.87 ||662.49 |
|Opening Balance of Retained Earnings ||-130.54 ||-126.02 ||602.90 ||589.41 |
|Closing Balance of Retained Earnings ||-128.02 ||-130.54 ||714.63 ||602.90 |
PERFORMANCE REVIEW & FUTURE OUTLOOK:
During the current year your Company has booked total income of Rs 15.63Lakhs and Net Profit of Rs 2.51 Lakh on standalone basis. The source ofincome is on account of dividend received from subsidiary company - Netesoft India Limited(Hereinafter referred to as Netesoft).
Your Company has its strategic & material subsidiary as Netesoft India Limited. Theperformance of Netesoft for the financial year 2021-2022 is as follows:
The total income of the Netesoft for the year ended March 31 2022 stood at Rs430.57 Lakh and it has made a profit after tax of Rs 137.24 Lakhs ascompared to a profit after tax of Rs 65.35 Lakh during the previousyear.
Your Directors are expecting a growth in near future on consolidated basis and areconfident that the policies strategies adopted by your company will yield better returns.
Impact of Covid-19 on Company's Performance
The outbreak of Coronavirus (COVID -19) pandemic globally caused significantdisturbance and slowdown of economic activity in the first quarter of the Financial year.The Company adopted the work from home policy for the employees during the entirelockdown period. As such there's no material impact on business activities of the company.
DIVIDEND & RESERVES:
In view of the accumulated losses your Directors expresses its inability to recommendpayment of Dividend for the current financial year.
As at March 31 2022 the total paid up share capital of United Interactive Limitedstood at Rs18310000/- divided into 1831000 fully paid up equity sharesof Rs 10/- each. During the year under review the Company has not issuedany shares. The Company has not issued shares with differential voting rights. It hasneither issued employee stock options nor sweat equity shares and does not have any schemeto fund its employees to purchase the shares of the Company.
As on 31st March 2022 Mrs. Sarayu Somaiya Director of the Company who isalso Promoter of the Company holds 69.83% of total share capital of the Company.
MATERIAL CHANGES AND COMMITMENTS BETWEEN THE DATE OF THE BALANCE SHEET AND THE DATE OFREPORT
There have been no material changes and commitments affecting the financial position ofthe Company which have occurred between the end of the Financial Year of the Company towhich the Financial Statements relate and the date of the report.
CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION FOREIGN EXCHANGE EARNINGS AND OUTGO
A. Conservation of Energy and Technology Absorption:
The Company has no particulars to report regarding conservation of energy technologyabsorption as required under Section 134(3)(m) of the Companies Act 2013 read with Rulesthere under.
B. Foreign exchange earnings and outgo:
|Sr. No. ||Particulars ||Amt in Rs |
|1 ||Foreign Exchange earned in terms of actual inflows during the year ||Nil |
|2 ||Foreign Exchange outgo in terms of actual outflows during the year ||Nil |
CORPORATE SOCIAL RESPONSIBILITY (CSR)
Your company is committed to improve quality of lives of people in the community itsserves through long term stakeholder value creation with special focus on skillsdevelopment. The Company does not have to mandatorily constitute a Corporate SocialResponsibility (CSR) Committee in accordance with Section 135 of the Companies Act 2013.The company fully understands its role in society and is committed for sustainable &inclusive growth of people & the environment around its business.
BOARD AND DIRECTORS EVALUATION AND CRITERIA FOR EVALUATION
During the year the Board has carried out an annual evaluation of its own performance& performance of the Directors.
Your Company has constituted Nomination and Remuneration Committee which as per theprovisions of Companies Act 2013 has defined the evaluation criteria procedure and timeschedule for the Performance Evaluation process for the Board its Committees andDirectors. The criteria for Board Evaluation inter alia include degree of fulfillment ofkey responsibilities Board structure and
composition establishment and delineation of responsibilities to various Committeeseffectiveness of Board processes information and functioning.
Criteria for evaluation of individual Directors include aspects such as attendance andcontribution at Board/ Committee Meetings and guidance/ support to the management outsideBoard/ Committee Meetings. In addition the Chairman was also evaluated on key aspects ofhis role including setting the strategic agenda of the Board encouraging activeengagement by all Board members and motivating and providing guidance to the Management.Criteria for evaluation of the Committees of the Board include degree of fulfillment ofkey responsibilities adequacy of Committee composition and effectiveness of meetings. Theprocedure followed for the performance evaluation of the Board Committees and Directorsis detailed in the Directors' Report.
CRITERIA FOR DETERMINING QUALIFICATIONS POSITIVE ATTRIBUTES AND INDEPENDENCE OFDIRECTORS:
The Nomination and Remuneration Committee has formulated the criteria for determiningqualifications positive attributes and independence of Directors in terms of provisionsof Section 178(3) of the Companies Act 2013.
In accordance with the above criteria a Director will be considered as an 'IndependentDirector' if he/ she meet with the criteria for 'Independent Director' as laid down in theAct.
A transparent Board nomination process is in place that encourages diversity ofthought experience knowledge perspective age and gender. It is also ensured that theBoard has an appropriate blend of functional and industry expertise. While recommendingthe appointment of a Director the Nomination and Remuneration Committee considers themanner in which the function and domain expertise of the individual will contribute to theoverall skill-domain mix of the Board.
In addition to the duties as prescribed under the Act the Directors on the Board ofthe Company are also expected to demonstrate high standards of ethical behavior stronginterpersonal and communication skills and soundness of judgment. Independent Directorsare also expected to abide by the 'Code for Independent Directors' as outlined in ScheduleIV to the Act.
The Company has adopted a Policy for remuneration of Directors Key ManagerialPersonnel and other employees which is aligned to its overall Human resource philosophy.The key factors considered in formulating the Policy are as under:
(a) the level and composition of remuneration is reasonable and sufficient to attractretain and motivate Directors of the quality required to run the Company successfully;
(b) relationship of remuneration to performance is clear and meets appropriateperformance benchmarks; and
(c) remuneration to Directors key managerial personnel and senior management involvesa balance between fixed and incentive pay reflecting short and long-term performanceobjectives appropriate to the working of the Company and its goals.
The key principles governing the Company's Remuneration Policy are as follows:
Remuneration for independent Directors and non-independent non-executive Directors:
Independent Directors ('ID') and non-independent non-executive Directors ('NED')may be paid sitting fees for attending the Meetings of the Board and of Committees ofwhich they may
be members and commission within regulatory limits as recommended by the Nominationand Remuneration Committee ('NRC') and approved by the Board.
Overall remuneration should be reasonable and sufficient to attract retain andmotivate Directors aligned to the requirements of the Company taking into considerationthe challenges faced by the Company and its future growth imperatives. Remuneration paidshould be reflective of the size of the Company complexity of the sector/ industry/Company's operations and the Company's capacity to pay the remuneration and be consistentwith recognized best practices.
The aggregate commission payable to all the NEDs and IDs will be recommended bythe NRC to the Board based on Company performance profits return to investorsshareholder value creation and any other significant qualitative parameters as may bedecided by the Board. The NRC will recommend to the Board the quantum of commission foreach Director based upon the outcome of the evaluation process which is driven by variousfactors including attendance and time spent in the Board and Committee Meetingsindividual contributions at the meetings and contributions made by Directors other than inmeetings.
The remuneration payable to Directors shall be inclusive of any remunerationpayable for services rendered in any other capacity unless the services rendered are of aprofessional nature and the NRC is of the opinion that the Director possesses requisitequalification for the practice of the profession.
Policy on Remuneration for Managing Director (MD') / Executive Directors(ED') / Key
Managerial Personnel (KMP')/ rest of the Employees:
The extent of overall remuneration should be sufficient to attract and retaintalented and qualified individuals suitable for every role. Hence remuneration should bemarket competitive driven by the role played by the individual reflective of the size ofthe Company complexity of the sector/ industry/ Company's operations and the Company'scapacity to pay consistent with recognized best practices and aligned to any regulatoryrequirements. Basic/ fixed salary is provided to all employees to ensure that there is asteady income in line with their skills and experience.
In addition the Company provides employees with certain perquisites allowancesand benefits to enable a certain level of lifestyle and to offer scope for savings. TheCompany provides retirement benefits as applicable.
In addition to the basic/ fixed salary benefits perquisites and allowances asprovided above the Company provides MD/ EDs such remuneration by way of commissioncalculated with reference to the net profits of the Company in a particular financialyear as may be determined by the Board subject to the overall ceilings stipulated inSection 197 of the Companies Act 2013. The specific amount payable to the MD/ EDs wouldbe based on performance as evaluated by the NRC and approved by the Board.
The Company provides the rest of the employees a performance linked bonus. Theperformance linked bonus would be driven by the outcome of the performance appraisalprocess and the performance of the Company.
Presently Mrs. Sarayu Somaiya (Director) Mr. Basanta Behera (CEO) & Mr. HemangJoshi (CFO) of the Company draws remuneration from the subsidiary as stated in relatedparty statement under the consolidated part whereas Company Secretary's remuneration isas specified under MGT-9.
DIRECTORS' RESPONSIBILITY STATEMENT
The Directors report that:
i) In the preparation of the annual accounts the applicable accounting standards havebeen followed along with proper explanation relating to material departures.
ii) The Directors have selected such accounting policies and applied them consistentlyand made judgments and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the company at the end of the financial year and ofthe profit and loss account of the company for that period.
iii) The Directors have taken proper and sufficient care for the maintenance ofadequate accounting records in accordance with the provisions of this Act for safeguardingthe assets of the company and for preventing and detecting fraud and other irregularities.
iv) The Directors have prepared the annual accounts on a going concern basis.
v) The Directors had laid down internal financial controls to be followed by thecompany and that such internal financial controls are adequate and were operatingeffectively and
vi) The directors had devised proper systems to ensure compliance with the provisionsof all applicable laws and that such systems were adequate and operating effectively.
DECLARATION ON INDEPENDENT DIRECTORS
All the Independent Directors have given declarations that they meet the criteria ofindependence as laid down under Section 149(6) of the Act. In the opinion of the Boardthey fulfill the conditions of independence as specified in the Act and the Rules madethere under and are independent of the management.
Your company has one subsidiary namely 'Netesoft India Limited'. Currently NetesoftIndia Limited is carrying its activities in offering services for creative graphic designs& also in trading and investment in financial market instruments.(see AOC-1particulars in annexure-I)
CONSOLIDATED FINANCIAL STATEMENT
Your Company's Board of Directors is responsible for the preparation of theConsolidated Financial Statements of your Company & its Subsidiary in terms of therequirements of the Companies Act2013 and in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards specified underSection 133 of the Act.
POLICY ON PREVENTION PROHIBITION AND REDRESSAL OF SEXUAL HARASSMENT AT WORKPLACE
The Company has zero tolerance for sexual harassment and has adopted a Policy onPrevention Prohibition and Redressal of Sexual Harassment at the Workplace in line withthe provisions of the Sexual Harassment of Women at Workplace (Prevention Prohibition andRedressal) Act 2013 and the Rules there under. The Company has not received any complaintof sexual harassment during the financial year 2021-22.
VIGIL MECHANISM / WHISTLE BLOWER POLICY
The Company has adopted a Whistle Blower Policy to provide a formal mechanism to theDirectors and employees to report their concerns about unethical behavior actual orsuspected fraud or violation of the Company's Code of Conduct or ethics policy. The Policyprovides for adequate safeguards against victimization of employees who avail of themechanism. It is affirmed that no personnel of the Company have been denied access to theAudit Committee.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS
No significant material orders have been passed by the Regulators or Courts orTribunals which would impact the going concern status of the Company and its futureoperations.
(1) Statutory Auditors:
M/s J L Thakkar & Co (FRN: 110898W) the statutory auditors of the Company holdoffice till the conclusion of the 39th Annual General Meeting of the Company. The Boardhas recommended appointment of M/s. D N Kanabar & Co. (FRN: 104698W) CharteredAccountants as the Statutory Auditors of the Company in place of retiring Auditors for aterm of five consecutive years from the conclusion of the 39th Annual General Meeting ofthe Company till the conclusion of the 44th Annual General Meeting to be held in the year2027 for approval of shareholders of the Company. Your Board has obtained Consent anddeclaration from M/s. D N Kanabar & Co. confirming as to their eligibility forappointment as Statutory Auditors of the Company.
(2) Secretarial Auditors:
Pursuant to the provisions of Section 204 of the Act and The Companies (Appointment andRemuneration of Managerial Personnel) Rules 2014 the Board of Directors of the Companyhad appointed M/s. Hardik Savla & Co a Company Secretary in Practice to undertake theSecretarial Audit of the Company for the year ended March 31 2022. The Secretarial AuditReport is annexed to this report. (see annexure-ii)
The Auditors' Report and the Secretarial Audit Report for the financial year ended 31stMarch 2022 do not contain any qualification reservation adverse remark or disclaimer.
LISTING ON STOCK EXCHANGES
The Equity Shares of your Company are listed only with BSE Limited. We confirm thatyour Company has paid the listing fees for the financial year 2022-2023.
The Company is committed to maintain the highest standards of corporate governance andadhere to the corporate governance requirements set out by SEBI. In accordance withexemption provided under regulation 15 of the SEBI (LODR) Regulations 2015 variousmandatory corporate governance requirements do not apply to the Company. Therefore noseparate section on Corporate governance is annexed.
PARTICULARS OF LOANS GUARANTEES OR INVESTMENT UNDER SECTION 186
During the year the Company has not given any loan or guarantee or provided securityor has made any investment which would be required to be reported under section 186 of thecompanies Act 2013. The closing balances of investments which would be covered underSection 186 of the Companies Act 2013 are disclosed in the Schedule of Non-CurrentInvestments in the Financial Statements. The Company has not granted any Loans andGuarantees.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES REFERRED TO IN UB-SECTION(1) OF SECTION 188 OF THE COMPANIES ACT 2013
The contracts or arrangements entered into by the Company with Related Parties havebeen done at arm's length and are in the ordinary course of business and are immaterial innature. Hence no particulars are being provided in Form AOC-2 as mandated pursuant to theprovisions of Section 134 of the Companies Act 2013 read with Rule 8 (2) of theCompanies (Accounts) Rules 2014.
THE EXTRACT OF ANNUAL RETURN
Extracts of Annual return in form MGT-9 as per Section 134 (3) (a) of the CompaniesAct 2013 read with Rule 8 of Companies Act (Accounts) Rules 2014 and Rule 12 of Companies(Management & Administration) Rules 2014 is available on the website of the companywww.Unitedinteractive.in
MANAGERIAL REMUNERATION / PARTICULARS OF EMPLOYEES
Your company has not paid any managerial remuneration during the period under reviewtherefore no Disclosures in the Board Report as required under Rule 5 of Companies(Appointment & Remuneration) Rules 2014 is provided and further your Company also hasnot employed any person at a remuneration in excess of the limit set out in the saidRules.
DIRECTORS AND KEY MANAGERIAL PERSONNEL (KMP)
During the year Smt Sarayu Somaiya was re-appointed as a Director liable to retire byrotation at the Annual General Meeting of the Company held on September 14 2021 and MrRasik Somaiya demised on 01.05.2021 except that none of the Director or Key ManagerialPerson has been appointed or has retired or resigned during the year.
In accordance with the provisions of Section 152 of the Act and in terms of Articles ofAssociation of the Company Smt. Sarayu Somaiya being longest in office retires and iseligible for re-appointment and the board recommends her appointment as Director of yourCompany.
BOARD AND COMMITTEE MEETINGS
Four Board Meetings were convened and held during the year;
June 30 2021 August 13 2021 November 13 2021 and February 12 2022.
The intervening gap between the Meetings was within the period as prescribed under theAct and notifications issued there under from time to time.
DETAILS OF DEPOSITS WHICH ARE NOT IN COMPLIANCE WITH THE REQUIREMENTS OF CHAPTER V OFTHE COMPANIES ACT 2013:
Your Company has not accepted any fixed deposits covered under chapter V of theCompanies Act 2013 and as such no amount of principal or interest was outstanding onthe date of Balance Sheet.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT :
The Management Discussion and Analysis Report as required under regulation 34 of theSEBI (LODR) Regulations 2015 is annexed (annexure-iii) to this report.
INTERNAL CONTROLS SYSTEMS AND ADEQUACY
The Company's internal audit systems are geared towards ensuring adequate internalcontrols commensurate with the size and needs of the business with the objective ofefficient conduct of operations through adherence to the Company's policies identifyingareas of improvement evaluating the reliability of Financial Statements ensuringcompliances with applicable laws and regulations and safeguarding of assets fromunauthorized use. The Audit Committee along with Management overseas results of theinternal audit and reviews implementation on a regular basis.
Your Directors wish to place on record their appreciation for the whole hearted andsincere cooperation the Company has received from its bankers and various Governmentagencies. Your Directors also wish to thank all the employees for their co-operation.
For and on behalf of the Board
| ||SarayuSomaiya ||Nishant Upadhyay |
|Date : May 27 2022 ||Director ||Independent Director |
|Place : Mumbai ||DIN: 00153136 ||DIN:02128886 |