Futuristic Solutions Ltd Auditor Reports

TO THE INDEPENDENT AUDITORS REPORT

[Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory Requirements in the Independent Auditors Report of even date to the members of Futuristic Solution Limited on the financial statements for the year ended March 31^st, 2025]

To the best of our information & according to the explanations provided to us by the company & the books of account & records examined by us in normal course of audit, we state that:

(i) (a) The company has maintained proper records showing full particulars, including quantitative details and situation of Property, Plant and Equipment & relevant details of right to use assets. The company does not have any intangible assets;

(b) The company has a regular program of physical verification of its PPE by which all PPE are verified in a phased manner. in our opinion, this periodicity of physical verification is reasonable having regard to the size of the company and the nature of its assets. in our opinion, and according to the information and explanations given to us, no material discrepancies were noticed on such verification.

(c) The title deeds of all the immovable properties (Other than properties where the Company is the lessee and the lease agreements are duly executed in favor of the lessee) disclosed in the financial statements are held in the name of the company.

(d) The Company has not revalued its Property, Plant and Equipment (including Right of Use assets) or intangible assets or both during the year.

(e) No proceedings have been initiated or are pending against the company for holding any Benami property under the "Benami Transactions (Prohibition) Act, 1988 and Rules made thereunder.

(ii) (a) The inventory contains Disputed Claims & Quoted/Unquoted Shares. Physical verification of claims is not required in normal operation of the company.

(b) The Company has not been sanctioned working capital limits in excess of Rs. 5 Crores, in aggregate, from banks or financial institutions on the basis of security of current assets.

(iii) (a) Since the companys principal business is to give loans. Accordingly, the provision of clause. 3(iii)(a) of the order is not applicable to it.

(b) The company, being a non-Banking Financial company (‘*NBFC), registered under provisions of RBI act, 1934. in our opinion and according to the information and explanations given to us, the investments made, guarantees provided, security given and the terms and conditions of the grant of all loans and advances in the nature of loans and guarantees, provided during the year are, prima facie, not prejudicial to the companys interest.

(c) The company, being a non-Banking Financial company (‘BFC), registered under provisions of RBI act, 1934 and rules made thereunder, in pursuance of its compliance with provisions of the said act/Rules, particularly, the income Recognition, asset classification and Provisioning norms, monitors repayments of principal and payment of interest by its customers as stipulated. in our opinion and according to the information and explanations given to us, in respect of loans and advances in the nature of loans, the schedule of repayment of principal and payment of interest has been stipulated and in cases where repayment of principal and payment of interest is not received as stipulated, the cognizance thereof is taken by the company in course of its periodic regulatory reporting. According to the information and explanation made available to us, reasonable steps are taken by the company for recovery thereof.

(d) The company, being a NBC, registered under provisions of RBI act, 1934 and rules made thereunder, in pursuance of its compliance with provisions of the said act/Rules, particularly, the income Recognition, asset classification and Provisioning norms, monitors and report total amount overdue including principal and/or payment of interest by its customers for more than 90 days. In cases where repayment of principal and payment of interest is not received as stipulated, the cognizance thereof is taken by the company in course of its periodic regulatory reporting. According to the information and explanation made available to us, reasonable steps are taken by the company for recovery thereof.

(e) Since the companys principal business is to give loans. Accordingly, the provision of clause 3(iii)(e) of the order is not applicable to it.

(f) Based on our audit procedures, according to the information and explanation made available to us, the company has not granted any loans or advances in the nature of loans either repayable on demand or without specifying any terms or period of repayment during the year.

(iv) According to the information and explanation given to us in respect of loans, investments, guarantees and securities, the Company has complied with the provisions of Section 185 and 186 of the Act.

(v) In our opinion and according to the information and explanations given to us, the company being a non-banking financial company registered with the Reserve Bank of India, the provisions of sections 73 to 76 or any other relevant provisions of the act and the companies (acceptance of deposits) Rules, 2014, as amended, with regard to the deposits accepted are not applicable to the company. We are informed by the Management that no order has been passed by the company law Board, national company law tribunal or Reserve Bank of India or any court or any other tribunal on the company in respect of the aforesaid deposits.

(vi) The Central Government of India has not specified the maintenance of cost records under subsection (1) of Section 148 of the Act for any of the products of the Company. Accordingly, the provision of clause 3(vi) of the order is not applicable to the company.

(vii) (a) The company is regular in depositing undisputed statutory dues including Goods and Service Tax, provident fund, employees state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues to the appropriate authorities and however, there have been slight delay in few cases / delays in deposit have not been serious.

(b) According to the information and explanation given to us, there are no dues with respect to income tax, sales tax, service tax, value added tax, customs duty, excise duty, which have not been deposited on account of any dispute except the income tax demand for AY 2023-24 Rs 61,138 and TDS demands of Rs 3,07,510 appearing on traces portal, year wise details of which are:

Nature of Statue	Nature of Dues	Amount	pertains to period
Income Tax Act, 1961	TDS Demands	252,120	FY 2007-08
Income Tax Act, 1961	TDS Demands	420	FY 2008-09
Income Tax Act, 1961	TDS Demands	320	FY 2012-13
Income Tax Act, 1961	TDS Demands	340	FY 2014-15
Income Tax Act, 1961	TDS Demands	54,290	FY 2018-19
Income Tax Act, 1961	TDS Demands	20	FY2021-22
	Total	3,07,510

(viii) No amount has been surrendered or disclosed as Income during the year in the tax assessments under the Income Tax Act, 1961.

(ix) (a) In our opinion, the company has not defaulted in repayment of loans or other borrowings to financial institutions, banks, government and dues to debenture holders or in the payment of interest thereon to any lender.

(b) According to the information and explanations given to us and on the basis of our audit procedures, we report that the company has not been declared willful defaulter by any bank or financial institution or government or any government authority or any other lender.

(c) Company not taken any term loan during the year accordingly, the provision of clause 3(ix)(c) of the order is not applicable to it.

(d) According to the information and explanations given to us, and the procedures performed by us, and on an overall examination of the financial statements of the company, we report that no funds raised on short-term basis have been used for long-term purposes by the company.

(e) The company has not taken any funds from any entity or person on account of or to meet the obligations of its associate. The company does not have any subsidiaries or joint ventures.

(x) (a) According to the information and explanations given to us and on the basis of our examination of the records of the company, the company has not raised any moneys raised by way of further public offer during the current financial year.

(b) According to the information and explanations given to us and on the basis of our examination of the records of the company, the company has not made preferential allotment of equity shares during the year. Accordingly, the provision of this clause of the order is not applicable to it.

(xi) (a) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of fraud by the Company or any fraud on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such instance by the management.

(b) In our opinion and according to the information and explanations given to us, no report under sub-section (12) of section 143 of the act has been filed by the auditors in Form ADT-4 as prescribed under rule 13 of companies (audit and auditors) Rules, 2014 with the central Government.

(c) According to the information and explanations given to us, there were no whistle blower complaints received during the year by the company.

(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the Order is not applicable to the Company.

(xiii) According to the information and explanation given to us, all transactions entered into by the Company with the related parties are in compliance with Sections 177 and 188 of Act, where applicable and the details have been disclosed in the Financial Statements etc., as required by the applicable accounting standards.

(xiv) (a) In our opinion and based on our examination, the company has an internal audit system commensurate with the size and nature of its business.

(b) We have considered, during the course of our audit, the reports of the internal auditors) for the period under audit, issued to the company during the year till date, in determining the nature, timing and extent of our audit procedures in accordance with the guidance provided in SA 610"using the work of internal auditors.

(xv) According to the information and explanations given to us, in our opinion during the year the company has not entered into any non-cash transactions with its directors or persons connected with its directors. accordingly, paragraph 3(x) of the order is not applicable to the company and hence provisions of section 192 of the act, 2013 are not applicable to the company.

(xvi) (a) The company is required to be registered under Section 45-ia of the Reserve Bank of India act, 1934 and the company has obtained the required registration.

(b) According to the information and explanations given to us, the company has not conducted any non-Banking Financial or Housing Finance activities without obtaining a valid COR from the Reserve Bank of India as per the Reserve Bank of India act, 1934.

(c) According to the information and explanations given to us, the company is not a core investment company (‘CIC) as defined under the Regulations by the Reserve Bank of India.

(xvii) The Company has not incurred cash losses in the Financial Year and in the immediately preceding financial year.

(xviii) Since there is no joint auditor in the company. Accordingly, the provision of this clause of the order is not applicable to it. Further Auditor did not resign during the financial year resignation of the statutory auditors during the year.

(xix) According to the information and explanations given to us and on the basis of the financial ratios, ageing and expected dates of realization of financial assets and payment of financial liabilities, provided in the Financial statements which describe the maturity analysis of assets & liabilities other information accompanying the financial statements, our knowledge of the Board of directors and management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report indicating that the company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. We, however, state that this is not an assurance as to the future viability of the company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date, will get discharged by the company as and when they fall due.

(xx) a) There were no ongoing projects of which the company has to transferred unspent amount to a Fund specified in

Schedule VI to the Companies Act within a period of six months of the expiry of the financial year in compliance with second proviso to sub-section (5) of section 135 of the said Act.

b) According to the information and explanations given to us and based on our examination of the records of the company, there is no amount which is remaining unspent under sub section 5 of section 135 of the act pursuant to any ongoing CSR project.

(xxi) There have not been any qualifications or adverse remarks in the Companies (Auditors Report) Order (CARO) reports of the companies included in the consolidated financial statements.