Futuristic Solutions Limited is a specialized Indian **Non-Banking Financial Company (NBFC)**, registered under the **RBI Act, 1934**. Incorporated on **September 23, 1983**, the company occupies a unique niche in the financial services sector, focusing on the acquisition of distressed assets, debt recovery, and strategic equity investments. --- ### **Core Business Model: Distressed Assets & Dispute Resolution** The company operates as a single-segment entity with a specialized focus on the lifecycle of disputed financial claims. Its primary revenue-generating activities include: * **Arbitration & Actionable Claims:** Providing comprehensive solutions for arbitration cases and dealing in actionable claims. * **Debt Management & Recovery:** The purchase, sale, and discounting of recoverable debts. The company specializes in the recovery of disputed debts through legal and judicial frameworks. * **Portfolio Acquisition:** Strategic buying of loan portfolios from other **NBFCs** to leverage its recovery expertise. * **Financing Operations:** Granting of **personal and business loans** to a diversified client base. * **Inventory Composition:** Unlike traditional NBFCs, the company’s inventory primarily consists of **disputed claims** and a mix of **quoted and unquoted shares**. --- ### **Strategic Pivot: Capital Allocation & Sector Diversification** While maintaining its core recovery business, Futuristic Solutions is currently executing a strategic shift toward direct equity investments in the chemical and specialty materials sector. * **Major Acquisition:** In **October 2025**, the company deployed **₹6,79,61,250** to acquire **250 Equity Shares** in **Diana Euro-Chem Private Limited**. * **Related Party Dynamics:** This acquisition is classified as a **Related Party Transaction (RPT)** under **Section 188** of the Companies Act, 2013, due to common directorships. The Board granted **post-facto approval** on **October 25, 2025**, for the Share Purchase Agreement (SPA) executed on **October 3, 2025**. * **Capital Regularization:** The company is utilizing **Extra-Ordinary General Meetings (EGM)** to seek shareholder approval for large-scale capital deployments under **Section 186**, indicating a move toward more substantial, formal investment positions. --- ### **Financial Performance & Capital Structure** The company maintains a highly conservative, **debt-free** balance sheet, prioritizing internal accruals to fund operations and investments. | Financial Metric (₹ in Lakhs) | FY 2023-24 | FY 2022-23 | FY 2021-22 | | :--- | :--- | :--- | :--- | | **Total Revenue** | **352.00** | **356.00** | - | | **Net Profit Before Tax** | **197.22** | **338.00** | - | | **Paid-up Share Capital** | **1,047.34** | **1,047.34** | **1,047.34** | | **Equity Reserves** | **485.27** | **448.73** | **286.14** | | **Total Equity** | **1,532.62** | **1,496.07** | **1,333.49** | | **Long Term Debt** | **Nil** | **Nil** | **Nil** | | **Gearing Ratio** | **0.00%** | **0.00%** | **0.00%** | **Key Financial Highlights:** * **Equity Growth:** Total equity has grown steadily from **₹1,333.49 Lakhs** in FY22 to **₹1,532.62 Lakhs** in FY24. * **Regulatory Reserves:** In compliance with **Section 45-IC of the RBI Act**, the company transfers at least **20% of net profit** to a special reserve annually (**₹28.26 Lakhs** in FY24; **₹53.46 Lakhs** in FY23). * **Shareholder Returns:** The Board proposed a dividend of **₹1 per share** in May 2024, though no interim dividend was recommended for the most recent cycle. * **Asset Base:** The company holds **1,04,73,447 equity shares** with a face value of **₹10**. It holds no **intangible assets**. --- ### **Governance & Executive Leadership** As of late 2025 and early 2026, the company has significantly reinforced its leadership team to enhance regulatory oversight and corporate governance. * **Board Composition:** **6 Directors** (1 Executive Managing Director, 5 Non-Executive Directors). * **Independent Oversight:** **3 Independent Directors**, including **Mr. Abhishek Kaushal** and **Mrs. Akriti Kaur Malhotra**, appointed for 5-year terms effective **September 3, 2025**. * **Key Managerial Personnel (KMP):** * **Mandeep Sandhu:** Managing Director. * **Navneet Singh:** Appointed as **Chief Financial Officer (CFO)** effective **January 9, 2026**. * **Sikha Rani Khuswaha:** Company Secretary and Compliance Officer (appointed **April 16, 2024**). --- ### **Risk Management & Legal Exposure** The company’s business model is inherently tied to the Indian judicial system and credit environment. **1. Judicial & Realization Risk** A significant portion of the company’s inventory consists of claims at the **'Executions'** stage. Revenue realization is subject to judicial timelines which can span several years. Consequently, the company follows a conservative **Revenue Recognition Policy**, only recognizing income once receipts are credited to its bank accounts. **2. Major Litigation Exposure** The company is a **1st charge holder (Secured Financial Creditor)** in the Corporate Insolvency Resolution Process (CIRP) of **Multi Flex Lemi Print Limited**. A claim of **₹172,02,71,203** was provisionally admitted by the IRP following an NCLT Mumbai order dated **March 31, 2023**. **3. Financial Risk Mitigation** | Risk Category | Mitigation Strategy | | :--- | :--- | | **Credit Risk** | Periodic financial reliability assessments of counterparties and monitoring of historical bad debts. | | **Liquidity Risk** | Treasury-led rolling cash flow forecasts to ensure obligations are met without external debt. | | **Market Risk** | Monitoring interest rate fluctuations; the company does **not** trade in derivatives for speculation. | | **Currency Risk** | **NIL** exposure; no foreign currency transactions as of **March 31, 2025**. | --- ### **Compliance & Regulatory Framework** * **Taxation:** Disputed claims are treated as **actionable claims** under Section 2(1) and remain outside the purview of **GST** as per Schedule III of the CGST Act, 2017. * **RBI Compliance:** The company strictly adheres to RBI norms for **Income Recognition, Asset Classification, and Provisioning**. * **Integrity:** The company has not been declared a **wilful defaulter** by any lender and does not accept public deposits. * **Operational Structure:** The company operates independently with **no subsidiaries, joint ventures, or associate companies**.