Accounting Policies of Sunshine Capital Ltd. Company

Mar 31, 2025

1. CORPORATE AND GENERAL INFORMATION

SUNSHINE CAPITAL LIMITED is a public limited company (The Company) having registered office at 209,
Bhanot Plaza-II, 3, D.B Gupta Road, Delhi-110055. The Company is listed on the BSE (Bombay Stock
Exchange). The company is engaged in financing business, trading in shares and investment activities. We
believe that we are well placed to leverage on the growth opportunities in the economy.

2. BASIS OF ACCOUNTING

2.1. Statement of Compliance

These financial statements have been prepared in accordance with the Accounting Standards as prescribed
by Ministry of Corporate Affairs other relevant provisions of the Act and other accounting principles generally
accepted in India including the guidelines issued by the Reserve Bank of India (RBI) as applicable to an Non
- Banking Finance Company (‘NBFC’). The figures have been reported on historical basis. Basis of
Measurement

The Company maintains accounts on accrual basis following the historical cost convention, except for
followings:

2.1.1 .All assets falling under Property Plant and Equipment (PPE) have been valued at Cost Less
Depreciation.

2.1.2. Certain Financial Assets and Liabilities is measured at Fair value/ Amortized cost (refer
accounting policy regarding financial instruments);

2.1.3. Defined Benefit Plans - Plan assets measured at fair value wherever applicable

2.2. Functional and Presentation Currency

The Financial Statements are presented in Indian Rupee (?), which is the functional currency of the
Company and the currency of the primary economic environment in which the Company operates. All
amounts disclosed in financial statements and notes have been rounded off to the nearest Lacs (with two
places of decimal) as per the requirements of Schedule III, unless otherwise stated.

2.3. Use of Estimates and Judgements

The preparation of financial statements in conformity with Ind AS requires judgments, estimates and
assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent
liabilities on the date of the financial statements and the reported amount of revenues and expenses during
the reporting period. Difference between the actual results and estimates are recognized in the period in
which the results are known/ materialized.

2.4. Presentation of Financial Statements

The Balance Sheet and the Statement of Profit and Loss are prepared and presented in the format
prescribed in the Schedule III to the Companies Act, 2013 (“the Act”). The Statement of Cash Flows has

been prepared and presented as per the requirements of Ind AS 7 “Statement of Cash flows”. The
disclosure requirements with respect to items in the Balance Sheet and Statement of Profit and Loss, as
prescribed in the Schedule III to the Act, are presented by way of notes forming part of the financial
statements along with the other notes required to be disclosed under the notified Indian Accounting
Standards.

2.5. Operating Cycle for current and non-current classification

All assets and liabilities have been classified as current or non-current as per the Company’s normal
operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013 and Ind AS 1. The
Company has ascertained its operating cycle as twelve months for the purpose of current and non-current
classification of assets and liabilities.

2.5.1 .An asset is classified as current when it is:

2.5.1.1. Expected to be realized or intended to sold or consumed in normal operating cycle;

2.5.1.2. Held primarily for the purpose of trading;

2.5.1.3. Expected to be realized within twelve months after the reporting period; or

2.5.1.4. Cash or cash equivalent unless restricted from being exchanged or used to settle a
liability for at least twelve months after the reporting period.

All the other assets are classified as non-current.

2.5.2. A liability is current when:

2.5.2.1. It is expected to be settled in normal operating cycle;

2.5.2.2. It is held primarily for the purpose of trading;

2.5.2.3. It is due to be settled within twelve months after the reporting period; or

2.5.2.4. There is no unconditional right to defer the settlement of the liability for at least
twelve months after the reporting period.

All the other liabilities are classified as non-current.

2.5.3. Deferred Tax Assets and Liabilities are classified as non-current assets and liabilities
respectively.

2.6. Measurement of Fair Values

A number of the Company’s accounting policies and disclosures require the measurement of fair values,
for both financial and non-financial assets and liabilities.

2.6.1 .Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date. The fair value
measurement is based on the presumption that the transaction to sell the asset or transfer the
liability takes place either:

2.6.1.1. In the principal market for the asset or liability, or

2.6.1.2. In the absence of a principal market, in the most advantageous market for the asset
or liability.

The principal or the most advantageous market must be accessible by the Company. The fair value of an
asset or a liability is measured using the assumptions that market participants would use when pricing the
asset or liability, assuming that market participants act in their economic best interest. A fair value
measurement of a non-financial asset takes into account a market participant’s ability to generate economic
benefits by using the asset in its highest and best use or by selling it to another market participant that would
use the asset in its highest and best use.

2.6.2. The Company uses valuation techniques that are appropriate in the circumstances and for
which sufficient data are available to measure fair value, maximizing the use of relevant
observable inputs and minimizing the use of unobservable inputs.

2.6.3. All assets and liabilities for which fair value is measured or disclosed in the financial
statements are categorized within the fair value hierarchy, described as follows, based on the
input that is significant to the fair value measurement as a whole:

Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable and

Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable.

3. ACCOUNTING POLICIES

A summary of the significant accounting policies applied in the preparation of the financial statements
are as given below. These accounting policies have been applied consistently to all the periods
presented in the financial statements.

3.1. Property, Plant and Equipment

3.1.1 .Recognition and Measurement:

Property (Land and Building), plant and equipment held for use in the production or/and supply of goods or
services, or for administrative purposes is stated in the balance sheet at Fair Market Value less any
accumulated depreciation and accumulated impairment losses (if any). Cost of an item of property, plant
and equipment acquired comprises its purchase price, including import duties and non-refundable
purchase taxes, after deducting any trade discounts and rebates, any directly attributable costs of
bringing the assets to its working condition and location for its intended use and present value of any
estimated cost of dismantling and removing the item and restoring the site on which it is located.

If significant parts of an item of property, plant and equipment have different useful lives, then they are
accounted for as separate items (major components) of property, plant and equipment.

Profit or loss arising on the disposal of property, plant and equipment are recognized in the Statement of
Profit and Loss.

3.1.2.Subsequent Measurement:

Subsequent costs are included in the asset’s carrying amount, only when it is probable that future economic
benefits associated with the cost incurred will flow to the Company and the cost of the item can be measured
reliably. The carrying amount of any component accounted for as a separate asset is derecognized when
replaced.

Major Inspection/ Repairs/ Overhauling expenses are recognized in the carrying amount of the item of
property, plant and equipment as a replacement if the recognition criteria are satisfied. Any Unamortized part
of the previously recognized expenses of similar nature is derecognized.

3.1.3.Depreciation and Amortization:

Depreciation on Property, Plant & Equipment is provided on Straight Line Method in terms of life span
of assets prescribed in Schedule II of the Companies Act, 2013 or as reassessed by the Company based
on the technical evaluation.

In case the cost of part of tangible asset is significant to the total cost of the assets and useful life of
that part is different from the remaining useful life of the asset, depreciation has been provided on
straight line method based on internal assessment and independent technical evaluation carried out by
external valuers, which the management believes that the useful lives of the component best
represent the period over which it expects to use those components.

Depreciation on additions (disposals) during the year is provided on a pro-rata basis i.e., from (up to) the date
on which asset is ready for use (disposed of).

Depreciation method, useful lives and residual values are reviewed at each financial year-end and adjusted
if appropriate.

3.1.4. Disposal of Assets

An item of property, plant and equipment is derecognized upon disposal or when no future economic
benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or
retirement of an item of property, plant and equipment is determined as the difference between net disposal
proceeds and the carrying amount of the asset and is recognized in the statement of profit and loss.

3.1.5. Capital Work in Progress

Capital work-in-progress is stated at cost which includes expenses incurred during construction period,
interest on amount borrowed for acquisition of qualifying assets and other expenses incurred in connection
with project implementation in so far as such expenses relate to the period prior to the commencement of
commercial production.

3.2.Leases

3.2.1 .Determining whether an arrangement contains a lease

The determination of whether an arrangement is (or contains) a lease is based on the substance of the
arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfillment of the
arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right-of-
use (ROU) for the asset or assets, even if that right is not explicitly specified in an arrangement.

Ind AS 116 sets out the principles for the recognition, measurement, presentation and disclosures of leases
for both lessees and lessors. It introduced a single, on-balance sheet accounting model for lessees.

The Company is lessee mainly in Land & Building (Factory and Offices). It recognised all such
arrangements as right-of-use (ROU) asset and lessee as liability. The ROU is considered when company
has all the right to drive economic benefits from the use of underlying asset. The right-of-use (ROU) asset is
measured by discounting future lease payments to net present value (NPV). All lease payments during
reporting period are recognised either as operational lease or financial lease as per Ind AS 116. However
low value leases and leases below 12 months are treated as operating lease only.

3.2.2. Company as lessor
Finance Lease

Leases which effectively transfer to the lessee substantially all the risks and benefits incidental to ownership
of the leased item are classified and accounted for as finance lease. Lease rental receipts are apportioned
between the finance income and capital repayment based on the implicit rate of return. Contingent rents are
recognized as revenue in the period in which they are earned.

Operating Lease

Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an
asset are classified as operating leases. Rental income from operating leases is recognized on a straight¬
line basis over the term of the relevant lease except where scheduled increase in rent compensates the
Company with expected inflationary costs.

3.2.3. Company as lessee
Finance Lease

Finance Leases, which effectively transfer to the lessee substantially all the risks and benefits
incidental to ownership of the leased item, are capitalized at the lower of the fair value and present
value of the minimum lease payments at the inception of the lease term and disclosed as leased assets.
Lease Payments under such leases are apportioned between the finance charges and reduction of the
lease liability based on the implicit rate of return. Finance charges are charged directly to the statement of
profit and loss. Lease management fees, legal charges and other initial direct costs are capitalized. If
there is no reasonable certainty that the Company will obtain the ownership by the end of lease term,
capitalized leased assets are depreciated over the shorter of the estimated useful life of the asset or
the lease term.

Operating Lease

Assets acquired on leases where a significant portion of risk and reward is retained by the lessor are
classified as operating leases. Lease rental are charged to statement of profit and loss on a straight-line
basis over the lease term, except where scheduled increase in rent compensates the Company with
expected inflationary costs.

3.3.Inventories

Inventories are valued at the lower of cost and net realizable value (NRV). Cost is measured by including,

unless specifically mentioned below, cost of purchase and other costs incurred in bringing the inventories to
their present location and condition. However, materials and other items held for use in the production of
inventories are not written down below cost if the finished products in which they will be incorporated are
expected to be sold at or above cost. NRV is the estimated selling price in the ordinary course of business,
less estimated costs of completion and the estimated costs necessary to make the sale. Cost is ascertained
on weighted average basis for all inventories except for by products and scrap materials which are valued
at net realizable value.

3.4. Cash and Cash Equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits
with an original maturity of three months or less, which are subject to an insignificant risk of change in value.

For the purpose of the statement of cash flows, cash and cash equivalents includes cash on hand, term
deposits and other short-term highly liquid investments, net of bank overdrafts as they are considered an
integral part of the Company’s cash management. Bank overdrafts are shown within short-term borrowings in
the balance sheet.

3.5.Income Tax

The income tax expense or credit for the period is the tax payable on the current period’s taxable income
based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities
attributable to temporary differences, unused tax losses etc. Current and deferred tax is recognized in the
statement of profit & loss, except to the extent that it relates to items recognized in other comprehensive
income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly
in equity, respectively.

3.5.1 .Current Tax:-

Current tax liabilities (or assets) for the current and prior periods are measured at the amount expected to be
paid to (recovered from) the taxation authorities using the tax rates (and tax laws) that have been enacted or
substantively enacted, at the end of the reporting period.

3.5.2. Minimum Alternate Tax (MAT) credit :-

MAT Credit is recognized as an asset only when and to the extent there is convincing evidence that the
company will pay normal income tax during the specified period. In the year in which the Minimum
Alternative tax (MAT) credit becomes eligible to be recognized as an asset in accordance with the
recommendations contained in guidance note issued by the Institute of Chartered Accountants of India, the
said asset is created by way of a credit to the Statement of profit and loss and shown as MAT Credit
Entitlement. The Company reviews the same at each balance sheet date and writes down the carrying
amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that
Company will pay normal Income Tax during the specified period.

3.5.3. Deferred Tax:-

Deferred Tax assets and liabilities is measured at the tax rates that are expected to apply to the period when
the asset is realized or the liability is settled based on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period.

Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes (i.e., tax
base). Deferred tax is also recognized for carry forward of unused tax losses and unused tax credits.

Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against
which the deductible temporary differences, and the carry forward of unused tax credits and unused tax
losses can be utilized.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period. The Company
reduces the carrying amount of a deferred tax asset to the extent that it is no longer probable that sufficient
taxable profit will be available to allow the benefit of part or that entire deferred tax asset to be utilized. Any
such reduction is reversed to the extent that it becomes probable that sufficient taxable profit will be
available.

Deferred tax relating to items recognized outside the Statement of Profit and Loss is recognized either in
other comprehensive income or in equity. Deferred tax items are recognized in correlation to the underlying
transaction either in OCI or directly in equity.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax
assets against current tax liabilities and when they relate to income taxes levied by the same taxation
authority and the Company intends to settle its current tax assets and liabilities on a net basis.

3.6. Employee Benefits

3.6.1 .Short Term Benefits

Short term employee benefit obligations are measured on an undiscounted basis and are expensed as the
related services are provided. Liabilities for wages and salaries, including non-monetary benefits that are
expected to be settled wholly within twelve months after the end of the period in which the employees render
the related service are recognized in respect of employees’ services up to the end of the reporting period.

3.6.2.Other Long-Term Employee Benefits

The liabilities for earned/privilege leave that are not expected to be settled wholly within twelve
months are measured as the present value of the expected future payments to be made in respect of
services provided by employees up to the end of the reporting period using the projected unit credit
method. The benefits are discounted using the government securities (G-Sec) at the end of the
reporting period that have terms approximating to the terms of related obligation. Remeasurement as
the result of experience adjustment and changes in actuarial assumptions are recognized in
statement of profit and loss.

3.6.3. Post-Employment Benefits

The Company operates the following post-employment schemes:

3.6.4. Defined Contribution Plan

Defined contribution plans such as Provident Fund, Employee State Insurance etc. are charged to the
statement of profit and loss as and when incurred and paid to Authority.

3.6.5. Defined Benefit Plans

3.6.5.1. The liability or asset recognized in the Balance Sheet in respect of defined
benefit plans is the present value of the defined benefit obligation at the end of
the reporting period less the fair value of plan assets. The Company’s net
obligation in respect of defined benefit plans is calculated separately for each
plan by estimating the amount of future benefit that employees have earned in

the current and prior periods. The defined benefit obligation is calculated
annually by Actuaries using the projected unit credit method.

3.6.5.2. The liability recognized for defined benefit plans is the present value of the
defined benefit obligation at the reporting date less the fair value of plan assets,
together with adjustments for unrecognized actuarial gains or losses and past
service costs. The net interest cost is calculated by applying the discount rate to
the net balance of the defined benefit obligation and the fair value of plan assets.
The benefits are discounted using the government securities (G-Sec) at the end
of the reporting period that have terms approximating to the terms of related
obligation.

3.6.5.3. Remeasurement of the net defined benefit obligation, which comprise actuarial
gains and losses, the return on plan assets (excluding interest) and the effect
of the asset ceiling, are recognized in other comprehensive income.
Remeasurement recognized in other comprehensive income is reflected
immediately in retained earnings and will not be reclassified to the statement of
profit and loss.

3.7. Foreign Currency Transactions

3.7.1. Foreign currency (other than the functional currency) transactions are translated into
the functional currency using the spot rates of exchanges at the dates of the
transactions. Monetary assets and liabilities denominated in foreign currencies are
translated at the functional currency spot rate of exchanges at the reporting date.

3.7.2. Foreign exchange gains and losses resulting from the settlement of such transactions
and from the translation of monetary assets and liabilities are generally recognized in
profit or loss in the year in which they arise except for exchange differences on foreign
currency borrowings relating to assets under construction for future productive use,
which are included in the cost of those qualifying assets. When they are regarded as an
adjustment to interest costs on those foreign currency borrowings, the balance is
presented in the Statement of Profit and Loss within finance costs.

3.8. Borrowing Costs

3.8.1 .Borrowing Costs consists of interest and other costs that an entity incurs in connection with the
borrowings of funds. Borrowing costs also includes foreign exchange difference to the extent
regarded as an adjustment to the borrowing costs.

3.8.2. Borrowing costs directly attributable to the acquisition or construction of a qualifying asset are
capitalized as a part of the cost of that asset that necessarily takes a substantial period of time
to complete and prepare the asset for its intended use or sale.

3.8.3. Transaction costs in respect of long-term borrowing are amortized over the tenure of

respective loans using Effective Interest Rate (EIR) method. All other borrowing costs are
recognized in the statement of profit and loss in the period in which they are incurred.

3.9. Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability
or equity instrument of another entity.

3.10. Financial Assets

3.10.1. Recognition and Initial Measurement:

3.10.1.1. All financial assets are initially recognized when the company becomes a party to the
contractual provisions of the instruments. A financial asset is initially measured at fair value
plus, in the case of financial assets not recorded at fair value through profit or loss, transaction
costs that are attributable to the acquisition of the financial asset.

3.10.2. Classification and Subsequent Measurement: For purposes of subsequent measurement,
financial assets are classified in four categories:

1. Measured at Amortized Cost;

2. Measured at Fair Value through Other Comprehensive Income (FVTOCI);

3. Measured at Fair Value through Profit or Loss (FVTPL); and

4. Equity Instruments designated at Fair Value through Other Comprehensive Income
(FVTOCI).

Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the
Company changes its business model for managing financial assets.

3.11. Measured at Amortized Cost: A debt instrument is measured at the amortized cost if both the
following conditions are met:

1. The asset is held within a business model whose objective is achieved by both collecting
contractual cash flows; and

2. The contractual terms of the financial asset give rise on specified dates to cash flows that
are solely payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the
effective interest rate (EIR) method. Amortized cost is calculated by taking into account any discount or
premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is
included in finance income in the statement of profit or loss. The losses arising from impairment are
recognized in the profit or loss. This category generally applies to trade receivables, cash and bank
balances, loans and other financial assets of the company.

3.12. Measured at FVTOCI: A debt instrument is measured at the FVTOCI if both the following
conditions are met:

3.12.1. The objective of the business model is achieved by both collecting contractual cash flows
and selling the financial assets; and

3.12.2. The asset’s contractual cash flows represent SPPI.

3.13. Debt instruments meeting these criteria are measured initially at fair value plus transaction costs.
They are subsequently measured at fair value with any gains or losses arising on remeasurement
recognized in other comprehensive income, except for impairment gains or losses and foreign
exchange gains or losses. Interest calculated using the effective interest method is recognized in
the statement of profit and loss in investment income.

3.14. Measured at FVTPL: FVTPL is a residual category for debt instruments. Any debt instrument,
which does not meet the criteria for categorization as at amortized cost or as FVTOCI, is
classified as FVTPL. In addition, the company may elect to designate a debt instrument, which
otherwise meets amortized cost or FVTOCI criteria, as at FVTPL. Debt instruments included
within the FVTPL category are measured at fair value with all changes recognized in the
statement of profit and loss. Equity instruments which are, held for trading are classified as at
FVTPL.

3.15. Equity Instruments designated at FVTOCI: For equity instruments, which has not been classified
as FVTPL as above, the company may make an irrevocable election to present in other
comprehensive income subsequent changes in the fair value. The company makes such election
on an instrument-by-instrument basis. The classification is made on initial recognition and is
irrevocable. In case the company decides to classify an equity instrument as at FVTOCI, then all
fair value changes on the instrument, excluding dividends, are recognized in the OCI. There is no
recycling of the amounts from OCI to P&L, even on sale of investment.

3.16. Derecognition:

The Company derecognizes a financial asset on trade date only when the contractual rights to the cash
flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards
of ownership of the asset to another entity.

3.17. Impairment of Financial Assets:

The Company assesses at each date of balance sheet whether a financial asset or a group of financial
assets is impaired. Ind AS - 109 requires expected credit losses to be measured through a loss allowance.
The company recognizes impairment loss for trade receivables that do not constitute a financing transaction
using expected credit loss model, which involves use of a provision matrix constructed on the basis of
historical credit loss experience. For all other financial assets, expected credit losses are measured at an
amount equal to the 12 month expected credit losses or at an amount equal to the life time expected credit
losses if the credit risk on the financial asset has increased significantly since initial recognition.

3.18. Financial Liabilities

3.18.1. Recognition and Initial Measurement:

Financial liabilities are classified, at initial recognition, as at fair value through profit or loss, loans and
borrowings, payables or as derivatives, as appropriate. All financial liabilities are recognized initially at fair
value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

3.18.2. Subsequent Measurement:

Financial liabilities are measured subsequently at amortized cost or FVTPL. A financial liability is classified
as FVTPL if it is classified as held-for-trading, or it is a derivative or it is designated as such on initial
recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any
interest expense, are recognized in profit or loss. Other financial liabilities are subsequently measured at
amortized cost using the effective interest rate method. Interest expense and foreign exchange gains and
losses are recognized in profit or loss. Any gain or loss on de-recognition is also recognized in profit or loss.

3.18.3. Financial Guarantee Contracts:

Financial guarantee contracts issued by the company are those contracts that require a payment to be made
to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due in
accordance with the terms of a debt instrument. Financial guarantee contracts are recognized initially as a
liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the

guarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance determined
as per impairment requirement of Ind AS 109 and the amount recognized less cumulative amortization.

3.18.4. Derecognition:

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or
expires.

3.18.5. Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet when there is a
legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or
realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent
on future events and must be enforceable in the normal course of business and in the event of default,
insolvency or bankruptcy of the counterparty.

3.19. Earnings Per Share

Basic Earnings per share (EPS) amounts are calculated by dividing the profit for the year attributable to
equity holders by the weighted average number of equity shares outstanding during the year. Diluted EPS
amounts are calculated by dividing the profit attributable to equity holders adjusted for the effects of potential
equity shares by the weighted average number of equity shares outstanding during the year plus the
weighted average number of equity shares that would be issued on conversion of all the dilutive potential
equity shares into equity shares.

3.20. Impairment of Non-Financial Assets

The Company assesses, at each reporting date, whether there is an indication that an asset may be
impaired. An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value
being higher of value in use and net selling price. Value in use is computed at net present value of cash flow
expected over the balance

Useful lives of the assets. For the purpose of assessing impairment, assets are grouped at the lowest levels
for which there are separately identifiable cash inflows which are largely independent of the cash inflows
from other assets or group of assets (Cash Generating Units - CGU).

An impairment loss is recognized as an expense in the Statement of Profit and Loss in the year in which an
asset is identified as impaired. The impairment loss recognized in earlier accounting period is reversed if
there has been an improvement in recoverable amount.

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Mar 31, 2024

Note 1: COMPANY INFORMATION

Sunshine Capital Limited is a Public limited company (The Company) having registered office at 209, Bhanot Plaza-II, 3, D.B Gupta Road, New Delhi-110055. The Company is listed on the BSE (Bombay Stock Exchange). The company is engaged in financing business, trading in shares and investment activities. We believe that we are well placed to leverage on the growth opportunities in the economy.

Note 2: BASIS OF PREPARATION, MEASUREMENT AND SIGNIFICANT ACCOUNTING POLICIES2.1 Basis of Preparation and Measurement(a) Basis for preparation of Accounts:

These financial statements have been prepared in accordance with the Indian Accounting Standards (hereinafter referred to as the ‘Ind AS’) as notified by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.

The financial statements have been prepared on accrual and going concern basis. The accounting policies are applied consistently to all the periods presented in the financial statements. All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle and other criteria as set out in the Division II of Schedule III to the Companies Act, 2013. Based on the nature of products and the time between acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current or noncurrent classification of assets and liabilities.

The financial statements are presented in INR, the functional currency of the Company. Items included in the financial statements of the Company are recorded using the currency of the primary economic environment in which the Company operates (the ‘functional currency’). Transactions and balances with values below the rounding off norm adopted by the Company have been reflected as “0” in the relevant notes in these financial statements. The financial statements of the Company for the year ended 31st March, 2024 were approved.

(b) Current - Non Current classification

All assets and liabilities are classified into current and non-current as per company normal accounting cycle.

(i) Assets

"An asset is classified as current when it satisfies any of the following criteria:

1) It is expected to be realised in, or is intended for sale or consumption in, the Company’s normal operating cycle;

2) It is held primarily for the purpose of being traded;

3) It is expected to be realised within 12 months after the reporting date; or

4) It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.

Current assets include the current portion of non-current financial assets.

All other assets are classified as non-current.

(ii) Liabilities

"A liability is classified as current when it satisfies any of the following criteria:

1) It is expected to be settled in the company’s normal operating cycle;

2) It is held primarily for the purpose of being traded;

3) It is due to be settled within 12 months after the reporting date; or

4) The company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity Instruments do not affect its classification.

Current liabilities include current portion of non-current financial liabilities.

All other liabilities are classified as non-current.

"Operating cycle

Operating cycle is the time between the acquisition of assets for processing and their realization in cash or cash equivalents.

(c) Basis of measurement

These financial statements are prepared under the historical cost convention unless otherwise indicated.

(d) Key Accounting Estimates and Judgments Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the result of operations during the reposting year end. Although these estimates are based upon management’s best knowledge of current events and actions, actual result could differ from these estimates. Any revisions to the accounting estimates are recognized prospectively in the current and future years.

(e) Tangible fixed assets

"Tangible fixed assets (except freehold land which is carried at cost) are stated at cost of acquisition less accumulated depreciation and impairment loss, if any. Cost of acquisition includes freight inward, duties, taxes and other directly attributable expenses incurred to bring the assets to their working condition.

(f) Depreciation and Amortization

The company has followed the WDV method for the depreciation and amortization of all tangible and intangible assets. There is no change in the method of depreciation during previous year.

(g) Investments/ Inventory:

Investments/ Inventory are carried at cost less accumulated impairment losses, if any. Where an indication of impairment exists, the carrying amount of the investment is assessed and written down immediately to its recoverable amount. On disposal of investments in subsidiaries, associates and joint venture, the difference between net disposal proceeds and the carrying amounts are recognized in the Statement of Profit and Loss.

(h) Cash and Cash Equivalents:

Cash and cash equivalents are short-term (three months or less from the date of acquisition), highly liquid investments that are readily convertible into cash and which are subject to an insignificant risk of changes in value.

(i) Trade Receivables and Loans:

Trade receivables are initially recognised at fair value. Subsequently, these assets are held at amortized cost, using the effective interest rate (EIR) method net of any expected credit losses. The EIR is the rate that discounts estimated future cash income through the expected life of financial instrument.

(j) Provisions and Contingent Liabilities:

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance Sheet date.

If the effect of the time value of money is material, provisions are discounted to reflect its present value using a current pre-tax rate that reflects the current market assessments of the time value of money and the risks specific to the obligation. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.

(k) Revenue Recognition:

(i) Loan Income

In respect of loan agreements, the income is accrued by applying the impact rate in the transaction on declining balance on the amount financed for the period of the agreement.

(ii) Dividend income on investments is recognized when the right to receive the same is established.

(iii) No income is recognized in respect of Non- performing assets, if any, as per the prudential norms for income recognition introduced for Non-Banking Financial Corporation by Reserve Bank of India vide its notification o.DFC.NO.119/DG/ (SPT)-98 date 31-01 -1998 and revised notification no. DNBS.192/DG (VL)-2007 dated 22-02-2007.

(l) Expenditure:

Expenses are accounted on accrual basis.

(m) Provisions of Assets

The company makes provisions for standard and Non-performing Assets as per the NonBanking Financial (Non-Deposit Accepting of Holding Companies prudential Norms Reserve Bank) Directions, 2007, as amended from time to time. The company also makes additional provisions towards loan assets, to the extent considered necessary, based on the management’s best estimate.

Loan assets which as per the management are not likely to be recovered are considered as bad debts and written off. Provisions on standards assets are made as per the notification DNBS.PD.CC.No. 002/03.10.001/2014-15 dated Nov 10, 2014 issued by Reserve Bank of India.

(n) Provisions, contingents Liabilities and contingent Assets

(i) A Provision is recognized when the company has present obligation as a result of past event and it is probable that outflow of resources will be required to settle the obligation and in respect of which a reliable estimate can be made. Provisions are not discounted to their present value are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

(ii) Contingent Liabilities are disclosed separately by way of note to financial statements after careful evaluation by the managements of the facts and legal aspects of the matter involved in case of:

(a) A present obligation arising from the past event, when it is not probable that an outflow of resources will be required to settle the obligation.

(b) A possible obligation, unless the probability of outflow of resources is remote.

(iii) Contingent Assets are neither recognized, nor disclosed in the financial statements.

(o) Income Taxes:

Income tax expense for the year comprises of current tax and deferred tax. It is recognised in the Statement of Profit and Loss except to the extent it relates to a business combination or to an item which is recognised directly in equity or in other comprehensive income.

Current tax is the expected tax payable/receivable on the taxable income/loss for the year using applicable tax rates at the Balance Sheet date, and any adjustment to taxes in respect of previous years. Interest expenses and penalties, if any, related to income tax are included in finance cost and other expenses respectively. Interest Income, if any, related to Income tax is included in current tax expense.

Deferred tax is recognised in respect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes.

A Deferred tax liability is recognised based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted, or substantively enacted, by the end of the reporting period. Deferred tax assets arerecognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. Deferred tax assets are reviewed at each reporting date and reduced to the extent that it is no longer probable that the related tax benefit will be realised.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle the asset and the liability on a net basis. Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities; and the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority.

(p) Employee Benefits

No provision of retirement benefits of employees such as leave encashment, gratuity has been made during the year by the company. The same shall be accounted for as and when arises.

25. Previous year’s figures have been reworked, regrouped, rearranged & reclassified wherever necessary to confirm to the current year presentation.

26. In the opinion of Board of Director, the current assets, loans & advances have a value on realization in the ordinary course of business at least equal to the amount at which these are stated.

27. During the year, the company has increase its authorized share capital by Rs. 91,05,72,000/-and the company has issued bonus to its shareholders in ration 1:7 share and split its share from face value of Rs. 10/- each to Rs. 1/- each per equity share.

28. As per AS-2 the inventories are to be valued at cost or market value whichever is less.

29. Statutory Reserve represents the Reserve Fund created u/s 45-IC of the Reserve Bank of India Act, 1934. An amount of Rs.17,59,145/-. (Previous Year Rs. 32,55,352/-) representing 20% of Net Profit is transferred to the fund for the year.

30. Contingent liabilities and pending litigations:

There is no tax demand is pending as on date.

31. Related Party Disclosure:

As per Accounting Standard 18 on related Party disclosure issued by the Institute of chartered Accountants of India, the nature and volume of transaction of the company during the year with the related parties were as follows:

(In Rs.)
Name of the Related Party		Relationship		Nature of Transaction		Amount of Transaction
Abhijit Trading Co. Ltd.		Relative of KMP		Unsecured Borrowing		150,00,00,000/-
Babita Jain		Relative of KMP		Loan Given		20,05,22,423/-
Virendra Jain		Relative of KMP		Loan Given		11,77,92,256/-
Surendra Kumar Jain		Managing Director		Director Remuneration		48,00,000/-
Babita Jain		Relative of KMP		Remuneration		18,00,000/-
Amit Kumar Jain		Company Secretary		KMP Remuneration		1,80,000/-
Note: Related party relationship is as identified by the Company and relied upon by the auditor. The following Director of the company are Director in other Companies:
Surendra Kumar Jain	Rekha Bhandari		Bhupendra Kaushik	Priti Jain	Subodh Kumar		Promila Sharma
Shri Niwas Leasing And Finance Ltd.	Avail Financial Services Ltd.		Alstone Textiles (India) Ltd.	Shourya Developers Pvt. Ltd.	Agarwal Packers And Movers Limited		Legend Infoways Limited
RKG Finvest Limited	Sital Leasing & Finance Limited		Sital Leasing & Finance Limited	Great Bear Aviation Pvt. Ltd.	Trans Globe NKS Holdings Limited		Pacheli Industrial Finance Limited
Sital Leasing & Finance Limited	Aulina Designs Private Limited		ISF Limited	ECHT Finance Ltd.	Legend Infoways (India) Limited		Shri Niwas Leasing & Finance Limited
			Abhijit Trading Co Ltd.	JP Buildcon Pvt. Ltd.			Abhijit Trading Co Ltd.
			Auxilia Foundation	PB Housing Developme nt Pvt. Ltd.
			VMK Professionals Private Limited	PB Properties Pvt. Ltd
			Copmed Pharmaceuticals Pvt. Ltd.	Sital Leasing & Finance Ltd.
-	-		India Solomon Holdings Ltd.	-	-		-

		Relax Pharmaceuticals Private Ltd.
-	-	Qualitek Starch Pvt. Ltd.	-	-	-

32. Segment Reporting: The Company’s business activity falls within single

primary/secondary business segment viz Finance Activity. The disclosure requirement of Accounting Standard (AS)—17“Segment Reporting” issued by the Institute of Chartered Accountant of India, therefore is not applicable.

33. Information as required by Non-Banking Financial (Non Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Direction, 2007 is Furnished vide Annexure -1 Attached Herewith.

34. Provision for Standard and Non-Performing Assets: Provision for nonperforming assets (NPAs) is made in the financial statements according to the Prudential Norms prescribed by RBI for NBFCs. The Company also makes additional provision to wards loan assets, based on the management’s best estimate. Additional provision of 0.40% on Standard assets has also been made during the year, as per stipulation of RBI on Standard assets. Company has made provisions for Standard Assets as well as Non-Performing Assets as per the table below:

			(In Rs.'')
	Particulars	March 31, 2024	March 31, 2023
	Provision for Loss Assets
	Total Non-Performing Assets	0	0
	Provision already available	0	0
	Additional Provision made during the year	47,71,28,536	0
	Reversed Provision During the Year	0	0
	Total Provision at the end of the Year	47,71,28,536	0.00
	Standard Assets
	Provision already available	10,65,556	27,04,655
	Additional Provision made during the year	38,92,112	0.00
	Reversal of provision during the year	0.00	16,39,099
	Total Provision at the end of the Year	49,57,668	10,65,556
35.	EarningsperShareasper“AS-20”issuedbytheInstituteofCharteredAccountantsofIndia: (In Rs. '')
	Particulars	March 31, 2024	March 31, 2023
	Profit/(Loss) after taxation as per Profit and Loss Account (In '')	(47,21,32,406)	1,78,98,210
	Weighted average number of Equity Shares outstanding during the year	104,16,72,000	1,30,20,900
	Nominal value of Equity shares (In '')	1/-	10/-
	Basic earnings per share (In '')	(0.45)	1.37
	Diluted earnings per share (In '')	(0.45)	1.37

36. The company estimates the deferred tax charted/(credit) using the applicable rate of taxation based on the impact of timing differences between financial statements and estimated taxable income for the current year.

Details of Deferred tax Assets/ (Liabilities )are as follows:-

Calculation Of Deferred tax Asset
WDV as per Companies Act	8,40,75,603.48
WDV as per Income Tax	8,63,16,634.44
Timing Difference	(22,41,030)
Deferred Tax Asset	(92,513)

37. Details of Policy Developed and Implemented by the Company on its Corporate Responsibility Initiatives

The Company has not developed and implemented any Corporate Social Responsibility initiatives as the said provisions are not applicable.

38. Details of Crypto / Virtual Currency

There were no Transaction and Financial Dealing in Crypto / Virtual Currency during the Financial Year 2023-24.

39. Micro and Small Scale Business Industries:-

There are no Micro, Small and Medium Enterprises, to whom the company owes dues which outstanding for more than 45 days as at 31st March, 2024. This information as required to be disclosed under the Micro, Small and Medium Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with company.

---

Mar 31, 2023

Note 2: BASIS OF PREPARATION, MEASUREMENT AND SIGNIFICANT ACCOUNTING POLICIES

2.1 Basis of Preparation and Measurement

(a) Basis for preparation of Accounts:

These financial statements have been prepared in accordance withndhan IAccounting Standards (hereinafter referred to as the ‘Ind AS’) as notified by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 20B read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 205 and Companies (Indian Accounting Standards) Amendment Rules, 2015.

The financial statements have been prepared on accrual and going concern basis. The accounting policies are applied consistently to all the periods presented in the financial statements eAl and liabilities have been classified as currentnon-currentas per the Company’s normal operating cycle and other criteria as set out in the Division II of Schedule III to the Companies Act, 20B. Based on t e nature of products and the time: Ween acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 2 months for the purpose o! current or nonurrent classification of assets and liabilities.

The financial statements are presented in INR, the functional currency of the Company. Items inclu ed in the financial statements of the Company are recorded using the currency of the primary econori c environment in which the Company operates (the ‘functional currency’). Transactions and balances with values below the rounding off norm adopted by the Company have been reflected as “0” in the relevant notes in these financial statements. The financial statements of the Company for the year ended B t March,20E3 were approved for issue in accordance with the resolution of the Board of Directors 29tl May, 2023.

(b) Current - Non-Current classification

All assets and liabilities are classified into current ar-duronmt as per company normal accounting cycle.

(i) Assets

"An asset is classified as current when it satisfies any of the following-criteria:

1) It is expected to be realised in, or is intended for sale or consumption in, the Company’s normal operating cycle 1

2) It is held primarily for the purpose of being traded;

3) It is expected to be realised within 12 months after the reporting date; or

4) It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability or at least 2 months after the reporting date.

Current assets include the current portion efuroient financial assets.

All other assets are classified as -nonrent .

(ii) Liabilities

"A liability is classified as current when it sat iafiiy of the following criter-ia:

1) It is expected to be settled in the company’s normal operating cycle;

2) It is held primarily for the purpose of being tr aded;

3) It is due to be settled within 12 months after the reporting date; or

4) The company does not have an unconditional right to defer settlement of the liability for at leas

12 months after the reporting date. Terms of a liability that could, at the option of the counterpar y, result in its settlement by the issue of equity Instruments affect its classification.

Current liabilities include current portion ofcnonent financial liabilities.

All other liabilities are classified as -nonrent .

'' ''Operating cycle

Operating cycle is the time between the u*sqtion of assets for processing and their realisation in cash or cash equivalents.

(c) Basis of measurement

T hese financial statements are prepared under the historical cost convention unless otherwise indicate

(d) Key Accounting Estimates and Judgments Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principle requires management to make estimates and assumptions that affect the reported amounts of assets id liabilities and disclosure of contingent liabilities at the date of the financial statements and the result of operations during the reposting year end. Although these estimates are based upon management’s best knowledge of current events and actions, actualihecould differ from these estimates. Any revisions to the accounting estimates are recognized prospectively in the current and futur e years.

(e) Tangible fixed assets

"Tangible fixed assets (except freehold land which is carried at cost) ated at cost of acquisition less accumulated depreciation and impairment loss, if any. Cost of acquisition includes freight inward, duties, taxes and other directly attributable expenses incurred to bring the assets to their working condition.

(f) Depreciation and amortization

The company has followed the WDV method for the depreciation and amortization of all tangible anc intangible assets. There is no change in the method of depreciation during previous year.

(g) Investments:

Investments are carried at cost less accumulated impairment losses, if any. Where an indication f impairment exists, the carrying amount of the investment is assessed and written down immediately to its recoverable amount. On dispdsaDf investments in subsidiaries, associates and joint venture, the difference between net disposal proceeds and the carrying amounts are recognized in the Statement Profit and Los s.

(h) Cash and Cash Equivalents:

Cash and cash eqivalents are shortterm (three months or less from the date of acquisition), highly liquid investments that are readily convertible into cash and which are subject to an insignificant risk of changes in value .

(i) Trade Receivables and Loans:

Tr ade receivables are initially recognised at fair value. Subsequently, these assets areuherd iafed

cost, using the effective interest rate (EIR) method net of any expected credit losses. The EIR is the ''ate

that discounts eimated future cash income through the expected life of financial instrument.

---

Mar 31, 2016

Note 21: SIGNIFICANT ACCOUNTING POLICIES

a) Basis for Preparation of Accounts:

The financial Statement have been prepared inconformity with generally accepted accounting principle to comply in all material respect with the notified accounting standards ( ‘AS’ ) under Companies (Accounting Standards) Amendment Rules, 2016, the relevant provisions of the companies Act, 2013 ( ‘the Act’ ) and the guidelines issued by the Reserve Bank of India (RBI) as applicable to an Non - Banking Finance Company ( ‘NBFC’ ). The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the company and are consistent with those used in the previous year. The company adopts accrual system of accounting unless otherwise stated.

Based on the nature of its activities, the Company has determined its operating cycle as 12 months for the purpose of classification of its Assets and Liabilities as current and non current

b) Use of estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting year end. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates. Any revisions to the accounting estimates are recognized prospectively in the current and future years

c) Fixed Assets:

Fixed assets are stated at cost less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

Intangible Assets expected to provide future enduring economic benefits are carried at cost less accumulated amortization and impairment losses, if any. Cost comprises of purchase price and directly attributable expenditure on making the asset ready for its intended use.

d) Depreciation & Impairment of Assets:

Depreciation on fixed assets is provided on Written down Value method, over the useful lives and in the manner prescribed in Schedule II to the Companies Act, 2013.

e) Statutory/ Special reserve

The Company creates Statutory / Special Reserve every year twenty per cent of its net profit every year as disclosed in the profit and loss account and before any dividend is declared.

f) Investment:

Long-term investments are stated at cost. Provision of diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management. As in case of Sunshine Capital Limited such decline is presumed to be temporary hence no provision has been created.

g) Loan Income:

a. In respect of loan agreements, the income is accrued by applying the implicit rate in the transaction on declining balance on the amount financed for the period of the agreement.

b. Dividend income on investments is accounted for as and when the right to receive the same is established.

c. No income is recognized in respect of Non-Performing assets, if any, as per the prudential norms for income recognition introduced for Non Banking Financial Corporation by Reserve Bank of India vide its notification DFC.No.119/DG/ (SPT)-98 date 31-01-1998 and revised notification no. DNBS.192/DG (VL)-2007 dated 22/02/2007.

h) Employee Benefits

Company do not follow the provision of the accounting Standard-15 “Employee benefits” as the company do not have employee more than 10 personnel’ s. So it is the policy of the company that any kind of provision mentioned in the AS -15 will not be entertained. And the company does not make provision for gratuity also.

In case the company’ s employee limits goes beyond the prescribed limits then AS-15 for Employee benefits will be taken into consideration.

i) Provisioning of Assets:

The Company makes provision for Standard and Non-Performing Assets as per the Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms Reserve Bank) Directions, 2007, as amended from time to time. The Company also makes additional provision towards loan assets, to the extent considered necessary, based on the management’ s best estimate.

Loan assets which as per the management are not likely to be recovered are considered as bad debts and written off.

Provisions on standards assets are made as per the notification DNBS.PD.CC.No. 002/03.10.001/2014-15 DATED NOV 10, 2014 issued by Reserve Bank of India.

j) Provision, Contingent Liabilities and Contingent Assets:

(i) A provision is recognized when the company has a present obligation as a result of past event and it is probable that outflow of resources will be required to settle the obligation and in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

In respect of Non-Banking Finance Companies the provision for non-performing assets/investments and contingent provision against standard assets has been made as per prudential norms and Circular No. DNBR (PD) CC.No. 002/ 03.10.001/ 2014-15 dated November 10, 2014 as prescribed by the Reserve Bank of India.

(ii) Contingent Liabilities are disclosed separately by way of note to financial statement after careful evaluation by the management of the facts and legal aspects of the matter involved in case of :

a. A present obligation arising from the past event, when it is not probable that an outflow of resources will be required to settle the obligation.

b. A possible obligation, unless the probability of outflow of resources is remote. k) Taxation

Provision for current tax is made in accordance with and at the rates specified under the Income-Tax Act, 1961, in accordance with Accounting Standard 22 -‘Accounting for taxes on Income’ , issued by the Institute of Chartered Accountant of India.

l) Earnings per share:

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares

m) Cash and Cash equivalents:

Cash and cash equivalents in the cash flow statement comprise cash at bank and in hand and highly liquid investments that are readily convertible into known amount of cash.

---

Mar 31, 2015

A) Basis for Preparation of Accounts :

The financial Statement have been prepared inconformity with generally accepted accounting principle to comply in all material respect with the notified accounting standards ('AS') under companies accounting standards Rules, as amended, the relevant provisions of the companies Act, 2013 ('the Act') and the guidelines issued by the Reserve Bank of India (RBI) as applicable to an Non — Banking Finance Company ('NBFC'). The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the company and are consistent with those used in the previous year. The company adopts accrual system of accounting unless otherwise stated.

b) Use of estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting year end. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates. Any revisions to the accounting estimates are recognized prospectively in the current and future years

c) Fixed Assets :

Fixed assets are stated at cost less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

Intangible Assets expected to provide future enduring economic benefits are carried at cost less accumulated amortization and impairment losses, if any. Cost comprises of purchase price and directly attributable expenditure on making the asset ready for its intended use.

d) Depreciation & Impairment of Assets:

Depreciation on fixed assets is provided on Written down Value method, over the useful lives and in the manner prescribed in Schedule 11 to the Companies Act, 2013.

e) Investment:

Long-term investments are stated at cost. Provision of diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management. As in case of Sunshine Capital Limited such decline is presumed to be temporary hence no provision has been created.

f) Loan Income:

a. In respect of loan agreements, the income is accrued by applying the implicit rate in the transaction on declining balance on the amount financed for the period of the agreement.

b. Dividend income on investments is accounted for as and when the right to receive the same is established.

c. No income is recognized in respect of Non-Performing assets, if any, as per the prudential norms for income recognition introduced for Non Banking Financial Corporation by Reserve Bank of India vide its notification DFC.No.119/DG/ (SPT)- 98 date 31-01-1998 and revised notification no. DNBS.192/DG (VL)-2007 dated 22/02/2007.

g) Employee Benefits

Company do not follow the provision of the accounting Standard-15 "Employee benefits" as the company do not have employee more than 10 personnel's. So it is the policy of the company that any kind of provision mentioned in the AS -15 will not be entertained. And the company does not make provision for gratuity also.

In case the company's employee limits goes beyond the prescribed limits then AS-15 for Employee benefits will be taken into consideration.

h) Provisioning of Assets:

The Company makes provision for Standard and Non-Performing Assets as per the Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms Reserve Bank) Directions, 2007, as amended from time to time. The Company also makes additional provision towards loan assets, to the extent considered necessary, based on the management's best estimate.

Loan assets which as per the management are not likely to be recovered are considered as bad debts and written off.

i) Provision Contingent Liabilities and Contingent Assets :

(i) A provision is recognized when the company has a present obligation as a result of past event and it is probable that outflow of resources will be required to settle the obligation and in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

In respect of Non-Banking Finance Companies the provision for non-performing assets/investments and contingent provision against standard assets has been made as per prudential norms and Circular No.

DNBS.PD.CC.No.207/03.02.2002/2010-11 as prescribed by the Reserve Bank of India.

(ii) Contingent Liabilities are disclosed separately by way of note to financial statement after careful evaluation by the management of the facts and legal aspects of the matter involved in case of :

a . A present obligation arising from the past event, when it is not probable that an outflow of resources will be required t o settle t he o obligation.

b. A possible obligation, unless the probability of outflow of resources is remote.

j) Taxation

Provision for current tax is made in accordance with and at the rates specified under the Income-Tax Act, 1961, in accordance with Accounting Standard 22 -'Accounting for taxes on Income', issued by the Institute of Chartered Accountant of India.

k) Earnings per share :

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares

I) Cash and Cash equivalents:

Cash and cash equivalents in the cash flow statement comprise cash at bank and in hand and highly liquid investments that are readily convertible into known amount of cash.

---

Mar 31, 2014

A) Basis fur Preparation of Accounts:

The financial statements have been prepared in conformity with generally accepted accounting principles to comply in all material respects with the notified Accounting Standards ('AS') under Companies Accounting Standard Rules, 2006, as amended, the relevant provisions of the Companies Act 1956 ('the Act') and the guidelines issued by the Reserve Bank of India ('RBI') as applicable to a Non Banking Finance Company ('NBFC'). The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year. The company adopts accrual system of accounting unless otherwise stated.

b) Use of estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting year end. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates. Any revisions to the accounting estimates are recognized prospectively in the current and future years

c) Fixed Assets :

Fixed assets are stated at cost less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

Intangible Assets expected to provide future enduring economic benefits are carried at cost less accumulated amortization and impairment losses, if any. Cost comprises Of purchase price and directly attributable expenditure on making the asset ready for its intended use.

d) Depreciation & Impairment of Assets:

Depreciation on fixed assets is provided on Written down Value method, at the rates and in the maimed prescribed in Schedule XIV to the Companies Act, 1956.

e) Investment:

Long-term investments are stated at cost, provision of diminution in the value of long- term investments is made only if such a decline is other than temporary in the opinion of the management As in case of Sunshine Capital Limited such decline is presumed to be temporary hence no provision has been created.

f) Loan Income:

a. In respect of loan agreements, the income is accrued by applying the implicit rate in the transaction on declining balance on the amount financed for the period of the agreement.

b. Dividend income on investments is accounted for as and when the right to receive the same is established.

c. No income is recognized in respect of Non-Performing assets, if any, as per the prudential norms for income recognition introduced for Non Banding Financial Corporation by Reserve Bank of India vide its notification DFC. No. l 19/DG/ (SPT)-9S date 31-01-1998 and revised notification no. DNBS.192/DG (VL>200T dated 22/02/2007.

g) Provisioning of Assets:

The Company makes provision for Standard and Non-Performing Assets as per the Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms Reserve Bank) Directions, 2007, as amended from time to time. The Company also makes additional provision towards loan assets, to the extent considered necessary, based on the management's best estimate.

Loan assets which as per the management are not likely to be recovered are considered as bad debts and written off.

Provision. Contingent Liabilities and Contingent Assets ;

i) A provision is recognized when the company has a present obligation as a result of past event and it is probable that outflow of resources will be required to settle the obligation and in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates,

In respect of Non-Banking Finance Companies the provision for non-performing assets/investments and contingent provision against standard assets has been made as per prudential norms and Circular No. DNBS.PD.CC.No.207/03.02.2002/2010-11 as prescribed by the Reserve Bank of India.

(ii) Contingent Liabilities are disclosed separately by way of note to financial statement after careful evaluation by management of the facts and legal aspects of the matter involved in case of

a. A present obligation arising from the past event, when it is not probable that an outflow of resources will be required to settle the obligation.

b. A possible obligation, unless the probability of outflow of resources is remote.

There is a pending Tax demand of Rs. 35,13, 80,053/- against the company. The above demand was raised by Department in A.Y. 2008-09 as the company has raised share capital of Rs. 100 crore in A.Y, 2008-09. The same has been added by the Assessing Officer. The Company has filed an appeal with 1TAT. The demand of appeal is pending before ITAT ail date. The Company is hopeful to get relieved from ITAT.

Contingent Assets

The company has filed suit for recovery of amount from Sunder deep Educational Society. The company has issued a notice in response of the same on 20th December, 2012 to the Sunder deep Educational Society, 35, "Nyay Ganj, Sunder Deep Nagar, NH-24, Ghaziabad-201001 and to Mr. Manoj Kumar Gupta Secretary of Sunder Deep Educational Society for recovery of Principal Amount of Rs. 17,00,000/- along with interest of Rs. 4,01,095/- i.e. a total sum of Rs. 21,01,095/-. The case is pending before Honorable High Court and the company is hopeful of recovery.

h) Taxation

Provision for current tax is made in accordance with and at the rates specified under the Income-Tax Act, 1961, in accordance with Accounting Standard 22 -'Accounting for taxes on Income', issued by the Institute of Chartered Accountant of India.

i) Earning seer share :

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of snares outstanding during the year are adjusted for the effects of all dilutive potential equity shares

j) Cash and Cash equivalents:

Cash and cash equivalents in the cash flow statement comprise cash at bank and in hand and highly liquid investments that are ireudly convertible into known amount of cash. A/ l

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Mar 31, 2013

A, Rate for Preparation of Accounts : The financial statements have been prepared in conformity with generally accepted accounting principles to comply in all material respects with the notified Accounting Standards ASI under Companies Accounting Standard Rules, 2006, as amended, the relevant provisions of the Companies Act, 1956 ('the Act') and the guidelines issued by the Reserve Bank of India ('RBI') as applicable to a Non Banking Finance Company ('NBFC'). The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year. The company adopts accrual system of accounting unless otherwise stated.

b) Use of estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date ot the financial statements and the results of operations during the reporting year end Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates. Any revisions to the accounting estimates are recognized prospectively in the current and future years

c] Rived Assets : Fixed assets are stated at cost less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

Intangible Assets expected to provide future enduring economic benefits are carried at cost less accumulated amortization and impairment losses, if any. Cost comprises of purchase price and directly attributable expenditure on making the asset ready for its intended use.

dl derivation impairment of Assets : Depreciation on fixed assets is provided on Written Down Value method, at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

e) Investment : Long-term investments are stated at cost Provision of diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management. As in case of Sunshine Capital Limited such decline is presumed to be temporary hence no provision has been created.

f) Loan Income: In respect of loan agreements, the income is accrued by applying the implicit rate in the transaction on declining balance on the amount financed for the period of the agreement.

g) Dividend income on investments is accounted for as and when the right to receive the same is established.

h] No income is recognized in respect of Non-Performing assets, if any, as per the prudential norms for income recognition introduced for Non Banking Financial Corporation by Reserve Bank of India vide its notification DFC.No.119/DG/ (SPT)-98 date 31-01-1998 and revised notification no. DNBS.192/DG (VL)-2007 dated 22/02/2007.

i) Expense Accounting: All expenditures including the interest costs are accounted for on accrual basis.

j) Provisioning of Assets: The Company makes provision for Standard and Non-Performing Assets as per the Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms Reserve Bank) Directions, 2007, as amended from time to time. The Company also makes additional provision towards loan assets, to the extent considered necessary, based on the management's best estimate.

k) Loan assets which as per the management are not likely to be recovered, are considered as bad debts and written off.

1) Provision. Contingent Liabilities and Contingent Assets :

Provision

A provision is recognized when the company has a present obligation as a result of past event and it is probable that outflow of resources will be required to settle the obligation and in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

In respect of Non-Banking Finance Companies the provision for non-performing assets/investments and contingent provision against standard assets has been made as per Prudential norms and Circular No.

DNBS.PD.CC.No.207/03.02.2002/2010-11 as prescribed by the Reserve Bank of India

Contingent Liabilities

Contingent Liabilities are disclosed separately by way of note to financial statement after careful evaluation by the management of the facts and legal aspects of the matter involved in case of :

(i) a present obligation arising from the past event, when it is not probable that an outflow of resources will be required to settle the obligation.

(ii) a possible obligation, unless the probability of outflow of resources is remote.

There is a pending Tax demand of Rs. 35, 33, 80,053/- against the company. The above demand was raised by Department in A.Y. 2008-09 as the company has raised share capital of Rs. 100 crore in A.Y. 2008-09. The same has been added by the Assessing Officer. The Company has filed an appeal with CIT (A). The demand of appeal is pending before CIT (A) till date. The Company is hopeful to get relieved from CIT (A).

Contingent Assets

The company has filed suit for recovery of amount from Sunderdeep Educational Society. The company has issued a notice in response of the;

same on 20th December, 2012 to the Sunderdeep Educational Society, 35, Nyay Ganj, Sunder Deep Nagar, NH-24, Ghaziabad-201001 and to Mr. Manoj Kumar Gupta Secretary of Sunder Deep Educational Society for recovery of Principal Amount of Rs. 17,00,000/- along with interest of Rs. 4,01,095/- i.e. a total sum of Rs 21,01,095/-. The case is pending before Honorable High Court and the company is hopeful of recovery.

m] Taxation

(i) Provision for current tax is made in accordance with and at the rates specified under the Income-Tax Act, 1961.

(ii) In accordance with Accounting Standard 22 -'Accounting for taxes on Income', issued by the Institute of Chartered Accountant of India.

n) Performances per share : Basic earnings per station profit or loss for the year attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of city shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or V loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares Dl cash and cash Equivalents: Cash and cash equivalents in the cash flow statement comprise cash at bank and in hand and highly liquid investments that are readily convertible into known amount of cash.

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Mar 31, 2012

(A) GENERAL: -

(a) The Financial Statements are drawn up in ACCORDANCE WITH HISTORIEL COST and on the going concern concept income and expenses are accounted to accrual basis except where otherwise indicated.

(B) Accounting policies not specifically referred to otherwise are consistent with generally accepted accounting principles followed by the company.

(B) INCOME FROM INVESTMENTS & LOANS

Income from Investments in interest bearing securities, Loans and Advances is Sentence for on accrual basis. Dividend income from investments in shares is recounted accruing as income of that year in which dividend is received by the company.

(C) INVESTMENTS IN JEWELLARY

The company has made invest in jewellery during the year and the same has shown as investment in jewellary during the year.

(D) FIXED ASSETS :

Private Assets are stated at their original cost of acquisition less accumulated depression till date Cost of acquisition is inclusive of freight, taxes & other incidental expenses.

Investment in Properties Amounting to Rs.15,155,125/- has been transferred to Fixed Assets.

(E) DEPRIVATION

Depreciation is provided as per rates of depreciation specified in Schedule XIV of the Companies Act, 1956 on WDV method.

(F) INVESTMENTS

moments (Long Term) are valued a acquisition cost (Including Brokerage & Transfer Expenses) No. vision is made for diminution in the value of long term investments.

As in the opinion of the management the diminution is temporary and not permanent.

(G) DEFFERRED TAXATION

(a) Tax Liability of the company is estimated considering the provisions of the Income Tax Act, 1961,

(b) Deferred Tax is recognized subject to the consideration of prudence on timing deference being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one more subsequent period.

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Mar 31, 2011

(A) GENERAL;-

(a) The Financial Statements are drawn up in accordance with historical cost convention and on the going concern concept income and expenses are accounted for on accrual basis except where otherwise indicated.

(b) Accounting policies not specifically referred to otherwise are consistent with generally accepted accounting principles followed by the company.

(B) INCOME FROM INVESTMENTS & LOANS

Income from Investments in interest bearing securities, Loans and Advances is account ed for on accrual basis. Dividend income from investments in shares is recognized accruing as income of that year in which dividend is received by the company.

(C) INVESTMENT IN PROPERTY

In the previous year the Company has paid to DDA as advance against property. During the year the full amount has been paid to DDA by the company. The DDA has make registry in favor of the Company during the year.

(D) INVESTMENTS IN JEWELLERY

The company has make invest in jewellery during the year and the same has shown as investment in jewellery during the year.

(E) INVESTMENTS

Investments (Long Term) are valued a acquisition cost (Including Brokerage & Transfer Expenses). No Provision is made for diminution in the value of long term investments. As in the opinion of the management the diminution is temporary and not permanent.

(F) DEFFERRED TAXATION

(a) Tax Liability of the company is estimated considering the provisions of the Income Tax Act, 1961, Deferred Tax is recognized subject to the consideration of prudence, on timing deference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one more subsequent periods.

(b) As informed to us by the management, Sundry Creditors does not include any amount of payable to small scale industrial units. (c) As informed to us by the management, a sundry creditor does not include any amount payable to small scale industrial units.