Notes to Accounts of Sunshine Capital Ltd.

Mar 31, 2025

3.21. Provisions, Contingent Liabilities and Contingent Assets

3.21.1. Provisions

Provisions are recognized when there is a present obligation (legal or constructive) as a result of a past
event and 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
determined by discounting the expected future cash flows (representing the best estimate of the expenditure
required to settle the present obligation at the balance sheet date) at a pre-tax rate that reflects current
market assessments of the time value of money and the risks specific to the liability. The unwinding of the
discount is recognized as finance cost.

3.21.2. Contingent Liabilities

Contingent liability is a possible obligation arising from past events and 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 but is not recognized
because it is not possible that an outflow of resources embodying economic benefit will be required to settle
the obligations or reliable estimate of the amount of the obligations cannot be made. The Company discloses
the existence of contingent liabilities in Other Notes to Financial Statements.

3.21.3. Contingent Assets

Contingent assets usually arise from unplanned or other unexpected events that give rise to the possibility of
an inflow of economic benefits. Contingent Assets are not recognized though are disclosed, where an inflow
of economic benefits is probable.

3.21.4. Intangible Assets

3.21.4.1. Recognition and Measurement

Intangible assets are stated at cost on initial recognition and subsequently measured at cost less
accumulated amortization and accumulated impairment loss, if any.

3.22. Amortization

3.22.1. Software’s are amortized over a period of three years.

3.22.2. The amortization period and the amortization method are reviewed at least at the end of
each financial year. If the expected useful life of the assets is significantly different from
previous estimates, the amortization period is changed accordingly.

3.23. Operating Segment

Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker. The chief operating decision maker of the Company is responsible for allocating
resources and assessing performance of the operating segments and accordingly is identified as the chief
operating decision maker. The Company has identified one reportable segment only based on the
information reviewed by the CODM.

3.24. Revenue Recognition:

Revenue is recognized based to the extent it is probable that the economic benefit will flow to the company
and revenue can be reliably measured regardless of when the payment is being made. Revenue is
measured at the fair value of the consideration received or receivable, taking into account contractually
defined terms of payment, and excludes taxes & duties collected on behalf of the Government and is
reduced for estimated customer returns, rebates and other similar allowances.

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.

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

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.

3.25. Provisions of Assets

The company makes provisions for standard and Non-performing Assets as per the Non-Banking 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.

3.26. Provision for Standard & Nonperforming Assets:

The company has made provision towards its Loan and Advance Assets, based on the management’s best
estimates. During the year company has not created any Provision for standard Assets. Although the
company has followed the requirement of provision creation for standard Assets , Substandard Assets,
Doubtful Assets and Loss Assets. asper prescribed by the RBI Guidelines. During the year company has
made provision on its Loan Assets based on the Expected Credit Loss. Accordingly, the company has
classified its Loan Asset and made the Provision accordingly as below: -

4. SIGNIFICANT JUDGEMENTS AND KEY SOURCES OF ESTIMATION IN APPLYING ACCOUNTING

POLICIES

4.1. Estimates and judgments are continually evaluated. They are based on historical experience and
other factors, including expectations of future events that may have a financial impact on the
Company and that are believed to be reasonable under the circumstances. Information about
Significant judgments and Key sources of estimation made in applying accounting policies that
have the most significant effects on the amounts recognized in the financial statements is
included in the following notes:

4.2. Recognition of Deferred Tax Assets: The extent to which deferred tax assets can be recognized
is based on an assessment of the probability of the Company’s future taxable income against
which the deferred tax assets can be utilized. In addition, significant judgment is required in
assessing the impact of any legal or economic limits.

4.3. Classification of Leases: The Company enters into leasing arrangements for various assets. The
classification of the leasing arrangement as a finance lease or operating lease is based on an
assessment of several factors, including, but not limited to, transfer of ownership of leased asset
at end of lease term, lessee’s option to purchase and estimated certainty of exercise of such
option, proportion of lease term to the asset’s economic life, proportion of present value of
minimum lease payments to fair value of leased asset and extent of specialized nature of the
leased asset.

4.4. Where the rate implicit in the lease is not readily available, an incremental borrowing rate is
applied. This incremental borrowing rate reflects the rate of interest that the lessee would have to
pay to borrow over a similar term, with a similar security, the funds necessary to obtain an asset
of a similar nature and value to the right of-use asset in a similar economic environment.
Determination of the incremental borrowing rate requires estimation.

4.5. Defined Benefit Obligation (DBO): Employee benefit obligations are measured on the basis of
actuarial assumptions which include mortality and withdrawal rates as well as assumptions
concerning future developments in discount rates, medical cost trends, anticipation of future
salary increases and the inflation rate. The Company considers that the assumptions used to
measure its obligations are appropriate. However, any changes in these assumptions may have a
material impact on the resulting calculations.

4.6. Provisions and Contingencies: The assessments undertaken in recognising provisions and
contingencies have been made in accordance with Indian Accounting Standards (Ind AS) 37,
‘Provisions, Contingent Liabilities and Contingent Assets’. The evaluation of the likelihood of the
contingent events is applied best judgment by management regarding the probability of exposure
to potential loss.

4.7. Impairment of Financial Assets: The Company reviews it carrying value of investments carried at
amortized cost annually, or more frequently when there is indication of impairment. If recoverable
amount is less than its carrying amount, the impairment loss is accounted for.

4.8. Allowances for Doubtful Debts: The Company makes allowances for doubtful debts through
appropriate estimations of irrecoverable amount. The identification of doubtful debts requires use
of judgment and estimates. Where the expectation is different from the original estimate, such
difference will impact the carrying value of the trade and other receivables and doubtful debts
expenses in the period in which such estimate has been changed.

4.9. Fair value measurement of financial Instruments: When the fair values of financial assets and
financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in
active markets, their fair value is measured using valuation techniques including the Discounted
Cash Flow model. The input to these models are taken from observable markets where possible,
but where this not feasible, a degree of judgement is required in establishing fair values.
Judgements include considerations of inputs such as liquidity risk, credit risk and volatility.

Other Notes

4.10. 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.

4.11. Information as required by Non-Banking Financial Companies -Corporate Governance (Reserve
Bank) Direction, 2015 is Furnished vide Annexure -II Attached Herewith.

4.12. Details of Crypto / Virtual Currency

There were no Transaction and Financial Dealing in Crypto / Virtual Currency during the Financial Year
2024-25.

4.13. There are no micro, Small and Medium Enterprises, to whom the Company owes dues which
outstanding for more than 45 days as at 31^st March 2025. 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.

The Note Referred to above form as an integral part of Balance Sheet.

For VRSK & Associates FOR SUNSHINE CAPITAL LIMITED

Chartered Accountants

(CA ANKUSH GUPTA)

SURENDRA KUMAR JAIN p_{Rm JA}|_N

Partner (managing director)

Membership No. 086499 (DIRECTOR)

FRN: 011199N ^DIN" ^00530035

DIN No- 00537234

Add: 555, DOUBLE STORY, NEW

RAJINDER NAGAR, NEW DELHI - ^{Add: 555, DOUBLE STORY NEW}

₁₁₀₀₆₀ RAJINDER NAGAR, NEW DELH I -

AMIT KUMAR JAIN SANGEETA

Place : New Delhi

Dated : 30/05/2025 ^(c°^{mpany secretary)} (CFO)

UDIN: 25086499BMLIJA1752 M.NO- A49531 _{PAN: GWQPS5568P}

^Add: ^{237, GALI N}°-^{9, JHALANA} Add: A - 191, KARAM

^{KACHCH| BAST| MALV|YA} pura, RAMESH NAGAR,

^{NAGAR JA|pUR RAJASTHAN} - RAJOURI GARDEN, NEW

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Mar 31, 2024

(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.

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Mar 31, 2023

(j) Provisions and Contingent Liabilities:

P rovisions are recognised when the Company has a present obligation (legal or constructive) uSt a 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 obligatioi Provisions are measured at the best estimathefexpenditure required to settle the present obligation at the Balance Sheet dat e.

I f the effect of the time value of money is material, provisions are discounted to reflect its present v ue using a current prteix rate that reflects; thirrent 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 t e passage of time is recognised as a finance cost.

C ontingent liabilities ardisclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or-ononrrence of one or more uncertain future events not wholly within the control of the Company or a pregafaibrobliat 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 loanagreements, 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 afn-performingassets, if any, as per the prudential norms for income recognition introduced for -Bonking Financial Corporation by Reserve Bank of India vide its notificatiNo. DF C.N O.I9/DG/ (SPT98 date 31-01 -199 8 and revised notification no. DNBS.92/DG (VIL007 dated 22 -02-2007.

(l) Expenditure:

E xpenses are accounted on accrual basis.

(m) Provisions of Assets

The company makes provisions for standard and Nerforming Asets as per the N-Banking Financial (NcaDeposit 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 nesary, 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 ai written off.

Provisions on standards assets are made as per the notification DNBS.PD.CC.No. 000/0310 -5 dated Nov 0 204 issued by Reserve Bank of India.

(n) Provisions, contingents Liabilities and contingent Assets

1) A Provision is recognized when the company has present obligation as a result of past event and it probable that outflw 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 determine based on best estimate required to settle the obligation at the balance ddte. These are reviewed

at each balance sheet date and adjusted to reflect the current best es timates.

2) Contingent Liabilities are disclosed separately by way of note to financial statements after caret l evaluation by the managements of the facts hagil aspects of the matter involved in case of:

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

• A possible obligation, unless the probability of outflowref ources is remot e.

3) Contingent Assets are neither recognized, nor disclosed in the financial stat ements.

(o) Income Taxes:

Income tax expense for the year comprises of current tax and deferred tax. It is recognised in 1 e Statement of Profit andsL oexcept to the extent it relates to a business combination or to an item whicl 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 yea . Interest expenses and penalties, if any, related to income tax are included in finance cost and other expenses respectively. Interest Income, if any, relabelhfcome tax is included in current tax expense.

Deferred tax is recognised in respect of temporary differences between the carrying amount of assets at 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 as satt® recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. Deferred tax assets are review 1 at each reporting date and reduced to the extent that it is no longer proiib4hetlt elated tax benefit will be realised.

Current tax assets and current tax liabilities are offset when thegBllis enforceable right to soff the recognised amounts and there is an intention to settle the asset and thy Knbiai 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 liabil ies relate tonicome taxes levied by the same taxation author ity.

(p) Employee Benefits

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

22. Previous year’s figures have been reworked, regrouped, rearranged& reclassified wherever necessaryto confirm to the currentyear presentation .

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

24. As per AS2 the inventories are to be valued at cost or market value whichever is less.

25. Statutory Reserve represents the Reserve Fund create-UtC soMh Reserve Bank of India Act, 934

An amount of Rs 32,55,352/-. (Previous Year RhOO) representing 20% of Net Profit is transferred to the fund for the year.

26. Contingent liabilities and pending litigations:

There is no tax demand is pending as on dat e

27. Related Party Disclosure:

As per Accounting Standard B on related Party disclosure issued by the Institute of charter l Accountants of India, the nature and volume of transaction of the company during the year with the related parties were as follow

32. The company estimatesthe deferred taxcharted/(credit Using the applicable rate of taxation based on the impact of timing differences between financial statement sand estimated taxable income for the current year.

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

T he Company has not developed and implemented any Corporate Social Responsibility initiatives as theaid provisions are not applicabl e.

35. Details of Crypto / Virtual Currency

There were no Transaction and Financial Dealing in Crypto / Virtual Currency during tie Financial YeafG22 -23.

36. Micro and Small-Scale Business Industries: -

Thereare no Micro, Small and Medium Enterprises, to whom the company owes dues which outstanding for more tha 45 days as at 3ht March, 2(23 This information as required to be disclosed under the Micro, Small and Medium Development Act, 2C05 has been determirto the extent such parties have been identified on the basis of information available with company.

AUDITOR’S REPORT SIGNED IN TERMS OF OUR SEPARATE REPORT OF EVEN DATE

FOR TIWARI & MISHRA FOR SUNSHINE CAPITAL LIMITED

(CHARTERED ACCOUNTANTS)

FIRM REGN NO: 018393N

CA. MANINDRA K TIWARI SURENDRA KUMAR JAIN BHUPENDRA KAUSHIK

(PARTNER) (MANAGING DIRECTOR) (DIRECTOR)

M.NO: 501419 DIN: 00530035 DIN: 07016552

UDIN: 23501419BGWNBI9900

PLACE: NEW DELHI SANGEETA AMIT KUMAR JAIN

Date: 29.05.2023 (C.F.O) (COMPANY SECRETARY)

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Mar 31, 2016

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

2. 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.

3. As per AS-13, all long term investments are to be carried at cost less diminution in the value except for temporary diminution. There is no provision of diminution in the value of Non Current Investment to the tune of Rs, 25.03 Crore (P. Y. 12.00 Crore) by virtue of which profit of the company has been overstated by Rs, 25.03 Crore. Further, As per AS-2 the inventories are to be valued at cost or market value whichever is less. There is no provision for shortfall in value of inventories to the tune of Rs, 19.17 Crore by virtue of which profit of the company has been overstated by Rs, 19.17 Crore.

4. During the year the company has converted its investment in shares under the head of “Non current Investment” of Rs, 23.88 Crore in Inventories as Stock in Trade.

5. Statutory Reserve represents the Reserve Fund created u/s 45-IC of the Reserve Bank of India Act, 1934. An amount of Rs, 730548/-. (Previous Year Rs, 6, 69,848/-) representing 20% of Net Profit is transferred to the fund for the year.

6. Contingent liabilities and pending litigations:

(a) 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 ITAT. The demand of appeal is pending before ITAT till date. The Company is hopeful to get relieved from ITAT.

(b) There is a pending penalty proceedings by CIT Appeals for the above Capital Addition of Rs, 100 Crore. The amount of penalty demand by the department is of Rs, 33,99,00,000/- .

(c) There is also a pending Tax demand of Rs, 5,14,66,300/- against the company. The above demand was raised by Department in A.Y. 2009-10. The Company has filed an appeal with ITAT. The demand of appeal is pending before ITAT till date. The Company is hopeful to get relieved from ITAT.

7. 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 Hon’ ble High Court and the company is hopeful of recovery.

8. Related Party Disclosures ; As per Accounting Standard 18 on Related Party disclosures issued by the Institute of Chartered Accountants of India, the nature and volume of transactions of the Company during the year the company do not have any Related Party transactions.

9. 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.

10. 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.

11. Provision for Standard and Non-Performing Assets: Provision for non performing assets (NPAs) is made in the financial statements according to the Prudential Norms prescribed by RBI for NBFCs. The Company also makes additional provision towards loan assets, based on the management’ s best estimate. Additional provision of 0.30% 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:

12. 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.

13. 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, 2016. 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.

14. As defined in paragraph 2 (1) (xii) of the Non Banking Financial Companies acceptance of public deposits (Reserve Bank) directions, 1998.

15. Provisioning norms shall be applicable as prescribed in Non Banking financial (Non- Deposit Accepting or Holding) companies Prudential Norms (Reserve Bank Directions, 2007.

16. All Accounting Standards and Guidance Notes issued by ICAI are applicable including for valuation of investment and other assets as also assets acquired in satisfaction of debt. However, market value in respect of quoted investment and break up / fair value /NAV in respect of unquoted investments should be disclosed irrespective of whether they are classified as long term or current in(4) above.

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Mar 31, 2015

1.1 The company has only one class of equity Shares having Par Value of Rs. 10 per Share. All these Shares have Same right & preferences with respect to payment of dividend, repayment of Capital & Voting.

1.2 There is no Shareholders' having more than 5% Shares of the share capital.

1.3 The reconciliation of the number of Shares outstanding is set out Below:

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

3. 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.

4. As per AS-13, all long term investments are to be carried at cost less diminution in the value except for temporary diminution. There is no provision of diminution in the value of Non Current Investment to the tune of " 12.00 Crore (P. Y. 12.06 Crore) by virtue of which profit of the company has been overstated by " 12.00 Crore.

5. As per the Provision of AS-2, Accounting of Inventories, Stock in trade should be valued at cost or market price whichever is lower, so that the company has valued it's currently purchased all stock in trade at less value that is cost.

6. Statutory Reserve represents the Reserve Fund created u/s 45-IC of the Reserve Bank of India Act, 1934. An amount of " 6, 69,848/-. (Previous Year" 26,97,551/-) representing 20% of Net Profit is transferred to the fund for the year.

7. Contingent liabilities and pending litigations:

(a) There is a pending Tax demand of " 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 " 100 crore in A.Y. 2008-09. The same has been added by the Assessing Officer. The Company has filed an appeal with ITAT. The demand of appeal is pending before ITAT till date. The Company is hopeful to get relieved from ITAT.

(b) There is a pending penalty prosecution by CIT Appeals for the above Capital Addition of " 100 Crore. The amount of penalty demand by the department is of" 3,99,00,000/-.

(c) There is also a pending Tax demand of " 5,14,66,300/- against the company. The above demand was raised by Department in A.Y. 2009-10. The Company has filed an appeal with ITAT. The demand of appeal is pending before ITAT till date. The Company is hopeful to get relieved from ITAT.

8. 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 " 17,00,000/- along with interest of" 4,01,095/- i.e. a total sum of " 21,01,095/-. The case is pending before Hon'ble High Court and the company is hopeful of recovery.

9. Provision for Standard and Non-Performing Assets: Provision for non performing assets (NPAs) is made in the financial statements according to the Prudential Norms prescribed by RBI for NBFCs. The Company also makes additional provision towards loan assets, based on the management's best estimate. Additional provision of 0.25% 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:

10. 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.

11. 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.

12. 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.

13. 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, 2015. 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.

Notes:

1. As defined in paragraph 2 (1) (xii) of the Non Banking Financial Companies acceptance of public deposits (Reserve Bank) directions, 1998.

2. Provisioning norms shall be applicable as prescribed in Non Banking financial

(Non- Deposit Accepting or Holding) companies Prudential Norms (Reserve Bank Directions, 2007.

3. All Accounting Standards and Guidance Notes issued by ICAI are applicable including for valuation of investment and other assets as also assets acquired in satisfaction of debt. However, market value in respect of quoted investment and break up / fair value /NAV in respect of unquoted investments should be disclosed irrespective of whether they are classified as long term or current in(4) above.

(Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014)

Form for disclosure of particulars of contracts/arrangements entered into by the company with related parties referred to in sub-section (1) of section 188 of the Companies Act, 2013 including certain arm's length transactions under third proviso thereto.

1. Details of contracts or arrangements or transactions not at arm's length basis

(a) Name(s) of the related party and nature of relationship: NIL

(b) Nature of contracts/arrangements/transactions: NIL

(c) Duration of the contracts/arrangements/transactions: NIL

(d) Salient terms of the contracts or arrangements or transactions including the value: NIL

(e) Justification for entering into such contracts or arrangements or transactions: NIL

(f) Date of approval by the Board: NIL

(g) Amount paid as advances: NIL

(h) Date on which the special resolution was passed in general meeting as required under first proviso to section 188: NIL

2. Details of material contracts or arrangement or transactions at arm's length basis

(a) Name(s) of the related party and nature of relationship: Surendra Kumar Jain (Director)

(b) Nature of contracts/arrangements/transactions: Operating (Remuneration)

(c) Duration of the contracts / arrangements/transactions: Yearly

(d) Salient terms of the contracts or arrangements or transactions including the value: NIL

(e) Date(s) of approval by the Board: 10/07/2010

(f) Amount paid as advances, if any: NIL

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Mar 31, 2014

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

2. Balance standing to debit & credit of parties are subject to confirmation.

3. 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.

4. As per AS.13, all long term investments are to be carried at cost less diminution in the value except for temporary diminution. There is non provision of diminution to the value of Non-Current Investment to the tune of K 12,06 Crore by virtue of which profit of the company has been overstated by Rs. 12.06 Crore.

5. As per the Provision of AS-2, Accounting of Inventories, Stock in trade should be valued at cost or market price whichever is lower, so that the company has valued it's currently purchased all stock in trade at less value that is cost.

6. Statutory Reserve represents the Reserve Fund created u/s 45-IC of the Reserve Bank of India Act, 1934. An amount of Rs. 26,97,551. (Previous Year NIL) representing 20% of Net Profit is transferred to the fund for the year.

7. Segment Reporting: The Company's business activity Mis within single primary/secondary business segment viz,, Finance Activity. The disclosure requirement of Accounting Standard (AS) - IT "Segment Reporting" issued by the Institute of Chartered Accountant or India, therefore is not applicable.

8. Related Party Disclosures : As per Accounting Standard 18 on Related Party disclosures issued by the Institute of Chartered Accountants of India, the nature and volume of transactions of the Company during the year with the related parties are enclosed :

9. The company estimates the deferred tax charted/I 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.

10. 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, 2014, This information as required to be disclosed under the Micro, Small and Medium Development Act, 2006 has been determined to the Extent sueh parties have been identified on the basis of information available with company.-

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Mar 31, 2013

A] Previous year's figures have been reworked, regrouped, rearranged & reclassified wherever necessary to confirm to the current year presentation

b) Balance standing to debit & credit of parties are subject to confirmation.

c) 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.

d) There is no employee drawing remuneration in excess of Rs. 60,00,000 during the year ending 31st March, 2013 or Rs. 5,00,000 per month.

(Previous Year Nil).

Patel Pmvi. in for Son Hard and N™-Performing Assets: Provision for non performing assets (NPAs) is made in the financial statements according to the Prudential Norms prescribed by RBI for NBFCs. The Company also makes additional provision towards loan assets, based on the management's best estimate Additional provision of 0.25% 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:

e) 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.

f) Related Party Disclosures : As per Accounting Standard 18 on Related Party disclosures issued by the Institute of Chartered Accountants of India, the nature and volume of transactions of the Company during the year with the related parties are enclosed as per annexure I.

g) Earnings per Share as per "AS- 20" issued by the Institute of Chartered Accountants of India:

h) 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:-

i) 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, 2013. 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.

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Mar 31, 2012

1. As informed to us by the management, Sundry Creditors does not include any amount of payable to small scale industrial units.

2 In the opinion of the management, the value on realization of current assets loans & advances in the ordinary courses of business will not be less than the amount at which these are stated in the Balance Sheet.

3 The management has confirmed that adequate provision has been made_ for all the known and determined liabilities and the same .s not in excess of the amount reasonably required. It is further confirmed that there is no liability of the company as on 31st March, 2012 in respect of retirement benefits, if any payable to its employee (s).

4 There has been no related party transaction, so no disclosure is required in accordance with Related party disclosure (As identified by the Management) in terms of accounting standard-18 related party disclosure issued by the institute of Chartered Accountant of India.

5 In the opinion of the management the company has only single business segment of investments & finance activities, therefore no segment reporting has been presented in terms of accounting standard-17 of "Segment Reporting" Issued by the Institute of Chartered Accountant of India.

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Mar 31, 2011

(a) In the opinion of the management, the value on realization of current assets, loans & advances in the ordinary courses of business will not be less than the amount at which these are stated in the Balance Sheet.

(b) The management has confirmed that adequate provision has been made for all the known and determined liabilities and the same is not in excess of the amount reasonably required. It is further confirmed that there is no liability of the company as on 31st March, 2011 in respect of retirement benefits, if any payable to its employee (s).

(c) Related party disclosure (As identified by the Management) in terms of accounting standard- 18 related party disclosure issued by the institute of Chartered Accountant of India are as follows.

(d) In the opinion of the management the company has only single business segment of investments & finance activities, therefore no segment reporting has been presented in terms of accounting standard-17 of "Segment Reporting" Issued by the Institute of Chartered Accountant of India.