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