Pursuant to the provisions of Regulation 30 and other applicable provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform that the meeting ....
Awaiting price reaction for this filing.
Sunshine Capital Ltd reported FY2026 total income of ₹534.08 Lakhs, down 40% from ₹892.68 Lakhs in FY2025. However, profit after tax surged to ₹2,932.88 Lakhs from a loss of ₹787 Lakhs in the prior year. The auditors issued a QUALIFIED OPINION, stating the financial statements may not give a true and fair view due to non-compliance with Ind AS 109 (Expected Credit Loss). The company failed to apply the required three-stage ECL approach for loan impairment, instead using a single-stage method. Gross loan assets of ₹6,226.33 Lakhs had impairment of only ₹1,501.19 Lakhs. Cash and cash equivalents dropped sharply from ₹303.37 Lakhs to ₹14.93 Lakhs. The auditors also noted non-provision of interest on loans and non-maintenance of audit trail feature in accounting software. Related party transaction approvals were not made available to auditors. The company also converted loans to equity of ₹186.75 Lakhs.
The qualified audit opinion and non-compliance with Ind AS 109 raises serious concerns about the reliability of reported profits. The large gap between cash position (₹14.93 Lakhs) and loan book (₹6,226.33 Lakhs) warrants caution. Shareholders should be aware that reported PAT of ₹2,932.88 Lakhs may be materially overstated due to inadequate impairment provisions.