Submission of Financial Results
Awaiting price reaction for this filing.
Sunshine Capital Ltd, an NBFC registered with RBI, reported audited financial results for FY ended March 2026. Total income declined significantly to Rs 534.08 lakhs from Rs 892.68 lakhs in the previous year. Profit after tax dropped sharply to Rs 66.51 lakhs from Rs 2,932.88 lakhs in the prior year, representing a 97.7% decline. The company has a loan portfolio of Rs 6,226.33 lakhs against which impairment provision of Rs 1,501.19 lakhs has been recorded. The statutory auditors VRSK & Associates issued a qualified opinion noting the company has not complied with Ind AS 109 for Expected Credit Loss calculation and has not provided interest on loans. The auditors identified loan impairment assessment and loan advances as key audit matters due to the magnitude of amounts involved and non-compliance with accounting standards.
The sharp decline in profitability and auditor's qualification regarding non-compliance with Ind AS 109 for loan impairment and interest provisioning are significant red flags for investors. The company declared an unmodified opinion despite auditor findings, which creates additional concern about governance standards.