Sharp India Limited announced that G. D. Apte & Co. has resigned from its position as statutory auditor, effective August 13, 2026. The resignation was communicated pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The audit firm stated that due to pre-occupancies and other professional commitments, it would not be able to prioritize the timelines required for the completion of the company's audit. Consequently, it decided to resign from the office of statutory auditor.

Audit Status and Timeline

G. D. Apte & Co. was originally appointed by the members of Sharp India Limited at its 37th annual general meeting held on December 28, 2022. The term was scheduled to continue until the conclusion of the 42nd annual general meeting, expected in 2027.

Prior to resignation, the firm had completed the following statutory duties:

• Statutory audit for the financial year ended March 31, 2026, under the Companies Act.
• Limited review for the quarter ended June 30, 2026, pursuant to Regulation 33 of the SEBI Listing Regulations.

Regulatory Disclosures

In its disclosure to the Bombay Stock Exchange, Sharp India Limited confirmed that there were no concerns raised by the auditor prior to resignation, nor were there any issues regarding management-imposed limitations on audit evidence. The firm declared that there are no other material reasons for the resignation beyond those stated.

The company has been directed to arrange for necessary compliance under the applicable provisions of the Companies Act, 2013, including the appointment of a new statutory auditor.

Sharp India Limited reported a net loss of ₹575.87 lakh for the quarter ended June 30, 2026, widening from a loss of ₹517.19 lakh in the same period of FY25. The loss reflects the continued absence of operational revenue, with total income from operations dropping to ₹4.35 lakh from ₹1.25 lakh in Q4FY26 and ₹1.25 lakh in Q1FY25. This financial performance underscores the company's dormant operational status, which has persisted since June 2015.

The most significant development accompanying these results is a change in ownership structure. Effective June 2, 2026, Smart Services Private Limited acquired 75% of the paid-up equity share capital of Sharp India Limited, following a share purchase agreement with the erstwhile holding company, Sharp Corporation, Japan. Consequently, Smart Services Private Limited has been classified as the Promoter and Promoter Group under SEBI regulations. The Board of Directors was reconstituted simultaneously to reflect this transition.

Financial Performance

The company’s standalone financial results for Q1FY26 highlight minimal operational activity against a backdrop of accumulated losses. Total comprehensive income for the period stood at a loss of ₹575.87 lakh. Reserves (excluding Revaluation Reserve) decreased to (₹17,260.44) lakh as of June 30, 2026, compared to (₹16,722.88) lakh at the end of March 2026. Accumulated losses reached ₹19,653.62 lakh, resulting in an erosion of net worth.

Accounting Basis and Future Steps

The unaudited financial results were prepared in accordance with Ind AS prescribed under Section 133 of the Companies Act, 2013. However, the management concluded that it is prudent to consider the company as a 'not going concern' due to uncertainty regarding the establishment of alternate revenue streams. Accordingly, assets have been measured at the lower of their estimated net realizable value and carrying amount, while liabilities are measured at settlement amounts.

An additional charge of ₹216.87 lakh was recorded under exceptional items for the year ended March 31, 2026, relating to the reinstatement of borrowings from erstwhile related parties. This charge contributed to the increase in losses and accumulated losses for the fiscal year.

Pursuant to the change in ownership, the Board considered proposals for changing the company’s name and altering the Object Clause of the Memorandum and Articles of Association during its meeting on July 2, 2026. The company is currently seeking shareholder approvals for these changes through a postal ballot via remote e-voting. Until such approvals are obtained, financial results will continue to be prepared on a 'not going concern' basis, rendering prior period figures non-comparable to the current quarter.

The results were reviewed by the Audit Committee and approved by the Board of Directors on August 07, 2026. The filing was submitted pursuant to Regulation 30 and Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.