Smaart Tech Services Limited has placed a proposal for ₹900 crore in material related-party transactions with its promoter, Smart Services Private Limited, before shareholders for its upcoming 41st Annual General Meeting. The omnibus approval covers sales, purchases, and leasing arrangements for the period between the 41st AGM and the 42nd AGM in calendar year 2027.

The 41st AGM is scheduled for Tuesday, September 29, 2026, at 12:00 noon via video conference or other audio-visual means. Remote e-voting will be open from Saturday, September 26, 2026, at 9:00 am to Monday, September 28, 2026, at 5:00 pm. Shareholders holding shares as of the cut-off date, Tuesday, September 22, 2026, are eligible to vote.

Key Agenda Items

In addition to the related-party transaction approval, the board has proposed several other ordinary and special resolutions:

• Auditor Appointment: Approval is sought to appoint M/s V A Dudhedia & Co (FRN: 112450W) as statutory auditors to fill the casual vacancy caused by the resignation of M/s G. D. Apte & Co. The new auditor will hold office from August 31, 2026, until the conclusion of the AGM. Shareholders are also asked to approve their appointment for a five-year term thereafter, until the conclusion of the 46th AGM in 2031.
• Registered Office Shift: A special resolution seeks shareholder consent to shift the registered office from Gat No. 686/4, Koregaon Bhima, Taluka Shirur, District Pune, to 7th Floor, Cello Platina, Fergusson College Road, Pune. This move aims to improve administrative convenience and infrastructure.
• Director Re-appointment: Mr. Sandeep Ashok Deshmukh retires by rotation and offers himself for re-appointment as a non-executive director.

Related Party Transaction Details

Smart Services Private Limited holds 75% of the paid-up share capital of Smaart Tech Services. The proposed transactions are intended to support revenue generation and business expansion following the company's diversification into IT-enabled services, manpower services, facility management, healthcare, and managed food services.

The explanatory statement notes that there were no transactions with Smart Services during the last financial year or up to the quarter immediately preceding the current approval request. The estimated annual value of ₹900 crore represents approximately 7.45% of Smart Services' annual consolidated turnover for the preceding financial year.

Voting and Book Closure

The Register of Members and Share Transfer Books will remain closed from Wednesday, September 23, 2026, to Tuesday, September 29, 2026, both days inclusive. This extended closure period facilitates the identification of shareholders entitled to attend and vote.

Shareholders are advised to update their contact details with MUFG Intime India Private Limited, the registrar and share transfer agent, or their depository participants to ensure smooth participation in the e-voting process. Institutional shareholders must submit board resolutions authorizing representatives to vote via email to the scrutinizer and the company.

Smaart Tech Services Limited (formerly Sharp India Limited) reported a net loss of ₹2,419.89 crore for the financial year ended March 31, 2026. This represents a widening of losses compared to the net loss of ₹1,928.71 crore recorded in FY25.

The company generated no revenue from operations during the year, continuing a period of dormancy that began with the cessation of LED TV and air conditioner production in 2015. Total expenses for FY26 reached ₹2,206.83 crore, driven primarily by finance costs and employee benefits.

Financial Performance

The company's total income was limited to ₹3.81 crore from other sources, predominantly interest income. This was insufficient to offset the significant operating outflows.

Finance costs rose to ₹1,394.65 crore from ₹1,097.82 crore in the previous year, reflecting the cost of maintaining borrowings in the absence of operational cash flows. Employee benefit expenses increased slightly to ₹539.46 crore from ₹528.81 crore.

What the Numbers Show

The financial results highlight a structural dependency on external funding to sustain operations. With zero revenue generation, the company incurred an exceptional item charge of ₹216.87 crore related to the reinstatement of borrowings at their settlement value. This adjustment occurred because the management concluded it would be prudent to prepare the financial statements on a not going concern basis starting from the quarter ended September 30, 2025.

This accounting shift reflects the erosion of net worth, which stood at negative ₹14,128.48 crore as of March 31, 2026, down from negative ₹11,790.57 crore in the prior year. The accumulated losses now total ₹19,077.65 crore.

Corporate Developments

Following the fiscal year-end, Sharp Corporation, Japan entered into a Share Purchase Agreement on April 14, 2026, to sell its entire 75% stake to Smart Services Private Limited. Consequently, the company changed its name to Smaart Tech Services Limited effective August 18, 2026.

The Board also proposed shifting the registered office to Pune and sought approval for related-party transactions with Smart Services Private Limited up to an estimated annual value of ₹900 crore. These transactions are intended to support revenue generation as the company diversifies its business activities.