Sharp India Limited has announced a significant change in its accounting policy, moving from a 'going concern' to a 'not going concern' basis. This decision, approved by the company's Board of Directors, reflects the ongoing operational challenges faced by the electronics manufacturer.

Key Developments

• Accounting Policy Change: The Board of Directors has approved the shift from 'going concern' to 'not going concern' basis for accounting purposes.
• Production Halt: Sharp India has not produced LED TVs since April 2015 and Air Conditioners since June 2015 due to a lack of orders.
• Financial Reassessment: Management has reevaluated the company's financial position based on communication from Sharp Corporation, the promoter and holding company.
• Future Uncertainty: While efforts are being made to explore alternative revenue streams, there is uncertainty regarding the timeline for establishing these successfully.

Financial Reporting Impact

The company has stated that its unaudited financial results for the quarter and half-year ended September 30, 2025, will be prepared on a 'not going concern' basis. This change in accounting policy is likely to have significant implications for how the company's assets and liabilities are valued in financial statements.

Corporate Support

Despite the operational challenges, Sharp Corporation, Japan, has confirmed its commitment to provide financial and operational support to Sharp India Limited. This backing from the parent company may be crucial for Sharp India's future operations and potential turnaround efforts.

Operational Overview

The following table summarizes the key operational aspects of Sharp India Limited:

The shift to a 'not going concern' basis is a significant development for Sharp India Limited, reflecting the company's current operational challenges and uncertain future prospects. While the support from its parent company provides some reassurance, the company faces the task of identifying and establishing new revenue streams to ensure its long-term viability.

Investors and stakeholders will be closely watching Sharp India's future announcements and financial reports to gauge the company's progress in addressing these challenges and potentially returning to normal operations.

Sharp India Limited , a consumer electronics company, has reported a net loss of Rs 517.19 lakh for the quarter ended June 30, according to its latest financial results. The company continues to face operational challenges, with accumulated losses reaching Rs 17,174.95 lakh as of the end of the quarter.

Financial Performance

The company's financial results for Q1 reveal:

• Total income: Rs 1.25 lakh
• Total expenses: Rs 518.44 lakh
• Net loss: Rs 517.19 lakh
• Loss per share: Rs 1.99 (not annualized)

Operational Status

Sharp India has not been producing LED TVs since April 2015 and air conditioners since June 2015 due to a lack of orders. Despite the cessation of production activities, the company continues to receive financial and operational support from its holding company, Sharp Corporation, Japan. The Japanese parent has provided a support letter until June 30, 2026.

Going Concern and Auditor's Qualification

The management maintains that the company can continue as a going concern based on the ongoing support from Sharp Corporation, Japan. However, the auditors have issued a qualified conclusion for the seventeenth consecutive time, citing concerns about the company's going concern assumption in the absence of a board-approved business plan and revival scheme.

Corporate Governance Updates

In other developments:

1. Reappointment of Independent Director: The Board of Directors has approved the reappointment of Mr. Abhijeet Bhagwat as an Independent Director for a second term of five years, from October 2, 2025, to October 1, 2030, subject to shareholder approval at the upcoming Annual General Meeting.

2. New Secretarial Auditor: The company has appointed M/s SVD & Associates, Company Secretaries, Pune, as the new Secretarial Auditor for a term of five consecutive years, pending shareholder approval at the forthcoming Annual General Meeting.

These developments come as Sharp India continues to navigate challenging market conditions and operational inactivity. The company's future strategies and potential revival plans remain a key focus for stakeholders as it relies on support from its parent company to maintain operations.