Sharp India Ltd Management Discussions

The management presents Management Discussion and Analysis report in pursuance to Regulation 34(2) (e) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended from time to time).

Your Company was principally engaged in the manufacture and sale of liquid crystal display televisions (LED TVs) and Air Conditioners (AC). The financial highlights for the fiscal 2024-2025 are dealt with in the Directors Report. During the current year under review, your company has suffereda loss of Rs. 1928.71 Lakhs as against Rs. 1,785.32 Lakhs in previous year. There is no production of LED TVs from April, 2015 and of Air Conditioners since June, 2015 onwards in the absence of any orders Following are the details of key financial 25% change during FY 2024-2025. a) The Current ratio change was negative at 42.62% this was due to decrease in cash and cash equivalents and increase in current borrowings. b) Debt service coverage ratio (in times) was negative at 33.92 % due to increase in losses accompanied by increased interest cost without any loan repayments. c) Disclosures under 52(4) of LODR.

In absence of any operation/turnover, bad debts/accounts receivable, long term debts the disclosures relating to following ratios are not applicable : Return on Equity Ratio, Trade Receivable turnover ratio, Trade payables turnover ratio, Net Capital turnover ratio, Net Profit Ratio, Return on Capital employed, Return on Investment and Inventory Turnover Ratio. a) The net worth as at March 31, 2025 is negative Rs. 11,790.57 Lakhs as compared to previous year of negative Rs 9,932.97.

The Company continued to incur operational costs and interest costs which together with absence of revenue resulted in a Loss. The Company continues to receive financial support from Sharp Corporation, Japan, the majority shareholder and holding company.

The objective of risk management is to ensure that it is adequately estimated and controlled to enhance shareholder as well as stakeholders values. Risk is pertinent to virtually all business activities though in varying degrees and forms. It is the constant endeavor of the Company to identify, assess, prioritize and manage existing as well as emerging risks in a planned and cohesive manner.

The Internal Control Structure of Company is adequate to ensure the effectiveness of its operations, propriety in the utilization of funds, safeguarding of assets against unauthorized use or disposition, true and fair reporting and compliance with all the applicable regulatory laws and company policies. The Companys internal controls are supported by documented policies, guidelines and procedures and periodical review by the management. The Company has independent Internal Auditors to conduct Internal Audit. The Internal Auditors place their report every quarter, before Audit committee. Suggestions for improvement are considered and the audit committee follows up on corrective action. The Company has related party transaction policy ensuring compliance thatregisteredmorethan under Companies Act, 2013 and SEBI (Listing Obligation and Disclosure Requirement) Regulation, 2015 as amended or re-enacted from time to time and intended to ensure the proper approval and reporting of transactions between the Company. Whistle Blower policy is in order to have access to management and report unethical and improper practice or behavior or wrongful conduct in the Company to Audit Committee Chairman.

Your company continues to maintain a cordial and healthy atmosphere with the employees at all levels. The total number of employees as on March 31, 2025 is 95.

India or abroad and also exchange rate fluctuations, interest and and operational other costs.