Smaart Tech Services Ltd Management Discussions

The management presents Management Discussion and Analysis report in pursuance of 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).

Financial and operational performance and segment reporting:

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 year 2025-2026 are dealt with in the Directors Report. During the current year under review, your Company has incurred loss of Rs. 2,203.02 Lakhs as against Rs. 1,928.71 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. There are no details of key financial ratios that registered for more than 25% change during FY 2025-2026. Kindly refer Note No.o 36 of the Financial statement forming part of this Annual Report for Financial ratios. Further, in absence of any operation/turnover, bad debts/accounts receivable, long term debts, the disclosures under 52(4) of SEBI LODR 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. The net worth as at March 31,2026 is negative at Rs. 14,128.48 Lakhs as compared to previous year of negative net worth of Rs. 11790.57 Lakhs. The Company continued to incur operational costs and interest costs which together with absence of revenue resulted in a Loss.

The Sharp Corporation, Japan (SC) (erstwhile Promoter and Holding Company) entered into Share Purchase Agreement (SPA) with Smart Services Private Limited (SSPL) on 14th April 2026 for acquisition of 1,94,58,000 equity shares of Rs 10.00 each consisting 75.00% of the paid-up share capital of the Company and acquired the said shares on 2nd June,2026. Therefore, as per regulation 3(1) & 4 of SEBI (substantial Acquisition and Takeover) Regulation, 2011, SSPL gave open offer to 25.00% of the public shareholders of the Company.

Consequently, on 16th July 2026, SSPL was categoried under Promoter/ Promoter group.

Thereafter, consequent to approval of shareholders by way of postal ballot on 10th August 2026, name of your Company has been changed from Sharp India Limited to Smaart Tech Services Limited w.e.f 18th August 2026. Also, object clause of Memorandum of Association has been altered to diversify in to business activities and the new set of Articles of Association as been adopted to be in line with Companies Act, 2013.

Opportunities and Threats:

In pursuance to alterations in Object clause the Company shall diversify into the business of Facility Management, Manpower solutions, Security Services, Healthcare Services, Managed Meal Services and IT & Business Support Services.

The above services are highly competitive, with large number of players in India.

Due to Increase in demand for these integrated services, there are many new entrants.

Hence, Companies must focus on technology, training and service innovations to lead in rapid development in these sectors.

Risks and concerns:

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.

Internal control systems and their adequacy:

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 Internal Auditors to conduct Internal Audit. The Internal Auditors place their report every quarter, before the 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 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 of the Company is in order, to have access to management and report unethical and improper practice or behavior or wrongful conduct in the Company to Chairman of the Audit Committee. .

Human resources:

Your company endeavors to maintain a cordial atmosphere with the employees at all levels.

The total number of employees as on March 31,2026 is 87.

CAUTIONERY STATEMENT:

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may be treated as ‘Forward Looking Statements within the meaning of applicable laws and regulations. Actual results might differ substantially or materially from those expressed or implied. Important developments that could affect the Companys operations include a down trend in consumer durable industry, significant changes in government policies, laws and political environment in India or abroad and also exchange rate fluctuations, interest and other costs.

For and on behalf of the Board of Directors
Anant Raghute	Yashavant Avatade
Managing Director	Director
DIN: 11696640	DIN: 05151874
Date: August 31, 2026	Date: August 31, 2026
Place: Pune	Place: Pune