Sharp India Ltd’s Board has approved changing its accounting policy from ‘going concern’ to ‘not going concern,’ reflecting serious operational and financial challenges as losses mount and production halts.
                                        
                        
	Sharp India Ltd’s Board of Directors has recently approved a significant change in accounting policy, moving from the standard ‘going concern’ assumption to a ‘not going concern’ basis. This pivotal shift signals serious concerns about the company’s ability to continue operations without substantial restructuring or external support.
	 
	Key Highlights:
	 
	The board’s approval to adopt a ‘not going concern’ policy follows continued financial losses, with Sharp India incurring net losses in multiple recent quarters and accumulated deficits exceeding Rs 160 crore.
	 
	Production of key electronics, including LED TVs and air conditioners, has ceased due to lack of orders since 2015, intensifying operational challenges.
	 
	Despite financial support from parent Sharp Corporation, Japan, the sustained absence of business viability has led to this conservative accounting approach.
	 
	The change implies that assets are now recognized at lower of carrying value or net realizable value, affecting future financial reporting and valuation.
	 
	This critical development reflects the company’s ongoing struggles in an increasingly competitive electronics market and highlights the necessity for strategic turnaround plans.
	 
	Sharp India Ltd now faces the challenge of navigating through this transitional phase while seeking avenues to restore profitability and operational stability.
	 
	Sources: Sharp India Ltd Board Filings, MarketMojo, India Infoline, BSE Filings