2.16 Provisions, Contingent Liability and C'outingentAssets

l A contingent liability is a possible obligation that arises from past events whose existence
will be confirmed by the occurrence or non-occurrence of one or more uncertain future
events beyond the control of the Company or a present obhgation that is not recognized
because it is not probable that an outflow of resources will be required to settle the
obligation. A contingent liability also arises in extremely rare cases where there is a
liability that cannot be recognized because it cannot be measured reliably. The Company
does not recognize a contmgent liability but discloses its existence m the financial
statements.

n Contingent liabilities, if material, are disclosed by way of notes and contmgent assets, if
any, are disclosed in the notes to financial statements.

m A provision is recognized, when Company has a present obligation (legal or constructive)
as a result of past events and it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation m respect of which a reliable
estimate can be made for the amount of obligation The expense relatmg to the provision
is presented in the profit and loss net of anvreimbursement.

tv. If the effect of the tune value of money is material, provisions are discounted using a
current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When
discounting is used, the mcrease in the provision due to the passage of tune is recognized
as a financecost.

2.17 Foreign Currency Translation

These financial statements are presented in Indian rupees (INR), which is the Company's
functional currency.

Transactions in foreign currency are recorded on initial recognition at the spot rate prevailing at
the time of the transaction.

Exchange differences arising on the settlement of monetary items or on translating monetary
items at rates different from those at which they were translated on initial recognition during the
period or m previous financial statements are recognized in profit or loss m the period in which
they arise.

At the end of each reporting period:

i. Monetary' items denominated in foreign currencies are retranslated at the rates prevailing
at thatdate

u. Non-monetary items earned at fair value that are denominated in foreign cunencies are
retranslated at the rates prevailing at the date w'hen the fair value w'asdetenmned.

in. Non-monetary items that are measured terms of historical cost in a foreign currency are
notretranslated.

2.18 Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current / non-current
classification.

Deferred tax assets and liabilities, and all assets and liabilities which are not current (as discussed
in the below paragraphs) are classified as non-current assets and liabilities.

An asset is classified as current when it is expected to be realized or intended to be sold or
consumed in normal operating cycle, held primarily for the purpose of trading, expected to be
realized within twelve months after the reporting period, or cash or cash equivalent unless
restricted from bemg exchanged or used to settle a liability for at least twelve months after the
reporting period.

A liability is classified as current when it is expected to be settled m normal operatmg cycle, it is
held primarily for the purpose of trading, it is due to be settled within twelve months after the
reporting period, or there is no unconditional right to defer the settlement of the liability for at
least twelve months after the reporting period.

2.19 Operating Segment

The Chief Operational Decision Maker monitors the operatmg results of its busmess segments
separately for the purpose of making decisions about resource allocation and performance
assessment. Segment performance is evaluated based on profit and loss and is measured
consistently with profit and loss in the financial statements

The Operating segments have been identified on the basis of the nature of products/services:

1 Segment revenue mcludes sales and other income directly identifiable with the segment
including intersegmentrevenue.

u. Expenses that are directly identifiable with the segments are considered for determining
the segment results Expenses which relate to the Group as a whole and not allocable to
segments are included under unallocable expenditure.

in Income winch relates to the Group as a whole and not allocable to segments is mcluded in
unallocable income.

iv. Segment result mcludes margins on inter-segment and sales which are reduced m arriving
at the profit before tax of theGroup

v. Segment assets and liabilities include those directly identifiable with the respective
segments. Unallocable assets and liabilities represent the assets and liabilities that relate
to the Group as a whole and not allocable to anysegment

2.20 Earnings PerShnre

Basic Earnings per share is computed by dividing the net profit after tax by the weighted average
number of equity shares outstanding during the period. For the purpose of calculating Diluted
Earnings per share, the net profit for the period attributable to equity shareholders and the
weighted average number of shares outstanding during the period are adjusted for the effects of
all dilutive potential equity shares.

2.21 Borrowing Cost

Borrowing costs specifically relatmg to the acquisition or construction of a qualifying asset that
necessarily takes a substantial penod of tmie to get ready for its intended use are capitalized as
part of the cost of the asset. All other borrowing costs are charged to statement of profit & loss in
the penod in winch it is incurred except loan processing fees winch is recognized as per Effective
Interest Rate method.

Borrowing costs consist of interest and other costs that Company incurs m connection with the
borrowmg of funds. Borrowing cost also includes exchange differences to the extent regarded as
an adjustment to the borrowmg costs.

2.22 Cash and cash Equivalents

Cash and cash equivalents include cash on hand, bank balances and any deposits with original
maturities of three months or less (that are readily convertible to known amounts of cash and
cash equivalents and subject to an insignificant risk of changes m value). However, for the
purpose of the statement of cash flows, in addition to above items, any bank overdrafts / cash
credits that are integral part of the Company's cash management, are also included as a
component of cash and cash equivalents.

2.23 Critical accounting estimates, assumptions and judgements

The estimates and judgements used in the preparation of the said fmancial statements are
continuously evaluated by the Company, and are based on historical experience and various other
assumptions and factors (including expectations of future events), that the Company believes to
be reasonable under the existmg circumstances. The said estunates and judgements are based on
the facts and events, that existed as at the reporting date, or that occurred after that date but
provide additional evidence about conditions existing as at the reporting date.

Although the Company regularly assesses these estimates, actual results could differ materially
from these estmiates - even if the assumptions under-lying such estimates were reasonable when
made, if these results differ from historical experience or other assumptions do not turn out to be
substantially accurate. The changes in estmiates are recognised in the financial statements in the
year in which they become known

2.24 Investment

Investments which are of equity in nature are earned at Fair Value and gam loss on fair
valuation is recognized throughOCI.

2.25 Trade Receivable

Trade Receivables are recognized initially at their transaction value Transaction value is the cost that
arc attributable to the acquisition of the financial assets and subsequently less provision for
impairment if any required.

2.26 Trade and Other payable

These amounts represent liabilities for goods and services provided to the Company prior to the end of
financial year which are unpaid. Trade and other payables are recognized, initially at transaction
value.

Note : All the Claims against the company / disputed liabilities which was not acknowledged as debt except as shown above
has been reduced to zero (NIL) on pursuant to the order of Hon'ble NCLT APPROVING THE RESOLUTION PLAN SUBMITTED BY
IM CAPITALS LTD.

34) PURSUANT TO THE RESOLUTION PLAN SUBMITTED BY THE IM CAPITALS
LIMITED. AND ITS APPROVAL BY THE HON'ABLE NATIONAL COMPANY LAW
TRIBUNAL. VIDE THEIR ORDER DATED 06^th OCTOBER 2021. OTHERWISE AS
STATED IN BELOW NOTES. THE FOLLOWING CONSEQUENTIAL IMPACTS HAVE
BEEN GIVEN IN ACCORDANCE WITH APPROVED RESOLUTION PLAN
A ( ( PUNTING STANDARDS

r During the year under consideration the management has evaluated its investment in subsidiary in UAE and found there
is no realizable value from the UAE subsidiary, taking the NCLT order into consideration, the same has been written off
along with its provision which were made in the books of accounts and shown as Exceptional Items in the Statement of
Profit and Loss Account. Hence, there is no need to prepare the consolidated financial statement/results for the quarter
and the year ended March 2024.

r Exceptional Items (net) for the year ended 31ⁿ March 2024 comprises of :

a) Writing off Loan & Advances Given to Wholly owned Subsidiary situated in UAE. 2.26 crore & Investment made
by Rs. 0.54 crore.

b) Write off provision already provided for in the books of account with respect to the investment made in
subsidiary written off during the year by Rs. 4.27 crore.

c) The above adjustment resulted in the exceptional income of Rs. 1.47 crore

(I) Primary Segment Reporting (Business Segment)

After take over by the management, the company has no reportable segments, hence segment reporting under IND AS 108 is not
applicable

(II) Employee Benefit Expenses

Since there is no employee with a continuous service for more than 5 years, hence no actuarial valuation for leave encashment
and gratuity has been done.

41) Capital Management

For the purposes of Company's capital management. Capital includes equity attributable to the equity holders of the
Company and all other equity reserves. The Company manages its capital to ensure that the company will be able to
continue as going concerns while maximizing the return to stakeholders through the optimization of the debt and equity
balance.

The capital structure of the Company consists of net debt (borrowings offset by cash and bank balances) and total equity of
the company.

The Company reviews the capital structure of the Company on a semi-annual basis. As part of this review, the company
considers the cost of capital and the risks associated with each class of capital.

The Company's principal financial liabilities, comprise loans and borrowings, trade and other payables. The main purpose of
these financial liabilities is to finance the Company's operations. The Company's principal financial assets include loans, trade
and other receivables and cash and cash equivalents that are derived directly from its operations.

The Company's financial risk management is an integral part of how to plan and execute its business strategies. The Company
is exposed to market risk, credit risk and liquidity risk. The company's focus is to foresee the unpredictability of financial
markets and seek to minimize potential adverse effects on its financial performance.

The Board of Directors reviews and agrees policies for managing each of these risks which are summarized as below

a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises three types of risk: currency rate risk, interest rate risk and other price risks, such as
equity price risk and commodity price risk.

i) Currency rate risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates relates primarily
to the Company's operating activities (when revenue or expense is denominated in foreign currency). The exchange rate
between the rupee and foreign currencies has changed substantially in recent years and may fluctuate substantially in the
future. Consequently, the results of the Company's operations are adversely affected as the rupee appreciates/ depreciates
against these currencies

Interest rate risk

Interest rate is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the
Company's long term debt obligation at floating interest rates. The Company's borrowings outstanding as at March 31, 2023 is
without interest and accordingly, are not expose to risk of fluctuation in market interest rate.

ii) Commodity price risk

The Company is affected by the price volatility of certain commodities. Its operating activities require the ongoing
manufacture of industrial and domestic air conditioners and therefore require a continuous supply of copper and Aluminum
being the major input used in the manufacturing. Due to the significantly increased volatility of the price of the Copper and
aluminum, the Company has entered into various purchase contracts for these material for which there is an active market
The Company's Board of Directors has developed and enacted a risk management strategy regarding commodity price risk
and its mitigation. The Company partly mitigated the risk of price volatility by entering into the contract for the purchase of
these material based on average price of for each month.

b) Credit risk

Credit Risk is the risk that the counter party will not meet its obligation under a financial instrument or customer contract,
leading to a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables.
Trade receivables are typically unsecured and are derived from revenue earned from customers.

Customer credit risk is managed subject to the Company's established policy, procedures and control relating to customer
credit risk management. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual
credit limits are defined in accordance with this assessment.

Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time. The Company's
objective is to at all times maintain optimum levels of liquidity to meet its cash and liquidity requirements. The Company
closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate source of
financing through the use of short term bank deposits and cash credit facility. Processes and policies related to such risks are
overseen by senior management. Management monitors the Company's liquidity position through roiling forecasts on the
basis of expected cash flows. The Company assessed the concentration of risk with respect to its debt and concluded it to be
low.

48) After takeover by the new management, the Fixed Assets taken is as per new management best estimate and physical
verification/jnspection done by the management and FAR has been maintained as per revised life of the assets as per
management best estimate and any addition done after takeover by the new management has been duly maintained as per
Schedule II of the Company Act. After the corporate insolvency resolution process, no intangible assets has been handed over to
new management, accordingly the same has been impaired in the books of accounts in the year 2022. The Fixed Asset Register
maintained by company is now comparable with the existing assets. The Description of assets is not properly mentioned. The
Current Management has tried to verify the assets but could not conclude the physical verification of assets.

52 Previous year's figures re-grouped / re-arranged where ^:ound necessary. All the figures mentioned are in Rs. Crores except
otherwise specifically mentioned therein.

53) Notes T to '52' form an integral part of accounts and are duly authorized.

Refer to our Report of even date.

For Rajeev Malhotra & Associates For and on behalf of the Board of Directors of

Chartered Accountants, Fedders Electric and Engineering Limited.

Finn's Registration Number : 021479N

sd/- ^sd/- sd/-

Sunil Sakral Vishal Singhal Rakesh Singhal

Partner Managing Director Director

Membership No.: 509537 DIN:03518795 DIN:00063247

UD1N: 24509537BKGEOU3770

^Sd/- sdI-

Place: Sikandrabad, U.P. Narendra Kumar Mishra Sakshi Goel

Date: 23.05.2024 Chief Financial Officer Company Secretary