2.16 Provisions, Conti ngent Liability and Contingent Assets

1. 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 obligation 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 contingent liability but discloses its existence in the
financial statements.

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

in. 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, in respect of which a reliable estimate can be made for the amount of
obligation. The expense relating to the provision is presented in the profit and loss net of any
reimbursement

IV. If the effect of the time 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
increase in the provision due to the passage of time is recognized as a finance cost.

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 atthe 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 in previous
financial statements are recognized in profit or loss in 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 that date.
XX. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated
at the rates prevailing at the date when the fair value was determined.

111. Non-monetary items that are measured terms of historical cost in a foreign currency are not
retranslated.

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 being 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 in normal operating 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 operating results of its business 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 includes sales and other income directly identifiable with the segment including
intersegment revenue.

ii. 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.

III. Income which relates to the Group as a whole and not allocable to segments is included in unallocable
income.

IV. Segment result includes margins on inter-segment and sales which are reduced in arriving at the profit
before tax of the Group.

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 any segment

2.20 Earnings Per Share

Basic Earnings per share is computed by dividing the net profit after tax by the weighted average number of
equity shares outstanding during die 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 Borrowine Cost

Borrowing costs specifically relating to the acquisition or construction of a qualifying asset that necessarily
takes a substantial period of time 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 period in which it is incurred except
loan processing fees which is recognized as per Effective Interest Rate method.

Borrowing costs consist of interest and other costs that Company incurs in connection with the borrowing of
funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the
borrowing 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 in 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 financial 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 existing
circumstances. The said estimates 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
estimates - 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 estimates 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 carried at Fair Value and gain/loss on fair valuation is recognized
through OCI.

2.25 Trade Receivable

Trade Receivables are recognized initially at their transaction value. Transaction value is the cost that are
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.

A. Terms/rights attached to Equity Shares

(i) The company has only one class of equity shares hairing par value of Rs. 10 per share Each holder of equity shares is entitled to one vote per share The company declares and pays
dividends in Indian rupees The dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting

(ii) ln the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distrbutionof all preferential amounts The
distribution will be in proportion to the number of equity shares held by the shareholders

B Terms/rights attached to Preference Share redeemable after 8 years

(i) Redeemable Non Convertible Preference shares shall carry a preference dividend at the rate of 0.5% per annum, payment of dividend shall be on cumulative basis at the time of
redemption and the preference shares shal be redeemable on completion of 8 years from the date of allotment at premium of 400% of the Face Value of the preference shares.

(ii) In the event of liquidation of the company, the holders of redeemable non convertble preference shares shall be non-participating in surplus funds and in surplus assets and profits, on
winding-up which may remain after the entire capital has been repaid

C Terms/rights attached to Preference Share redeemable after 4 years

(i) Redeemable Non Convertible Preference shares shall carry a preference diwdend at the rate of 0.5% per annum, payment of dividend shall be on cumulative basis at the time of
redemption and the preference shares shal be redeemable on completion of 4 ^ars from the date of allotment at premium of 700% of the Face Value of the preference shares.

i. The company has entered into an Agreement with Allencure Biotech Pvt Ltd to sell the Factory Land located at Vllage Nagal, Kala Amb, Tehsl Nahan, Disd Sirmour, Himachal Pradesl
against which coside ration of Rs. 90.00 lakhs has been received in F Y 2021-22 and Further payment of Rs. 50.00 lakhs has been received in FY 2022-23. Ason 31st March 2025, the title of
the property is in the name of the company i.e, registry is yet to be done in the favour of Allencure Biotech Pvt Ltd

ii. Duringthe year 2023-24 company has entered into an agreement to sell its property located at SIPCOT, Rampet Chennai against which consideration of Rs. 3.00 crore has been receive!
from the M/s. Value Mount Lixiviate Private Limited and further payment of Rs. 5.75 crore has been received during FY 2024-25

iii. During the year 2024-25 company has entered into an agreement to sell its property located at Chhata, Mathin against which consideration of Rs. 3.82 wore has been received from
the M/s. Vrinda Reality.

iv. During the year 2024-25 company has entered into an agreement to sell its property located at Chhata, Mathin against uhich consideration of Rs. 0.5C crore has been received from
the M/s. Bankey Bihari Developers.

v. During the year 2024-25 company has entered into an agreement to sell its property located at Chhata, Mathura against which consideration of Rs. 0.25crore has been received from
the M/s. MS Urban Buildcon.

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 Feeders Holding Limited (Formerly Known as IM CAPITALS
LTD).

35) PURSUANT TO THE RESOLUTION PLAN SUBMITTED BY THE FEEDERS HOLDING LIMITED (FORMERLY
KNOWN AS 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 / ACCOUNTING STANDARDS

> Exceptional Items (net) for the year ended 31^st March 2025 comprises of:

The LD charges which has been deducted by the various vendors or government entities in earlier years

has been recovered now after completion of work

> During the previous year 2023-24 the management has evaluated its investment in subsidiary in UAE and
found there is no realizable value from the UAE subsidiary, taking the N CLT 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 and onwards.

> Exceptional Items (net) for the year ended 31^st 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

36) Micro and Small-Scale Business Entities

Under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED) which came into force from
October 2, 2006, certain disclosure are required to be made relating to MSME, On the basis of information and
record available with the company, the following disclosure are made for the amounts due to Micro, Small and
Medium Enterprises:

(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.

42) 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.

45) Financial risk management objectives and policies

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

ii) 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, 2025 is without interest and accordingly, are not expose to risk of fluctuation in market
interest rate.

iii) Commodity price risk

The Company is affected by the price volatility of certain commodities. Its operating activities require the ongoing
manufacture of pipe, pole and industrial and domestic air conditioners and therefore require a continuous supply
of iron and copper and Aluminum being the major input used in the manufacturing. Due to the significantly
increased volatility of the price of the Iron, 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

c) 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 rolling forecasts on the basis of expected cash flows. The Company assessed
tiie concentration of risk with respect to its debt and concluded it to be low.

The following tables detail the Company's remaining contractual maturity for its non-derivative financial liabilities
with agreed repayment periods

49) After takeover by the new management, the Fixed Assets taken is as per new management best estimate and
physical verification/inspection 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 management verify the tangible recorded assets in fixed assets register in regular interval of time.

50) After the corporate insolvency resolution process, inventory taken in the books of accounts is as per the new
management best estimate and physical verification/inspection done by the management’s team and as per
valuation done according to IND As-2.

53] Previous year’s figures re-grouped / re-arranged where found necessary. All the figures mentioned are in Rs.
Crores except otherwise specifically mentioned therein.

54) Notes *1’ to '53' form an integral part of accounts and are duly authorized.

Refer to our Report of even date.

For O. Aggarwal & Co. For and on behalf of the Board of Directors of

Chartered Accountants, Fedders Electric and Engineering Limited.

Firm's Registration Number: 005755N

Sd/- Sd/- Sd/-

CA Om Prakash Aggarwal Vishal Singhal Rakesh Kumar Singhal

Partner Managing Director Director

Membership No.: 083862 DIN:03518795 DIN:00063247

UDIN: 25083862BMFYAZ4262

Sd/- Sd/-

Place: Sikandrabad, U.P Narendra Kumar Mishra Pramod Kumar

Date: 28.05.2025 Chief Financial Officer Company Secretary