2.15 Provision and Contingent Liability

i. 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.

ii. Contingent liabilities, if material, are disclosed by way of notes unless the possibility of an outflow of resources embodying the
economic benefit is remote and contingent assets, if any, is disclosed in the notes to financial statements.

iii. 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.

2.16 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
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.

2.17 Revenue

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably
measured. Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced for trade discounts, rebates
and other similar allowances. Revenue includes excise duty however excludes GST, sales tax, value added tax, works contract and any other
indirect taxes or amounts collected on behalf of the Government.

Revenue is recognized only when the significant risk and reward of the ownership is transferred to the buyer usually on delivery of the goods.
Revenue is recognized to the extent that it is probable that the economic benefit will flow to the Company, revenue can be reliably measured
and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Further, sales include revision in prices received from customers with retrospective effect. Similarly, price revision for material
purchased has also been included in purchases. Further adjustments, if any, are made in the year of final settlement.

Interest Income is recognized using the effective interest rate method

Dividend income is recognized when the Company's right to receive payment is established.

Export sales are accounted on the basis of date of bill of lading.

Payments made in respect of goods cleared as also provision made for goods lying in bonded warehouse.

2.18 Segment Reporting

i. Business Segment

As per Ind AS 108, the Company has reportable segments viz. Consumer Durable Business till 8th May 2017, OEM & packaged Air¬
conditioning and Heat Exchanger & Components Products during the year under review. Accordingly the reporting is done segment
wise.

ii. Geographical Segment

The analysis of geographical segment is based on the geographical location of the customers. The Company operates primarily in India
and has presence in international markets as well. Its business is accordingly aligned geographically, catering to two markets. The
Company has considered domestic and exports markets as geographical segments and accordingly disclosed these as separate
segments. The geographical segments considered for disclosure are as follows;

- Sales within India represent sales made to customers located within India.

- Sales outside India represent sales made to customers located outside India.

2.19 Grants

Government grants are not recognised until there is reasonable assurance that the Company will comply with the conditions
attaching to them and such grants can reasonably have a value placed upon them.

Government grants are recognised in profit or loss on a systematic basis over the periods in which the Company recognises
as expenses the related costs for which the grants are intended to compensate.

Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate
financial support to the Company with no future related costs are recognized in profit or loss in the period in which they become receivable.

2.20 Research and development

Expenditure on research is recognized as an expenses when it is incurred. Expenditure on development with does not meet
the criteria for recognition as an intangible assets recognized as an expenses when it is incurred

2.23 Event after reporting date

Where events occurring after balance sheet date provide evidence of condition that existed at the end of the reporting period, the impact of
such event is adjusted within the financial statements. Otherwise, events after the balance sheet date of material size or nature are only
disclosed.

2.24 Investment In subsidiary and associate companies

The Company has elected to recognise its investments in subsidiary and associate companies at cost in accordance with the
option available in Ind AS 27, “Separate financial statement".

2.25 Recent accounting pronouncements

Standards issued but not yet effective

In March 2018, the ministry of corporate affairs (MCA) issued the companies (Indian accounting standards) Amendments rules 2018, notifying
Ind AS 115, “Revenue from contract with customers", Appendix B to Ind AS 21, Foreign currency transaction and advance consideration
made by international accounting standards board (IASB). These amendments are applicable to the Company from 1st April 2018. The Company
will be adopting the amendments from their effective date.

a) Ind AS 115, Revenue from contract with customers.

Ind AS 115 Supersedes Ind AS 11, Construction contract and Ind AS 18, Revenue. Ind AS 115 require an entity to report information
regarding nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customer. The principal of Ind
As 115 is that an entity recognise revenue that demonstrate the transfer of promised goods and services to customer at an amount that
reflect the consideration to which the entity expect to be entitled in exchange for those goods and services. The standards can be
applied either retrospectively to each prior reporting period presented or can be applied retrospectively with recognition of cumulative
effect of contracts that are not completed contacts at the date of initial application of standards.

Based on preliminary assessment performed by the Company, the impact of application of the standards is not
expected to be material.

b) Appendix B to Ind AS 21, foreign currency transaction and advance consideration.

The appendix clarifies that the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of
the assets, expenses or income (or part of it) is the date on which an entity initially recognises the non-monetary assets or non¬
monetary liability arising from the payment or receipts in advance, then an entity must determine transaction date for each payment or
receipts of advance in consideration. The impact of the appendix on the financial statements, as assessed by the Company, is expected
to be not material.

2.26 Exceptional items

Exceptional items are transactions which due to their size or incidence are separately disclosed to enable a full understanding of the Company's
financial performance. Items which may be considered exceptional are significant restructuring charges, gains or losses on disposal of
investments of subsidiaries, associate and joint ventures and impairment losses/write down in the value of investment in subsidiaries,
associates and joint ventures and significant disposal of fixed assets.

43. Employee Benefit Expenses

Disclosure figures of the gratuity liability of the employees, in accordance with Ind AS 19 “Employee Benefits". The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit
Method.

It is imperative to mention that the said company is under liquidation and no opinion is being fomred on Employees benefit, however we would like to highlight that all the claims of workers/employees has been
collated by the liquidator as per due procedure of law and the same has been filed before NCLT for necessary actions. A list of this is already uploaded on the website of IBBI.

44. 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 concern 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 monitors capital using gearing ratio, which is net debt divided by total capital plus net debt.

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, 2023 comprise of fixed rate loans 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 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.

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 the 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. The tables have been drawn up based on the undiscounted cash
flows of financial liabilities based on the earliest date on which the company can be required to pay.

50. Corporate Social Responsibility

As per the provisions of Section 135 of the Companies Act, 2013, the Company has to incur at least 2% of average net profits of the preceding three financial years towards Corporate Social Responsibility ("CSR").
Accordingly, a company are under the CIRP during period and No CSR committee has been formed for carrying out CSR activities as per the Schedule VII of the Companies Act, 2013. The Company has not contributed
any sum for Current FY .

51. Information pursuant to G.S.R. 308( E) dated 30th March 2017 issued by Ministry of Corporate Affairs

The disclosures regarding details of specified bank notes held and transacted during 8 November 2016 to 30 December 2016 has not been made since the requirement does not pertain to financial year ended 31
March 2025. Corresponding amounts as appearing in the audited Ind AS financial statements for the period ended 31 March 2024 have been also not disclosed.

52. All leases are cancellable, thus there are nil future minimum rentals payable under non-cancellable operating leases.

53. The comparative figures have been regrouped/ rearranged wherever considered necessary to make them comparable with current year numbers.

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