1.13 Provisions, Contingent liabilities, Contingent Assets
A provision is recognised when an enterprise has a present obligation as a result of past event and it is probable that
an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made.
Provisions are measured at the present value of management's best estimate of the expenditure required to settle the
present obligations at the end of the reporting period. 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 changes in the provision due to the passage of time are recognised as a finance cost.
Contingent liabilities are disclosed in the case of:
a present obligation arising from the past events, when it is not probable that an outflow of resources will be required
to settle the obligation;
a present obligation arising from the past events, when no reliable estimate is possible;
a possible obligation arising from past events, unless the probability of outflow of resources is remote.
Contingent assets are not recognised but disclosed in the financial statements when an inflow of economic
benefit is probable.
1.14 Employee Benefits
A. Short Term Benefits
Short Term Benefits are recognised as an expense at the undiscounted amount in the Statement of Profit and Loss of
the period in which the related service is rendered.
B. Post-Employment benefits - Defined Benefit Plans: Gratuity (Unfunded)
The Company has an obligation towards gratuity - a defined benefit retirement plan covering eligible employees. The
plan provides a lump sum payment to vested employees at retirement, death while in employment or on termination
of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof
in excess of six months. Vesting occurs upon completion of five years of service and is payable thereafter on occurrence
of any of above events.
The cost of providing benefits under the defined benefit plan is determined using the projected unit credit method
with actuarial valuations being carried out at each Balance Sheet date, which is recognised in each period of service
as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the
final obligation.
Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included
in the net interest on the net defined liability and the return on plan assets (excluding amounts included in net interest
on the net defined benefit liability), are recognised immediately in the Balance Sheet with a corresponding debit or
credit to retained earning through Other Comprehensive Income in the period in which they occur. Re-measurements
are not re-classified to the Statement of Profit and Loss in subsequent periods. Past service cost is recognized in the
Statement of Profit and Loss in the period of plan amendment.
Net interest is calculated by applying the di scount rate to the net defined benefit plan liability or asset.
The Company recognizes the following changes in the net deined benefit obligations under employee benefit expenses
in the Statement of Profit and Loss:
Service costs comprising of current service costs, past-service costs, gains and losses on curtailments and non¬
routine settlements
During the FY 2024-2025, Provisions for Gratuity has not been taken into consideration, since there is no employee
with a continuous service for more than 5 years.
C. Other Long-Term Employee Benefits - Compensated Absences/ Leave Encashment (Unfunded)
The Company provides for encashment of leave or leave with pay subject to certain rules. The employees are entitled
to accumulate leave subject to certain limits for future encashment / availment. The Company makes provisions for
compensated absences based on an independent actuarial valuation carried out at each reporting date, using Projected
Unit Cost Method. Actuarial gains and losses are recognized in the Statement of Profit and Loss.
1.15 Segment Information
The company operates in one operating segments namely Consulting Services and Investments.
1.16 Revenue Recognition
The company derives revenue from interest on loan granted, dividend as also by rendering of professional services.
In accordance with Ind AS-115, the revenue is recognized at a time when performance obligation is satisfied
a) Interest Income on loan / deposits others are recognised on accrual basis, while Dividend / Interest on shares &
securities are recognised when right to receive the Dividend are established.
b) Profit / (Loss) on sale of Investment in shares & securities, are recognised upon transfer of control of such
investment.
c) Management Consultancy Fees/ Income are accounted at a time when performance obligation is satisfied in an
amount that reflects the consideration the company expects to receives in exchange for those services.
Current Tax
The Company provides current tax based on the provisions of the Income Tax Act, 1961 applicable to the Company.
Deferred Tax
Deferred tax is recognised using the Balance Sheet approach. Deferred tax assets and liabilities are recognised for
deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying
amount.
Deferred tax liabilities are recognised for all taxable temporary differences.
Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits
and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will
be available against which the deductible temporary differences, and the carry forward of unused tax credits and
unused tax losses can be utilised.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no
longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised.
Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has
become probable that future taxable profits will allow the deferred tax assets to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset
is realised or liability is settled, based on tax rates (and tax laws) that have been enacted or substantially enacted at
the reporting date.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation
authority.
1.17 Earnings per Share
Basic earnings per share are calculated by dividing the profit after tax or loss for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the period. In case there are any
dilutive securities during the period presented, the impact of the same is given to arrive at diluted earnings per share.
1.18 Leases
In accordance with Ind AS 116, the company recognises right of use assets representing its right to use the underlying
asset for the lease term at the lease commencement date. The cost of right of use asset measures at inception shall
comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at or
before commencement date less any lease incentive received plus any initial direct cost incurred and an estimate of
cost to be incurred by lessee in dismantling and removing underlying asset or restoring the underlying asset or site
on which it is located. The right of use asset is subsequently measured at cost less accumulated depreciation,
accumulated impairment losses, if any, and adjusted for any re-measurement of lease liability. The right of use assets
is depreciated using the Straight-Line Method from the commencement date over the charter of lease term or useful
life of right of use asset. The estimated useful life of right of use assets are determined on the same basis as those
of Property, Plant and Equipment. Right of use asset are tested for impairment whenever there is any indication that
their carrying amounts may not be recoverable. Impairment loss, if any, is recognised in Statement of Profit and Loss.
The company measures the lease liability at the present value of the lease payments that are not paid at the
commencement date of lease. The lease payments are discounted using the interest rate implicit in the lease, if that
rate can be readily determined. If that rate cannot be readily determined, the company uses incremental borrowing
rate.
The lease liability is subsequently re-measured by increasing the carrying amount to reflect interest on lease liability,
reducing the carrying amount to reflect the lease payments made and re-measuring the carrying amount to reflect
any reassessment or lease modification or to reflect revised-in-substance fixed lease payments. The company
recognises amount of re-measurement of lease liability due to modification as an adjustment to write off use asset
and statement of profit and loss depending upon the nature of modification. Where the carrying amount of right of
use assets is reduced to zero and there is further reduction in measurement of lease liability, the company recognises
any remaining amount of the re-measurement in Statement of Profit and Loss.
The company has elected not to apply the requirements of Ind AS 116 to short term leases of all assets that have a
lease term of 12 months or less unless renewable on long term basis and leases for which the underlying asset is of
low value. The lease payments associated with these leases are recognised as an expense on Straight Line basis over
lease term.
1.19 Foreign exchange transactions
Foreign currency transactions are accounted for at the exchange rate prevailing on the date of the transaction. All
monetary foreign currency assets and liabilities are converted at the exchange rates prevailing at the reporting date.
All exchange differences arising on translation of monetary items are dealt with in the Statement of Profit and Loss.
As per our report of even date annexed For and on behalf of the Board of Directors of
For O. Aggarwal & Co. Fedders Holding Limited
Chartered Accountants
Firm Reg. No.005755N
Sd/- Sd/- Sd/nal Si nghal)
CA. Om Prakash Aggarwal (Vishal Singhal) Di!£Sor g )
Partner Whole Time Director - 0974501 0
Membership No. 083862 DIN - 03518795 D1N 09745010
UDIN: 25083862BMFYBF1587 ,
Sd/- Sd/-
Place: Ghaziabad (Sakshi Goel) (Bijay Kumar Pathak)
Date: 30.05.2025 Company Secretary Chief Financial Officer
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