Fedders Electric & Engineering Ltd Management Discussions

ANNEXURE-4

This Management Discussion & Analysis Report presents the key performance highlights of the year 2024-25 pertaining to the Companys business. This review should be read in conjunction with the Integrated Report presented in the earlier sections of this Annual Report, the Companys financial statements, the schedules and notes thereto and the other information included elsewhere in this Annual Report. The Companys financial statements have been prepared in accordance with Indian Accounting Standards (IndAS), complying with the requirements of the Companys Act 2013 and the guidelines issued by Securities and Exchange Board of India (SEBI).

INDIAN ECONOMY

The domestic market had its fair share of upheavals in the financial year under review. A combination of deferral of award decisions and the implementation of long-term reforms causing short term economic turbulence have led to a muted environment for project execution.

GLOBAL ECONOMIC OVERVIEW

International markets have witnessed noticeable volatility, triggered by geo-political events, significant movements in currency and commodities, protectionist policies including tariff barriers, a prolonged bout of low oil prices, and constrained fiscal positions of oil producing nations. The recent hardening of oil prices is likely to now give better way to policy makers in GCC countries to allocate increased outlay on essential.

INDUSTRY STRUCTURE AND DEVELOPMENTS

Global business environment continued to remain challenging during fiscal 2019 led by weak global growth, slowdown in China, divergent monetary policies and volatile currencies.

A strong infrastructure sector is vital to the development of a countrys economy. However, since last four years, the Indian economy has witnessed particularly an infrastructure sector a severe downturn. Further, a year-on-year basis, the infrastructure sector in India has been affected primarily due to high interest rates, rising inflation, depreciating rupee, sluggish pace of orders and the absence of viable big-ticket projects. Your Company continued to perform with stability and maintained its momentum in the highly volatile market. The Company focused on cost control measures and product mix enrichment to sustain growth and profitability in the challenging year.

Infrastructure sector is a key driver for the Indian economy. The sector is highly responsible for propelling Indias overall development and enjoys intense focus from Government for initiating policies that would ensure time-bound creation of world class infrastructure in the country. Infrastructure sector includes power, bridges, dams, roads and urban infrastructure development. In 2019, India ranked 44th out of 167 countries in World Banks Logistics Performance Index (LPI) 2018. Favorable valuations make the sector an attractive opportunity. Also, increasing impetus to develop infrastructure in the Country is attracting major global players making this sector as one of the largest receivers of FDI Inflows in India.

Electricity demand in the country has increased rapidly and is expected to rise further in the years to come. In order to meet the increasing demand for electricity in the country, massive addition to the installed generating capacity is required. HVAC systems are becoming one of the key building blocks in modern infrastructure. Rise in infrastructure, rapid urbanization and growth in commercial properties are some of the key factors fueling the market for HVAC systems in India. With healthy growth anticipated in the real estate sector, the country is expected to witness strong infrastructure development, which would boost the market for HVAC systems over the next five years.

COMPANYS PERFORMANCE AND BUSINESS OUTLOOK

The Companys strategy for longer term growth has been to continually expand its addressable market by investing in newer geographies and newer industry verticals. The Company is well diversified in the fields of Environment Control Systems (ECS), Fabrication of Steel Structures for Power, Commercial and Industrial Construction Projects and implementation of high-power transmission lines. The company is also engaged in trading of various steel, brass and other related products. The Company has also been into exports of power equipments/ components to various funded projects by multilateral agencies and Export of Iron Ore Fines.

OPPORTUNITIES, RISKS AND CONCERNS

Risk management at Fedders Electric is an enterprise-wide function and a holistic approach has been adopted based on Enterprise Risk Management (ERM) Framework. The framework encompasses practices relating to identification, assessment, monitoring and mitigation of various risks towards achievement of business objectives. The ERM is aimed at dealing with uncertainty and to minimize adverse risk impact on business objectives and enables the Company to leverage business opportunities effectively. The Company relentlessly endeavors not only to minimize risks but convert them into business opportunities that allow it to maximize returns for shareholders from diverse situations. The Company has aligned risk management process with every part of the critical business processes to ensure that the processes are designed & operated effectively towards the achievement of business objectives.

Risks are identified & assessed across all key business functions in a holistic manner.

INTERNAL CONTROL SYSTEMS AND ADEQUACY

Internal Control system had been evaluated by the Auditor & erstwhile Management before CIRP commenced. Scope of work of Auditors covers review of controls on accounting, statutory and other compliances and operational areas in addition to reviews relating to efficiency and economy in operations.

FINANCIAL PERFORMANCE

The Financial Performance with respect to operational performance of the Company is discussed in the Directors Report which forms part of the Annual Report.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES (HR)

It has been the tradition of the Company to maintain excellent industrial relations at all levels. The Company is hopeful of getting revived upon approval of the Resolution Plan submitted to Honble NCLT for its approval.

DISCLOSURE OF ACCOUNTING TREATMENT

The accounts have been prepared in accordance with Indian Accounting Standards (Ind AS) and Disclosures thereon comply with requirements of Ind AS, stipulations contained in Schedule- Ill (revised) as applicable under Section 133 of the Companies Act , 2013 read with Rule 7 of the Companies (Accounts) Rules 2014, Companies (Indian Accounting Standards) Rules 2015 as amended form time to time , MSMED Act, 2006 , other pronouncement of ICAI, provisions of the Companies Act and Rules and guidelines issued by SEBI as applicable .

CAUTIONARY STATEMENT

The statements forming part of this Report may contain certain forward-looking remarks within the meaning of applicable laws and regulations. The actual results, performances or achievements of the Company depend on many factors which may cause material deviation from any future results, performances or achievements.

Significant factors which could make a difference to the Companys operations include domestic and international economic conditions, changes in Government regulations, tax regime and other statutes. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements on the basis of any subsequent developments, information or events.

FOR AND ON BEHALF OF THE	BOARD OF DIRECTORS
FEDDERS ELECTRIC AND ENGINEERING LIMITED
Sd/-	Sd/-
Vishal Singhal	Rakesh Kumar Singhal
Managing Director	Director
DIN: 03518795	DIN: 00063247
Date: August 28, 2025
Place: Sikandrabad, Uttar Pradesh