Directors Report of Lakshmi Electrical Control Systems Ltd.

Mar 31, 2025

The Board of Directors of your Company are pleased to present the Forty Fourth Annual Report on the business and operations
of the Company along with the summary of financial statements for the financial year ended 31^st March 2025.

1. The State of Affairs of the Company
Financial summary/highlights

Particulars	Financial Year	Financial Year
	2024-2025	2023-2024
	('' in Lakhs)	('' in Lakhs)
Revenue from operations	21,231.22	33,796.50
Other Income	554.00	681.51
Profit before Interest and Depreciation and amortization expense	1,037.25	2,271.05
Less: Interest	53.10	52.77
Profit before Depreciation & amortization expense	984.15	2,218.28
Less: Depreciation & amortisation expense	365.36	312.60
Profit before Tax	618.79	1,905.68
Less: Exceptional item	44.03	14.00
Less: Provision for Taxes	227.53	495.67
Profit after Tax	347.23	1,396.01

Business and Operations

During the financial year under review, the Company has achieved revenue from operations to an extent of '' 21,231.22
Lakhs (previous financial year '' 33,796.50 lakhs) and has dropped by '' 12,565.28 lakhs over the previous financial year.

The profit before interest and depreciation is '' 1,037.25 Lakhs as against '' 2,271.05 Lakhs for the previous financial year.
The profit after tax is '' 347.23 Lakhs as against '' 1,396.01 Lakhs for the previous financial year and has decreased by
'' 1,048.78 Lakhs compared to the previous financial year.

The main revenue segment of the Company, Electricals achieved a turnover of '' 18,614.75 Lakhs (previous financial year
'' 29,828.59 Lakhs). The Plastics segment recorded a turnover of '' 2,682.48 Lakhs (previous financial year '' 4,030.64
Lakhs). Both in Electricals and Plastics segments, the Company continues to put its efforts in increasing the productivity
levels, reduction of cost and adding new customers. The revenue from Wind Power Generation was '' 62.37 Lakhs for
the financial year ended 31 ^st March 2025.

Second Unit

The Board of Directors approved the proposal for shifting the Second Factory Unit from SF No. 157/1, Sadaikutti Ayyan
Thottam, Annur Road, Pachapalayam Village, Coimbatore - 641107, Tamil Nadu (leased premises) to the new address
at S.F. No. 156/2B and 156/3, Neelambur Village, Avinashi Road, Muthugoundenpudur Panchayat, Sulur Taluk, Arasur,
Coimbatore District - 641407, Tamil Nadu (leased premises) due to administrative and operational requirements of the
Company on 11^th April 2025. The Company will inform upon commencement of operations post shifting.

Dividend

The Board recommends 40% dividend of '' 4.00/- (Rupees Four only) per equity share of the face value of '' 10/- (Rupees
Ten only) each on the equity share capital of '' 2,45,80,000/- for the financial year ended 31^st March 2025. The dividend
on equity shares is subject to the approval of the shareholders at the ensuing Annual General Meeting. Dividend will be
paid to those equity shareholders whose names appear in the Register of Members as on 18^th August 2025 in respect of
shares held in physical form and in respect of shares held in dematerialized form, the dividend shall be paid on the basis
of the beneficial ownership as per the details furnished by the Depositories for this purpose at the end of business hours
on 18^th August 2025.

Transfer to Reserves

The Company has not transferred any amount to the General Reserve during the year under review. However, an amount
of '' 347.23 lakhs of the current year profits have been carried forward under the head retained earnings.

Share Capital

The paid-up capital of the Company as of March 31, 2025, stood at '' 245.80 Lakhs. During the financial year under
review, your company did not make any fresh issue of shares.

Industrial Relations

Relationship with employees was cordial throughout the financial year.

2. Annual Return

As per requirements of the Companies Act, 2013 (''the Act''), a copy of the annual return is available on the website of the
Company https://www.lecsindia.com/investors/annual-return/

3. Number of Meetings of the Board

The Board of Directors of the Company met 4 (four) times during the financial year 2024-25. The details of meetings of
the Board of Directors and Committees thereof and the attendance of the Directors in such meetings are provided under
the Corporate Governance Report.

4. Directors'' Responsibility Statement

In terms of Section 134 of the Companies Act, 2013 the Directors, confirm that:

a. in the preparation of the annual accounts, the applicable accounting standards have been followed and there are no
material departures from the same;

b. have selected such accounting policies and applied them consistently and made judgments and estimates that are
reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the
financial year and of the profit of the company for that period;

c. have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the company and for preventing and detecting fraud and other
irregularities;

d. have prepared the annual accounts on a going concern basis;

e. have laid down internal financial controls to be followed by the company and that such internal financial controls
are adequate and were operating effectively; and

f. have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems
were adequate and operating effectively.

5. No Frauds reported by statutory auditors

There is no instance of fraud reported by the statutory auditors of the Company for the financial year under review under
sub section (12) of Section 143 of the Companies Act, 2013.

6. Declaration by Independent Directors

The Independent Directors have submitted their disclosures to the Board that they fulfill all the requirements as stipulated
in Section 149(6) of the Companies Act, 2013 and Regulation 16(1 )(b) of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 [SEBI (LODR) / Listing Regulations''] so as to qualify themselves as Independent
Directors under the provisions of the Companies Act, 2013 and the relevant rules / regulations of the SEBI (LODR).

The Independent Directors of the Company have complied with the requirements of the provisions in relation to
Independent Directors Databank as stated in the Companies (Creation and Maintenance of databank of Independent
Directors) Rules, 2019 and the Companies (Appointment and Qualification of Directors) Rules, 2014 as amended from
time to time. The details of the familiarization programme undertaken have been uploaded on the Company''s website.

7. Nomination and Remuneration Committee and Policy

As per the provisions of the Companies Act, 2013 and SEBI LODR a Nomination and Remuneration Committee was
formed by the Board of Directors consisting of:

1. Sri. N. R. Selvaraj, Chairman (Non-Executive - Independent)

2. Sri. Arjun Balu, Member (Non-Executive - Independent)

3. Sri. C. Kamatchisundaram, Member (Non-Executive - Independent)

4. Sri. Ramesh Rudrappan, erstwhile Chairman (Non-Executive - Independent)*

5. Sri. Arun Selvaraj, erstwhile Member (Non-Executive - Independent)*

• During the financial year under review Sri. Ramesh Rudrappan and Sri. Arun Selvaraj completed the second
consecutive term as Independent Directors and ceased to be Directors of the Company on 9^th August 2024. Accordingly,
Sri. N. R.Selvaraj was designated as the Chairman and Sri. C. Kamatchisundaram was inducted as a Member of the
Nomination and Remuneration Committee with effect from 10^th August 2024.

The said committee has been empowered and authorised to exercise widest powers as entrusted under the provisions
of Section 178 of the Companies Act, 2013 and SEBI LODR. The Company has a policy on directors'' appointment
and remuneration including criteria for determining qualification, positive attributes, independence of a director
and other matters provided under sub-section (3) of section 178. The policy is available on the Company''s website
https://www.lecsindia.com/wp-content/uploads/2025/03/NRC-Policy_2025_web.pdf

The salient aspects covered in the Nomination and Remuneration Policy:

The Company believes that the human resources are one of the most important valuable assets of the Company. As per
the requirement of the provisions of the Companies Act, 2013 and SEBI LODR, to meet and attract the valuable asset
and harmonize the payment to Directors, Key Managerial Personnel and other employees of the Company in line with
the mission, visions and values of the Company. This policy has been formulated by the Nomination and Remuneration
Committee for the Directors, Key Managerial Personnel and Senior Management personnel and approved by the Board
of Directors.

The objective and purpose of this policy are:

• To lay down criteria and terms and conditions with regard to identifying persons who are qualified to become
Directors and persons who may be appointed in Senior Management and Key Managerial positions.

• To lay down guiding principle for remuneration payable to Executive Directors, Non - Executive Directors, Senior
Management Personnel and Key Managerial Personnel.

• To determine the evaluation of performance of the Members of the Board including Independent Directors.

• To recommend remuneration based on the Company''s size, financial position, trends and practices on remuneration
prevailing in peer companies, if any.

• To provide them reward linking to their effort, performance, dedication and achievement in the Company''s
operations/performance.

• To design suitable remuneration package to attract, retain, motivate and promote best caliber directors and employees,
create strong performance orientated environment and reward, achievement of meaningful targets over the short and
long-term and create competitive advantage.

• To determine the criteria for qualifications, positive attributes, and independence of Directors.

• To determine whether to extend or continue the term of appointment of Independent Directors.

• Devising criteria for board diversity.

• Develop succession plan for the Board, Senior Management and Key Managerial Personnel.

8. Auditors Comments

There are no qualifications, reservations or adverse remarks or disclaimers in the reports of Statutory Auditors (appearing
elsewhere in the Annual Report) and that of the Secretarial Auditors (annexed hereto as Annexure 1).

9. Particulars of Loans/Guarantee/Investments

The Company has not given / made any Loans, Guarantees and Investments covered under the provisions of Section 186
of the Companies Act, 2013, during the year under review. Details of investments made in the earlier years have been
disclosed in the notes to the financial statements.

10. Particulars of Contracts with Related Party

The transactions entered by the Company with the related parties during the financial year 2024-25 are in the ordinary
course of business and at arm''s length basis. The particulars of material related party transactions is provided in the form
AOC 2 and annexed to the Boards'' Report as Annexure - 2. The Policy on Related Party is available on the Company''s
website at https://www.lecsindia.com/wp-content/uploads/2025/03/RPT-Policy_2025_web.pdf

11. Material Changes and Commitments between the end of financial year (March 31, 2025) to which this financial
statement relate and the date of this Directors'' Report.

There were no material changes and commitments affecting the financial position of the Company between the end of
financial year (March 31,2025) to which this financial statement relates and the date of this Report.

12. Conservation of Energy, Technology Absorption & Foreign Exchange

The disclosures under Rule 8(3) of the Companies (Accounts) Rules, 2014 are as under:

Conservation of Energy

S.No.	Particulars	Disclosures
(i)	Steps taken or impact on conservation of energy	• Fluorescent lamp is converted to LED wherever possible. (Horizontal deployment) • Conventional Ceiling FAN is converted to BLDC Fan (Horizontal deployment)
(ii)	Steps taken by the company for utilising alternate sources of energy	Wind energy generation power is utilized for Plant captive consumption from August 2016 onwards.
(iii)	Capital investment on energy conservation equipments;	-

Technology Absorption

S.No.	Particulars	Disclosures
(i)	Efforts made towards technology absorption;	No technology or knowhow is brought from external bodies or imported.
(ii)	The benefits derived like product improvement, cost reduction, product development or import substitution;	In-house developmental and operational research activities are carried out on regular basis.
(iii)	In case of imported technology (imported during the last three years reckoned from the beginning of the financial year): (a) the details of technology imported; (b) the year of import; (c) whether the technology has been fully absorbed; (d) if not fully absorbed, areas where absorption has not taken place, and the reasons thereof;	Nil
(iv)	The expenditure incurred on Research and Development	Capital Expenditure : '' 11.18 Lakhs Revenue Expenditure : '' 128.52 Lakhs Total Expenditure : '' 139.70 Lakhs

Foreign Exchange Outgo And Earnings:

Foreign Exchange earned through exports	1,502.17
Foreign Exchange used	730.63

13. Risk Management

The Company follows a comprehensive and integrated risk appraisal, mitigation and management process. The risk
management process of the Company is being periodically reviewed for improvement by the Board of Directors.

14. Corporate Social Responsibility (CSR)

The Company has constituted a CSR committee of the Board of Directors and has adopted a CSR Policy. The same is
posted in the Company''s website https://www.lecsindia.com/wp-content/uploads/2021/12/CSR-Policy_LECS_2021.pdf
The Committee consist of three directors'' viz., Sri. D. Senthilkumar, Smt. Nethra J.S. Kumar and Sri. Arjun Balu as on
the date of this report. The meetings of CSR Committee were held on 23^rd May 2024 and 31^st July 2024. A report in
prescribed format detailing the CSR spend for the financial year 2024-25 is attached herewith as Annexure-3 forming a
part of this report.

15. Evaluation of Board''s Performance

On the advice of the Board of Directors, the Nomination and Remuneration Committee have formulated the criteria for the
evaluation of the performance of Board of Individual Directors, Board as a whole, Committees of Directors, Independent
Directors, Non-Independent Directors and the Chairperson of the Board. Based on that performance evaluation has been
undertaken for the financial year 2024-25. The Independent Directors of the Company have also convened a separate
meeting for this purpose. All the results and evaluation has been communicated to the Chairperson of the Board of
Directors.

16. Additional Disclosures

As per Rule 8(5) of the Companies (Accounts) Rules, 2014, the following additional information is provided:

S.No	Particulars	Disclosures
(i)	The financial summary or highlights.	The financial highlights including State of Affairs of the Company is provided in this Annual Report.
(ii)	The change in the nature of business, if any.	There is no change in the business line of the company.
(iii)	The details of directors or key managerial personnel who were appointed or have resigned during the year.	Smt. Nethra.J.S.Kumar was re-appointed as Managing Director at the AGM held on 09.08.2024 for a further term of 5 years from 01.04.2025 to 31.03.2030.
		Sri. C.Kamatchisundaram was appointed as an Independent Director of the Company for a period of 5 years with effect from 9th August 2024.
		Sri. Ramesh Rudrappan, Sri. A. Palaniappan and Sri. Arun Selvaraj completed their second consecutive term as Independent Directors and ceased to be Directors of the Company with effect from 9th August 2024.
(iv)	Statement regarding opinion of the Board with regard to integrity, expertise and experience (including the proficiency) of the independent directors appointed during the year.	The Company has appointed Sri. C.Kamatchisundaram as an Independent Director during the financial year 2024-25 and proposes to appoint Sri. Sudesh Koti Reddy as an Independent Director in the ensuing Annual General Meeting. The Board of Directors are of the opinion that their integrity, expertise and experience (including proficiency) is satisfactory.
(v)	The names of companies which have become or ceased to be its subsidiaries, joint ventures or associate companies during the year.	Nil
(vi)	The details relating to deposits, covered under Chapter V of the Act.	The Company has not accepted deposits.
(vii)	The details of deposits which are not in compliance with the requirements of Chapter V of the Act.	Nil

S.No	Particulars	Disclosures
(viii)	The details of significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and company''s operations in future.	Nil
(ix)	The details in respect of adequacy of internal financial controls with reference to the Financial Statements.	The Company has implemented and evaluated the Internal Financial Controls which provide a reasonable assurance. The Directors and Management confirm that the Internal Financial Controls (IFC) are adequate with respect to the operations of the Company. A report of Auditors pursuant to Section 143(3) (i) of the Companies Act, 2013 certifying the adequacy of Internal Financial Controls is annexed with the Auditors report.
(x)	Cost Records	The Company is maintaining the cost records as required under Section 148 of the Companies Act, 2013 read with Companies (Cost Records and Audit) Rules, 2014.
(xi)	Internal Complaints Committee	As per the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, the Company has constituted an Internal Complaints Committee. During the financial year 2024-25, no complaint was received before the committee.
(xii)	Insolvency and Bankruptcy Code, 2016	No application is made, or any proceeding is pending under the Insolvency and Bankruptcy Code, 2016 during the year under review.
(xiii)	Details of difference between amount of the valuation done at the time of one-time settlement and the valuation done while taking loan from the Banks or Financial Institutions along with the reasons thereof.	Not Applicable - there was no instance of one-time settlement with any Bank or Financial Institution.

17. Internal Control systems and their adequacy

Your Company has established adequate internal control procedures, commensurate with the nature of its business and
size of its operations.

The accounting transactions and operations are audited by the Internal Auditor vis-a-vis the internal controls, policies and
procedures and the deviations, if any, are reported and corrective actions are taken appropriately.

18. Board of Directors
Retirement of Director:

Sri. Sanjay Jayavarthanavelu, Director who retires by rotation at the ensuing Annual General Meeting, being eligible is
not offering himself for re-appointment. The Board of Directors have resolved not to fill the vacancy so caused.

Appointment / Re-appointment of Independent Director:

Pursuant to the recommendation of the Nomination and Remuneration Committee, the Board of Directors of the Company
at their meeting held on 5^th June 2025 has appointed Sri. Sudesh Koti Reddy as an Additional Director in the capacity as
Independent Director of the Company for a term of consecutive five years with effect from 5^th June 2025 subject to the
approval of shareholders at the Annual General Meeting. The Board recommends his appointment at the forthcoming
Annual General Meeting.

Pursuant to the recommendation of the Nomination and Remuneration Committee, the Board of Directors of the Company
at their meeting held on 5^th June 2025 has recommended the re-appointment of Sri. Arjun Balu as an Independent
Director of the Company for a second term of consecutive five years with effect from 28^th May 2026 subject to the
approval of shareholders at the Annual General Meeting. The Board recommends his re-appointment at the forthcoming
Annual General Meeting.

Appointment of Additional Director:

Pursuant to the recommendation of the Nomination and Remuneration Committee, the Board of Directors of the
Company at their meeting held on 5^th June 2025 has appointed Sri. Vedhanth Senthilkumar as an Additional Director
(Non-executive Non-independent) of the Company with effect from 5^th June 2025 subject to the approval of shareholders
at the Annual General Meeting. The Board recommends his appointment at the forthcoming Annual General Meeting.

Cessation:

During the financial year 2024-2025 Sri. Ramesh Rudrappan, Sri. Arun Selvaraj and Sri. A. Palaniappan ceased to be
Directors of the Company on 09.08.2024 due to completion of second consecutive term as Independent Director.

Resignation:

There was no incidence of resignation of any Director.

19. Composition of Audit Committee

The Audit Committee of the Board of Directors consists of:

1	Sri. N. R. Selvaraj - Chairman	Non-Executive - Independent
2	Sri. Arjun Balu - Member	Non-Executive - Independent
3	Sri. C. Kamatchisundaram - Member	Non-Executive - Independent
4	Sri Ramesh Rudrappan - erstwhile Member*	Non-Executive - Independent
5	Sri. A.Palaniappan - erstwhile Member*	Non-Executive - Independent

*During the financial year under review, Sri. Ramesh Rudrappan and Sri. A. Palaniappan completed the second
consecutive term as Independent Directors and ceased to be Directors of the Company on 9^th August 2024. Accordingly,
Sri. Arjun Balu and Sri. C. Kamatchisundaram were inducted as Members of the Audit Committee with effect from
10^th August 2024.

The Board has accepted the recommendations of the committee during the financial year under review.

20. Vigil Mechanism

The Company has devised a vigil mechanism in the form of a Whistle Blower Policy in pursuance of provisions of Section
177(10) of the Companies Act, 2013 and details whereof is available on the Company''s website https://www.lecsindia.
com/wp-content/uploads/2023/06/WHISTLE-BLOWER-POLICY_2023.pdf During the financial year under review, there
were no complaints received under this mechanism.

21. Overall Maximum Remuneration

Particulars pursuant to Section 197(12) & rule 5(1) of the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014:

a) The ratio of the remuneration of each director to the median employee''s remuneration for the financial year and
such other details as prescribed is as given below:

Name	Category	Ratio
Smt. Nethra J.S.Kumar (DIN:00217906)	Executive - Chairperson and Managing Director * (CMD)	1:30.32
Sri. Sanjay Jayavarthanavelu (DIN: 00004505)	Non-Executive - Non-Independent	-
Sri. D.Senthilkumar (DIN: 00006172)	Non-Executive - Non-Independent	-
Sri. Ramesh Rudrappan (DIN: 00008325) #	Non-Executive - Independent	-
Sri. A.Palaniappan (DIN:00044022) #	Non-Executive - Independent	-
Sri. Arun Selvaraj (DIN: 01829277) #	Non-Executive - Independent	-
Sri. N.R. Selvaraj (DIN: 00013954)	Non-Executive - Independent	-
Sri. Arjun Balu (DIN: 00383184)	Non-Executive - Independent	-
Sri. C. Kamatchisundaram (DIN: 06893086)#	Non-Executive - Independent	-

Note: For this purpose, sitting fees paid to the Directors have not been considered as remuneration.

*CMD has drawn salary of '' 82.63 lakhs.

# During the financial year under review, Sri. Ramesh Rudrappan, Sri. Arun Selvaraj and Sri. A. Palaniappan completed
the second consecutive term as Independent Directors and ceased to be Directors of the Company on 9^th August 2024.
Sri. C. Kamatchisundaram was appointed as an Independent Director of the Company with effect from 9^th August 2024.

b) The percentage increase in remuneration of each Director, Chief Financial Officer, Chief Executive Officer, Company
Secretary or Manager, if any, in the financial year:

Name	Category	%
Smt. Nethra J.S.Kumar*	Executive - Chairperson and Managing Director	(3.08)
Sri. Sanjay Jayavarthanavelu	Non-Executive - Non-Independent Director	-
Sri. D.Senthilkumar	Non-Executive - Non-Independent Director	-
Sri. Ramesh Rudrappan	Non-Executive - Independent Director	-
Sri. A.Palaniappan	Non-Executive - Independent Director	-
Sri. Arun Selvaraj	Non-Executive - Independent Director	-
Sri. N.R. Selvaraj	Non-Executive - Independent Director	-
Sri. Arjun Balu	Non-Executive - Independent Director	-
Sri. C. Kamatchisundaram	Non-Executive - Independent Director	-
Sri. A.Thiagarajan*	Chief Financial Officer (CFO)	18.05
Sri. S.Sathyanarayanan*	Company Secretary (CS)	24.11

Note: For the above purpose, sitting fees paid to the Directors have not been considered as remuneration.

*The percentage increase is inclusive of Provident Fund and provision for Gratuity, if any.

c) The percentage increase / (decrease) in the median remuneration of employees in the financial year: 27.28 %

d) The number of permanent employees on the rolls of company: 193

e) Average percentiles increase already made in the salaries of employees other than the managerial personnel in the
last financial year and its comparison with the percentile increase in the managerial remuneration and justification
thereof and point out if there are any exceptional circumstances for increase in the Managerial Remuneration:

Average increase / (decrease) in remuneration is 18.74% for employees other than Managerial Personnel and while
it is 16.71 % for Managerial Personnel (KMP and Senior Management). Smt. Nethra.J.S.Kumar, Chairperson and
Managing Director''s has not drawn any commission for the financial year 2024-25 [for the previous financial year
2023-24''1.57 lakhs commission was paid].

f) It is affirmed that the remuneration is as per the remuneration policy of the Company.

g) Particulars of Employees as per Rule 5(2) and Rule 5(3) of the Companies (Appointment & Remuneration of Managerial
Personnel) Rules, 2014 are provided as Annexure-4 to this Report.

22. Accounting Treatment

In the preparation of financial statements, no treatment different from that of prescribed accounting standards has been
followed.

23. Secretarial Standards

The Directors have devised proper systems to ensure compliance with the provisions of all applicable Secretarial
Standards and such systems are adequate and operating effectively. The Company has adhered with the applicable
Secretarial Standards issued by The Institute of Company Secretaries of India.

24. Corporate Governance

As per SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a separate section on Corporate
Governance practices followed by the Company, together with a certificate from the Company''s Auditors confirming
compliance forms an integral part of this Report.

The shares of the Company are listed in BSE Limited, Mumbai. The listing fees is paid up to date and the shares of the
Company were not suspended for trading by the Stock Exchange at any time during the financial year under review.

Pursuant to Regulation 34(2)(f) of the Listing Regulations, the applicability of providing the Business Responsibility and
Sustainability Report does not arise.

25. Investor Education and Protection Fund

The Company has transferred 3,633 equity shares, in respect of which dividend has not been claimed by the members
for seven consecutive years or more to the Investor Education and Protection Fund Authority (IEPF) during the financial
year 2024-2025. The Company also transferred '' 5,33,816/- of unclaimed dividend out of the dividend declared for the

financial year 2016-2017 to IEPF. Details of shares transferred and proposed to be transferred to IEPF have been uploaded
on the website of the Company.

26. Auditors

Statutory Auditor:

Pursuant to the provisions of Section 139 of the Companies Act, 2013 and the Companies (Audit and Auditors) Rules,
2014, M/s. Subbachar & Srinivasan, Chartered Accountants, the Statutory Auditors of the Company, hold office up to the
conclusion of the Annual General Meeting to be held in the year 2026. The Company has received a certificate from the
said Auditors that they are eligible to continue and hold office as the Auditors of the Company.

Secretarial Auditor:

Pursuant to Regulation 24A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the
provisions of Section 204 of the Companies Act, 2013 read with the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014, the Board of Directors of the Company have recommended the appointment of
M/s. MDS & Associates LLP, Company Secretaries, Coimbatore, to undertake the Secretarial Audit of the Company for
the first term of five consecutive financial years from 2025-2026 for the approval of shareholders at the ensuing AGM.

MDS & Associates LLP have consented and confirmed their eligibility for appointment as Secretarial Auditors of the
Company. The necessary resolution has been included in the Agenda of the Annual General Meeting Notice for approval
of the shareholders.

M/s. MDS & Associates LLP have carried out an audit as per Regulation 24A of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 and provided the Annual Secretarial Compliance Report for the financial year 2024-25.
The Board recommends the appointment of the Secretarial Auditor.

Cost Auditor:

The Board of Directors, on the recommendation of the Audit Committee, has appointed Sri.S.Subbaraman, Proprietor
of S.Subbaraman & Associates, Cost Accountant in Practice as Cost Auditor for Cost Audit for the financial year 2025¬
26. Pursuant to Section 148 of the Companies Act, 2013 read with Rule 14 of the Companies (Accounts) Rules, 2014,
the remuneration payable for the financial years 2025-26 to the Cost Auditors of the Company is subject to ratification
by the shareholders at the ensuing Annual General Meeting. The Board recommends the remuneration for members''
ratification.

Internal Auditor:

Sri. V.C.Thirupathi of Tirupathi Associates, Chartered Accountants, Coimbatore who are the Internal Auditors have
carried out internal audit for the financial year 2024-25. Their reports were reviewed by the Audit Committee.

Acknowledgement

Your Directors thank the customers, bankers, vendors, shareholders and other stakeholders for their continued support
and patronage. The Directors wish to place on record their appreciation for the cooperation and contribution made by the
employees at all levels towards the performance of the Company.

Place : Coimbatore For and on behalf of the board

Date : June 05, 2025 Nethra. J.S. Kumar

Chairperson and Managing Director
DIN : 00217906

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Mar 31, 2024

The Board of Directors of your Company are pleased to present the Forty Third Annual Report on the business and operations of the Company along with the summary of financial statements for the year ended 31^st March 2024.

1. The State of Affairs of the Company Financial summary/highlights

Particulars	Financial Year	Financial Year
	2023-2024	2022-2023
	('' in Lakhs)	('' in Lakhs)
Revenue from operations	33,796.50	36,081.78
Other Income	681.51	306.26
Profit before Interest and Depreciation and amortization expense	2,271.05	3,019.26
Less: Interest	52.77	54.00
Profit before Depreciation & amortization expense	2,218.28	2,965.26
Less: Depreciation & amortisation expense	312.60	245.89
Profit before Tax	1,905.68	2,719.37
Less: Exceptional item	14.00	-
Less: Provision for Taxes	495.67	726.67
Profit after Tax	1,396.01	1,992.70

Business and Operations

During the financial year under review, the Company has achieved revenue from operations to an extent of Rs. 33,796.50 Lakhs (previous financial year Rs. 36,081.78 lakhs) and has dropped by Rs. 2,285.28 lakhs over the previous financial year.

The profit before interest and depreciation is Rs. 2,271.05 Lakhs as against Rs. 3,019.26 Lakhs for the previous financial year. The profit after tax is Rs. 1396.01 Lakhs as against Rs. 1,992.70 Lakhs for the previous financial year and has decreased by Rs. 596.69 Lakhs compared to the previous financial year.

The main revenue segment of the Company, Electricals achieved turnover of Rs. 29,828.59 Lakhs (previous financial year Rs. 31,180.85 Lakhs). The Plastics segment recorded a turnover of Rs. 4,030.64 Lakhs (previous financial year Rs. 4,908.69 Lakhs). Both in Electricals and Plastics segments, the Company continues to put its efforts in increasing the productivity levels, reduction of cost and adding new customers. The revenue from Wind Power Generation was Rs. 222.50 Lakhs for the financial year ended 31^st March 2024.

Second Unit

The Board of Directors approved the proposal for the establishment of Second Factory Unit at a leased premises near the existing factory at Arasur, Coimbatore last year to meet the production requirements of the Company. The said unit became operational in the month of September 2023.

Dividend

The Board recommends 150% dividend of Rs 15.00/- (Rupees Fifteen only) per equity share of the face value of Rs 10/-(Rupees Ten only) each on the equity share capital of Rs 2,45,80,000/- for the financial year ended 31^st March 2024. The dividend on equity shares is subject to the approval of the shareholders at the ensuing Annual General Meeting. Dividend will be paid to those equity shareholders whose names appear in the Register of Members as on 02.08.2024 in respect of

shares held in physical form and in respect of shares held in dematerialized form, the dividend shall be paid on the basis of the beneficial ownership as per the details furnished by the Depositories for this purpose at the end of business hours on 02.08.2024.

Transfer to Reserves

The Company has not transferred any amount to the General Reserve during the year under review. However, an amount of Rs. 1,396.01 lakhs of the current year profits have been carried forward under the head retained earnings.

Share Capital

The paid-up capital of the Company as of March 31, 2024, stood at Rs. 245.80 Lakhs. During the financial year under review, your company had not made any fresh issue of shares.

Industrial Relations

Relationship with employees was cordial throughout the financial year.

2. Annual Return

As per requirements of the Companies Act, 2013 (''the Act''), a copy of the annual return is available on the website of the Company https://www.lecsindia.com/investors/annual-return/

3. Number of Meetings of the Board

The Board of Directors of the Company met 6 (Six) times during the financial year 2023-24. The details of meetings of the Board of Directors and Committees thereof and the attendance of the Directors in such meetings are provided under the Corporate Governance Report.

4. Directors'' Responsibility Statement

In terms of Section 134 of the Companies Act, 2013 the Directors, confirm that:

a. in the preparation of the annual accounts, the applicable accounting standards have been followed and there are no material departures from the same;

b. have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit of the company for that period;

c. have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

d. have prepared the annual accounts on a going concern basis;

e. have laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively; and

f. have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

5. No Frauds reported by statutory auditors

There is no instance of frauds reported by the statutory auditors of the Company for the financial year under review under sub section (12) of Section 143 of the Companies Act, 2013.

6. Declaration by Independent Directors

The Independent Directors have submitted their disclosures to the Board that they fulfill all the requirements as stipulated in Section 149(6) of the Companies Act, 2013 and Regulation 16(1 )(b) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 [''SEBI (LODR) / Listing Regulations''] so as to qualify themselves as Independent Directors under the provisions of the Companies Act, 2013 and the relevant rules / regulations of the SEBI (LODR).

The Independent Directors of the Company have complied with the requirements of the provisions in relation to Independent Directors Databank as stated in the Companies (Creation and Maintenance of databank of Independent Directors) Rules, 2019 and the Companies (Appointment and Qualification of Directors) Rules, 2014 as amended from time to time. The details of the familiarization programme undertaken have been uploaded on the Company''s website.

7. Nomination and Remuneration Committee and Policy

As per the provisions of the Companies Act, 2013 and SEBI LODR a Nomination and Remuneration Committee of directors was formed by the Board of Directors consisting of:

1. Sri. Ramesh Rudrappan, Chairman (Non-Executive - Independent)

2. Sri. Arun Selvaraj, Member (Non-Executive - Independent)

3. Sri. Arjun Balu, Member (Non-Executive - Independent)

The said committee has been empowered and authorised to exercise widest powers as entrusted under the provisions of Section 178 of the Companies Act, 2013 and SEBI LODR. The Company has a policy on directors'' appointment and remuneration including criteria for determining qualification, positive attributes, independence of a director and other matters provided under sub-section (3) of section 178. The policy is available on the Company''s website https://www.lecsindia.com/wp-content/themes/lecs/pdf/policies/nomination-and-remuneration-policy.pdf

The salient aspects covered in the Nomination and Remuneration Policy:

The Company believes that the human resources are one of the most important valuable assets of the Company. As per the requirement of the provisions of the Companies Act, 2013 and SEBI LODR, to meet and attract the valuable asset and harmonize the payment to Directors, Key Managerial Personnel and other employees of the Company in line with the mission, visions and values of the Company. This policy has been formulated by the Nomination and Remuneration Committee for the Directors, Key Managerial Personnel and Senior Management personnel and approved by the Board of Directors.

The objective and purpose of this policy are:

• To lay down criteria and terms and conditions with regard to identifying persons who are qualified to become Directors and persons who may be appointed in Senior Management and Key Managerial positions.

• To lay down guiding principle for remuneration payable to Executive Directors, Non- Executive Directors, Senior Management Personnel and Key Managerial Personnel.

• To determine the evaluation of performance of the Members of the Board including Independent Directors.

• To recommend remuneration based on the Company''s size, financial position, trends and practices on remuneration prevailing in peer companies, if any.

• To provide them reward linking to their effort, performance, dedication and achievement in the Company''s operations/performance.

• To design suitable remuneration package to attract, retain, motivate and promote best caliber directors and employees, create strong performance orientated environment and reward, achievement of meaningful targets over the short and long-term and create competitive advantage.

• To determine the criteria for qualifications, positive attributes, and independence of Directors.

• To determine whether to extend or continue the term of appointment of Independent Directors.

• Devising criteria for board diversity.

• Develop succession plan for the Board, Senior Management and Key Managerial Personnel.

8. Auditors Comments

There are no qualifications, reservations or adverse remarks or disclaimers in the reports of Statutory Auditors (appearing elsewhere in the Annual Report) and that of the Secretarial Auditors (annexed hereto as Annexure 1).

9. Particulars of Loans/Guarantee/Investments

The Company has not given / made any Loans, Guarantees and Investments covered under the provisions of Section 186 of the Companies Act, 2013, during the year under review. Details of investments made in the earlier years have been disclosed in the notes to the financial statements.

10. Particulars of Contracts with Related Party

The transactions entered by the Company with the related parties during the financial year 2023-24 are in the ordinary course of business and at arm''s length basis. The particulars of material related party transactions is provided in the form AOC 2 and annexed to the Boards'' Report as Annexure - 2. The Policy on Related Party is available on the Company''s website at https://www.lecsindia.com/wp-content/uploads/2024/05/RPT-Policy_Web.pdf

11. Material Changes and Commitments between the end of financial year (March 31, 2024) to which this financial statement relate and the date of this Directors'' Report.

There were no material changes and commitments affecting the financial position of the Company occurred between the end of financial year (March 31,2024) to which this financial statement relates and the date of this Report.

12. Conservation of Energy, Technology Absorption & Foreign Exchange

The disclosures under Rule 8(3) of the Companies (Accounts) Rules, 2014 are as under:

Conservation of Energy

S.No.	Particulars	Disclosures
(i)	Steps taken or impact on conservation of energy	1. Fluorescent lamp is converted to LED wherever possible. 2. Conventional Ceiling FAN is converted to BLDC / HVLS Fan wherever possible
(ii)	Steps taken by the company for utilising alternate sources of energy	Wind energy generation power is utilized for Plant captive consumption from August 2016 onwards.
(iii)	Capital investment on energy conservation equipments;	-
Technology Absorption
S.No.	Particulars		Disclosures
(i)	Efforts made towards technology absorption;		No technology or knowhow is brought from external bodies or imported.
(ii)	The benefits derived like product improvement, cost reduction, product development or import substitution;		In-house developmental and operational research activities are carried out on regular basis.
(iii)	In case of imported technology (imported during the last three years reckoned from the beginning of the financial year): (a) the details of technology imported; (b) the year of import; (c) whether the technology has been fully absorbed; (d) if not fully absorbed, areas where absorption has not taken place, and the reasons thereof;		No technology was imported during the last three years
(iv)	The expenditure incurred on Research and Development		Capital Expenditure : '' 10.74 Lakhs Revenue Expenditure : '' 69.06 Lakhs Total Expenditure : '' 79.80 Lakhs
Foreign Exchange Outgo And Earnings: ('' in Lakhs)
Foreign Exchange earned through exports				1,420.28
Foreign Exchange used				1,554.37

13. Risk Management

The Company follows a comprehensive and integrated risk appraisal, mitigation and management process. The risk management process of the Company is being periodically reviewed for improvement by the Board of Directors.

14. Corporate Social Responsibility (CSR)

The Company has constituted a CSR committee of the Board of Directors and has adopted a CSR Policy. The same is posted in the Company''s website https://www.lecsindia.com/wp-content/uploads/2021/12/CSR-Policy_LECS_2021.pdf The Committee consist of three directors'' viz., Sri.D.Senthilkumar, Smt.Nethra J.S.Kumar and Sri.Arun Selvaraj. The meeting of CSR Committee was held on 12^th July 2023. A report in prescribed format detailing the CSR spend for the financial year 2023-24 is attached herewith as Annexure-3 forming a part of this report.

15. Evaluation of Board''s Performance

On the advice of the Board of Directors, the Nomination and Remuneration Committee have formulated the criteria for the evaluation of the performance of Board of Individual Directors, Board as a whole, Committees of Directors, Independent Directors, Non-Independent Directors and the Chairperson of the Board. Based on that performance evaluation has been undertaken for the financial year 2023-24. The Independent Directors of the Company have also convened a separate meeting for this purpose. All the results and evaluation has been communicated to the Chairperson of the Board of Directors.

16. Additional Disclosures

As per Rule 8(5) of the Companies (Accounts) Rules, 2014, the following additional information is provided:

S.No	Particulars	Disclosures
(i)	The financial summary or highlights.	The financial highlights including State of Affairs of the Company is provided in this Annual Report.
(ii)	The change in the nature of business, if any.	There is no change in the business line of the company.
(iii)	The details of directors or key managerial personnel who were appointed or have resigned during the year.	Nil
(iv)	Statement regarding opinion of the Board with regard to integrity, expertise and experience (including the proficiency) of the independent directors appointed during the year.	The Company has not appointed any independent director during the financial year 2023-24. With respect to the Independent Director proposed to be appointed at the Annual General Meeting, the Board of Directors are of the opinion that his integrity, expertise and experience (including proficiency) is satisfactory.
(v)	The names of companies which have become or ceased to be its subsidiaries, joint ventures or associate companies during the year.	Nil
(vi)	The details relating to deposits, covered under Chapter V of the Act.	The Company has not accepted deposits.
(vii)	The details of deposits which are not in compliance with the requirements of Chapter V of the Act.	Nil
(viii)	The details of significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and company''s operations in future.	Nil
(ix)	The details in respect of adequacy of internal financial controls with reference to the Financial Statements.	The Company has implemented and evaluated the Internal Financial Controls which provide a reasonable assurance. The Directors and Management confirm that the Internal Financial Controls (IFC) are adequate with respect to the operations of the Company. A report of Auditors pursuant to Section 143(3) (i) of the Companies Act, 2013 certifying the adequacy of Internal Financial Controls is annexed with the Auditors report.
(x)	Cost Records	The Company is maintaining the cost records as required under Section 148 of the Companies Act, 2013 read with Companies (Cost Records and Audit) Rules, 2014.
(xi)	Internal Complaints Committee	As per the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, the Company has constituted an Internal Complaints Committee. During the financial year 2023-24, no complaint was received before the committee.
(xii)	Insolvency and Bankruptcy Code, 2016	No application is made, or any proceeding is pending under the Insolvency and Bankruptcy Code, 2016 during the year under review.

S.No	Particulars	Disclosures
(xiii)	Details of difference between amount of the valuation done at the time of one-time settlement and the valuation done while taking loan from the Banks or Financial Institutions along with the reasons thereof.	Not Applicable - there was no instance of one-time settlement with any Bank or Financial Institution.

17. Internal Control systems and their adequacy

Your Company has established adequate internal control procedures, commensurate with the nature of its business and size of its operations.

The accounting transactions and operations are audited by the Internal Auditor vis-a-vis the internal controls, policies and procedures and the deviations, if any, are reported and corrective actions are taken appropriately.

18. Board of Directors Re-appointment of Managing Director:

Smt. Nethra J.S. Kumar (DIN: 00217906) was re-appointed as the Managing Director of the Company for a period commencing from 1^st April 2022 until 31^st March 2025 on the terms and conditions as approved by the shareholders at the 40^th Annual General Meeting held on 6^th August 2021.

The current tenure of the office of Smt. Nethra J.S. Kumar is valid up to 31^st March 2025. As per the provisions of the Companies Act, 2013 and SEBI LODR, the Board of Directors of the Company at the meeting held on 23^rd May 2024 had re-appointed Smt. Nethra J.S. Kumar as Managing Director of the Company for a further period of 5 years with effect from 1^st April 2025 to 31^st March 2030 subject to approval of shareholders in the ensuing Annual General Meeting. The terms of appointment are detailed in the AGM Notice. The Board recommends her re-appointment in the forthcoming Annual General Meeting.

Re-appointment of retiring Director:

Sri. D. Senthilkumar, Director who retires by rotation at the ensuing Annual General Meeting, being eligible offers himself for re-appointment. The Board recommends his re-appointment in the forthcoming Annual General Meeting.

Appointment of Independent Director:

Pursuant to the recommendation of the Nomination and Remuneration Committee, the Board of Directors of the Company at their meeting held on 23^rd May 2024 has recommended the appointment of Sri. C. Kamatchisundaram as an Independent Director of the Company for a term of consecutive five years with effect from 9^th August 2024 subject to the approval of shareholders at the Annual General Meeting. The Board recommends his appointment at the forthcoming Annual General Meeting.

Cessation:

There was no instance of cessation of Directorship of any Director during the financial year 2023-2024.

Resignation:

There was no incidence of resignation of any Director.

19. Composition of Audit Committee

The Audit Committee of the Board of Directors consists of:

1	Sri. N. R. Selvaraj - Chairman	Non-Executive - Independent
2	Sri Ramesh Rudrappan - Member	Non-Executive - Independent
3	Sri. A.Palaniappan - Member	Non-Executive - Independent

The Board has accepted the recommendations of the committee during the financial year under review.

20. Vigil Mechanism

The Company has devised a vigil mechanism in the form of a Whistle Blower Policy in pursuance of provisions of Section 177(10) of the Companies Act, 2013 and details whereof is available on the Company''s website https://www.lecsindia.com/wp-content/uploads/2023/06/WHISTLE-BLOWER-POLICY_2023.pdf During the year under review, there were no complaints received under this mechanism.

21. Overall Maximum Remuneration

Particulars pursuant to Section 197(12) & rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 :

a) The ratio of the remuneration of each director to the median employee''s remuneration for the financial year and such other details as prescribed is as given below:

Name	Category	Ratio
Smt. Nethra. J.S. Kumar (DIN:00217906)	Executive - Chairperson and Managing Director * (CMD)	1:39.81
Sri. Sanjay Jayavarthanavelu (DIN: 00004505)	Non-Executive - Non Independent	-
Sri. D.Senthilkumar (DIN: 00006172)	Non-Executive - Non Independent	-
Sri. Ramesh Rudrappan (DIN: 00008325)	Non-Executive - Independent	-
Sri. A.Palaniappan (DIN:00044022)	Non-Executive - Independent	-
Sri. Arun Selvaraj (DIN: 01829277)	Non-Executive - Independent	-
Sri N.R. Selvaraj (DIN: 00013954)	Non-Executive - Independent	-
Sri Arjun Balu (DIN: 00383184)	Non-Executive - Independent	-

Note: For this purpose, Sitting fees paid to the Directors have not been considered as remuneration.

*CMD has drawn salary of Rs.84.00 lakhs and eligible for commission of Rs.1.57 lakhs.

b) The percentage increase in remuneration of each Director, Chief Financial Officer, Chief Executive Officer, Company Secretary or Manager, if any, in the financial year:

Name	Category	%
Smt. Nethra J.S.Kumar*	Executive - Chairperson and Managing Director	(34.47)
Sri. Sanjay Jayavarthanavelu	Non-Executive - Non-Independent Director	-
Sri. D.Senthilkumar	Non-Executive - Non-Independent Director	-
Sri. Ramesh Rudrappan	Non-Executive - Independent Director	-
Sri. A.Palaniappan	Non-Executive - Independent Director	-
Sri. Arun Selvaraj	Non-Executive - Independent Director	-
Sri N.R. Selvaraj	Non-Executive - Independent Director	-
Sri. Arjun Balu	Non-Executive - Independent Director	-
Sri. A.Thiagarajan*	Chief Financial Officer (CFO)	14.83
Sri. S.Sathyanarayanan*	Company Secretary (CS)	11.13

Note: For the above purpose, sitting fees paid to the Directors have not been considered as remuneration.

*The percentage increase is inclusive of Provident Fund and provision for Gratuity, if any.

c) The percentage increase / (decrease) in the median remuneration of employees in the financial year: (2.14%)

d) The number of permanent employees on the rolls of company: 194

e) Average percentiles increase already made in the salaries of employees other than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the Managerial Remuneration:

Average increase / (decrease) in remuneration is 0.27% for employees other than Managerial Personnel and while it is (0.30) % for Managerial Personnel (KMP and Senior Management). Smt. Nethra.J.S.Kumar, Chairperson and Managing Director is eligible for commission of Rs.1.57 lakhs for the financial year 2023-24 [for the previous financial year 2022-23 Rs.51.88 lakhs commission was paid].

f) It is affirmed that the remuneration is as per the remuneration policy of the Company.

g) Particulars of Employees as per Rule 5(2) and Rule 5(3) of the Companies (Appointment & Remuneration of Managerial Personnel Rules), 2014 are provided as Annexure-4 to this Report.

22. Accounting Treatment

In the preparation of financial statements, no treatment different from that of prescribed accounting standards has been followed.

23. Secretarial Standards

The Directors have devised proper systems to ensure compliance with the provisions of all applicable Secretarial Standards and such systems are adequate and operating effectively. The Company has adhered with the applicable Secretarial Standards issued by The Institute of Company Secretaries of India.

24. Corporate Governance

As per SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a separate section on Corporate Governance practices followed by the Company, together with a certificate from the Company''s Auditors confirming compliance forms an integral part of this Report.

The shares of the Company are listed in BSE Limited, Mumbai. The listing fees is paid up to date and the shares of the Company were not suspended for trading by the Stock Exchange at any time during the financial year under review.

Pursuant to Regulation 34(2)(f) of the Listing Regulations, the applicability of providing the Business Responsibility and Sustainability Report does not arise.

25. Investor Education and Protection Fund

The Company has transferred 2,240 equity shares, in respect of which dividend has not been claimed by the members for seven consecutive years or more to the Investor Education and Protection Fund Authority (IEPF) during the financial year 2023-2024. The Company also transferred Rs. 5,11,208/- of unclaimed dividend out of the dividend declared for the financial year 2015-2016 to IEPF. Details of shares transferred and proposed to be transferred to IEPF have been uploaded on the website of the Company.

26. Auditors Statutory Auditor:

Pursuant to the provisions of Section 139 of the Companies Act, 2013 and the Companies (Audit and Auditors) Rules, 2014, M/s. Subbachar & Srinivasan, Chartered Accountants, the Statutory Auditors of the Company, hold office up to the conclusion of the Annual General Meeting to be held in the year 2026. The Company has received a certificate from the said Auditors that they are eligible to continue and hold office as the Auditors of the Company.

Secretarial Auditor:

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed M/s. MDS & Associates LLP, Company Secretaries, Coimbatore, to undertake the Secretarial Audit of the Company for the financial year 2024-2025. M/s. MDS & Associates LLP have carried out an audit as per Regulation 24A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and provided the Annual Secretarial Compliance Report for the financial year 2023-24.

Cost Auditor:

The Board of Directors, on the recommendation of the Audit Committee, has appointed Sri.S.Subbaraman, Proprietor of S.Subbaraman & Associates, Cost Accountant in Practice as Cost Auditor for Cost Audit for the financial years 202425 and 2018-19. Pursuant to Section 148 of the Companies Act, 2013 read with Rule 14 of the Companies (Accounts) Rules, 2014, the remuneration payable for the financial years 2024-25 and 2018-19 to the Cost Auditors of the Company is subject to ratification by the shareholders at the ensuing Annual General Meeting. The Board recommends the remuneration for members'' ratification.

Internal Auditor:

Sri. V.C.Thirupathi of Tirupathi Associates, Chartered Accountants, Coimbatore who are the Internal Auditors have carried out internal audit for the financial year 2023-24. Their reports were reviewed by the Audit Committee.

Acknowledgement

Your Directors thank the customers, bankers, vendors, shareholders and other stakeholders for their continued support and patronage. The Directors wish to place on record their appreciation for the cooperation and contribution made by the employees at all levels towards the performance of the Company.

---

Mar 31, 2018

Dear Shareholders,

The Board of Directors of your Company are pleased to present the Thirty Seventh Annual Report on the business and commercial operations of the Company along with the summary of financial statements for the year ended 31^stMarch, 2018.

1. The State of Affairs of the Company

Financial summary/highlights

Particulars	Financial Year 2017-2018 (Rs. in Lakhs)	Financial Year 2016-2017 (Rs. in Lakhs)
Revenue from Operations	19,446.78	18,028.59
Other Income	314.59	371.47
Profit before Interest and Depreciation and amortisation expenses Less Interest	1,868.33 5.47	1,555.01 0.50
Profit before Depreciation & Amortization expense Less : Depreciation & Amortisation expense	1,862.86 207.86	1,554.51 201.93
Profit Before Tax Less : Exceptional Item Less: Provision for Taxes	1,655.00 480.92	1,352.58 84.48 388.03
Profit after tax	1,174.08	880.07

Accounting Standards

The Ministry of Corporate Affairs (MCA) has notified the Indian Accounting Standards (Ind AS) applicable to certain classes of companies and Ind AS has replaced the existing Indian GAAP prescribed under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 for such class of Companies. The Company has adopted Ind AS for the first time and is applicable from April 1, 2017.

Dividend

The Board recommends a 100% dividend of Rs.10/- (Rupees Ten only) per equity share of the face value of Rs.10/- (Rupees Ten only) each on the equity share capital of Rs.2,45,80,000/- for the financial year ended on 31^st March, 2018. The dividend on equity shares is subject to the approval of the shareholders at the ensuing Annual General Meeting. Dividend will be paid to those equity shareholders whose names appear in the Register of Members as on 01^st August 2018 in respect of shares held in physical form and in respect of shares held in dematerialized form, the dividend shall be paid on the basis of the beneficial ownership as per the details furnished by the Depositories for this purpose at the end of business hours on 01^st August 2018.

Business and Operations

During the year under review, the Company has achieved a revenue from operations of Rs.19,446.78 Lakhs as against Rs.18,028.59 Lakhs for the previous year.

The profit before interest and depreciation is Rs.1,868.33 Lakhs as against Rs.1,555.01 Lakhs for the previous year. The profit before tax is Rs.1,655.00 Lakhs as against Rs.1,268.10 Lakhs during the previous year.

During the year under review the turnover has increased by 7.86% over the previous year and the profit before tax has increased by 22.36 % over the same period last year.

Industrial Relations

Relationship with employees was cordial throughout the financial year.

2. Extracts of Annual Return

As per requirements of the Companies Act, 2013, the extract of annual return in the prescribed Form MGT 9 is annexed hereto as Annexure 1 forming part of the report.

3. Number of Meetings of the Board

Details of number of meetings of Board of Directors and Committees thereof and the attendance of the Directors in such meetings are provided under the Corporate Governance Report.

4. Directors'' Responsibility Statement

In terms of Section 134 of the Companies Act, 2013 the Directors, confirm that:

a. in the preparation of the annual accounts, the applicable accounting standards have been followed and there are no material departures from the same;

b. have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit and loss of the company for that period;

c. have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

d. have prepared the annual accounts on a going concern basis;

e. have laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively; and

f. have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

5. No Frauds reported by statutory auditors

There is no instance of frauds reported by the statutory auditors of the Company for the financial year under review under sub Section (12) of Section 143 of the Companies Act, 2013.

6. Declaration by Independent Directors

The Independent Directors have submitted their disclosures to the Board that they fulfill all the requirements as stipulated in Section 149(6) of the Companies Act, 2013 so as to qualify themselves as Independent Directors under the provisions of the Companies Act, 2013 and the relevant rules of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

7. Nomination and Remuneration Committee and Policy

As per the requirements of the provisions of the Companies Act, 2013, a Nomination and Remuneration Committee of directors was formed by the Board of Directors consisting of:

1. Sri. N.Suryakumar, Chairman (Non-Executive - Independent)

2. Sri. Ramesh Rudrappan, Member (Non-Executive - Independent)

3. Sri. Arun Selvaraj, Member (Non-Executive - Independent)

The said committee has been empowered and authorised to exercise widest powers as entrusted under the provisions of Section 178 of the Companies Act, 2013. The Company has a policy on directors'' appointment and remuneration including criteria for determining qualification, positive attributes, independence of a director and other matters provided under subsection (3) of section 178. The salient aspects covered in the Nomination and Remuneration Policy has been outlined in the Corporate Governance Report and the policy is available on the Company''s website: www.lecsindia.com.

8. Auditors Comments

There are no adverse comments in the reports of Statutory Auditors (appearing elsewhere in the Annual Report) and that of the Secretarial Auditors (annexed hereto as Annexure 2).

9. Particulars of Loans/Guarantee/Investments

The Company has not given any Loans, Guarantees and Investments covered under the provisions of Section 186 of the Companies Act, 2013.

10. Particulars of Contracts with Related Party

The transactions entered by the Company with the related parties during the financial year 2017-18 are in the ordinary course of business and at arm''s length basis. The particulars of material related party transactions is provided in the form AOC 2 and annexed to the Boards'' Report as Annexure 3.

11. Material Changes and Commitments

There were no material changes and commitments affecting the financial position of the Company occurred between the end of financial year (March 31, 2018) to which this financial statements relate and the date of this Report.

12. Conservation of Energy, Technology Absorption & Foreign Exchange

The disclosures under Rule 8(3) of Companies (Accounts) Rules, 2014 are as under:

Conservation of Energy

Sl No.	Particulars	Disclosures
(i)	Steps taken or impact on conservation of energy	I. In the lighting system, LED and Induction Lamps are introduced for new requirements and it continues. II. Subsequently the existing lamps are replaced with suitable LED lamps with optimum solution, when it called for repair / replacement and it continues. III. Energy efficient super fans are introduced for new requirements and the existing fans are replaced with the same when it called for repair / replacement and it continues.
(ii)	Steps taken by the company for utilising alternate sources of energy	Wind energy generation power is utilized for Plant captive consumption from August 2016 onwards.
(iii)	Capital investment on energy conservation equipments;	- Energy efficient automated vacuum blower loader system is developed and used. - Optimum capacity hot air dryers are used to produce better quality products & to conserve energy. - Redundant Hyd. Power pack is retrofitted with optimum solution.

Technology Absorption

Sl No.	Particulars	Disclosures
(i)	Efforts made towards technology absorption;	No technology or knowhow is brought from external bodies or imported.
(ii)	The benefits derived like product improvement, cost reduction, product development or import substitution;	In house developmental and operational research activities are carried out on regular basis.
(iii)	In case of imported technology (imported during the last three years reckoned from the beginning of the financial year): (a) the details of technology imported; (b) the year of import (c) whether the technology has been fully absorbed (d) if not fully absorbed, areas where absorption has not taken place, and the reasons thereof;	No technology was imported during the last three years.
(iv)	The expenditure incurred on Research and Development	Capital Expenditure: Rs.12.37 Lakhs Revenue Expenditure: Rs.36.52 Lakhs Total Expenditure: Rs.48.89 Lakhs

Foreign Exchange Outgo and Earnings

Rs. in Lakhs

Foreign Exchange earned through exports 8.54

Foreign Exchange used 925.32

13. Risk Management

The Company follows a comprehensive and integrated risk appraisal, mitigation and management process. The risk management process of the Company is being periodically reviewed for improvement by the Board of Directors.

14. Corporate Social Responsibility (CSR):

The Company has constituted a CSR committee of Board of Directors and has adopted a CSR Policy. The same is posted in the Company''s website www.lecsindia.com. The Committee consist of three directors'' viz., Sri. D.Senthilkumar, Smt. Nethra J.S.Kumar and Sri. Arun Selvaraj. CSR Committee Meeting was held on 28.07.2017. A report in prescribed format detailing the CSR spend for the financial year 2017-18 is attached herewith as Annexure 4 forming a part of this report.

15. Evaluation of Board''s Performance:

On the advice of the Board of Directors, the Nomination and Remuneration Committee of Board of Directors of the Company have formulated the criteria for the evaluation of the performance of Board of Individual Directors, Board as a whole, Committees of Directors, Independent Directors, Non-Independent Directors and the Chairperson of the Board. Based on that performance evaluation has been undertaken. The Independent Directors of the company have also convened a separate meeting for this purpose. All the results and evaluation has been communicated to the Chairperson of the Board of Directors.

16. Additional Disclosures:

As per Rule 8(5) of the Companies (Accounts) Rule, 2014, the following additional information is provided:

S.No	Particulars	Disclosures
(i)	The financial summary or highlights.	The financial highlights including State of Affairs of the Company is provided in this Report.
(ii)	The change in the nature of business, if any.	There is no change in the business line of the company.
(iii)	The details of directors or key managerial personnel who were appointed or have resigned during the year.	Sri. B.K.Ravi Kumar, Chief Financial Officer has resigned and relieved with effect from 16th December 2017. The Board of Directors have appointed Sri. A.Thiagarajan as Chief Financial Officer of the Company with effect from 31st January 2018.
(iv)	The names of companies which have become or ceased to be its Subsidiaries, joint ventures or associate companies during the year.	Nil
(v)	The details relating to deposits, covered under Chapter V of the Act.	The company has not accepted deposits.
(vi)	The details of deposits which are not in compliance with the requirements of Chapter V of the Act.	Not Applicable.
(vii)	The details of significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and company''s operations in future.	Nil
(viii)	The details in respect of adequacy of internal financial controls with reference to the Financial Statements.	The Company has implemented and evaluated the Internal Financial Controls which provide a reasonable assurance. The Directors and Management confirm that the Internal Financial Controls (IFC) are adequate with respect to the operations of the Company. A report of Auditors pursuant to Section 143(3) (i) of the Companies Act, 2013 certifying the adequacy of Internal Financial Controls is annexed with the Auditors report.

17. Internal Control systems and their Adequacy

Your Company has established adequate internal control procedures, commensurate with the nature of its business and size of its operations.

The accounting transactions and operations are audited by the Internal Auditor vis.a.vis the internal controls, policies and procedures and the deviations, if any, are reported and corrective actions are taken appropriately.

18. Re-appointment of retiring directors

Sri. Sanjay Jayavarthanavelu, Director (DIN: 00004505) who retires by rotation at the ensuing Annual General Meeting, being eligible offers himself for re-appointment. The Board recommends his re-appointment in the forthcoming Annual General Meeting.

19. Non-executive Directors

Sri. N. Suryakumar (DIN: 00008316), presently aged 78 years, was appointed as an Independent Director of the Company for a period of five consecutive years with effect from 08^th August, 2014 by obtaining the approval of the shareholders at the Annual General Meeting held on 08^th August, 2014. In order to ensure compliance with new Regulation 17 (1A) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which is effective from 01^st April, 2019, a subject is included in the Notice of the ensuing Annual General Meeting for seeking approval of the members.

20. Resignation of Director

There was no incidence of resignation of any Director.

21. Composition of Audit Committee

The Audit Committee was formed by the Board of Directors and consists of:

1	Sri. N.Suryakumar - Chairman	(Non - Executive - Independent)
2	Sri. A.Palaniappan - Member	(Non - Executive - Independent)
3	Sri. Ramesh Rudrappan - Member	(Non - Executive - Independent)

The Board has accepted the recommendations of the committee during the financial year under review.

22. Vigil Mechanism

The Company has devised a vigil mechanism in the form of a Whistle Blower Policy in pursuance of provisions of Section 177(10) of the Companies Act, 2013 and details whereof is available on the company''s website: www.lecsindia.com During the year under review, there were no complaints received under this mechanism.

23. Disclosure under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

As per the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, the Company has constituted an Internal Complaints Committee. During the financial year 2017-18, no complaint was received before the committee.

24. Overall Maximum Remuneration

Particulars pursuant to Section 197(12) & rule 5(1) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 :

a) The ratio of the remuneration of each director to the median employee''s remuneration for the financial year and such other details as prescribed is as given below:

Name	Category	Ratio
Smt. Nethra J.S.Kumar (DIN:00217906)	Executive - Chairperson and Managing Director	1:21.55
Sri. N.Suryakumar (DIN:00008316)	Non-Executive - Independent	-
Sri. Sanjay Jayavarthanavelu (DIN: 00004505)	Non-Executive - Non Independent	-
Sri. D.Senthilkumar (DIN: 00006172)	Non-Executive - Non Independent	-
Sri. Ramesh Rudrappan (DIN: 00008325)	Non-Executive - Independent	-
Sri. A.Palaniappan (DIN:00044022)	Non-Executive - Independent	-
Sri. Arun Selvaraj (DIN: 01829277)	Non-Executive - Independent	-

Note: For this purpose, Sitting fees paid to the Directors have not been considered as remuneration.

b) The percentage increase in remuneration of each Director, Chief Financial Officer, Chief Executive Officer, Company Secretary or Manager, if any, in the financial year:

Name	Category	%
Smt. Nethra J.S.Kumar	Executive - Chairperson and Managing Director	7.49
Sri. N.Suryakumar	Non-Executive - Independent Director	-
Sri.Sanjay Jayavarthanavelu	Non-Executive - Non Independent Director	-
Sri. D.Senthilkumar	Non-Executive - Non Independent Director	-
Sri. Ramesh Rudrappan	Non-Executive - Independent Director	-
Sri. A.Palaniappan	Non-Executive - Independent Director	-
Sri. Arun Selvaraj	Non-Executive - Independent Director	-
Sri. A.Thiagarajan *	Chief Financial Officer (CFO)	-
Sri. S.Sathyanarayanan* *	Company Secretary (CS)	34.74

Note: For the above purpose, Sitting fees paid to the Directors have not been considered as remuneration.

*The present CFO was appointed during the financial year 2017-18. Percentage increase in remuneration is not comparable and hence not provided.

**The percentage increase is inclusive of Provident Fund and provision for Gratuity .

c) The percentage increase in the median remuneration of employees in the financial year: 2.17%

d) The number of permanent employees on the rolls of company: 212

e) Average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the Managerial Remuneration:

Average increase in remuneration is 3.89% for employees other than Managerial Personnel and KMP while it is 12.53% for Managerial Personnel (KMP and Senior Management).

f) It is affirmed that the remuneration is as per the remuneration policy of the Company.

g) Particulars of Employees as per Rule 5(2) and Rule 5(3) of Companies (Appointment & Remuneration of Managerial Personnel Rules, 2014) are provided as Annexure 5 to this Report.

25. Accounting Treatment

In the preparation of financial statements, no treatment different from that of prescribed accounting standards has been followed.

26. Secretarial Standards

The Company has adhered with the applicable Secretarial Standards issued by The Institute of Company Secretaries of India.

27. Corporate Governance:

As per SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a separate section on Corporate Governance practices followed by the Company, together with a certificate from the Company''s Auditors confirming compliance forms an integral part of this Report.

The shares of the Company is listed in BSE Limited, Mumbai. The listing fees is paid up to date and the shares of the Company were not suspended for trading by the Stock Exchange at any time during the financial year under review.

28. Auditors

Statutory Auditor:

Pursuant to the provisions of Section 139 of the Companies Act, 2013 and the Companies (Audit and Auditors) Rules, 2014, M/s. Subbachar & Srinivasan, Chartered Accountants, the Statutory Auditors of the Company, hold office up to the conclusion of the Annual General Meeting to be held in the year 2021. The Company has received a certificate from the said Auditors that they are eligible to hold office as the Auditors of the Company. The Ministry of Corporate Affairs vide their notification dated 07^th May 2018 has amended the Section 139 of the Companies Act, 2013 by omitting the necessity of ratification of the appointment of the Statutory Auditors by members of the Company at every subsequent Annual General Meeting. In order to align with the amended Section 139, the relevant subject matter is included in the Notice of the ensuing Annual General Meeting for seeking approval of the members.

Secretarial Auditor:

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed M/s. MDS & Associates, Coimbatore, Company Secretaries in Practice to undertake the Secretarial Audit of the Company for the financial year 2018-2019.

Acknowledgement

Your Directors thank the customers, bankers, vendors, shareholders and other stakeholders for their continued support and patronage.

The Directors wish to place on record their appreciation for the cooperation and contribution made by the employees at all levels towards the performance of the Company.

For and on behalf of the Board

Place: Coimbatore Nethra J.S. Kumar

Date : May 21, 2018 Chairperson and Managing Director

(DIN: 00217906)

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Mar 31, 2017

Board of Directors’ Report to Shareholders

Dear Shareholders,

The Board of Directors of your Company are pleased to present the Thirty Sixth annual report on the business and commercial operations of the company along with the summary of financial statements for the year ended 31^st March, 2017.

1. The State of Affairs of the Company, Dividend & Reserve:

Financial summary/highlights & transfer to General Reserve:

Financial Results	Current Year Ended 31-03-2017 (Amount in Rs.)	Previous Year Ended 31-03-2016 (Amount in Rs.)
Sales and Other Income	1,64,62,27,935	1,89,30,87,475
Gross Profit	14,69,29,781	15,00,20,440
Less : Depreciation	2,01,92,837	1,90,00,347
Net Profit / (Loss)	12,67,36,944	13,10,20,093
Prior year taxes	(39,46,921)	19,155
Provision for Taxation	3,98,78,533	3,68,09,304
Provision for Deferred Tax	25,66,826	82,01,216
Add : Surplus brought forward	27,62,40,840	22,39,17,550
Available for appropriation	36,44,79,346	30,99,07,968
Appropriations:
Proposed Dividend	1,96,64,000	1,96,64,000
Corporate tax on dividend	40,03,128	40,03,128
Transfer to general reserve	1,00,00,000	1,00,00,000
Balance carried forward	33,08,12,218	27,62,40,840
Total	36,44,79,346	30,99,07,968

Dividend:

The Board recommends a dividend of Rs. 8/- per equity share of the face value of Rs. 10/- each (80%) on the equity share capital of Rs. 2,45,80,000/- for the financial year ended on 31^st March, 2017 aggregating to Rs. 1,96,64,000/- and to pay a dividend tax of Rs. 40,03,128/-. The total dividend payout works out to 26.82% of the net profit for the standalone results. The dividend on equity shares is subject to the approval of the shareholders at the Annual General Meeting.

In terms of Section 125 of the Companies Act, 2013, any unclaimed or unpaid Dividend relating to the financial year 2009-10, is due for remittance on 28^th August, 2017 to the Investor Education and Protection Fund established by the Central Government.

Transfer to reserves:

Your Company proposes to transfer Rs. 1,00,00,000/- (Rupees One Crore only) to the General Reserve. Business and Operations

During the year under review, the Company has achieved a turnover of Rs. 16091.65 Lakhs as against Rs. 18703.82 Lakhs for the previous year.

The profit before interest and depreciation was Rs. 1469.80 Lakhs as against Rs. 1545.67 Lakhs for the previous year. The profit before tax was Rs. 1267.37 Lakhs as against Rs. 1310.20 Lakhs during the previous year.

During the year under review the turnover has decreased by 13.97 % over the previous year and the profit before tax has decreased by 3.27 % over the same period last year.

Industrial Relations

Relationship with employees was cordial throughout the financial year.

2. Extracts of Annual Return

As per requirements of the Companies Act, 2013, the extract of annual return in the prescribed Form MGT 9 is annexed hereto as Annexure 1 forming part of the report.

3. Number of Meetings of the Board

Details of number of meetings of Board of Directors and Committees thereof and the attendance of the Directors in such meetings are provided under the Corporate Governance Report.

4. Directors’ Responsibility Statement

In terms of Section 134 of the Companies Act, 2013 the Directors, confirm that:

a. in the preparation of the annual accounts, the applicable accounting standards have been followed and there are no material departures from the same;

b. have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit and loss of the company for that period;

c. have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d. have prepared the annual accounts on a going concern basis;

e. have laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively; and

f. have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

5. No Frauds reported by statutory auditors

There is no instance of frauds reported by the statutory auditors of the Company for the financial year under review under sub Section (12) of Section 143 of the Companies Act, 2013.

6. Declaration by Independent Directors

The Independent Directors have submitted their disclosures to the Board that they fulfill all the requirements as stipulated in Section 149(6) of the Companies Act, 2013 so as to qualify themselves as Independent Directors under the provisions of the Companies Act, 2013 and the relevant rules.

7. Nomination and Remuneration Committee and Policy

As per the requirements of the provisions of the Companies Act, 2013, a Nomination and Remuneration Committee of directors was formed by the Board of Directors consisting of:

1. Sri N.Suryakumar, Chairman (Non-Executive - Independent)

2. Sri Ramesh Rudrappan, Member (Non-Executive - Independent)

3. Sri Arun Selvaraj, Member (Non-Executive - Independent)

The said committee has been empowered and authorised to exercise widest powers as entrusted under the provisions of Section 178 of the Companies Act, 2013. The Company has a policy on directors’ appointment and remuneration including criteria for determining qualification, positive attributes, independence of a director and other matters provided under sub-section (3) of section 178. The salient aspects covered in the Nomination and Remuneration Policy has been outlined in the Corporate Governance Report and the policy is available on the company’s website at www.lecsindia.com.

8. Auditors Comments

There are no adverse comments in the reports of Statutory Auditors (appearing elsewhere in the Annual Report) and that of the Secretarial Auditors (annexed hereto as Annexure 2).

9. Particulars of Loans/Guarantee/Investments

The Company has not given any Loans, Guarantees and Investments covered under the provisions of Section 186 of the Companies Act, 2013.

10. Particulars of Contracts with Related Party

The transactions entered by the Company with the related parties during the financial year 2016-17 are in the ordinary course of business and at arm’s length basis. The particulars of material related party transactions is provided in the form AOC 2 and annexed to the Boards’ Report as Annexure 3

11. Material Changes and Commitments

There were no material changes and commitments affecting the financial position of the Company occurred between the end of financial year (March 31, 2017) to which this financial statements relate and the date of this Report.

12. Conservation of Energy, Technology Absorption & Foreign Exchange

The disclosures under Rule 8(3) of Companies (Accounts) Rules, 2014 are as under:

CONSERVATION OF ENERGY

Sl. No.	Particulars	Disclosures
A	Conservation of Energy
(i)	Steps taken or impact on conservation of energy	I. LED and Induction Lamps are introduced in the lighting systems wherever possible based on the requirement. The existing lamps were replaced with suitable LED lamps with optimum solution, when it is called for repair / replacement. II. Renewable energy sources are planned for canteen cooking system as a supplementary source. V Solar water heater system for boiler feed water and steam cooking vessels. V Bio-gas system from food and other wastes recycling method.
(ii)	Steps taken by the company for utilizing alternate sources of energy	Power generated from 1 Wind energy generator is utilized for captive consumption from August 2016 onwards.
(iii)	Capital investment on energy conservation equipments	V VFD is installed for energy conservation of screw Air Compressor. V Low cost automation vacuum blower loader system is developed in-house for conveying the raw materials. V APFC panel made based on in-house design and installed for harmonics mitigation and catering quality power.

TECHNOLOGY ABSORPTION

Sl. No.	Particulars	Disclosures
(i)	Efforts made towards technology absorption;	No technology or knowhow is brought from external bodies or imported
(ii)	The benefits derived like product improvement, cost reduction, product development or import substitution;	In house developmental and operational research activities are carried out on regular basis. Innovations in processes and tool designs have contributed to cost reduction in the operations.

(iii)	In case of imported technology (imported during the last three years reckoned from the beginning of the financial year): (a) the details of technology imported; (b) the year of import (c) whether the technology has been fully absorbed (d) if not fully absorbed, areas where absorption has not taken place, and the reasons thereof;	No technology was imported during the last three years
(iv)	The expenditure incurred on Research and Development	Capital Expenditure : Rs. 7.85 Lakhs Revenue Expenditure: Rs. 25.57 Lakhs Total Expenditure : Rs. 33.42 Lakhs

FOREIGN EXCHANGE OUTGO AND EARNINGS:	Rs. in Lakhs
Foreign Exchange earned through exports amount to:	3.86
Foreign Exchange used	472.26

13. Risk Management

The Company follows a comprehensive and integrated risk appraisal, mitigation and management process. The risk management process of the Company is being periodically reviewed for improvement by the Board of Directors.

14. Corporate Social Responsibility (CSR):

The Company has constituted a CSR committee of Board of Directors and has adopted a CSR Policy. The same is posted in the company’s website www.lecsindia.com. A report in prescribed format detailing the CSR spend for the year 2016-17 is attached herewith as Annexure 4 forming a part of this report.

15. Evaluation of Board’s Performance:

On the advice of the Board of Directors, the Nomination and Remuneration Committee of Board of Directors of the Company have formulated the criteria for the evaluation of the performance of Board of Individual Directors, Board as a whole, Committees of Directors, Independent Directors, Non-Independent Directors and the Chairperson of the Board. Based on that performance evaluation has been undertaken. The Independent Directors of the company have also convened a separate meeting for this purpose. All the results and evaluation has been communicated to the Chairperson of the Board of Directors.

16. Additional Disclosures:

As per Rule 8(5) of the Companies (Accounts) Rule, 2014, the following additional information is provided:

Sl. No.	Particulars	Disclosures
(i)	The financial summary or highlights.	The financial highlights including State of Affairs of the Company, Dividend & Reserve is provided in this Report.
(ii)	The change in the nature of business, if any.	There is no change in the business line of the company.
(iii)	The details of directors or Key Managerial Personnel who were appointed or have resigned during the year.	Nil
(iv)	The names of companies which have become or ceased to be its Subsidiaries, Joint ventures or associate companies during the year.	Nil
(v)	The details relating to deposits, covered under Chapter V of the Act.	The company has not accepted deposits.
(vi)	The details of deposits which are not in compliance with the requirements of Chapter V of the Act.	Not Applicable.
(vii)	The details of significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and company''s operations in future.	Nil
(viii)	The details in respect of adequacy of internal financial controls with reference to the Financial Statements.	The Company has implemented and evaluated the Internal Financial Controls which provide a reasonable assurance. The Directors and Management confirm that the Internal Financial Controls (IFC) are adequate with respect to the operations of the Company. A report of Auditors pursuant to Section 143(3) (i) of the Companies Act, 2013 certifying the adequacy of Internal Financial Controls is annexed with the Auditors report.

17. Internal Control systems and their Adequacy:

Your Company has established adequate internal control procedures, commensurate with the nature of its business and size of its operations.

The accounting transactions and operations are audited by the Internal Auditor vis.a.vis the internal controls, policies and procedures and the deviations, if any, are reported and corrective actions are taken appropriately.

18. Re-appointment of retiring directors:

Sri. D.Senthilkumar, Director, (DIN: 00006172) who retires by rotation at the ensuing Annual General Meeting, being eligible offers himself for re-appointment. The Board recommends his re-appointment in the forthcoming Annual General Meeting.

19. Resignation of Director

There was no incidence of resignation of Director.

20. Composition of Audit Committee

The Audit Committee was formed by the Board of Directors and consists of:

1	Sri. N. Suryakumar - Chairman	(Non-Executive- Independent)
2	Sri. A. Palaniappan - Member	(Non-Executive - Independent)
3	Sri. Ramesh Rudrappan - Member	(Non-Executive - Independent)

The Board has accepted the recommendations of the committee during the financial year under review.

21. Vigil Mechanism:

The Company has devised a vigil mechanism in the form of a Whistle Blower Policy in pursuance of provisions of Section 177(10) of the Companies Act, 2013 and details whereof is available on the company’s website at www.lecsindia.com. During the year under review, there were no complaints received under this mechanism.

22. Disclosure under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013:

As per the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, the Company has constituted an Internal Complaints Committee. During the year 2016-17, no complaint was received before the committee.

23. Overall Maximum Remuneration

Particulars pursuant to Section 197(12) & rule 5(1) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 :

a) The ratio of the remuneration of each director to the median employee’s remuneration for the financial year and such other details as prescribed is as given below:

Name	Category	Ratio
Smt. Nethra J.S.Kumar (DIN : 00217906)	Executive - Chairperson and Managing Director	1:20
Sri. N.Suryakumar (DIN : 00008316)	Non-Executive - Independent	-
Sri. Sanjay Jayavarthanavelu (DIN : 00004505)	Non-Executive - Non Independent	-
Sri. D.Senthilkumar (DIN : 00006172)	Non-Executive - Non Independent	-
Sri. Ramesh Rudrappan (DIN : 00008325)	Non-Executive - Independent	-
Sri. A.Palaniappan (DIN : 00044022)	Non-Executive - Independent	-
Sri. Arun Selvaraj (DIN : 01829277)	Non-Executive - Independent	-

Note: For this purpose, Sitting fees paid to the Directors have not been considered as remuneration.

b) The percentage increase in remuneration of each Director, Chief Financial Officer, Chief Executive Officer, Company Secretary or Manager, if any, in the financial year:

Name	Category	%
Smt. Nethra J.S.Kumar	Executive - Chairperson and Managing Director	3.14
Sri N.Suryakumar	Non-Executive - Independent Director	-
Sri Sanjay Jayavarthanavelu	Non-Executive - Non Independent Director	-
Sri D.Senthilkumar	Non-Executive - Non Independent Director	-
Sri Ramesh Rudrappan	Non-Executive - Independent Director	-
Sri A.Palaniappan	Non-Executive - Independent Director	-
Sri Arun Selvaraj	Non-Executive - Independent Director	-
Sri. B.K.Ravikumar*	Chief Financial Officer (CFO)	-
Sri. S.Sathyanarayanan*	Company Secretary (CS)	-

Note: For the above purpose, Sitting fees paid to the Directors have not been considered as remuneration.

* CFO & CS were appointed for part of the financial year 2015-16, percentage increase in remuneration is not comparable and hence not provided.

c) The percentage increase in the median remuneration of employees in the financial year: 1.75%

d) The number of permanent employees on the rolls of company: 205

e) Average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the Managerial Remuneration:

Average increase in remuneration is 6.37% for employees other than Managerial Personnel and KMP, while it is 3.14% for Managerial Personnel (KMP and Senior Management).

f) Affirmation that the remuneration is as per the remuneration policy of the Company: Yes.

g) Particulars of Employees as per Rule 5(2) and Rule 5(3) of Companies (Appointment & Remuneration of Managerial Personnel) Rules, 2014 are provided as Annexure 5 to this Report.

24. Accounting Treatment

In the preparation of financial statements, no treatment different from that of prescribed Accounting Standards has been followed.

25. Corporate Governance:

As per SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a separate section on Corporate Governance practices followed by the Company, together with a certificate from the Company’s Auditors confirming compliance forms an integral part of this Report.

The shares of the Company is listed in BSE Limited, Mumbai. The listing fees is paid up to date and the shares of the Company were not suspended for trading by the Stock Exchange at any time during the year under review.

26. Auditors

Statutory Auditors:

M/s N.R.Doraiswami & Co, Chartered Accountants and M/s. Subbachar & Srinivasan, Chartered Accountants, the Statutory Auditors of the Company can hold office up to the conclusion of the ensuing Annual General Meeting to be held on 02^nd August 2017. One of the statutory auditors M/s N.R.Doraiswami & Co, Chartered Accountants will not seek reappointment for the purpose of rotation of auditors as required under the Companies Act, 2013.

Pursuant to the provisions of Section 139 of the Companies Act, 2013 and the Companies (Audit and Auditors) Rules, 2014, M/s. Subbachar & Srinivasan, Chartered Accountants, the Statutory Auditors of the Company, hold office up to the conclusion of the Annual General Meeting to be held in the year 2021. However, their appointment as Statutory Auditors of the Company is subject to ratification by the members at every Annual General Meeting. The Company has received a certificate from the said Auditors that they are eligible to hold office as the Auditors of the Company. The subject for ratification of appointment of the said Auditors for the financial year 2017-2018 is included in the Notice of Annual General Meeting for seeking approval of the members.

Secretarial Auditor:

Pursuant to provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed M/s. MDS & Associates, Coimbatore, Company Secretaries in Practice to undertake the Secretarial Audit of the Company for the financial year 2017-18.

27. Acknowledgement

Your Directors thank the customers, bankers, vendors, shareholders and other stakeholders for their continued support and patronage.

The Directors wish to place on record their appreciation for the cooperation and contribution made by the employees at all levels towards the performance of the Company.

On behalf of the Board

Nethra J.S. Kumar

Place : Coimbatore Chairperson and Managing Director

Date : May 29, 2017 (DIN: 00217906)

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Mar 31, 2016

Dear Shareholders,

The Board of Directors of your Company are pleased to present the Thirty Fifth Annual Report on the business and commercial operations of the Company along with the standalone summary financial statements for the year ended 31st March, 2016.

1. The State of Affairs of the Company, Dividend & Reserve:

Financial summary/highlights & transfer to General Reserve:

Financial Results	Current Year Ended 31-03-2016 (Amount in Rs )	Previous Year Ended 31-03-2015 (Amount in Rs )
Sales and Other Income	1,89,27,84,196	1,85,98,22,697
Gross Profit Less: Depreciation	15,00,20,440 1,90,00,347	13,47,94,384 1,17,25,103
Net Profit / (Loss)	13,10,20,093	12,30,69,281
Prior year Income Add : Excess provision for IT for earlier years reversed Less: Prior year expenses / extra ordinary items Provision for Taxation Provision for Deferred Tax Income tax for earlier years Add : Surplus brought forward Less: WDV of Assets transferred as per Sch II Add : Deferred Tax on WDV transferred as per Sch II	43,393 3,68,09,304 82,01,216 62,548 22,39,17,550	3,18,43,528 83,02,962 5,64,456 17,33,02,847 16,24,519 5,27,075
Available for appropriation	30,99,07,968	25,45,63,738
Appropriations:
Proposed Dividend Provision for corporate tax on dividend Transfer to general reserve Balance carried forward	1,96,64,000 40,03,128 1,00,00,000 27,62,40,840	1,72,06,000 34,40,188 1,00,00,000 22,39,17,550
Total	30,99,07,968	25,45,63,738

Dividend:

The Board recommends a dividend ofRs,8/- (Rupees Eight only) per equity share of the face value of ''10 (Rupees Ten only) each (80%) on the equity share capital ofRs,2,45,80,000/- for the year ended on 31st March, 2016 aggregating toRs,1,96,64,000/- (Rupees One Crore Ninety Six Lakhs Sixty Four Thousand only) and to pay a dividend tax ofRs,40,03,128/- (Rupees Forty Lakhs Three Thousand One Hundred Twenty Eight only). The total dividend payout works out to 27.52% of the net profit for the standalone results. The dividend on equity shares is subject to the approval of the shareholders at the Annual General Meeting.

In terms of Section 125 of the Companies Act, 2013, any unclaimed or unpaid Dividend relating to the financial year 2008-09, is due for remittance on 30th August, 2016 to the Investor Education and Protection Fund established by the Central Government.

Transfer to reserves :

Your Company proposes to transferRs,1,00,00,000/- (Rupees One Crore only) to the General Reserve Business and Operations

During the year under review, the Company has achieved a turnover ofRs,18,704 Lakhs as againstRs,18,209 Lakhs for the previous year.

The profit before interest and depreciation wasRs,1,546 lakhs as againstRs,1,374 lakhs for the previous year. The profit before tax wasRs,1,310.20 lakhs as againstRs,1,230.69 lakhs during the previous year.

During the year under review the turnover has increased by 2.72 % over the previous year and the profit before tax has increased by 6.46 % over the same period last year Industrial Relations

Relationship with employees was cordial throughout the year.

2. Extracts of Annual Return

As per requirements of the Companies Act, 2013, the extract of annual return in the prescribed Form MGT 9 is annexed hereto as Annexure 1 forming part of the report.

3. Number of Meetings of the Board

Details of number of meetings of Board of Directors and committees thereof and the attendance of the Directors in such meetings are provided under the Corporate Governance Report.

4. Directors’ Responsibility Statement

In terms of Section 134(3)(c) of the Companies Act, 2013, the Directors confirm that:

a. in the preparation of the annual accounts, the applicable accounting standards have been followed and there are no material departures from the same;

b. have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit and loss of the company for that period;

c. have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

d. have prepared the annual accounts on a going concern basis; and

e. have laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively;

f. have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

5. No Frauds reported by statutory auditors

There is no instance of frauds reported by the statutory auditors of the Company for the financial year under review under sub Section (12) of Section 143 of the Companies Act, 2013.

6. Declaration by Independent Directors

The Independent Directors have submitted their disclosures to the Board that they fulfill all the requirements as stipulated in Section 149(6) of the Companies Act, 2013 so as to qualify themselves as Independent Directors under the provisions of the Companies Act, 2013 and the relevant rules.

7. Nomination and Remuneration Committee and Policy

As per the requirements of the provisions of the Companies Act, 2013, a Nomination and Remuneration Committee of directors was formed by the Board of Directors consisting of:

1. Sri. N. Suryakumar, Chairman (Non-Executive - Independent)

2. Sri. Ramesh Rudrappan, Member (Non-Executive - Independent)

3. Sri. Arun Selvaraj, Member (Non-Executive - Independent)

The said committee has been empowered and authorized to exercise widest power as entrusted under the provisions of Section 178 of the Companies Act, 2013. The Company has a policy on directors’ appointment and remuneration including criteria for determining qualification, positive attributes, independence of a director and other matters provided under sub-section (3) of section 178. The salient aspects covered in the Nomination and Remuneration Policy have been outlined in the Corporate Governance Report and the policy is available on the company’s website at www.lecsindia.com.

8. Auditors Comments

There are no adverse comments in the reports of Statutory Auditors (appearing elsewhere in the Annual Report) and that of the Secretarial Auditors (annexed hereto as Annexure 2).

9. Particulars of Loans/Guarantee/Investments

Details of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Companies Act, 2013 are given in the notes to the Financial Statements

10. Particulars of Contracts with Related Party

The material related party transactions during the financial year is provided in Form AOC-2 and annexed to the Boards’ Report as Annexure 3.

11. Material Changes and Commitments

There were no material changes and commitments affecting the financial position of the Company occurred between the end of financial year (March 31, 2016) to which this financial statements relate and the date of this Report.

12. Conservation of Energy, Technology Absorption & Foreign Exchange

The disclosures under Rule 8(3) of Companies (Accounts) Rules, 2014 are as under:

Statement for Conservation of Energy

Sl No.	Particulars	Related Disclosures
	Conservation of Energy
(i)	Steps taken or impact on conservation of energy	Energy meters installed for all production machineries and utilities for capturing the energy consumption data, analysis is done and potential areas for reduction of usage of power are identified with a view to implement the same in the financial year 2016-2017.
(ii)	Steps taken by the company for utilizing alternate sources of energy	The steps are taken for captive consumption of power generated through windmills and the same is expected to be completed during the course of the financial year 2016-2017.

(iii)	Capital investment on energy	Nil
	conservation equipments;

Technology absorption, adaptation and innovation

S.No.	Particulars	Disclosure
(i)	Efforts made towards technology absorption;	No technology or knowhow is brought from external bodies or imported
(ii)	The benefits derived like product improvement, cost reduction, product development or import substitution;	In house developmental and operational research activities are carried out on regular basis. Innovations in processes and tool designs have contributed to cost reduction in the operations.
(iii)	In case of imported technology (imported during the last three years reckoned from the beginning of the financial year): (a) the details of technology imported; (b) the year of import (c) whether the technology has been fully absorbed (d) if not fully absorbed, areas where absorption has not taken place, and the reasons thereof;	No technology was imported during the last three years
(iv)	The expenditure incurred on Research and Development	Capital Expenditure:Rs,14.67 Lakhs Revenue Expenditure:Rs,23.01 Lakhs Total Expenditure:Rs,37.68 Lakhs

13. Risk Management

The Company follows a comprehensive and integrated risk appraisal, mitigation and management process. The risk management process of the Company is being periodically reviewed for improvement by the Board of Directors.

14. Corporate Social Responsibility (CSR):

The Company has constituted a CSR committee of Board of Directors and has adopted a CSR Policy. The same is posted in the company’s website www.lecsindia.com A report in prescribed format detailing the CSR spend for the year 2015-16 is attached herewith as Annexure 4 forming a part of this report.

15. Evaluation of Board’s Performance:

On the advice of the Board of Directors, the Nomination and Remuneration Committee of Board of Directors of the Company have formulated the criteria for the evaluation of the performance of Board of Individual Directors, Board as a whole, Committees of Directors, Independent Directors, Non-Independent Directors and the Chairperson of the Board. Based on that performance evaluation has been undertaken. The Independent Directors of the company have also convened a separate meeting for this purpose. All the results and evaluation has been communicated to the Chairperson of the Board of Directors.

16. Additional Disclosures:

As per Rule 8(5) of the Companies (Accounts) Rule, 2014, the following additional information is provided:

S.No	Particulars	Related Disclosures
(i)	The financial summary or highlights.	The financial highlights including State of Affairs of the Company, Dividend & Reserve is provided in this report.
(ii)	The change in the nature of business, if any.	There is no change in the business line of the company.
(iii)	The details of directors or key managerial personnel who were appointed or have resigned during the year.	Sri.R.Venkatesh Prasad, Executive Director & CFO has resigned and relieved with effect from 30th June, 2015. The Board of Directors have appointed Sri S.Sathyanarayanan as Company Secretary of the Company with effect from 13th August, 2015 and Sri.B.K.Ravi Kumar as Chief Financial Officer of the Company with effect from 28th October, 2015.
(iv)	The names of companies which have become or ceased to be its Subsidiaries, joint ventures or associate companies during the year.	Harshni Textiles Limited ceased to be an associate company during the financial year under review.
(v)	The details relating to deposits, covered under Chapter V of the Act.	The company has not accepted deposits.
(vi)	The details of deposits which are not in compliance with the requirements of Chapter V of the Act.	Not Applicable.
(vii)	The details of significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and company’s operations in future.	Nil
(viii)	The details in respect of adequacy of internal financial controls with reference to the Financial Statements.	The Company has implemented and evaluated the Internal Financial Controls which provide a reasonable assurance. The Directors and Management confirm that the Internal Financial Controls (IFC) are adequate with respect to the operations of the Company. A report of Auditors pursuant to Section 143(3) (i) of the Companies Act, 2013 certifying the adequacy of Internal Financial Controls is annexed with the Auditors report.

17. Internal Control systems and their Adequacy:

Your Company has established adequate internal control procedures, commensurate with the nature of its business and size of its operations.

The accounting transactions and operations are audited by the Internal Auditor vis.a.vis the internal controls, policies and procedures and the deviations, if any, are reported and corrective actions are taken appropriately.

18. Re-appointment of retiring directors:

Sri. Sanjay Jayavarthanavelu, Director, who retires by rotation at the ensuing Annual General Meeting, being eligible offers himself for re-appointment. The Board recommends his re-appointment in the forthcoming Annual General Meeting.

19. Resignation of Director

There was no incidence of resignation of Director.

20. Composition of Audit Committee

The Audit Committee was formed by the Board of Directors and consists of:

1	Sri. N.Suryakumar	Chairman (Non-Executive- Independent)
2	Sri. A.Palaniappan	Member (Non-Executive - Independent)
3	Sri. Ramesh Rudrappan	Member (Non-Executive - Independent)

The Board has accepted the recommendations of the committee and there were no incidences of deviation from such recommendations during the financial year under review.

21. Vigil Mechanism:

The Company has devised a vigil mechanism in the form of a Whistle Blower Policy in pursuance of provisions of Section 177(10) of the Companies Act, 2013 and details whereof is available on the company’s website at www.lecsindia.com . During the year under review, there were no complaints received under this mechanism.

22. Disclosure under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013:

As per the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, the Company has constituted an Internal Complaints Committee. During the year 2015

16, no complaint was received before the committee.

23. Overall Maximum Remuneration

Particulars pursuant to Section 197(12) & rule 5(1) of Companies (Appointment and Remuneration of Managerial Personnel) Rules:

a) The ratio of the remuneration of each director to the median employee''s remuneration for the financial year and such other details as prescribed is as given below:

Name	Category	Ratio
Smt. Nethra J.S.Kumar	Executive - Chairperson and Managing Director	1:20
Sri. N.Suryakumar	Non-Executive - Independent	-
Sri. Sanjay Jayavarthanavelu	Non-Executive - Non Independent	-
Sri. D.Senthilkumar	Non-Executive - Non Independent	-
Sri. Ramesh Rudrappan	Non-Executive - Independent	-
Sri. A.Palaniappan	Non-Executive - Independent	-
Sri. Arun Selvaraj	Non-Executive - Independent	-

Note: For this purpose, Sitting fees paid to the Directors have not been considered as remuneration.

b) The percentage increase in remuneration of each Director, Chief Financial Officer, Chief Executive Officer, Company Secretary or Manager, if any, in the financial year:

Name	Category	%
Smt. Nethra J.S.Kumar	Executive - Chairperson and Managing Director	5.68
Sri. N.Suryakumar	Non-Executive - Independent Director	-
Sri. Sanjay Jayavarthanavelu	Non-Executive - Non Independent Director	-
Sri. D.Senthilkumar	Non-Executive - Non Independent Director	-
Sri. Ramesh Rudrappan	Non-Executive - Independent Director	-
Sri. A.Palaniappan	Non-Executive - Independent Director	-
Sri. Arun Selvaraj	Non-Executive - Independent Director	-
Sri. B.K.Ravi Kumar*	Chief Financial Officer (CFO)	-
Sri. S.Sathyanarayanan*	Company Secretary	-

Note: For this purpose, Sitting fees paid to the Directors have not been considered as remuneration.

* CFO and Company Secretary were appointed in the course of the financial year and hence the previous financial year data is not available for comparison.

c) The percentage increase in the median remuneration of employees in the financial year: 30.17%

d) The number of permanent employees on the rolls of company: 241

e) The explanation on the relationship between average increase in remuneration and company performance:

Company’s PAT has grown from Rs,823.58 Lakhs during 2014-15 to Rs,859.90 Lakhs during 2015-16, an increase of 4.41% against which the average increase in remuneration is 17.15%; and this increase is aligned with the Remuneration Policy of the Company.

f) Comparison of the remuneration of the Key Managerial Personnel against the performance of the Company:

Name	Designation	Remuneration, (CTC) (in Rs,)	% increase in CTC	PAT (Rs, in Lakhs)	% increase in PAT
Smt. Nethra J.S.Kumar #	Chairperson and Managing Director	80,00,937	5.68	859.90	4.41
Sri. B.K.Ravi Kumar*	Chief Financial Officer (CFO)	5,94,234	-	859.90	4.41
Sri. S.Sathyanarayanan*	Company Secretary	7,39,205	-	859.90	4.41

#The remuneration includes CommissionRs,9,92,937/-, Company’s Contribution to provident fundRs,7,20,000/-, Gratuity contribution -Rs,2,88,000/- and excludes Leave entitlementRs,4,98,992/

* CFO and Company Secretary were appointed in the course of the financial year and hence the previous financial year data is not available for comparison.

g) Variations in the market capitalization of the company, price earnings ratio as at the closing date of the current financial year and previous financial year:

Particulars	31st March, 2016	31st March, 2015
Market Capitalization of the Company (Rs, in Lakhs)	8571	7873
Issued Capital (in Nos.)	2458000	2458000
Closing Price at BSE Ltd (in Rs,)	348.70	320.30
Earnings Per Share (in Rs,)	34.98	33.51
Price Earnings Ratio as at the closing date	9.97	9.56

Note: Percentage increase over decrease in market quotations of the shares of the Company in comparison with the last public offer is not applicable as the last public offer was in 1984 and the data is incomparable.

h) Average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the Managerial Remuneration:

Average increase in remuneration is 17.54% for employees other than Managerial Personnel and KMP while it is 5.68% for Managerial Personnel (KMP and Senior Management).

i) The Key Parameters for any variable component of the remuneration availed by the Directors:

The remuneration of Chairperson and Managing Director consists of a Commission paid at the rate of 4%. Besides the above there are no variable components in Managerial Remuneration.

j) The ratio of the remuneration of the highest paid director to that of the employees who are not directors but receive remuneration in excess of the highest paid director during the year: Nil k) Affirmation that the remuneration is as per the remuneration policy of the Company: Yes.

l) Particulars of Employees: [Rule 5(2) and Rule 5(3) of Companies (Appointment & Remuneration of Managerial Personnel Rules, 2014):

Name (Age in Years)	Designation	Gross Remuneration Paid (in Rs,)	Qualification	Date of commencement of employment (Experience in Years)	Previous employment
Smt.Nethra J.S.Kumar (44 years)	Chairperson and Managing Director	80,00,937	Management degree	23-10-2000 (15 Years )	Nil

Note: 1. The remuneration includes CommissionRs,9,92,937/-, Company’s Contribution to provident fundRs,7,20,000/-, Gratuity contribution -Rs,2,88,000/- and excludes Leave entitlementRs,4,98,992/-. Employment is contractual.

2. The above mentioned employee is not relative (in terms of the Companies Act, 2013) of any director of the Company except Sri. D.Senthil Kumar, Director and Sri. Sanjay Jayavarthanavelu, Director. Further no employee of the Company is covered by the Rule 5(2)(iii) of the Companies (Appointment & Remuneration of Managerial Personnel) Rules,

2014, that is employee holding by himself or with this family shares of 2% or more in the Company and drawing remuneration in excess of the Managing Director.

3. The remuneration details are for the year 2015-16 and all other particulars are as on 31st March, 2016.

24. Comments u/s 232(2)(c) and Schedule V Part II Section II

Since the Company does not belong to the specified class of the companies, the above cited provisions of the Companies Act, 2013 is not applicable to the Company.

25. Corporate Governance:

As per SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and erstwhile Clause 49 of the Listing Agreement for part of the financial year, a separate section on Corporate Governance practices followed by the Company, together with a certificate from the Company''s Auditors confirming compliance forms an integral part of this Report.

The shares of the Company is listed in BSE Limited, Mumbai. The listing fees is paid up to date and the shares of the Company were not suspended for trading by the Stock Exchange at any time during the year under review.

26. Auditors:

Statutory Auditors:

The Company''s Auditors, M/s N.R.Doraiswami & Co, Chartered Accountants hold the office till the conclusion of the ensuing Annual General Meeting. As per provisions of Section 139 of the Companies Act, 2013 read with the Companies (Audit and Auditors) Rules, 2014, the present statutory auditors of the Company who have completed a period of 10 years as on 1st April, 2014 are not eligible for reappointment after the period of 3 years from the commencement of the Companies Act, 2013.

In order to ensure smooth transition, it is proposed to appoint one more Auditor as a joint Statutory Auditor for the financial year 2016-17 and the said auditor will continue as a Statutory Auditor of the Company for a term of five years. It is proposed to appoint M/s. Subbachar & Srinivasan, Chartered Accountants as Statutory Auditor for a term of five years commencing from the financial year 2016-17 who will retire at the conclusion of the Annual General Meeting to be held in the year 2021.

For the financial year 2016-17, M/s N.R.Doraiswami & Co, Chartered Accountants and M/s. Subbachar & Srinivasan, Chartered Accountants will be the joint Statutory Auditors. M/s N.R.Doraiswami & Co, Chartered Accountants will retire at the Annual General Meeting to be held in the year 2017. The auditors have consented and confirmed their eligibility for appointment as statutory auditors of the Company.

Secretarial Auditor:

Pursuant to provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed M/s. MDS & Associates, Coimbatore, Company Secretaries in Practice to undertake the Secretarial Audit of the Company for the financial year 2016-17

27. Acknowledgements

Your Directors thank the Customers, Bankers, Vendors, Shareholders and other Stakeholders for their continued support and patronage.

The Directors wish to place on record their appreciation for the cooperation and contribution made by the employees at all levels towards the progress of the Company.

On behalf of the Board

Place : Coimbatore Nethra J.S. Kumar

Date : July 1, 2016 Chairperson and Managing Director

(DIN :00217906)

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Mar 31, 2014

The Directors have pleasure in presenting to you the Thirty Third Annual Report of your Company together with the audited accounts for the year ended 31st March 2014.

Current Year Ended Previous Year Ended

Financial Results 31.03.2014 31.03.2013

(Amount in) (Amount in)

Sales and Other Income 1,64,69,55,236 1,34,96,99,491

Gross Profit 11,64,45,428 8,20,41,153

Less : Depreciation 2,30,49,757 2,78,56,591

Net Profit/Loss 9,33,95,671 5,41,84,562

Prior year Income - -

Excess provision for I.T for earlier years reversed - -

Less : Prior year Expenses / Extraordinary Items - -

Provision for Taxation 3,11,00,509 2,45,74,040

Provision for Deferred Tax (-)14,09,422 (-)84,55,847

Income Tax for earlier years 51,565 20,900

Add : Surplus brought Forward 13,40,28,514 11,17,34,519

Available for Appropriation 19,76,81,533 14,97,79,988

Appropriations:

Proposed Dividend 1,22,90,000 49,16,000

Provision for Corporate Tax on Dividend 20,88,686 8,35,474

Transfer to General Reserve 1,00,00,000 1,00,00,000

Balance Carried Forward 17,33,02,847 13,40,28,514

TOTAL 19,76,81,533 14,97,79,988

Dividend

Your Directors have pleasure in recommending a dividend of Rs. 5 /- per Equity Share of Rs. 10.00 each. The above dividend, if approved by the shareholders at the forthcoming Annual General Meeting will absorb Rs. 1,22,90,000/- and will be paid to those members or their mandatees whose name appear on the Register of Members as on 8th August 2014 for those holding shares in physical form. In respect of the shares held in dematerialised form, the dividend will be paid on the basis of beneficial ownership as per details furnished by the Depositories for this purpose at the end of the business hours on 31st July 2014.

Business and Operations

Your Directors inform you that the Turnover including other income for the year under review is Rs. 16,469.55 Lakhs as against 13,496.99 Lakhs for the preceding year.

The profit before depreciation and tax for the year under review is Rs. 1,164.45 Lakhs as against Rs. 820.41 Lakhs for the preceding year. The profit before tax is Rs. 933.96 Lakhs as against Rs. 541.85 Lakhs.

The increase in turnover has been due to improved off take from our customers and also due to expansion of our customer base.

Industrial Relations

Your Directors are pleased to inform that the industrial relations has remained cordial and harmonious throughout the year.

Fixed Deposits

The Company has not accepted any fixed deposits.

Directors

Sri. Sanjay Jayavarthanavelu, Director is due to retire by rotation at the ensuing Annual General Meeting and being eligible, offer himself for re-appointment.

Independent Directors

The Companies Act, 2013 requires that atleast one third of Boards Strength should be Independent Directors. In terms of Listing Agreement, the number of Independent Directors shall be half of the strength of the Board i.e., in our case, the number of Independent Directors shall be four.

The following 4 persons are Independent Directors of the company

1. Sri. N. Suryakumar

2. Sri. Ramesh Rudrappan

3. Sri. A. Palaniappan

4. Sri. Arun Selvaraj

In view of the Companies Act, 2013, all the above 4 Persons have to be appointed as Independent Directors at the ensuing Annual General Meeting. Necessary resolutions in this regard are placed before you.

Corporate Governance

In line with the requirements of Listing Agreement entered into with the Stock Exchanges, a separate report on Corporate Governance is enclosed as a part of this Annual Report.

Listing

Your Company''s shares are listed in Bombay Stock Exchange Limited, Mumbai and Madras Stock Exchange Limited, Chennai and the listing fees have been paid up to the Financial Year 2014-2015.

Auditors

M/s. N. R. Doraiswami & Co., Chartered Accountants retire at the ensuing Annual General Meeting. They are eligible for re-appointment and have consented to act as Statutory Auditors of the Company, if appointed and the necessary certificate pursuant to Section 141(3)(g) of the Companies Act, 2013 has been received from them.

INFORMATION PURSUANT TO SECTION 217 OF THE COMPANIES ACT, 1956

Information pursuant to Section 217 (1) (e) of the Companies Act, 1956 read with the Companies (Disclosure of particulars in the report of Board of Directors) Rules 1988 is furnished in the Annexure I forming part of this Report.

Directors'' Responsibility Statement

In compliance of Section 217 (2AA) of the Companies Act, 1956 as amended by the Companies (Amendment) Act, 2000, the Directors of your Company confirm that :

- all applicable accounting standards have been followed in the preparation of annual accounts and that there are no material departure ;

- such accounting policies have been selected and applied consistently and such judgements and estimates made are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2014 and of the profit of the Company for the year ended on that date ;

- proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

- the annual accounts have been prepared on a going concern basis.

Acknowledgements

Your Directors wish to convey their thanks to all the Customers, Company''s Bankers, Associates, Vendors and other Business Partners for their continuing support to the Company.

Your Directors express their appreciation for the support given and contribution made by the employees at all levels to the successful operations of the Company during the year under review.

For and on behalf of the Board of Directors

Place : Coimbatore

NETHRA J.S. KUMAR

Date : May 26, 2014 Chairperson and Managing Director

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Mar 31, 2013

The Directors have pleasure in presenting to you the Thirty Second Annual Report of your Company together with the Audited Accounts for the year ended 31st March 2013.

Current Year Ended Previous Year Ended Financial Results 31.03.2013 31.03.2012 (Amount in Rs.) (Amount in Rs.)

Sales and Other Income 1,34,96,99,491 1,68,08,49,533

Gross Profit 8,20,41,153 18,78,09,320

Less : Depreciation 2,78,56,591 3,77,48,799

Net Profit/Loss 5,41,84,562 15,00,60,521

Prior year Income - -

Excess provision for I.T for earlier years reversed - 44,804

Less : Prior year Expenses /Extraordinary Items - -

Provision for Taxation 2,45,74,040 5,63,38,420

Provision for Deferred Tax (-)84,55,847 (-)1,21,30,971

Income Tax for earlier years 20,900 22,53,925

Add : Surplus brought Forward 11,17,34,519 23,27,74,313

Available for Appropriation 14,97,79,988 33,64,18,264

Appropriations:

Proposed Dividend 49,16,000 1,22,90,000

Provision for Corporate Tax on Dividend 8,35,474 19,93,745

Transfer to General Reserve 1,00,00,000 21,04,00,000

Balance Carried Forward 13,40,28,514 11,17,34,519

TOTAL 14,97,79,988 33,64,18,264

Dividend

Your Directors have pleasure in recommending a dividend of Rs. 2 /- per Equity Share of Rs. 10.00 each. The above dividend, if approved by the shareholders at the forthcoming Annual General Meeting will absorb Rs. 49,16,000/- and will be paid to those members or their mandatees whose name appear on the Register of Members as on 9th August 2013 for those holding shares in physical form. In respect of the shares held in dematerialised form the dividend will be paid on the basis of beneficial ownership as per details furnished by the Depositories for this purpose at the end of the business hours on 31st July 2013.

Business and Operations

Your Directors inform you that the Turnover including other income for the year under review is Rs. 13,496.99 Lakhs as against Rs. 16,808.50 Lakhs for the preceding year.

The profit before depreciation and tax for the year under review is Rs. 820.41 Lakhs as against Rs. 1,878.09 Lakhs for the preceding year. The profit before tax is Rs. 541.85 Lakhs as against Rs. 1,500.61 Lakhs.

The decline in turnover has been due to lower off take from our customers and also due to absence of turnover from the Switchgear Division. This in turn has affected our net margins. The downward pressure on net margins has also been accentuated with a sharp rise in our input material cost. Necessary efforts are being taken to sustain our existing profit margins.

Industrial Relations

Your Directors are pleased to inform that the industrial relations has remained cordial and harmonious throughout the year.

Fixed Deposits

The Company has not accepted any fixed deposits.

Directors

The following Directors are due to retire by rotation at the ensuing Annual General Meeting and being eligible, offer themselves for re-appointment.

Sri. Sanjay Jayavarthanavelu

Sri. D.Senthilkumar

Sri A.Palaniappan and Sri Arun Selvaraj were appointed as Additional Directors with effect from 28th January 2013 and they will hold office upto the ensuing Annual General Meeting. Nominations with necessary deposit have been received from members of the Company proposing their candidature for appointment as Directors of the Company. Sri.R.Venkatrangappan relinquished the Chairmanship and the directorship of the Company on 26th October 2012.

Sri.V.J.Jayaraman relinquished the directorship of the Company on 23rd November 2012.

Sri. G.Rangaswamy relinquished the directorship of the Company on 24th May 2013.

Corporate Governance

In line with the requirements of Listing Agreement entered into with the Stock Exchanges, a separate report on Corporate Governance is enclosed as a part of this Annual Report.

Listing

Your Company''s shares are listed in Bombay Stock Exchange Limited, Mumbai and Madras Stock Exchange Limited, Chennai and the listing fees have been paid up to the Financial Year 2012-2013 to Bombay Stock Exchange Limited and upto Financial Year 2013-2014 to Madras Stock Exchange Limited.

Auditors

M/s. N. R. Doraiswami & Co., Chartered Accountants retire at the ensuing Annual General Meeting. They are eligible for re-appointment and have consented to act as Statutory Auditors of the Company, if appointed and the necessary certificate pursuant to Section 224(1B) of the Companies Act, 1956 has been received from them.

Cost Auditors

M/s. S. Mahadevan & Co., Cost Accountants have been appointed as Cost Auditors of Company. Necessary certificate pursuant to Section 224(1B) of the Companies Act, 1956 has been received from them.

INFORMATION PURSUANT TO SECTION 217 OF THE COMPANIES ACT, 1956

Information pursuant to Section 217 (1) (e) of the Companies Act, 1956 read with the Companies (Disclosure of particulars in the report of Board of Directors) Rules 1988 is furnished in the Annexure I forming part of this Report.

Directors'' Responsibility Statement

In compliance of Section 217 (2AA) of the Companies Act, 1956 as amended by the Companies (Amendment) Act, 2000, the Directors of your Company confirm that:

- all applicable accounting standards have been followed in the preparation of annual accounts and that there are no material departure;

- such accounting policies have been selected and applied consistently and such judgements and estimates made are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2013 and of the profit of the Company for the year ended on that date;

- proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

- the annual accounts have been prepared on a going concern basis.

Acknowledgements

Your Directors wish to convey their thanks to all the Customers, Company''s Bankers, Associates, Vendors and other Business Partners for their continuing support to the Company.

Your Directors express their appreciation for the support given and contribution made by the employees at all levels to the successful operations of the Company during the year under review.

For and on behalf of the Board of Directors

Place : Coimbatore NETHRA J.S. KUMAR

Date : May 24, 2013 Chairperson and Managing Director

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Mar 31, 2012

The Directors have pleasure in presenting to you the Thirty First Annual Report of your Company together with the Audited Accounts for the year ended 31st March 2012.

Current Year Previous Ended Year Ended Financial Results 31.03.2012 31.03.2011 (Amount in Rs) (Amount in Rs)

Sales and Other Income 1,68,08,49,533 1,47,71,10,389

Gross Profit 18,78,09,320 18,89,83,059

Less : Depreciation 3,77,48,799 5,22,37,390

Net Profit/Loss 15,00,60,521 13,67,45,669

Prior year Income - -

Excess Provision for I.T for earlier years reversed 44,804 1,463

Less : Prior Year Expenses/ Extraordinary Items - -

Provision for Taxation 5,63,38,420 4,12,81,134

Provision for Deferred Tax (-)1,21,30,971 39,14,591

Income Tax for Earlier Years 22,53,925 14,03,198

Add : Surplus Brought Forward 23,27,74,313 16,44,96,475

AVAILABLE FOR APPROPRIATION 33,64,18,264 25,46,44,684

Appropriations:

Proposed Dividend 1,22,90,000 1,10,61,000

Provision for Corporate Tax on Dividend 19,93,745 17,94,371

Transfer to General Reserve 21,04,00,000 90,15,000

Balance Carried Forward 11,17,34,519 23,27,74,313

TOTAL 33,64,18,2641 25,46,44,684

Dividend

Your Directors have pleasure in recommending a dividend of Rs.5 /- per Equity Share of Rs. 10.00 each.

The above dividend, if approved by the shareholders at the forthcoming Annual General Meeting will absorb Rs. 1,22,90,000/- and will be paid to those members or their mandatees whose name appear on the Register of Members as on 23rd August 2012 for those holding shares in physical form. In respect of the shares held in dematerialised form the dividend will be paid on the basis of beneficial ownership as per details furnished by the Depositories for this purpose at the end of the business hours on 9th August 2012.

Business and Operations

Your Directors inform you that the Turnover including other income for the year under review is Rs.16,808.50 Lakhs as against Rs. 14,771.10 Lakhs for the preceding year.

The profit before depreciation and tax for the year under review is Rs. 1,878.09Lakhs as against Rs. 1,889.83 Lakhs for the preceding year. The profit before tax is Rs. 1,500.61 Lakhs as against Rs. 1,367.45 Lakhs.

Your Directors inform you that the Company was manufacturing and supplying Switch Gear Products and due to low margins and pressure on profits because of low quantities the Company has suspended the production of Switch Gear Products.

Industrial Relations

Your Directors are pleased to inform that the industrial relations has remained cordial and harmonious throughout the year.

Fixed Deposits

The Company has not accepted any fixed deposits.

Directors

The following Directors are due to retire at the ensuing Annual General Meeting and being eligible, offer themselves for re-appointment.

1. Sri.G.Rangaswamy

2. Sri N.Suryakumar

3. Sri.R.Venkatrangappan

Corporate Governance

In line with the requirements of Listing Agreement entered into with the Stock Exchanges, a separate report on Corporate Governance is enclosed as a part of this Annual Report.

Listing

Your Company's shares are listed in Bombay Stock Exchange Limited, Mumbai and Madras Stock Exchange Limited, Chennai and the listing fees have been paid up to the financial year 2012-2013.

Auditors

M/s. N. R. Doraiswami & Co., Chartered Accountants retire at the ensuing Annual General Meeting. They are eligible for re-appointment and have consented to act as Auditors of the Company, if appointed and the necessary certificate pursuant to Section 224(1 B) of the Companies Act, 1956 has been received from them.

INFORMATION PURSUANT TO SECTION 217 OF THE COMPANIES ACT, 1956

Information pursuant to Section 217 (1) (e) of the Companies Act, 1956 read with the Companies (Disclosure of particulars in the report of Board of Directors) Rules, 1988 is furnished in the Annexure I forming part of this Report.

Directors' Responsibility Statement

In compliance of Section 217 (2AA) of the Companies Act, 1956 as amended by the Companies (Amendment) Act, 2000, the Directors of your Company confirm that:

- all applicable accounting standards have been followed in the preparation of annual accounts and that there are no material departure;

- such accounting policies have been selected and applied consistently and such judgements and estimates made are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2012 and of the profit of the Company for the year ended on that date;

- proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

- the annual accounts have been prepared on a going concern basis.

Acknowledgements

Your Directors wish to convey their thanks to all the customers, Company's bankers, associates, vendors and other business partners for their continuing support to the Company.

Your Directors express their appreciation for the support given and contribution made by the employees at all levels to the successful operations of the Company during the year under review.

For and on behalf of the Board of Directors

Place . Coimbatore R. Venkatrangappan

Date : May 25, 2012 Chairman

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Mar 31, 2011

Dear Members,

The Directors have pleasure in presenting to you the Thirtieth Annual Report of your Company together with the audited accounts for the year ended 31st March 2011.

Financial Results Current Year Previous year ended ended 31.03.2011 31.03.2010 (Amount in Rs.) (Amount in Rs.)

Sales and Other Income 1,477,110,389 998,316,232

Profit Before Depreciation 188,983,059 144,133,431

Less:Depreciation 52,237,390 30,197,461

Net Profit/Loss 136,745,669 113,935,970

Prior year Income – –

Excess provision for I.T for earlier years reversed 1,463 874

Less : Prior year expenses/ extraordinary items

Provision for Taxation 41,281,134 38,898,910

Provision for deferred tax 3,914,591 2,333,737

Income Tax for earlier years 1,403,198 120,657

Add: Surplus Brought Forward 164,496,477 110,511,665

AVAILABLE FOR APPROPRIATION 254,644,686 183,095,205

Appropriations:

Proposed Dividend 11,061,000 7,374,000

Provision for corporate tax on dividend 1,794,371 1,224,729

Transfer to General Reserve 9,015,000 10,000,000

Balance Carried Forward 232,774,316 164,496,476

Total 254,644,686 183,095,205

Dividend

Your Directors have pleasure in recommending a dividend of Rs.4.50/- per Equity Share of Rs.10.00 each. The above dividend, if approved by the shareholders at the forthcoming Annual General Meeting will absorb Rs.11,061,000/- and will be paid to those members or their mandatees whose name appear on the Register of Members as on 12th August 2011 for those holding shares in physical form. In respect of the shares held in dematerialised form the dividend will be paid on the basis of beneficial ownership as per details furnished by the Depositories for this purpose at the end of the business hours on 28th July 2011.

Business and Operations

Your Directors inform you that the Turnover including other income for the year under review is Rs.14,771.10 Lakhs as against Rs. 9,983.16 Lakhs for the preceding year.

The profit before depreciation and tax for the year under review is Rs.1,889.83 Lakhs as against Rs. 1,441.33 Lakhs for the preceding year. The profit before tax is Rs.1,367.46 Lakhs as against Rs. 1,139.36 Lakhs.

Industrial Relations

Your Directors are pleased to inform that the industrial relations has remained cordial and harmonious throughout the year.

Fixed Deposits

The Company has not accepted any fixed deposits.

Directors

The following Directors are due to retire at the ensuing Annual General Meeting and being eligible, offer themselves for re-appointment.

1. Sri.Sanjay Jayavarthanavelu

2. Sri D.Senthilkumar

Dr.D.Jayavarthanavelu, the founder Chairman of the Company passed away on 11.06.2010. He was instrumental in bringing the technical collaboration with Sprecher & Schue of Switzerland to manufacture LV Switchgear at the dedicated facility. He was a person of clear perception, progressive outlook and always devoted his attention to the needs of the consumers. He was associated with Textile & Textile Machinery Industry for over four decades. He was a visionary, dynamic leader and a great philanthropist. The Board of the Company would like to place on record its sincere appreciation for the advisory support he gave during his tenure as Chairman.

Sri Ramesh Rudrappan, was appointed as an Additional Director on the Board with effect from 23.05.2011. As per the provisions of Section 260 of the Companies Act, 1956, he can hold office only up to the date of the forthcoming Annual General Meeting of the Company. The Company has received notice under Section 257 of the Companies Act, 1956 along with the requisite deposit in respect of the above person proposing his candidature as Director of the Company.

Corporate Governance

In line with the requirements of Listing Agreement entered into with the Stock Exchange, a separate report on Corporate Governance is enclosed as part of this Annual Report.

Listing

Your Company's shares are listed in Bombay Stock Exchange Limited, Mumbai and the listing fees have been paid up to the financial year 2011-2012.

The Company has filed an application for Delisting of its equity shares from Madras Stock Exchange Limited, Chennai based on the resolution passed at the 28th Annual General Meeting held on 31.07.2009.

In the meanwhile, MSE has requested the Company and informed that they are taking steps for restarting the trading facilities and they have also informed that MSE has entered into a Strategic arrangement with the National Stock Exchange of India in terms of which the members of the MSE are allowed to trade in the National Stock Exchange platform. The continuous listing in MSE will add liquidity to our shares which is beneficial to our shareholders. So the Board of Directors at their meeting held on 23.05.2011 has passed a resolution to withdraw the delisting application submitted with the Madras Stock Exchange Limited, Chennai.

Auditors

M/s. N. R. Doraiswami & Co., Chartered Accountants retire at the ensuing Annual General Meeting. They are eligible for re-appointment and have consented to act as Auditors of the Company, if appointed and the necessary certificate pursuant to Section 224(1B) of the Companies Act, 1956 has been received from them.

INFORMATION PURSUANT TO SECTION 217 OF THE COMPANIES ACT, 1956

Information pursuant to Section 217 (1) (e) of the Companies Act, 1956 read with the Companies (Disclosure of particulars in the report of Board of Directors) Rules 1988 is furnished in the Annexure I forming part of this Report.

Information in accordance with Sub-section (2A) of Section 217 of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975 and forming part of Directors' Report for the year ended 31st March, 2011 is given in Annexure - II of this Report.

Directors' Responsibility Statement

In compliance of Section 217 (2AA) of the Companies Act, 1956 as amended by the Companies (Amendment) Act, 2000, the Directors of your Company confirm that:

- all applicable accounting standards have been followed in the preparation of annual accounts and that there are no material departure;

- such accounting policies have been selected and applied consistently and such judgements and estimates made are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2011 and of the profit of the Company for the year ended on that date;

- proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

- the annual accounts have been prepared on a going concern basis.

General

Details of Production, Licensed and installed capacity are annexed to the Balance Sheet as required by Law.

Acknowledgements

Your Directors wish to convey their thanks to all the customers, Company's bankers, associates,

vendors and other business partners for their continuing support to the Company.

Your Directors express their appreciation for the support given and contribution made by the employees at all levels to the successful operations of the Company during the year under review.

For and on behalf of the Board of Directors

Place : Coimbatore R. Venkatrangappan

Date : May 23, 2011 Chairman

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Mar 31, 2010

The Directors have pleasure in presenting to you the Twenty Ninth Annual Report of your Company together with the audited accounts for the year ended 31st March 2010.

Financial Results Current Year Previous year ended ended 31.03.2010 31.03.2009 (Amount in Rs.) (Amount in Rs.)

Sales and Other Income 998,316,232 1,031,511,405

Gross Profit 144,133,431 122,849,829

Less : Depreciation 30,197,461 38,458,830

Net Profit/Loss 113,935,970 84,390,999

Prior year Income - -

Excess provision for I.T for earlier years reversed 874 12,778

Less : Prior year expenses/ extraordinary items -

Provision for Taxation 38,898,910 33,057,954

Provision for deferred tax 2,333,737 -4,229,133

Income Tax for earlier years 120,657 1,590,382

Add: Surplus Brought Forward 110,511,665 73,716,434

AVAILABLE FOR APPROPRIATION 183,095,205 127,701,008

Appropriations:

Proposed Dividend 7,374,000 6,145,000

Provision for corporate tax on dividend 1,224,729 1,044,343

Transfer to General Reserve 10,000,000 10,000,000

Balance Carried Forward 164,496,476 110,511,665

Total 183,095,205 127,701,008

Dividend *

Your Directors have pleasure in recommending a dividend of Rs.3/- per Equity Share of Rs.10.00 each. The above dividend, if approved by the shareholders at the forthcoming Annual General Meeting will absorb Rs.73,74,000/- and will be paid to those members or their mandatees whose name appear on the Register of Members as on 29th July 2010 for those holding shares in physical form. In respect of the shares held in dematerialised form the dividend will be paid on the basis of beneficial ownership as per details furnished by the Depositories for this purpose at the end of the business hours on 15th July 2010.

Business and Operations

Your Directors inform you that the Turnover including other income for the year under review is Rs.9,983.16 Lakhs as against Rs.10,315.11 Lakhs for the preceding year.

However the profit before depreciation and tax for the year under review is Rs.1,441.33 Lakhs as against Rs.1,228.50 Lakhs, due to some changes in the product mix and optimization in the operating costs. The profit before tax is Rs.1,139.36 Lakhs as against Rs.843.91 Lakhs.

Industrial Relations

Your Directors are pleased to inform that the industrial relations has remained cordial and harmonious throughout the year.

Fixed Deposits

The Company has not accepted any fixed deposits.

Directors

The following Directors are due to retire at the ensuing Annual General Meeting and being eligible, offer themselves for re-appointment.

1. Sri.N.Suryakumar

2. Sri R.Venkatrangappan

3. Sri V.J.Jayaraman

Smt. Nethra J.S. Kumar, was reappointed as Wholetime Director for a period of five years from 01.07.2007 to 30.06.2012 in conformity with Schedule XIII of the Companies Act, 1956 and the remuneration payable was fixed for a period of three years from 01.07.2007 to 30.06.2010. This was approved by the Shareholders at the 25th Annual General Meeting of the Company held on 22.07.2006. The Board of Directors have proposed that her designation be changed to Managing Director from Wholetime Director and to fix the remuneration payable to her for the remaining period of appointment i.e., from 01.07.2010 to 30.06.2012.

Corporate Governance

In line with the requirements of Listing Agreement entered into with the Stock Exchange, a separate report on Corporate Governance is enclosed as part of this Annual Report.

Listing

Your Companys shares are listed in Bombay Stock Exchange Limited, Mumbai and the listing fees has been paid up to the financial year 2010-2011.

The Company has filed an application for Delisting of its equity shares from Madras Stock Exchange Limited, Chennai based on the resolution passed at the last Annual General Meeting. Confirmation for Delisting of shares is awaited.

Auditors

M/s. N. R. Doraiswami & Co., Chartered Accountants retire at the ensuing Annual General Meeting. They are eligible for re-appointment and have consented to act as Auditors of the Company, if appointed and the necessary certificate pursuant to Section 224(1 B) of the Companies Act, 1956 has been received from them.

INFORMATION PURSUANT TO SECTION 217 OF THE COMPANIES ACT, 1956

Information pursuant to Section 217 (1) (e) of the Companies Act, 1956 read with the Companies (Disclosure of particulars in the report of Board of Directors) Rules 1988 is furnished in the Annexure I forming part of this Report.

Information in accordance with Sub-section (2A) of Section 217 of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975 and forming part of Directors Report for the year ended 31st March, 2010 is given in Annexure - II of this Report.

Directors Responsibility Statement

In compliance of Section 217 (2AA) of the Companies Act, 1956 as amended by the Companies (Amendment) Act, 2000, the Directors of your Company confirm that:

- all applicable accounting standards have been followed in the preparation of annual accounts and that there are no material departure;

- such accounting policies have been selected and applied consistently and such judgements and estimates made are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2010 and of the profit of the Company for the year ended on that date;

- proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

- the annual accounts have been prepared on a going concern basis.

General

Details of Production, Licensed and installed capacity are annexed to the Balance Sheet as required by Law.

Acknowledgements

Your Directors wish to convey their thanks to all the customers, Companys bankers, associates, vendors and other business partners for their continued support to the Company.

Your Directors express their appreciation for the support given and contribution made by the employees at all levels to the successful operations of the Company during the year under review.

For and on behalf of the Board of Directors

Place : Coimbatore D. Jayavarthanavelu

Date : May 26, 2010 Chairman