Notes to Accounts of Lakshmi Electrical Control Systems Ltd.

Mar 31, 2025

Provisions and contingencies

Provisions: Provisions are recognised when there is a present obligation or constructive obligation as a result of a
past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and there is a reliable estimate of the amount of the obligation. Provisions are determined by discounting
the expected future cash flows at a pre tax rate that reflects current market assessment of the time value of money and
the risks specific to the liability.

Contingent Liabilities: Contingent liabilities are disclosed when there is a possible obligation arising from past
events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain
future events not wholly within the control of the company or a present obligation that arises from past events where
it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount
cannot be made.

Contingent asset: Contingent Assets is a possible asset that arises from past events and whose existence will be
confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the
control of the entity. Contingent assets are disclosed in the Financial Statements by way of notes to accounts when
an inflow of economic benefits is probable.

Financial assets

All purchases or sales of financial assets are recognized and de-recognized on a trade date basis. Regular way
purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame
established by regulation or convention in the market place.

All recognized financial assets are subsequently measured in their entirety at either amortised cost or fair value,
depending on the classification of the financial assets.

Classification of financial assets

Classification of financial assets depends on the nature and purpose of the financial assets and is determined at the
time of initial recognition.

The Company classifies its financial assets in the following measurement categories:

• those to be measured subsequently at fair value (either through other comprehensive income, or through profit or
loss), and

•those measured at amortised cost.

The classification depends on the Company''s business model for managing the financial assets and the contractual
terms of the cash flows.

A financial asset that meets the following two conditions is measured at amortised cost unless the asset is designated
at fair value through profit or loss under the fair value option:

• Business model test : the objective of the Company''s business model is to hold the financial asset to collect the
contractual cash flows.

• Cash flow characteristic test : the contractual term of the financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest on the principal amount outstanding.

A financial asset that meets the following two conditions is measured at fair value through other comprehensive
income unless the asset is designated at fair value through profit or loss under the fair value option:

• Business model test : the financial asset is held within a business model whose objective is achieved by both
collecting cash flows and selling financial assets.

• Cash flow characteristic test : the contractual term of the financial asset gives rise on specified dates to cash flows
that are solely payments of principal and interest on the principal amount outstanding.

All other financial assets are measured at fair value through profit or loss.

Financial assets at fair value through profit or loss (FVTPL)

Investment in equity instrument are classified at fair value through profit or loss, unless the Company irrevocably elects

on initial recognition to present subsequent changes in fair value in other comprehensive income for investments in
equity instruments which are not held for trading.

Financial assets that do not meet the amortised cost criteria or fair value through other comprehensive income criteria
are measured at fair value through profit or loss. A financial asset that meets the amortised cost criteria or fair value
through other comprehensive income criteria may be designated as at fair value through profit or loss upon initial
recognition if such designation eliminates or significantly reduces a measurement or recognition inconsistency that
would arise from measuring assets and liabilities or recognising the gains or losses on them on different bases.

Investments in debt based mutual funds are measured at fair value through profit or loss.

Financial assets which are fair valued through profit or loss are measured at fair value at the end of each reporting
period, with any gains or losses arising on re-measurement recognized in profit or loss.

Trade receivables

Trade receivables are recognised initially at fair value unless they do not carry a significant financing component, in
which case they are recognized at the transaction price.

The Company generally determines the allowance for expected credit losses based on historical loss experience
adjusted to reflect current and estimated future economic conditions. The Company considered current and
anticipated future economic conditions relating to industries the company deals with and the countries where it
operates. In calculating expected credit loss, the Company has also considered credit reports and other related credit
information for its customers to estimate the probability of default in future.

Cash and cash equivalents

In the cash flow statement, cash and cash equivalents includes cash in hand, cheques and drafts in hand, balances
with bank and deposits held at call with financial institutions, short-term highly liquid investments with original
maturities of three months or less that are readily convertible to known amounts of cash and which are subject to
an insignificant risk of changes in value. Bank overdrafts are shown within borrowings in current liabilities in the
balance sheet and forms part of financing activities in the cash flow statement. (Bank overdraft are shown within
other financial liabilities in the balance sheet and forms part of financing activities in the cash flow statement.)

Income recognition

Interest income: Interest income from a financial asset is recognized when it is probable that the economic benefits
will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time
basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that
exactly discounts estimated future cash receipts through the expected life of the financial asset of that asset''s net
carrying amount on initial recognition.

Financial liabilities

All financial liabilities are subsequently measured at amortised cost using the effective interest rate method or at fair
value through profit or loss.

Trade and other payables

For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate
fair value due to the short maturity of these instruments.

Borrowings

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently
measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption
amount is recognised in profit or loss over the period of the borrowings using the effective interest rate method.

Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged,
cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished
or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities
assumed, is recognised in profit or loss.

Foreign exchange gains or losses

For financial liabilities that are denominated in a foreign currency and are measured at amortised cost at the end
of each reporting period, the foreign exchange gains and losses are determined based on the amortised cost of the
instruments and are recognised in profit or loss.

The fair value of financial liabilities denominated in a foreign currency is determined in that foreign currency and
translated at the exchange rate at the end of the reporting period. For financial liabilities that are measured as at
fair value through profit or loss, the foreign exchange component forms part of the fair value gains or losses and is
recognised in profit or loss.

Borrowing costs

General and specific borrowing costs that are directly attributable to the acquisition, construction or production of
a qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its
intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for
their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing costs eligible for capitalisation.

Other borrowing costs are expensed in the period in which they are incurred.

Government grants

Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant
will be received and the Company will comply with all attached conditions.

Government grants relating to income are deferred and recognised in the profit or loss over the period necessary to
match them with the costs that they are intended to compensate and presented within other income.

Government grants relating to the purchase of property, plant and equipment are included in non-current liabilities
as deferred income and are credited to profit or loss on a straight-line basis over the expected lives of the related
assets and presented within other income.

Earnings Per Share

Basic earnings per share have been computed by dividing the net income by the weighted average number of shares
outstanding during the year. Diluted earnings per share has been computed using the weighted average number of
shares and diluted potential shares, except where the result would be anti-dilutive

Dividends

Final dividends on shares are recorded on the date of approval by the shareholders of the Company.

Leases

Leases [As Lessee]

In cases of finance leases, the Company, at the inception of a contract, assessess whether the contract is a lease or
not lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset
for a time in exchange for a consideration.

The Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use
asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease
payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs
to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less
any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the
end of the lease term.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement
date, discounted using the Company''s incremental borrowing rate. It is remeasured when there is a change in
future lease payments arising from a change in an index or rate, if there is a change in the Company''s estimate of
the amount expected to be payable under a residual value guarantee, or if the Company changes its assessment of
whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this
way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or
loss if the carrying amount of the right-of-use asset has been reduced to zero.

The Company has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have
a lease term of 12 months or less and leases of low-value assets. The Company recognises the lease payments
associated with these leases as an expense over the lease term.

In the comparative period, leases under which the Company assumes substantially all the risks and rewards of
ownership are classified as finance leases. When acquired, such assets are capitalized at fair value or present value
of the minimum lease payments at the inception of the lease, whichever is lower. Lease payments and receipts under
operating leases are recognised as an expense and income respectively, on a straight line basis in the statement of
profit and loss over the lease term except where the lease payments are structured to increase in line with expected
general inflation.

Leases [As Lessor]

Leases in which the Company does not transfer substantially all the risks and rewards incidental to ownership of an
asset are classified as operating leases. Rental Income arising there from is accounted for on a straight line basis over
the lease terms.

3 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before exceptional items and tax is adjusted
for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or
payments. The cash flows from operating, investing and financing activities of the Company are segregated based
on the available information. Cash and cash equivalents include cash on hand, cash with banks in current and
deposit accounts with necessary disclosure of cash and cash equivalent balances that are not available for use by the
company.

The Company''s investment property consist of properties in the nature of land and buildings in India. As at March 31, 2025
and March 31,2024 the fair values of the properties are '' 1,475.68 Lakhs and '' 1,337.26 Lakhs.

The fair value of investment property (as measured for disclosure purposes in the financial statements) is based on the
valuation by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017.

The fair value hierarchy is at level 2, which is derived using the market comparable approach based on recent market prices
without any significant adjustments being made to the market observable data.

The Company has no restrictions on the realisability of its investment properties and no contractual obligations to either
construct or develop investment properties or for repairs, maintenance and enhancements.

(v) Brief description of the Plans & risks

These plans typically expose the Company to actuarial risks such as : Investment risk, interest risk, longetivity risk and
salary risk.

Investment risk:

The present value of the defined benefit plan liability is calculated using a discount which is determined with reference
to market yields at the end of the reporting period on government bonds. Plan investment is a mix of investments in
government securities, other debt instruments and equity shares of listed companies.

Interest risk:

A decrease in the bond interest rate will increase the plan liability. However, this will be partially offset by an increase
in the return on the plan''s debt instruments, if any.

Longetivity risk:

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of
plan participants both during and after their employment. An increase in the life expectancy of the plan participants will
increase the plan''s liability.

Salary risk:

The present value of the defined benefit plan liabilty is calculated by reference to the future salaries of plan participants.
As such, an increase in the salary of plan participants will increase the plan''s liability.

(vi) Sensitivity analysis

The sensitivity of the defined benefit obligation to changes in the weighted principal assumptions is:

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are
(a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the
financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the group has
classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each
level follows underneath the table.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the-
counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as
little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the
instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

There are no transfers between levels 1 and 2 during the year.

The company''s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting
period.

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include the use of quoted market prices or dealer quotes for
similar instruments. The carrying amounts of trade receivables, trade payables, cash and cash equivalents and other current
financial liabilities are considered to be the same as their fair values, due to their short-term nature.

36 CAPITAL MANAGEMENT

(a) Risk management

The company''s objectives when managing capital are to

• safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders
and benefits for other stakeholders, and

• maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, The company may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

Company''s debt consists of short term borrowings currently and it intends to maintain an optimal gearing ratio for
optimising shareholder value.

37 FINANCIAL RISK MANAGEMENT

The Company''s activities expose it to market risk, liquidity risk and credit risk.

(A) Credit risk

Company faces credit risk from cash and cash equivalents, deposits with banks and financial institutions and
unsecured trade receivables. The Company doesn''t face any credit risk with other financial assets.

(i) Credit risk management

Credit risk on deposit is mitigated by depositing the funds in Scheduled Commercial Banks.

For trade receivables, the primary source of credit risk is that these are unsecured.The Company sells the products
to customers only when the collection of trade receivables is certain and whether there has been a significant increase
in the credit risk on an on-going basis is monitored throughout each reporting period. As at the balance sheet
date, based on the credit assessment the historical trend of low default is expected to continue. An impairment
analysis is performed at each reporting date on an individual basis for major clients. Any recoverability of receivables
is provided for based on the impairment assessment.

Credit risk on cash and cash equivalents is limited as the Company generally invest in deposits with banks and
financial institutions with high ratings assigned by international and domestic credit rating agencies. Ratings are
monitored periodically and the Company has considered the latest available credit ratings as at the date of approval
of these financial statements.

(ii) Provision for expected credit losses for trade receivables

The company provides for expected credit loss based under simplified approach:

(B) Liquidity risk

Objective of liquidity risk management is to maintain sufficient cash and marketable securities and the availability
of funding through an adequate amount of committed credit facilities to meet obligations when due. Management
monitors rolling forecasts of the Company''s liquidity position (comprising the undrawn borrowing facilities below) and
cash and cash equivalents on the basis of expected cash flows. The company''s liquidity management policy involves
projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring
balance sheet liquidity ratios against internal requirements .

Equity price risk is related to the change in market reference price of the investments in equity securities. The fair value
of sum of the company''s investments measure at fair value through other comprehensive income exposes to the company
to equity price risks. This investments are subject to change in the market price of securities.

The fair value of company''s investment quoted equity securities ar of March 31, 2025 and March 31, 2024 was
'' 14,228.87 lakhs and '' 13,498.59 lakhs respectively.

A 5% change in equity price of March 31, 2025 and March 31, 2024 would result in impact of '' 711.44 lakhs and
'' 674.93 lakhs respectively.

(D) Interest Rate Risk
(i) Assets

The Company holds interest bearing assets in the form of fixed deposits with banks. The variation in interest risks is
managed by distributing deposits among wide base of banks and financial institutions.

40 Segment reporting for the Year ended 31^st March, 2025

The Chairperson & Managing Director of the company has been identified as the Chief Operating Decision Maker (CODM) as defined
by Ind AS 108 Operating Segments. The CODM evaluates the Company''s performance and allocates resources based on an analysis
of various performance indicators by industry classes. Accordingly, segment information has been presented.

The Company is structured into three reportable business segments such as Electricals, (includes Control Panels, Electric Vehicles
Charger) Plastics (includes components to textile machinery and automobiles) and Wind Power Generation.

Each segment item reported is measured at the measure used to report to the chief operating decision maker for the purposes of making
decisions about allocating resources to the segment and assessing its performance. Geographic information is based on business sources from
that geographic region. Accordingly the geographical segments are determined as Domestic ie., within India and External ie., Outside India.

Income and direct expenses in relation to segments are categorized based on items that are individually identifiable to that segment,
while the remainder of costs are apportioned on an appropriate basis. Certain expenses are not specifically allocable to individual
segments as the underlying services are used interchangeably. The management therefore believes that it is not practicable to provide
segment disclosures relating to such expenses and accordingly such expenses are separately disclosed as "unallocated" and directly
charged against total income.

46.2 Details of the items included in numerator and denominator for computing the above ratios.

a) Capital employed refers to sum of [Share Capital Reserves & Surplus - Intangible Assets Lease Liabilites
Deferred Tax liabilities Total Debt-Borrowings]

b) Earnings before interest and taxes = [Profits after current & deferred taxes Finance Costs Current Taxes
Deferred Taxes]

c) Earnings available for debt servicing = [ Net profit after current & deferred taxes Depreciation Finance cost [Incl
Interest on lease liabilities] - Profit on sale of assets - Dividend income - Interest income ]

47 The three labour codes, the Occupational Health, Safety and Working Conditions Code 2020, the Industrial Relations
Code 2020 and the Code on Social Security 2020 have been passed by the Parliament and have also received the
assent of the President of India on 28^th September 2020. However, the date on which these Codes will come into effect
has not been notified. The Company will assess the impact of these Codes and will record any related impact in the
period these Codes become effective.

48 Additional Regulatory Disclosures as per Schedule III of Companies Act, 2013

i) .There are no proceedings initiated or pending against the company for holding any benami property under the Benami

Transactions (Prohibition) Act ,1988 and rules made there under.

ii) .There are no transactions not recorded in the books of accounts that have been surrendered or disclosed as income

during the year in the tax assessments under the Income tax Act 1961.

iii) .The Company has not (which are material either individually or in the aggregate) advanced or loaned or invested any

funds (either from borrowed funds or share premium or any other sources or kind of funds) in any other person or
entity, including foreign entity ("Intermediaries"), with the understanding, whether recorded in writing or otherwise,
that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any
manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or
the like on behalf of the Ultimate Beneficiaries.

iv) .The Company has not (which are material either individually or in the aggregate) received any funds from any

person or entity, including foreign entity ("Funding Parties"), with the understanding, whether recorded in writing or
otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified
in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee,
security or the like on behalf of the Ultimate Beneficiaries

v) .The Company has not been declared as a wilful defaulter by any bank or financial institution or government or any

government authority

vi) .As per the information available with the Company, the Company has no transactions with the companies struck off

under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956

vii) .The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year ended

March 31, 2025

viii) .No scheme of arrangement has been approved by the competent authority in terms of Section 230 to 237 of the
Companies Act, 2013

ix) .The Company has not made investments in more than one layer of body corporate in accordance with provisions

of clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers)
Rules, 2017.

x) .The Company has maintained its books of accounts on an accounting software that contains a feature of audit trail

(edit log) facility. The backup of the books of accounts which are maintained in electronic form are stored on servers
physically located in India.

49 The financial statements were approved for issue by the Board of Directors on 08^th May, 2025.

50 The final dividend on shares is recorded as liablity on the date of approval by the shareholders.

Dividend declared by the company are based on the profits available for distribution.

The Board of Directors have recommended a dividend of '' 4.00/- (40%) each per equity share of the face value of
'' 10 each, subject to the approval of the shareholders at the ensuing Annual General Meeting. This will result in a total
dividend outgo of '' 98.32/- Lakhs.

51 Lease Arrangements:

Company as Lessee:

Rental Expense recorded for short-term leases was '' 13.94 lakhs (Previous year '' 12.14 lakhs).

Total Cash out flow for leases including short term lease was '' 13.94 lakhs (Previous year '' 12.14 lakhs).

52 The figures of the previous year have been regrouped / rearranged wherever necessary to correspond with the current
year figures.

All the figures have been rounded off to lakhs unless stated otherwise. Discrepancies, if any, in between the totals and
the sum of the items forming part of such totals are due to rounding off in the financial statements. Wherever figures, are
indicated as 0.00 lakhs, it represents value less than '' 0.01 lakhs due to rounding off to the nearest lakhs.

See accompanying notes to the financial statements 1-52

In terms of our report attached

^{For and on behalf of the Board of Directors} For Subbachar & Srinivasan

^Nethra. J.^S. ^{Kumar Sanja}y Jayavartlianavdu Chartered Accountants

Chairperson and Managing Director Director Fi_rm R_eg_n.N_o.004083S

(DIN : 00217906) (DIN : 00004505)

T.S.Anandathirthan

A.Thiagarajan S.Sathyanarayanan Partner

Chief Financial Officer Company Secretary Membership No.230192

Place : Coimbatore Place : Coimbatore

Date : May 08, 2025 Date : June 05, 2025

---

Mar 31, 2024

The Company''s investment property consist of properties in the nature of land and buildings in India. As at March 31, 2024 and March 31, 2023 the fair values of the properties are '' 1,337.26 Lakhs and '' 124.34 Lakhs.

The fair value of investment property (as measured for disclosure purposes in the financial statements) is based on the valuation by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017.

The fair value hierarchy is at level 2, which is derived using the market comparable approach based on recent market prices without any significant adjustments being made to the market observable data.

The Company has no restrictions on the realisability of its investment properties and no contractual obligations to either construct or develop investment properties or for repairs, maintenance and enhancements.

LAKSHMI ELECTRICAL CONTROL SYSTEMS LIMITED

Notes to the Financial Statements for the year ended 31^st March, 2024 (All amounts in '' Lakhs, unless otherwise stated)

Particulars	As at 31st March, 2024	As at 31st March, 2023
10 INVENTORIES
Raw materials and components	2,187.32	2,332.71
Work-in-progress	546.94	479.04
Finished goods	257.52	287.82
Stores & Spares	12.87	46.48
Others
Scrap	2.18	4.89
Consumables	28.96	38.38
Packing materials	8.41	12.07

Total Inventories 3,044.20 3,201.39

Inventories are valued at the lower of cost and net realizable value.

The cost of inventories recognised as an expense amounted to '' 27532.22/- lakhs.[Previous year '' 29281.54 /- lakhs]

Particulars As at 31^st March, 2024 As at 31^st March, 2023

11 TRADE RECEIVABLES

Trade Receivables Considered good-Secured - -

Trade Receivables Considered good-Unsecured* 6,044.36 8,877.84

Trade Receivables which have significant increase in credit risk -

Trade Receivables- credit impaired -

6,044.36 8,877.84

Less: Expected Credit loss allowance 12.61 17.32

Total Trade Receivables 6,031.75 8,860.52

*Includes dues from Companies where directors are interested 10.78 26.71

11a) Trade Receivables Ageing Schedule as at 31^st March 2024

11a) Trade Receivables Ageing Schedule as at 31^st March 2024

Particulars	Outstanding for following periods from due date of payment					Total
	Less than 6 months	6 months - 1 year	1-2 years	2-3 years	More than 3 years
i) Undisputed Trade receivables -considered good	5,847.64	116.07	42.05	13.14	25.46	6,044.36
(ii) Undisputed Trade Receivables - which have significant increase in credit risk	-	-	-	-	-	-
(iii) Undisputed Trade Receivables -credit impaired	-	-	-	-	-	-
(iv) Disputed Trade Receivables-considered good	-	-	-	-	-	-
(v) Disputed Trade Receivables - which have significant increase in credit risk	-	-	-	-	-	-
(vi) Disputed Trade Receivables -credit impaired	-	-	-	-	-	-
Total Trade Receivables	5,847.64	116.07	42.05	13.14	25.46	6,044.36
Less: Expected Credit loss allowance						12.61
Total Trade Receivables net of credit loss allowance						6,031.75

Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of '' 10/- each. All these equity shares have the same rights and preferences with respect to payment of dividend, repayment of capital and carries one vote for every such class of shares held. In the event of liquidation, the excess assets shall be distributed amongst the members in proportion to the capital.

21.2 The Company has borrowings from banks on the basis of security of current assets. There are no material discrepancies between the quarterly returns or statements of current assets filed by the Company with banks compared with the books of accounts taking into account the reconciliation of such discrepancies.

34 EMPLOYEE BENEFIT OBLIGATIONS

The Company makes Provident Fund and Employee State Insurance Scheme contributions which are defined contribution plans, for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company has recognised Rs. 121.60 Lakhs (Previous year: Rs 111.00 Lakhs) as contribution to Provident Fund, and Rs 8.09 Lakhs (Previous year: 7.26 Rs Lakhs) as contribution to Employee State Insurance (ESI) in the Statement of Profit and Loss. These contributions have been made at the rates specified in the rules of the respective schemes and has been recognised in the Statement of Profit and Loss under the head Employee Benefits Expense.

(v) Brief description of the Plans & risks

These plans typically expose the Company to actuarial risks such as : Investment risk, interest risk, longetivity risk and salary risk.

Investment risk:

The present value of the defined benefit plan liability is calculated using a discount which is determined with reference to market yields at the end of the reporting period on government bonds. Plan investment is a mix of investments in government securities, other debt instruments and equity shares of listed companies.

Interest risk:

A decrease in the bond interest rate will increase the plan liability. However, this will be partially offset by an increase in the return on the plan''s debt instruments, if any.

Longetivity risk:

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.

Salary risk:

The present value of the defined benefit plan liabilty is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of plan participants will increase the plan''s liability.

The above sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the group has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

There are no transfers between levels 1 and 2 during the year.

The company''s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include the use of quoted market prices or dealer quotes for similar instruments. The carrying amounts of trade receivables, trade payables, cash and cash equivalents and other current financial liabilities are considered to be the same as their fair values, due to their short-term nature.

36 CAPITAL MANAGEMENT

(a) Risk management

The company''s objectives when managing capital are to

• safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

• maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, The company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

Company''s debt consists of short term borrowings currently and it intends to maintain a optimal gearing ratio for optimising shareholder value.

37 FINANCIAL RISK MANAGEMENT

The Company''s activities expose it to market risk, liquidity risk and credit risk.

(A) Credit risk

Company faces credit risk from cash and cash equivalents, deposits with banks and financial institutions and unsecured trade receivables. The Company doesn''t face any credit risk with other financial assets.

(i) Credit risk management

Credit risk on deposit is mitigated by depositing the funds in Scheduled Commercial Banks.

For trade receivables, the primary source of credit risk is that these are unsecured.The Company sells the products to customers only when the collection of trade receivables is certain and whether there has been a significant increase in the credit risk on an on-going basis is monitored throughout each reporting period. As at the balance sheet date, based on the credit assessment the historical trend of low default is expected to continue. An impairment analysis is performed at each reporting date on an individual basis for major clients. Any recoverability of receivables is provided for based on the impairment assessment.

Credit risk on cash and cash equivalents is limited as the Company generally invest in deposits with banks and financial institutions with high ratings assigned by international and domestic credit rating agencies. Ratings are monitored periodically and the Compnay has considered the latest available credit ratings as at the date of approval of these financial statements.

(B) Liquidity risk

Objective of liquidity risk management is to maintain sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Management monitors rolling forecasts of the Company''s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows. The company''s liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal requirements .

The bank overdraft facilities may be drawn at any time and may be terminated by the bank without notice. Subject to the continuance of satisfactory credit ratings, the bank loan facilities may be drawn at any time in INR and have an average maturity of 1 year.

(ii) Maturities of financial liabilities

The tables below analyse the company''s financial liabilities into relevant maturity groupings based on their contractual maturities for:

a) all non-derivative financial liabilities, and

b) net and gross settled derivative financial instruments for which the contractual maturities are essential for an understanding of the timing of the cash flows.

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

(C) Market risk

(i) Foreign currency risk

The Company activities exposes it to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD and EURO. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the Company''s functional currency (INR). The risk is measured through a forecast of highly probable foreign currency cash flows.

Equity price risk is related to the change in market reference price of the investments in equity securities. The fair value of sum of the company''s investments measure at fair value through other comprehensive income exposes to the company to equity price risks. This investments are subject to change in the market price of securities.

The fair value of company''s investment quoted equity securities ar of March 31, 2024 and March 31, 2023 was '' 13,498.59 lakhs and '' 8,872.55 lakhs respectively.

A 5% change in equity price of March 31, 2024 and March 31, 2023 would result in impact of '' 674.93 lakhs and '' 443.63 lakhs respectively.

(D) Interest Rate Risk (i) Assets

The Company holds interest bearing assets in the form of fixed deposits with banks. The variation in interest risks is managed by distributing deposits among wide base of banks and financial institutions.

41	CONTINGENT LIABILITIES AND CONTINGENT ASSETS
	Particulars	As at 31st March, 2024	As at 31st March, 2023
	Contingent liabilities Central excise/ Service Tax	9.18	9.18
	Goods & Service Tax (GST)	16.07	-
	Income Tax	408.94	49.28
	Arasur Panchayat running licence fees	1.12	0.84
	Bank Guarantee	18.16	15.21

Future cash flows in respect of the above matters are determinable only on receipt of judgements / decisions pending at various forums / authorities. Management is hopeful of successful outcome in the appellate proceedings.

Disputed tax dues are appealed before concerned appellate authorities. The company is advised that the cases are likely to be disposed off in favour of the company and hence no provision is considered necessary therefor.

42 COMMITMENTS Capital commitments

Capital expenditure contracted for at the end of the reporting period but not recognised as liabilities is as follows:

Particulars	As at 31st March, 2024	As at 31st March, 2023
Property, plant and equipment	447.24	391.24

46.2 Details of the items included in numerator and denominator for computing the above ratios.

a) Capital employed refers to sum of [Share Capital Reserves & Surplus - Intangible Assets Lease Liabilites Deferred Tax liabilities Total Debt-Borrowings]

b) Earnings before interest and taxes = [Profits after current & deferred taxes Finance Costs Current Taxes Deferred Taxes]

c) Earnings available for debt servicing = [ Net profit after current & deferred taxes Depreciation Finance cost [Incl Interest on lease liabilities] - Profit on sale of assets - Dividend income - Interest income ]

47 The three labour codes, the Occupational Health, Safety and Working Conditions Code 2020, the Industrial Relations Code 2020 and the Code on Social Security 2020 have been passed by the Parliament and have also received the assent of the President of India on 28^th September 2020. However, the date on which these Codes will come into effect has not been notified. The Company will assess the impact of these Codes and will record any related impact in the period these Codes become effective.

48 Additional Regulatory Disclosures as per Schedule III of Companies Act, 2013

i) . There are no proceedings initiated or pending against the company for holding any benami property under the

Benami Transactions (Prohibition) Act, 1988 and rules made there under.

ii) . There are no transactions not recorded in the books of accounts that have been surrendered or disclosed as income

during the year in the tax assessments under the Income tax Act, 1961.

iii) . The Company has not (which are material either individually or in the aggregate) advanced or loaned or invested any

funds (either from borrowed funds or share premium or any other sources or kind of funds) in any other person or entity, including foreign entity ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

iv) . The Company has not (which are material either individually or in the aggregate) received any funds from any

person or entity, including foreign entity ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

v) . The Company has not been declared as a wilful defaulter by any bank or financial institution or government or any

government authority.

vi) . As per the information available with the Company, the Company has no transactions with the companies struck off

under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

vii) . The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year ended

March 31, 2024.

viii) .No scheme of arrangement has been approved by the competent authority in terms of Section 230 to 237 of the Companies Act, 2013.

ix) . The Company has not made investments in more than one layer of body corporate in accordance with provisions

of clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017.

49 The financial statements were approved for issue by the Board of Directors on 23^rd May, 2024.

50 The final dividend on shares is recorded as liablity on the date of approval by the shareholders.

Dividend declared by the company are based on the profits available for distribution.

The Board of Directors have recommended a dividend of '' 15.00/- (150%) each per equity share of the face value of '' 10 each, subject to the approval of the shareholders at the ensuing Annual General Meeting. This will result in a total dividend outgo of '' 368.70/- Lakhs.

51 Lease Arrangements:

Company as Lessee:

Rental Expense recorded for short-term leases was Rs. 12.14 lakhs (Previous year Rs. 0.18 lakhs).

Total Cash out flow for leases including short term lease was Rs. 12.14 lakhs (Previous year Rs. 0.18 lakhs).

52 The figures of the previous year have been regrouped / rearranged wherever necessary to correspond with the current year figures.

All the figures have been rounded off to lakhs unless stated otherwise. Discrepancies, if any, in between the totals and the sum of the items forming part of such totals are due to rounding off in the financial statements. Wherever figures, are indicated as 0.00 lakhs, it represents value less than Rs. 0.01 lakhs due to rounding off to the nearest lakhs.

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Mar 31, 2018

1. Company overview

Lakshmi Electrical Control Systems Limited (''the Company'') is a public limited company incorporated in India. The company''s equity shares are listed on BSE. The address of its registered office and principal place of business are disclosed in the introduction to the Annual Report. The company is engaged in the manufacturing and selling of control panels and plastic components.

Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of ''10/- each. All these equity shares have the same rights and preferences with respect to payment of dividend, repayment of capital and carries one vote for every such class of shares held. In the event of liquidation, the excess assets shall be distributed amongst the members in proportion to the capital.

i) General reserve: Part of retained earnings was earlier utilised for declaration of dividends as per the erstwhile Companies Act, 1956. This is available for distribution to share holders.

ii) Retained earnings: Company''s cumulative earnings since its formation minus the dividends/capitalisation and earnings transferred to general reserve.

iii) Securities Premium: Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act, 2013.

iv) FVOCI - Equity instruments: The Company has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive income. These changes are accumulated within the FVOCI equity investments reserve within equity. The Company transfers amounts from this reserve to retained earnings when the relevant equity securities are derecognised.

(v) Brief description of the Plans & risks

These plans typically expose the Company to actuarial risks such as : Investment risk, interest risk, longetivity risk and salary risk.

Investment risk:

The present value of the defined benefit plan liability is calculated using a discount which is determined with reference to market yields at the end of the reporting period on government bonds. Plan investment is a mix of investments in government securities, other debt instruments and equity shares of listed companies.

Interest risk:

A decrease in the bond interest rate will increase the plan liability. However, this will be partially offset by an increase in the return on the plan''s debt instruments, if any.

Longetivity risk:

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.

Salary risk:

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of plan participants will increase the plan''s liability.

The above sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.

(i) Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the group has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

There are no transfers between levels 1 and 2 during the year.

The Company''s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include the use of quoted market prices or dealer quotes for similar instruments. The carrying amounts of trade receivables, trade payables, cash and cash equivalents and other current financial liabilities are considered to be the same as their fair values, due to their short-term nature.

2. CAPITAL MANAGEMENT

(a) Risk management

The Company''s objectives when managing capital are to

- safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

- maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, The company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

Company is debt free currently and it intends to maintain a optimal gearing ratio for optimising shareholder value.

3. FINANCIAL RISK MANAGEMENT

The Company''s activities expose it to market risk, liquidity risk and credit risk.

(A) Credit risk

Company faces credit risk from cash and cash equivalents, deposits with banks and financial institutions and unsecured trade receivables. The Company doesn''t face any credit risk with other financial assets

(i) Credit risk management

Credit risk on deposit is mitigated by the depositing the funds in Scheduled Commercial Banks.

For trade receivables, the primary source of credit risk is that these are unsecured. The Company sells the products to customers only when the collection of trade receivables is certain and whether there has been a significant increase in the credit risk on an on-going basis is monitored throughout each reporting period. As at the balance sheet date, based on the credit assessment the historical trend of low default is expected to continue. An impairment analysis is performed at each reporting date on an individual basis for major clients. Any recoverability of receivables is provided for based on the impairment assessment. Historical trends showed as at the transition date and 31^st March, 2017 company had no significant credit risk.

(B) Liquidity risk

Objective of liquidity risk management is to maintain sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Management monitors rolling forecasts of the Company''s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows. The Company''s liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring Balance Sheet liquidity ratios against internal requirements.

The bank overdraft facilities may be drawn at any time and may be terminated by the bank without notice. Subject to the continuance of satisfactory credit ratings, the bank loan facilities may be drawn at any time in INR and have an average maturity of 1 year.

(ii) Maturities of financial liabilities

he tables below analyse the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities for:

a) all non-derivative financial liabilities, and

b) net and gross settled derivative financial instruments for which the contractual maturities are essential for an understanding of the timing of the cash flows.

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

(C) Market risk

(i) Foreign currency risk

The Company activities exposes it to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD and EURO Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the Company''s functional currency (INR). The risk is measured through a forecast of highly probable foreign currency cash flows.

4. DISCLOSURE AS PER SCHEDULE III

As defined under Micro, Small and Medium Enterprises Development Act, 2006, the disclosure in respect of the amount payable to such enterprises as at 31.03.2018 has been made in the financial statements based on information received and available with the Company.

5. FIRST-TIME ADOPTION OF IND AS

Transition to Ind AS

These are the Company''s first financial statements prepared in accordance with Ind AS.

The accounting policies set out in note 2 have been applied in preparing the financial statements for the year ended 31^st March, 2018, the comparative information presented in these financial statements for the year ended 31^stMarch, 2017 and in the preparation of an opening Ind AS balance sheet as at 1^st April, 2016 (The Company''s date of transition). In preparing its opening Ind AS Balance Sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP).

An explanation of how the transition from previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows is set out in the following notes.

A. Exemptions and exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

A.1 Ind AS optional exemptions

A.1.1 Deemed cost

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities.

Accordingly, the Company has elected to measure all of its property, plant and equipment, intangible assets and investment property at their previous GAAP carrying value.

A.1.2 Designation of previously recognised financial instruments

Ind AS 101 allows an entity to designate investments in equity instruments at FVOCI on the basis of the facts and circumstances at the date of transition to Ind AS. The Company has elected to apply this exemption for its investment in equity investments.

A.2 Ind AS mandatory exceptions

A.2.1 Estimates

An entity''s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error. Ind AS estimates as at 1^st April, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:

- Investment in equity instruments carried at FVOCI;

- Investment in mutual funds carried at FVTPL;

B. Notes to first-time adoption:

Note 1: Investment in Mutual fund

Under previous GAAP, current investments in mutual funds were carried at cost or NRV whichever is lower, Under Ind-AS the Mutual funds is carried at fair value through profit & loss (FVTPL) this resulted in increase of equity by Rs. 0.85 as at 31^st March, 2017. (1^st April, 2016 - Rs.NIL).

Note 2: Fair valuation of investments

Under Previous GAAP, investment in equity instruments were carried at nominal value, under the Ind-AS same investments are carried at FVOCI, Consequent to this change, the amount of investments increased by Rs.795.99 as at 31^st March, 2017 (1^st April, 2016 - Rs.2,898.66).

Note 3: Remeasurements of post-employment benefit obligations

Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in other comprehensive income instead of profit or loss. Under the previous GAAP, these remeasurements were forming part of the profit or loss for the year.

Under IGAAP company has not recognised net asset position in gratuity, on adoption of Ind-AS group has recognised net asset position as on 1^st April, 2016 which has resulted in increase of retained earnings by Rs.1.04 and retained earnings by Rs.15.78 as at 31^st March, 2017.

Note 4: Deferred Taxes

Deferred tax have been recognised on the adjustments made on transition to Ind AS.

Note 5: Proposed dividend

Under the previous GAAP, proposed dividends were recognised as a provision in the financial statements, even if declared after the balance sheet date. Under Ind AS, dividends are recognised when declared. This resulted in a timing difference and has been reflected in total equity of the relevant financial years.

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Mar 31, 2017

Disclosure in respect of Material Related Party Transactions during the year:

1. Purchase of Goods includes Lakshmi Machine Works Limited Rs. 32,24,37,169 (Previous Year Rs. 32,44,02,852), and Lakshmi Precision Tools Limited Rs. 13,11,40,547 (Previous Year Rs. 11,69,67,155), Others

- Other Related Parties - Associates Rs. 10,75,070 (Previous Year Rs. 9,58,527).

2. Sale of Goods includes Lakshmi Machine Works Limited Rs. 1,71,79,80,410 (Previous Year Rs. 1,98,78,19,722) and Others - Other Related Parties - Associates Rs. 1,90,63,237 (Previous Year Rs. 1,12,01,327).

3. Sale of Fixed Assets includes Starline Travels Limited Nil (Previous Year Rs. 6,25,000) and Others - Other Related Parties - Associates Nil (Previous Year Nil).

4. Rendering of Services includes Lakshmi Machine Works Limited Rs. 68,64,368 (Previous Year Rs. 2,32,80,534), Lakshmi Precision Tools Limited Rs. 42,75,769 (Previous Year Rs. 42,18,944), and Others -Other Related Parties - Associates Rs. 15,49,992 (Previous Year Rs. 30,92,073).

5. Receiving of Services includes Lakshmi Cargo Company Limited Rs. 31,54,849 (Previous Year Rs. 44,83,137), Starline Travels Limited Rs. 39,13,267 (Previous Year Rs. 41,79,688), and Others - Other Related Parties - Associates Rs. 3,70,920 (Previous Year Rs. 3,71,794).

6. Managerial Remuneration includes amount paid to Smt. Nethra J.S. Kumar Rs. 88,64,067 (Previous Year Rs. 82,11,929)

7. Sale of Equity Shares includes Lakshmi Electrical Drives Limited Nil (Previous Year Rs. 10,00,00,000) and Others - Other Related Parties - Associates Nil (Previous Year Nil).

8. Dividend paid to includes Smt. Nethra J.S. Kumar Rs. 39,78,696 (Previous Year Rs. 34,81,359), Lakshmi Electrical Drives Limited Rs. 13,82,048 (Previous Year Rs. 9,18,442) and Others - Others Related Parties - Associates Rs. 1,18,800 (Previous Year Rs. 1,03,950).

9. Outstanding Receivables includes Lakshmi Machine Works Limited Rs. 33,27,84,935 (Previous Year Rs. 30,25,78,052) and Others - Other Related Parties - Associates Rs. 70,93,162 (Previous Year Rs. 38,34,551).

10. Outstanding Payables includes Lakshmi Machine Works Limited 9,07,65,474 (Previous Year Rs. 6,97,27,147) and Lakshmi Precision Tools Limited Rs. 1,37,48,723 (Previous Year Rs. 33,49,817), and Others

- Other Related Parties - Associates Rs. 17,23,809 (Previous Year Rs. 12,17,793).

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Mar 31, 2016

1. Relationships

Description of relationship Names of related parties

Other related parties Eshann Enterprises Ltd

GKD ITR Tooling Center

Harshni Textiles Ltd

Integrated Electrical Controls India Ltd

Lakshmi Precision Tools Ltd

Lakshmi Electrical Drives Ltd

Lakshmi Ring Travellers (Coimbatore) Ltd

Lakshmi Cargo Company Ltd

Lakshmi Technology & Engineering Industries Ltd

Lakshmi Life Sciences Ltd

LCC Cargo Holding Ltd

Lakshmi Machine Works Ltd

Mahalakshmi Engineering Holding Ltd

Quattro Engineering India Ltd

Starline Travels Ltd

Sun Spintex Ltd

Venkata Varadhaa Agencies Pvt Ltd Supreme Dairy Products India Pvt Ltd Key Management Personnel Smt. Nethra J.S. Kumar

Chairperson and Managing Director

Disclosure in respect of Material Related Party Transactions during the year :

1. Purchase of Goods includes Lakshmi Machine Works LimitedRs,32,44,02,852 (Previous YearRs,85,50,14,984) and Lakshmi Precision Tools LimitedRs,11,69,67,155 (Previous YearRs,19,15,05,632), Others - Other Related Parties - AssociatesRs,9,58,527 (Previous YearRs,7,32,523).

2. Sale of Goods includes Lakshmi Machine Works LimitedRs,1,98,78,19,722 (Previous YearRs,1,91,36,36,186) and Others - Other Related Parties - AssociatesRs,1,12,01,327 (Previous YearRs,1,28,58,918).

3. Sale of Fixed Assets includes Lakshmi Precision Tools Limited Rs,Nil (Previous YearRs,12,78,181), Starline Travels LimitedRs,6,25,000 (Previous YearRs,Nil) and Others - Other Related Parties – Associates Rs,Nil (Previous Year Rs,Nil).

4. Rendering of Services includes Lakshmi Machine Works LimitedRs,2,32,80,534 (Previous YearRs,2,09,46,950), Lakshmi Precision Tools LimitedRs,42,18,944 (Previous YearRs,33,28,834) and Others - Other Related Parties -AssociatesRs,30,92,073 (Previous YearRs,33,32,826).

5. Receiving of Services includes Lakshmi Cargo Company LimitedRs,44,83,137 (Previous YearRs,38,55,529) Starline Travels LimitedRs,41,79,688 (Previous YearRs,37,91,633) and Others - Other Related Parties - AssociatesRs,3,71,794 (Previous YearRs,3,79,902).

6. Managerial Remuneration includes amount paid to Smt. Nethra J.S. KumarRs,82,11,929 (Previous YearRs,86,12,565)

7. Sale of Equity Shares includes Lakshmi Electrical Drives LimitedRs,10,00,00,000 (Previous Year Rs,Nil) and Others - Other Related Parties – Associates Rs,Nil (Previous YearRs,Nil).

8. Dividend paid to includes Smt. Nethra J.S. KumarRs,34,81,359 (Previous YearRs,24,86,685) Lakshmi Electrical Drives LimitedRs,9,18,442 (Previous YearRs,6,56,030), Others - Other Related Parties - AssociatesRs,1,03,950 (Previous YearRs,74,250).

9. Outstanding Receivables includes Lakshmi Machine Works LimitedRs,30,25,78,052 (Previous YearRs,28,09,30,562) and Others - Other Related Parties - AssociatesRs,38,34,551 (Previous YearRs,19,81,583).

10. Outstanding Payables includes Lakshmi Machine Works LimitedRs,6,97,27,147 (Previous YearRs,13,09,77,986) and Others - Other Related Parties - AssociatesRs,45,67,610 (Previous YearRs,1,07,41,528).

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Mar 31, 2014

1. A s defined under Micro, Small and Medium Enterprises Development Act 2006, the disclosure in respect of the amount payable to such enterprises as at 31.03.2014 has been made in the financial statements based on information received and available with the company.

2. Contingent Liabilities and claims against the company not acknowledged as debts:

A] (i) Estimated amount of contracts to be Executed on capital account and not provided for 28,57,954 24,84,388

(ii) Guarantees and Counter Guarantees executed by the Company 63,44,038 56,98,238

(iii) Letters of Credit 1,24,67,103 31,27,472

B] Sales Tax Assessments have been completed up to Financial Year 2005 – 2006 and Financial Year 2009 - 2010.

C] Income Tax Assessments have been completed up to A.Y. 2011 -12.

3. Some of the Debtors / Creditors accounts whose balances show a variance as compared to the Books of Accounts of the Company are in the process of reconciliation. This however will not have any material impact on the profits for the year.

4. Figures have been rounded off to the nearest rupee.

5. The previous year''s figures have been regrouped and reclassified wherever necessary to suit this year''s presentation.

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Mar 31, 2013

1. Secured Loans :

Working Capital loans from Indian Bank and Bank of Baroda have been secured by the hypothecation of Raw Materials, Components, Work-in-progress, Finished Goods, Book Debts and all other movable current assets of the Company.

2. Contingent Liabilities and claims against the company not acknowledged as debts:

A] (i) Estimated amount of contracts to be Executed on capital account and not provided for 2,484,388 1,067,008

(ii) Guarantees and Counter Guarantees executed by the Company 5,698,238 3,071,450

(iii) Letters of Credit 3,127,472 -

B] (i) Sales Tax Assessments have been completed up to Financial Year 2004 - 2005

(ii) The Company''s appeal against demand for Sales Tax penalty of Rs.1.34 Lakhs for the financial year 1997-98 has been decided against the Company. However no provision is made as on 31.03.2013 in view of the waiver of penalty under the Tamil Nadu Sales Tax (Settlement of Arrear) Scheme 2008.

C] Income Tax Assessments have been completed up to A.Y. 2010 -11.

3. Some of the Debtors / Creditors accounts whose balances show a variance as compared to the Books of Accounts of the Company are in the process of reconciliation. This however will not have any material impact on the profits for the year.

4. Figures have been rounded off to the nearest rupee.

5. The previous year''s figures have been regrouped and reclassified wherever necessary to suit this year''s presentation.

Disclosure in respect of Material Related Party Transactions during the year:

1. Purchase of Goods includes Lakshmi Machine Works Limited Rs. 71,24,80,572 (Previous Year Rs. 89,37,39,181), and Others - Other Related Parties - Associates Rs. 8,51,24,875 (Previous Year Rs. 6,86,287).

2. Sale of Goods includes Lakshmi Machine Works Limited Rs. 1,28,02,43,173 (Previous Year Rs. 1,60,43,95,330), and Others - Other Related Parties - Associates Rs. 13,57,45,921 ( Previous Year Rs. 2,16,81,246).

3. Sale of Fixed Assets includes SunSpintex (Merged with LEDL) Rs. 1,09,74,955 (Previous Year Rs. 4,12,85,000) and Others - Other Related Parties - Associates Rs. 3,09,979 (Previous Year Rs. 23,090).

4. Rendering of Services includes Lakshmi Machine Works Limited Rs. 1,65,36,441 (Previous Year Rs. 2,07,68,094),and Others - Other Related Parties - Associates Rs. 16,11,656 (Previous Year Rs. 20,50,328).

5. Receiving of Services includes Lakshmi Precision Tools Limited Rs. 10,08,677(Previous Year Rs. 2,97,014) Lakshmi Cargo Company Limited Rs. 9,15,041 (Pervious Year Rs. 21,59,315), Starline Travels Limited Rs. 18,11,457(Previous Year Rs. 5,95,381), and Others - Others Related Parties - AssociatesRs. 2,78,964 (Previous Year Rs. 4,00,365).

6. Managerial Remuneration includes amount paid to Smt. Nethra J.S. Kumar Rs. 50,59,900 (Previous Year Rs. 74,70,797)

7. Dividends paid to includes Smt. Nethra J.S. Kumar Rs.24,86,685 (Previous Year Rs. 22,38,017), Lakshmi Electrical Drives Limited Rs.6,56,030 (Previous Year Rs. 3,04,241 ) Others Related Parties - Associates Rs.74,250 (Previous Year Rs. 66,375).

8. Outstanding Receivables includes Lakshmi Machine Works Limited Rs. 14,68,23,684 (Previous Year Rs. 21,28,32,866), LMW Machinery Limited Rs. 4,03,24,773 and Others - Others Related Parties - Associates Rs. 58,84,226 (Previous Year Rs. 16,90,209).

9. Outstanding Payables includes Lakshmi Machine Works Limited Rs. 16,99,07,362 (Previous Year Rs. 18,81,18,597), LMW Machinery Limited Rs. 2,31,13,131 and Others - Others Related Parties - Associates Rs. 10,48,340 (Previous Year Rs. 2,08,623).

3) The undernoted companies constitute the " Group" in terms of regulation 3(1)(e)(i) of Securities and Exchange Board of India (Substantial Acquisition of Shares Takeovers) Regulations,1997 as amended with effect from 09- 09-2002.

1) Eshann Enterprises Ltd, 2) Harshni Textiles Ltd, 3) Integrated Electrical Controls India Ltd, 4) Lakshmi Precision Tools Ltd, 5) Lakshmi Electrical Drives Ltd, 6) Lakshmi Ring Travellers (CBE) Ltd, 7) Lakshmi Cargo Company Ltd, 8) Lakshmi Technology & Engineering Industries Ltd, 9) Lakshmi Life Sciences Ltd, 10) LCC Cargo Holding Ltd, 11) Lakshmi Machine Works Ltd, 12) LMW Machinery Ltd, 13) Mahalaxmi Engineering Holding Ltd, 14) Quattro Engineering India Ltd, 15) Starline Travels Ltd, 16) Titan HMG Paints India Ltd, 17) Venkata Varadhaa Agencies Ltd, 18) Sun Spintex Ltd.

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Mar 31, 2012

1. Secured Loans

Working Capital loans from Indian Bank and Bank of Baroda have been secured by the hypothecation of Raw Materials, Components, Work-in-progress, Finished Goods, Book Debts and all other movable current assets of the Company.

2. Contingent Liabilities and claims against the company not acknowledged as debts.

2011-12 2010-11 (Amount in Rs) (Amount in Rs)

A] (i) Estimated amount of contracts to be Executed on capital account and not provided for 1,067,008 1,820,325

(ii) Guarantees and Counter Guarantees executed by the Company 3,071,450 2,796,450

(iii) Letters of Credit - 721,000

B] (i) Sales Tax Assessments have been completed upto financial year 2004 - 2005.

(ii) The Company's appeal against demand for Sales Tax penalty of Rs.1.34 Lakhs for the financial year 1997-98 has been decided against the Company. However no provision is made as on 31.03.2012 in view of the waiver of penalty under the Tamilnadu Sales Tax (Settlement of Arrear) Scheme 2008.

C] Income Tax Assessments have been completed upto A.Y. 2009-2010.

3. 2 Nos. of Engel make injection moulding machines were imported under EPCG Scheme during the financial year 2007-2008. The entire export obligation has been fulfilled during the year 31.03.2012 and the formalties of redemption before JDGFT is in process.

Note: The salary escalation considered in acturial valuation,takes account of inflation,seniority,promotion and other relevant factors such as supply and demand in the employment market.

Gratuity is applicable to all permanent and full time employees of the Company.

"Gratuity payment is based on last drawn basic salary and dearness allowance at the time of termination or retirement. The Scheme takes into account each completed year of service or part thereof in excess of six months.

The entire contribution is borne by the Company."

Leave encashment benefits are provided as per the Rules of the Company.

4. Some of the Debtors / Creditors accounts whose balances show a variance as compared to the Books of Accounts of the company are in the process of reconciliation. This however will not have any material impact on the profits for the year.

5. Figures have been rounded off to the nearest rupee.

6. The previous year's figures have been regrouped and reclassified wherever necessary to suit this year's presentation.

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Mar 31, 2011

2010-11 2009-10

A] (i) Estimated amount of contracts to be Executed (Amount in Rs.) (Amount in Rs.) on capital account and not provided for 1,820,325 6,981,310

(ii) Guarantees and Counter Guarantees executed by the Company 2,796,450 2,796,450

(iii) Letters of Credit 721,000 2,027,235

B] (i) Sales tax assessments have been completed upto financial year 2003 - 2004

(ii) The Company's appeal against demand for Sales Tax penalty of Rs.1.34 Lakhs for the financial year 1997-98 has been decided against the Company. However no provision is made as on 31.03.2011 in view of the waiver of penalty under the Tamilnadu Sales Tax (Settlement of Arrear) Scheme 2008.

2. Provision for Excise Duty amounting to Rs. 5,22,271/- for the uncleared stock of finished goods has been made in the accounts.

3. 2 Nos. of Engel make injection moulding machines were imported under EPCG Scheme during the financial year 2007-08. The entire export obligation of Rs.131.72 lakhs which is to be fulfilled on or before 30.01.2016 will be fulfilled by the Group Company Lakshmi Precision Tools Limited. The export obligation pending as on 31.03.2011 is Rs.131.72 lakhs. Non fulfillment will entail payment of duty saved together with interest, the amount being indeterminant.

4. Some of the Debtors / Creditors accounts whose balances show a variance as compared to the Books of Accounts of the company are in the process of reconciliation. This however will not have any material impact on the profits for the year.

5. Figures have been rounded off to the nearest rupee.

6. The previous year's figures have been regrouped and reclassified wherever necessary to suit this year's presentation.

(B) RELATED PARTY DISCLOSURES FOR THE YEAR ENDED 31st MARCH, 2011

1) Relationships

Description of relationship Names of related parties

Other related parties Eshann Enterprises Ltd

Harshni Textiles Ltd

Integrated Electrical Controls India Limited Lakshmi Precision Tools Ltd Lakshmi Electrical Drives Limited Lakshmi Ring Travellers(CBE) Ltd Lakshmi Cargo Company Ltd Lakshmi Technology & Engineering Industries Ltd Lakshmi Life Sciences Limited LCC Cargo Holding Ltd Lakshmi Machine Works Ltd Mahalaxmi Engineering Holding Ltd Starline Travels Limited Titan HMG Paints India Ltd Venkata Varadhaa Agencies Limited

Key Management Personnel

Smt. Nethra J.S. Kumar

Managing Director

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Mar 31, 2010

1. Secured Loans

a. Term Loan from Indian Bank availed by the Company have been secured by Equitable Mortgage of the Land and Buildings and Movable Machinery including Wind Mills.

b. Working Capital loans from Indian Bank and Bank of Baroda have been secured by the hypothecation of Raw Materials, Components, Work-in-progress, Finished Goods, Book Debts and all the movable assets pertaining to the current assets of the Company.

2. Contingent Liabilities and claims against the company not acknowledged as debts.

2009-10 2008-09 A](i) Estimated amount of contracts to be Executed (Amount in Rs.) (Amount in Rs.) on capital account and not provided for 6,981,310 2,431,200

(ii) Guarantees and Counter Guarantees executed by the Company 2,796,450 2,069,000

(iii) Letters of Credit 2,027,235 --

B] (i) Sales tax assessments have been completed upto financial year 2003 - 2004

(ii) The Companys appeal against demand for Sales Tax penalty of Rs.1.34 Lakhs for the financial year 1997-98 has been decided against the Company. However no provision is made as on 31.03.2010 in view of the waiver of penalty under the Tamilnadu Sales Tax (Settlement of Arrear) Scheme 2008.

3. Provision for Excise Duty amounting to Rs. 7,84,819/- for the uncleared stock of finished goods has been made in the accounts.

4. 2 Nos. of Engel make injection moulding machines were imported under EPCG Scheme during the financial year 2007-08. The entire export obligation of Rs.131.72 lakhs which is to be fulfilled on or before 30.01.2016 will be fulfilled by the Group Company Lakshmi Precision Tools Limited. The export obligation pending as on 31.03.2010 is Rs.131.72 lakhs. Non fulfillment will entail payment of duty saved together with interest, the amount being indeterminant.

5. Deferred Tax

(a) Out of the deferred tax liability created from General Reserve for the earlier years in 2001-02, Rs.17,43,684/- has been transferred to General Reserve on account of reversal.

6. Some of the Debtors / Creditors accounts whose balances show a variance as compared to the Books of Accounts of the company are in the process of reconciliation. This however will not have any material impact on the profits for the year.

7. Figures have been rounded off to the nearest rupee.

8. The previous years figures have been regrouped and reclassified wherever necessary to suit this years presentation.