Lakshmi Automatic Loom Works Ltd Management Discussions

I Industry Structure and Development

Economic growth and the governments focus on building highways and improving logistics are driving growth in Indias warehousing sector. Conferring the ‘Infrastructure status to the logistics and warehousing sector, the rapid expansion of newage sectors like ecommerce and allied services, the growing needs of the massive consumption market, and the governments focus on making India as a manufacturing hub has resulted in a steep uptick in warehousing demand.

In the Warehousing Division at Hosur the entire Leasable Building Space has been let out to Corporates of repute. Located on the Bangalore Salem / Chennai Highway with proximity to Karnataka and Other Southern States the demand for building space in Hosur is encouraging.

The Engineering Services Division near Coimbatore Manufactures Spares and Accessories of Shuttle Looms, Parts for Machine Tools and Spares for other Textile Machineries.

The manufacturing sector excluding (Consumer Goods and Durables) kept on gaining momentum and contributed for a significant volume in warehousing transactions during 2024. This growth is primarily driven by the consumption boom, with 60% of online purchases now originating from Tier II and III cities. The Positive market momentum and steady average rents reflect occupiers ability to secure favourable terms in scaling up our operations.

There is a growing preference by the occupiers for Grade A, ESGcompliant Warehouses with modern storage solutions. Thirdparty Logistics Firms, Engineering & Manufacturing Companies and eCommerce players take Warehousing space on lease and are the major Warehouse space demand drivers. As the industry matures, occupier expectations regarding the base level rental offers have increased with standard specifications rather than valueadded charges over the base rents. This improvement in base level rental offers have also increased costs and results in rents forming a higher base going up. Your Companys buildings having large space and the location in the highway is an added advantage for corporate clients.

The Companys Engineering Services Division is catering to the Customers for supply of Parts for Machine Tools and Tool Holders, Textile Spares and Accessories to Domestic and Overseas clients. The increase in input cost has affected the operational margin. With reengineering and supplying to new Consumers, as well as in identifying new opportunities in other areas, your Company is endeavoring to improve the turnover and the bottom line.

The entire existing space and the additional space of the newly constructed building having been leased to reputed Corporates, the rental income will increase during the Financial Year 202526.

Your Companys continuous efforts in identifying new Domestic and Overseas Textile Machinery Manufacturers, the supply of Spares, Accessories and Parts for Machine Tools is expected to result in earning more revenue to the Company.

The Company has adequate Internal Control System commensurate with its size and nature of its business. The Management has overall responsibility for the Companys Internal Control Systems to safeguard the assets and to ensure reliability of financial records. The Audit Committee reviews the Financial Statements and ensures adequacy of Internal Control Systems.

The Company during the year has achieved a Revenue of T 1,402.26 Lakhs from operations and the Net Profit for the year under review is T 88.16 Lakhs after providing T 119.08 Lakhs for Depreciation and T 13.35 Lakhs towards Taxation.

The number of employees engaged during the year was in line with operational requirement of the Company. The relation with labour continued to be cordial during the year. Total employees as on 31.03.2025 were 111 (One Hundred and Eleven only).

To

The Members of

LAKSHMI ENGINEERING AND WAREHOUSING LIMITED Coimbatore641037

We hereby certify that the paidup Equity Share Capital of LAKSHMI ENGINEERING AND WAREHOUSING LIMITED (‘the Company) is T 6.69 crores and the net worth of the company is T 21.67 crores as on the last day of the previous financial year i.e 31.03.2024. As per Regulation 15(2) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,2015 (‘Listing Regulations), the compliance with the corporate Governance provisions as specified in Regulations 17 to 27 and clauses (b) to (i) and (1) of subregulation (2) of Regulation 46 and paras C, D and E of Schedule V of the Listing Regulations shall not apply in respect of:

a) the listed entity having paid up equity share capital not exceeding Rupees Ten Crores and net worth not exceeding Rupees Twenty Five Crores, as on the last day of the previous financial year, provided that where the provisions of the regulations specified in this regulation becomes applicable to a listed entity at a later date, such listed entity shall comply with the requirements of those regulations within six months from the date on which the provisions became applicable to the listed entity.

Accordingly Corporate Governance provisions are not applicable to the Company for the Financial Year ended March 31, 2025.

For M/s Subbachar & Srinivasan

Chartered Accountants Firm Registration No.004083S

(Sd.) ABHINAV VENKATESH

Partner

Membership No. 263357 UDIN : 25263357BMIXFG9654

Place : Coimbatore Date : 23052025