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LAKSHMI

AUTOMATIC LOOM WORKS

LIMITED

37th ANNUAL REPORT2010 - 2011

Contents Page

Notice to Shareholders 2

Report of the Board of Directors

to the Shareholders 4

Auditors’ Report 16

Balance Sheet 20

Profit and Loss Account 21

Schedules 22

Notes on Accounts 29

LAKSHMI AUTOMATIC LOOM WORKS LIMITED

Lakshmi Automatic

Loom Works Limited

Board of Directors

Mr. S. PATHY

Chairman

Mr. V.B. HARIBHAKTI

Mr. R.C.H. REDDY

Mr. R. SANTHARAM

Mr. MILIND M. SHAHANE

Mr. N. JAYCHANDER

Director-in-Charge

Secretary

Mr. A. DORAISWAMY

Auditors

M/s. N.R. DORAISWAMI & CO

Chartered Accountants

Bankers

INDIAN BANK

Registered Office

686, Avanashi Road

Pappanaickenpalayam

Coimbatore - 641 037

Tamilnadu

Works

Weaving Machinery and Spares

(Unit-1)

Hosur Industrial Complex

Hosur - 635 126

Tamilnadu

Other Engineering Services

100% EOU (Unit-2) and DTA (Unit-3)

Singarampalayam

Kinathukadavu - 642 109

Tamilnadu


2

Notice to Shareholders

Notice is hereby given that the Thirty Seventh

Annual General Meeting of the shareholders of

the Company will be held on Thursday the 11th day

of August, 2011 at 4.30 P.M. at the Registered

Office of the Company at 686, Avanashi Road,

Pappanaickenpalayam, Coimbatore – 641 037 for

transacting the following business:

Agenda

Ordinary Business:

1. To consider and adopt the Balance Sheet as

at 31st March, 2011 and the Profit and Loss

Account for the year ended on that date and

the Report of the Board of Directors and also

the Report of the Auditors thereon.

2. To appoint a director in the place of

Sri R. Santharam who retires by rotation and

being eligible offers himself for re-election.

3. To appoint a Director in the place of

Sri R.C.H. Reddy who retires by rotation and

being eligible offers himself for re-election.

4. To appoint Auditors of the Company to hold

office from the closure of this meeting until

the closure of the next Annual General

Meeting and fix their remuneration.

Special Business:

5. To consider and if thought fit to pass the

following resolution as an Ordinary

Resolution with or without modification.

“Resolved that Sri Milind M. Shahane who

has been appointed on 30.5.2011 in the

casual vacancy caused by the resignation of

Sri S. Venkataraman and holds office up to

the date of the 37th Annual General Meetingand is eligible for appointment and in respect

of whom the company has received a Notice

in writing proposing his candidature for the

office of the Director be and is hereby

appointed as a Director of the company.”

By Order of the Board

(Sd.) A.Doraiswamy

Company Secretary

Note:

1. The Register of Members of the Companywill remain closed from 6.8.2011 to11.8.2011 (both days inclusive).

2. A MEMBER WHO IS ENTITLED TO ATTEND ANDVOTE IS ENTITLED TO APPOINT A PROXY TOATTEND AND VOTE INSTEAD OF HIMSELF ANDA PROXY NEED NOT BE A MEMBER.

3. Members are requested to communicatetheir change of address if any quoting theirrespective folios.

4. Any member who needs any clarification onaccounts or operations of the Company shallwrite to the Company Secretary, so as toreach him at least 7 days before the meeting,so that the information required can be madeavailable at the meeting.

5. Disclosure pursuant to clause 49 of thelisting agreement with respect to theDirectors proposed to be re-appointed at theensuing Annual General Meeting:

Sri R. Santharam has studied TextileManagement in USA and is closely associatedwith the Textile Industry for the last 45 years.He is the Chairman and Managing Directorof Lakshmi Card Clothing ManufacturingCompany Pvt. Ltd in collaboration with GRAFof Switzerland, a leading Card Clothingmanufacturing Company in India. He islooking after the entire operations includingProduction, Personnel, Finance andMarketing of the Company for the last 45years. He was the past Chairman of TextileMachinery Manufacturers’ Association (India).

Other Directorships:

Name of the Company:

1. The Lakshmi Mills Company Ltd.

2. LCC Investments Ltd.

3. Sri Revati Spinning Mills Ltd

Committee Memberships:

Name of the Committees:

Audit Committee:

1. Lakshmi AutomaticLoom Works Ltd. - Member

2. The Lakshmi MillsCompany Ltd. - Member

Coimbatore

30.05.2011


3

Investors Grievance Committee:

1. Lakshmi Automatic

Loom Works Ltd. - Chairman

2. The Lakshmi Mills

Company Ltd. - Chairman

Remuneration Committee:

1. The Lakshmi Mills

Company Ltd. - Member

Shareholding : Nil

6. Sri R.C.H. Reddy is a B.Sc. (Tech) and

Diploma holder in Business Management

(University of Madras) and has served in the

Textile Machinery Division of Voltas Ltd for

more than 40 years. He retired from Voltas

Ltd as the Head of the Textile Machinery

Division in the year 1998. He has vast

experience not only in selling WeavingMachines but also good knowledge in

Weaving Machinery Design and Manufac-

turing. He has been associated with Lakshmi

Automatic Loom Works Limited from the

inception. His rich knowledge and experience

in Weaving Industry will be beneficial to the

Company. He is the President in Lakshmi

Electrical Control Systems Ltd., Coimbatore

and a Director in Lakshmi Card ClothingManufacturing Company Pvt. Ltd.

Other Directorships:

Name of the Company

1. Rajshree Sugars & Chemicals Ltd.

2. Lakshmi Electrical Drives Ltd.

3. Lakshmi Precision Tools Ltd.

4. Harshini Textiles Ltd.

5. Lakshmi Ring Travellers

(Coimbatore) Ltd.

Committee Memberships:

Name of the Committees :

Audit Committee :


Loom Works Ltd. - Chairman

2. Rajshree Sugars &Chemicals Ltd. - Member

3. Harshini Textiles Ltd. - Member

Investors Grievance Committee:


Loom Works Ltd. - Member

Remuneration Committee:

1. Rajshree Sugars &Chemicals Ltd. - Member

Sri R.C.H. Reddy is holding 594 equity shares

of Rs.10/-each of the company.


(Sd.) A. DoraiswamyCompany Secretary

Coimbatore

30.05.2011

Annexure to Notice

Explanatory Statement under Section 173(2)of the Companies Act, 1956.

For Ordinary Resolution under Item No. 5

Sri Milind M. Shahane was appointed on30.5.2011 as a Director in the casual vacancy

caused by the resignation of Sri S. VenkataramanIn terms of Article 54 of the Articles of Associationof the Company and Section 262 of the Companies

Act, 1956, Sri Milind M. Shahane holds office uptothe date of the 37th Annual General Meeting ofthe Company. Notice alongwith the deposit of

Rs.500 has been received from a member asrequired by Section 257 of the Companies Act,1956, proposing Sri Milind M. Shahane for the

office of Director. Sri Milind M. Shahane is aB.Tech (Chem.Engg.) M.S., PGDM and joined inthe TATA Administrative Services, Mumbai. After

Serving in TELCO Construction Equipment Co.Ltd, Mumbai as Divisional Manager (Marketing)for 10 years and as General Manager, EngineeringServices in the Engineering Products BusinessGroup of Voltas Limited from 2001. Sri MilindM. Shahane is presently the EVP & COO of the

Engineering Products Business Group.

None of the directors except Sri Milind

M. Shahane is interested in this Resolution.

Other Directorships: Nil

Committee Memberships: Nil

Sri Milind M. Shahane is not holding any shares

in the company.


(Sd.) A. Doraiswamy

Company SecretaryCoimbatore

30.05.2011


4

Report of the Board of

Directors to the Shareholders

Your Directors submit their Thirty Seventh Annual Report together with the Audited Balance Sheet

as at 31st March, 2011 and the Profit and Loss Account for the year ended 31st March, 2011.

Financial Results

2010-2011 2009-2010

Rs. in Lakhs

Sales and other Income 660.19 1693.00

Profit before Depreciation 65.45 963.74

Depreciation 39.74 38.51

25.71 925.23

Add : Excess provision for interest withdrawn 67.16 -

Excess Depreciation withdrawn - 0.03

Less : Share issue expenses 0.33 11.79

92.54 913.47

Proposed dividend on 6% Cumulative

Redeemable Preference Shares - 5.87

Net Profit / Loss (-) 92.54 907.60

Add : Balance from the Previous year (-)1773.79 (-)2681.39

Balance Carried Over (-)1681.25 (-)1773.79

The operations during the year have resulted in

a net profit of Rs.92.54 lakhs after providingfor depreciation of Rs.39.74 lakhs.

Weaving Machinery and Spares – (Unit 1)

The sale of Weaving Machines and Spares

including export of 12 Weaving Machines to

China during the year was Rs.273.57 lakhs

against Rs.149.40 lakhs in the previous year.

The demand for ‘C’ type Shuttle WeavingMachines is limited to specific applications such

as for weaving heavy sorts, industrial fabrics,

etc. and is unsteady. The continued import of

used Weaving Machines has further affected the

market. The steep increase in the price of cotton

and consequent fluctuation in the yarn prices

have also affected the weaving industry.

Other Engineering Services – (Unit 2 & 3)

The sale of parts for Machine Tools includingTool Holders during the year has increased to

Rs.154.24 lakhs against Rs.88.66 lakhs in the

previous year. The prices offered are highly

competitive and are not remunerative. The

manufacture and sale of parts and job work

undertaken during the year was Rs.62.64 lakhs

against Rs.27.87 lakhs in the previous year.

Current Industrial Trend

The demand for Weaving Machines depends on

the growth of the textile Industry. The textile

Industry has been affected due to the steep

increase in the price of cotton, shortage of

power, labour, etc. The deferment of Technology

Upgradation Fund Scheme(TUFS) has also

affected the market for weaving machines.


5

Implementation of the Scheme sanctioned byBIFR

The dues to the secured creditors have been

cleared and payments under the VRS to the

workmen have been made. The Company was

discharged from the purview of the Board for

Industrial and Financial Reconstruction (BIFR)

on the networth of the company becomingpositive as on 31.03.2010, as per the order of

the BIFR dated 14.07.2010.

Dividend

The Directors have not recommended dividend

for the year on the 6% - Cumulative Redeemable

Preference Shares to maintain liquidity. The

Directors are unable to recommend a dividend

on the Equity Shares on account of the

accumulated losses.

Directors

Sri S. Venkataraman resigned his directorship

on 30.05.2011 in view of his various other

commitments and in the casual vacancy caused

Sri Milind M. Shahane has been appointed as a

Director by the Board of Directors at their

Meeting held on 30.05.2011.

The Board has placed on record the valuable

services rendered and the co-operation

extended by Sri S. Venkataraman during the

tenure of his office as a Director.

In accordance with the Companies Act, 1956 and

the Articles of Association, the followingDirectors are due to retire by rotation at the

ensuing Annual General Meeting and beingeligible, offer themselves for re-appointment.

1. Sri R. Santharam

2. Sri R.C.H. Reddy

Directors’ Responsibility Statement

In compliance of Section 217 (2AA) of the

Companies Act, 1956 the Directors state that:-

i) In the preparation of Profit and Loss Account

for the period ended 31st March, 2011 and

the Balance Sheet as on that date, all the

applicable accounting standards have been

followed.

ii) Accounting Policies, that are reasonable and

prudent, have been selected and applied

consistently 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 the

profit of the company for the period ended

31st March, 2011.

iii) The accounting records in accordance with

the provisions of the Companies Act, 1956

and for safeguarding the assets of the

company as also for preventing and

detecting fraud and other irregularities,

have been properly maintained and

iv) The Profit and Loss Account and Balance

Sheet have been prepared on a going concern

basis.

Auditors

The Company’s Auditors M/s. N.R. Doraiswami

& Co., are to retire at the ensuing Annual

General Meeting and are eligible for re-

appointment and necessary certificate has been

received from them as required under Section

224(IB) of the Companies Act, 1956.

General

The information pursuant to Section 217(1)(e)

of the Companies Act, 1956 is appended hereto.

During the year under review, there was no

employee drawing remuneration in excess of the

amount prescribed under Section 217 (2A) of the

Companies Act, 1956.

Your Directors thank the Indian Bank and ESA

Eppinger, Germany for their continued support

and co-operation and Voltas Ltd and Infocus

Marketing and Services Ltd, for their services

rendered during the year.

Coimbatore

30.05.2011


(Sd.) S. PathyChairman


6

Information pursuant to Section 217(1)(e) ofthe Companies Act, 1956 and forming part ofthe Directors’ Report for the year ended31st March, 2011.

A. Conservation of Energy:

a) The Textile Machinery Manufacture is not

energy intensive. Efforts are

continuously made to reduce the waste

of energy to the minimum.

b) The Company manufactures Textile

Machinery. As such, the information in

Form A is not applicable.

B. Technology Absorption:

Research & Development (R & D)

1. Specific Areas in which R & D was

carried out by the Company.

a) Improvement on Rapier Loom

for better productivity and

performance.

b) Field Level Investigation and

performance assessment at the

Weaving installations.

2. Benefits derived as a result of the above

R & D:

Improvement in market acceptability of

the products and better after sales

service.

3. Future Plan of Action:

a) Introduction of Shuttleless Looms.

b) Export of high precision engineeringparts.

4. Expenditure on R & D :

a) Capital

b) Recurringc) Total

d) Total R & D expenditure as percentage

of total turnover may be reckoned

at 1% of the turnover.

Technology Absorption, Adaptation &Innovation:

1. Efforts in brief, made towards technology

absorption, adaptation and innovation:

Developments on manufacturing and

application of Weaving Machines are

continued.

2. Benefits derived out of the above efforts:

Improvement in quality, performance and

productivity were achieved.

3. Information of imported Technology

(imported during the last 5 years reckoned

from the beginning of the financial year) :

NIL

C. Foreign Exchange Earnings and Outgo :

Total Foreign Exchange

used by the Company

during the year. Rs. 0.99 lakh

Total Foreign Exchange

earned by the Company

during the year. Rs.318.40 lakhs

Coimbatore

30.05.2011


(Sd.) S. PathyChairman

The expenditure couldnot be quantified withreasonable accuracy as theefforts were contributedby various departmentsin the Organisation.

}


7

Management Discussions and Analysis Report

I. Industry Structure and developments:

A. Weaving Machinery and Spares (Unit 1)

The textile Machinery Manufacturing industryconsists of Spinning, Weaving and ProcessingMachinery and Accessories. The IndianSpinning Machinery Manufacturing sector hasbeen doing well and technologically on parwith the Machines manufactured by leadingworld Manufacturers. However the developmentin the Weaving and Processing sectors islagging particularly in the manufacture ofShuttleless Weaving Machines such as Rapierand Airjet Weaving Machines.

B. Other Engineering Services (Unit 2 & 3)

The demand for parts for Machine Toolsincluding Tool Holders during the year thoughhas increased, the prices offered were highlycompetitive. The spare capacity available in theDTA unit was utilized by undertaking job work.

II. Opportunities and threats:

A. Weaving Machinery and Spares

The import of used Shuttleless WeavingMachinery from Europe and cheaper Rapierand Airjet Weaving Machines from Chinacontinued during the year. The indigenousWeaving Machinery Manufacturers are notable to upgrade their technology due to lackof R & D initiatives and design and engineeringfacilities.

B. Parts for Machine Tools including Tool holders

The sale of parts for Machine Tools includingTool holders has increased during the yearbut the prices realised were not remunerative.

III. Segment wise or Product wise Performance:

Weaving Machinery and Spares (Unit 1)

The sale of Weaving Machines and spares andaccessories including 12 Weaving Machinesexported to China during the year ended31.3.2011 was Rs.273.57 lakhs. The rentalincome earned during the year on letting outa portion of the Buildings was Rs.114.59 lakhs.

Other Engineering Services (Unit 2 & 3)

The export of Parts for Machine Toolsincluding Tool holders during the year wasRs.154.24 lakhs. The sale of parts and theprocessing charges earned by under takingjob work during the year was Rs.62.64 lakhs.

IV. Outlook:

The demand for Shuttle Weaving Machines islimited to specific applications. The speed andproductivity of Shuttleless Weaving machinesbeing more, are preferred by the market. Thedevelopment of a Shuttleless Weaving Machineis delayed due to the high cost of technicalknow-how and being capital intensive.

As per the Scheme sanctioned by the BIFR,89,527 Sq feet Buildings have been let out andthe remaining area of about 1,00,000 Sq feetwill be let out during the current year togenerate additional revenue to the Company.

V. Risks and Concerns :

The import of used Shuttleless WeavingMachines is hampering investment on thedevelopment of an indigenous ShuttlelessWeaving Machine due to risks of not gettinga viable price.

VI. Internal Control System and the adequacy:

The company has adequate internal controlsystem commensurate with its size and natureof its business. The Management has overallresponsibility for the company’s internalcontrol systems to safeguard the assets andto ensure reliability of financial records. TheAudit Committee reviews the financialstatements and ensures adequacy of internalcontrol systems.

VII. Discussions of Financial Performance withrespect to Operational Performance:

The Company has cleared all the secured loansas per the Scheme sanctioned by the BIFR.The networth of the Company has becomepositive as on 31.3.2010 and was dischargedfrom the purview of the Board for Industrialand Financial Reconstruction. The operationsof the Company for the year ended 31.3.2011has resulted in a net profit of Rs.92.54 lakhs.

VIII. Material development in Human Resources /Industrial relations front, including numberof people employed:

The relation with labour was cordial duringthe year. 32 permanent workmen were relievedon payment of VRS at the 100% EOU (Unit 2)to reduce operational cost.

The number of employees on roll as on

31.03.2011 were 58.


8

Report on Corporate Governance

Philosophy on Code of Governance:

The Company is committed to sound practice of corporate functioning and customer

satisfaction needs by offering the quality products and after sales service and complyingwith the regulations from time to time. The Company always endeavours its best to

maintain quality at affordable cost by adopting highest standards of personal and

professional integrity and ethical standards in all its business activities.

Board of Directors:

In order to enable the Board to discharge its responsibilities effectively all statutory,

significant and material information are placed before the Board at the meetings.

Composition:

The Board is headed by the Chairman and assisted by the Director-in-Charge.

Position of Board of Directors:

1.

2.

3.

4.

5.

6.

Sri S. Pathy

Sri V.B. Haribhakti

Sri R.C.H. Reddy

Sri R. Santharam

Sri Milind M. Shahane

Sri N. Jaychander

Non-Executive

Chairman

Non-Executive

Independent

Non-Executive

Independent

Non-Executive

Non-Executive

Independent

Executive

Director-in-

Charge

Sri R. Santharam’s

wife’s brother

-

-

Sri S. Pathy’s

sister’s husband

-

-

3

7

5

3

-

-

Sl.No. Directors Position

Interserelationships

OtherDirector-ships ★

BoardCommittees

Mem-ber-ship

Chair-man-ship

★★★★★ The Directorships held by Directors as mentioned above, do not include Alternate

Directorships and Directorships of Foreign Companies, Section 25 Companies and

Private Limited Companies.

-

5

1

2

-

-

-

5

3

2

-

1


9

Board Meetings and Attendance:

4 Board Meetings were held on 27.5.2010, 02.8.2010, 08.11.2010 and 03.02.2011,during the period from 1st April, 2010 to 31st March, 2011. Details of Attendance of eachDirector at the Meetings of the Board and various committees of the Board during the

financial year ended 31st March, 2011:

Sl.No.

DirectorsBoard

Meeting

AuditCommi-

ttee

Shareholders/InvestorsGrievanceCommittee

Last AGMAttended(Yes / No)

1.

2.

3.

4.

5.

6.

7.

Sri S. Pathy

Sri V.B. Haribhakti

Sri R. Santharam

Sri R.C.H. Reddy

Sri Santosh Datta

Sri S. Venkataraman

Sri N. Jaychander

4

4

4

3

1

2

4

-

4

4

3

1

1

-

-

-

1

1

-

-

1

Yes

Yes

Yes

Yes

No

No

Yes

Remuneration of Directors:

No remuneration other than Sitting Fees was paid to the Directors as below:

Sl. Name of Directors Sitting Fees No.of equity shares of

No. Rs. Rs.10/- each held

1. Sri S. Pathy 8,000 4,67,944

2. Sri V.B. Haribhakti 16,000 -

3. Sri R. Santharam 18,000 -

4. Sri R.C.H. Reddy 14,000 594

5. Sri Santosh Datta 4,000 -

6. Sri S. Venkataraman 6,000 -

7. Sri N. Jaychander 10,000 1,850

Committee of Directors:

The Board has constituted various Committees of Directors to deal with matters referred to it for

timely decisions:

Audit Committee :

The Audit Committee consists of the following Directors:

1. Sri R.C.H. Reddy Chairman

2. Sri R. Santharam Member

3. Sri V.B. Haribhakti Member

4. Sri S. Venkataraman Member *

* Resigned on 30.05.2011

Sri A. Doraiswamy, Company Secretary is the Secretary of the Audit Committee.

The Audit Committee is empowered as per the requirements of Paragraph II of Clause 49 of theListing Agreement.

The Committee has met 4 times during the financial year ended 31st March, 2011.


10

Shareholders / Investors Grievance Committee:

The Committee has been formed to specifically look into shareholders / investorscomplaints, if any, on transfer of shares, non-receipt of Balance sheet, non receipt ofdeclared dividends, etc. and also the action taken by the Company on the above matters.

The Committee consists of the following Directors as its members:

1. Sri R. Santharam Chairman

2. Sri R.C.H. Reddy Member

3. Sri N. Jaychander Member

Sri A. Doraiswamy, Company Secretary is the Compliance Officer.

During the year 15 letters / complaints were received from the investors which werereplied / resolved to the satisfaction of the investors. The outstanding letters / complaintsas on 31.03.2011 was Nil. The Committee has met once during the financial year ended31st March, 2011.

Share Transfer Committee:

The Share Transfer Committee consists of 3 Members of the Board of Directors. Thecommittee has met 16 times during the financial year ended 31st March, 2011.

General Body Meetings:

Information regarding the last 3 Annual General Meetings of the shareholders are given below:

Location Day Date Time

Registered Office : 686, Avanashi Road, Thursday 24.07.2008 3.30 P.M.Pappanaickenpalayam, Coimbatore - 641 037

- Do - Monday 20.07.2009 3.30 P.M.

- Do - Monday 02.08.2010 4.15 P.M.

A Special Resolution was passed at the Annual General Meeting held on 20.07.2009 for there-appointment of Director-in-Charge of the Company.

5 Special Resolutions were passed at the Extraordinary General Meeting held on20.02.2010 for reclassification and increase in the Authorised Capital of the Company,amendment of the Capital Clause in the Memorandum of Association of the Company,amendment of Article 3 of the Articles of Association of the Company and issue of8,50,000 - 6% Cumulative Redeemable Preference Shares of Rs.100/- each to the exclusionof other shareholders who were entitled to the same by virtue of Section 81 of theCompanies Act, 1956.

No Special Resolution was passed last year through Postal Ballot.

No Special Resolution is proposed to be considered through postal ballot at the ensuingAnnual General Meeting.

Disclosures:

There are no materially significant related party transactions that would have potentialconflict with the interests of the company at large.

No penalty or strictures have been imposed on the company by any Capital Marketauthority for non-compliance of law.

All the Mandatory requirements have been complied with as stated in this report onCorporate Governance.


11

As regards the non-mandatory requirements stipulated in Annexure ID of Clause 49 of theListing Agreement on the Code of Corporate Governance, the Board has taken cognizanceof the same and shall consider adopting the same as and when necessary.

Code of Conduct:

The Code of Conduct for the Directors and Senior Management of the Company has beenlaid down and posted on the Website of the Company. The Compliance of the said Code ofConduct by the Directors and Senior Management Personnel for the year2010-11 has been affirmed by the Director-in-Charge (CEO).

Means of Communication:

The quarterly results are published in leading news papers viz. Business Standard (English)and Malai Malar (Tamil).

The Shareholding Pattern, Financial Statements and Product range are available in the Company’sWebsite www.lakshmiautomatic.com

SHAREHOLDERS INFORMATION

Annual General Meeting:

Day & Date : Thursday the 11th August, 2011

Time : 4.30 P.M.

Venue : Registered Office: 686, Avanashi Road,Pappanaickenpalayam, Coimbatore - 641 037.

Financial Calendar

Financial Year : 2010 - 2011

Results announced : 30.05.2011

Posting of Annual Reports : On or before 18.07.2011

Last date of receipt of Proxy Form : 09.08.2011

Announcement of Quarterly Results : August 2010, November 2010, February 2011

and May 2011

Date of Book Closure : 06.08.2011 to 11.08.2011 (both days inclusive)

Dividend Payment Date : On 6% Cumulative Redeemable Preference Shares :No dividend recommended

On Equity Shares : No dividend recommended

Listing on Stock Exchanges : The Equity Shares of the Company are listed inBombay Stock Exchange Ltd.

Payment of listing Fees : Annual Listing Fees for the year 2011-12 has been paidby the Company.

Stock / Scrip Code : 505302

Market Price Data:

The shares were not quoted in the last financial year in Bombay Stock Exchange.

Share performance in comparison with BSE Index:

The Website of Bombay Stock Exchange does not reveal any price movement during the year underreview. Hence the price movement / performance vis-a-vis BSE Index is not furnished.

Registrar of Share Transfer / Demat Agents:

Company’s share transfer work is done in-house at the Registered Office of the Company.


12

Categories of Shareholders as on 31.03.2011:

Sl. Category No. of No. of % of SharesNo. Share Shares Share pledged

holders holdingA. PROMOTERS HOLDING1. Promoters:

- Indian Promoters 13 1617774 26.50 Nil

- Foreign Promoters Nil Nil Nil Nil

2. Persons acting in concert Nil Nil Nil Nil

Sub Total 13 1617774 26.50

B. NON-PROMOTERS HOLDING-Institutional Investors Nil Nil Nil NA

-Mutual Funds & UTI Nil Nil Nil NA

-Banks, Financial Institutions, InsuranceCompanies (Central/State Govt. Institutions/Non-Govt. Institutions) 9 1423186 23.32 NA

Sub Total 9 1423186 23.32

C. FOREIGN INSTITUTIONAL INVESTORS (FIIs) Nil Nil Nil NA

Sub Total Nil Nil Nil

D. OTHERS:

-Bodies Corporate 42 2228749 36.51 NA

-Indian Public 8782 683649 11.20 NA

-NRIs 136 150630 2.47 NA

-Any other Nil Nil Nil NA

Sub Total 8960 3063028 50.18 NA

Grand Total 8982 6103988 100.00

Distribution of Shareholding as on 31.03.2011:

Range No.of No.of %Shareholders Shares held

Upto - 5000 8953 786088 12.88

5001 - 10000 4 26836 0.44

10001 - 20000 6 86666 1.42

20001 - 30000 1 30000 0.49

30001 - 40000 1 38966 0.64

40001 - 50000 1 50000 0.82

50001 - 100000 1 69500 1.14

100001 and above 15 5015932 82.17

Total 8982 6103988 100.00

Share Transfer System:

The share transfers are registered and returned within a period of 30 days from the date

of receipt if documents are in order. The share transfers are approved by the Share

Transfer Committee.


13

Dematerialisation of Shares:

There are 8982 shareholders holding 6103988 Equity Shares of the Company. 6491 shareholders

are holding shares in less than marketable lots of 50 shares.

The Company’s application for admission of Equity shares of the Company has not been

considered by both the depositories ie. Central Depository Services (India) Ltd and the

National Securities Depository Ltd. Hence the Equity shares of the Company are held

in physical form only.

Nomination Facility:

The Companies (Amendment) Act, 1999 has provided the facility for nomination in the

shares of the Company. The nomination (Form 2-B) along with instructions is provided

to the members on request.

Plant Locations:The Company has 3 Plants situated at the following locations:

WEAVING MACHINERY AND SPARES (Unit-1)HOSUR INDUSTRIAL COMPLEX

HOSUR – 635 126.

OTHER ENGINEERING SERVICES (Unit-2 & 3)SINGARAMPALAYAM

KINATHUKADAVU

POLLACHI TALUK

COIMBATORE – 642 109.

Address for Correspondence:

All correspondence from shareholders should be addressed to:

THE COMPANY SECRETARY

LAKSHMI AUTOMATIC LOOM WORKS LTD

REGISTERED OFFICE

686, AVANASHI ROAD

COIMBATORE – 641 037.

Telephone : 0422 2245484, 2245485

Telefax : 0422 2244887

E-mail : [email protected]

Website : www.lakshmiautomatic.com

Investors Grievance

Registration - E-mail ID : [email protected]


14

AUDITORS’ CERTIFICATE ON COMPLIANCE OF CONDITIONS OF CORPORATE GOVERNANCE AS PERCLAUSE 49 OF THE LISTING AGREEMENT WITH STOCK EXCHANGES

To the Members of Lakshmi Automatic Loom Works Limited

We have examined the compliance of conditions of Corporate Governance by M/s. Lakshmi

Automatic Loom Works Limited for the year ended 31st March, 2011, as stipulated in clause 49 of

the Listing Agreement of the said Company with Stock Exchanges in India.

The compliance of conditions of Corporate Governance is the responsibility of the management.

Our examination was limited to procedures and implementation thereof, adopted by the Company

for ensuring the compliance of the conditions of Corporate Governance. It is neither an audit nor

an expression of opinion on the financial statements of the Company.

In our opinion and to the best of our information and according to the explanations given to us, we

certify that the Company has complied in all material respects with the conditions of Corporate

Governance as stipulated in clause 49 of the Listing Agreement with the Stock Exchanges for the

year ended 31st March, 2011.

On the basis of the records maintained by the Shareholders/Investors Grievance Committee of

the Company, we state that no investor grievance is pending for a period exceeding one month.

We further state that our examination of such compliance is neither an assurance as to the future

viability of the Company nor the efficiency or effectiveness with which the management has

conducted the affairs of the Company.

For N.R. DORAISWAMI & CO


Regn. No. 000771S

(Sd.) Suguna RavichandranPartner

Membership No. 207893

Coimbatore

30.05.2011

CHIEF EXECUTIVE OFFICER’S DECLARATION ON CODE OF CONDUCT

I hereby declare that the Board of Directors of the Company have adopted a Code of Conduct for

the Board Members and Senior Management of the Company and the same has also been posted in

the Company’s website and that all the Board Members and Senior Management Personnel to whom

this Code of Conduct is applicable have affirmed the Compliance of Code of Conduct during the

year 2010-11.

(Sd.) N. Jaychander

Director-in-Charge

C E O

Coimbatore

30.05.2011


15

CEO & CFO CERTIFICATE

The Board of Directors

Lakshmi Automatic Loom Works Ltd

686, Avanashi Road

COIMBATORE – 641037

Sub: Annual Confirmation pursuant to Clause 49(V) of the Listing Agreement.

As required by Clause 49(V) of the Listing Agreement with Stock Exchange we hereby certify that :

a) We have reviewed the Financial Statements and the Cash Flow Statement of the Company for

the year ended 31st March, 2011 and that to the best of our knowledge and belief:

i) These statements do not contain any materially untrue statements or omit any material

fact or contains statements that might be misleading.

ii) These statements together present a true and fair view of the Company’s affairs and are

in compliance with existing accounting standards, applicable laws and regulations.

b) There are, to the best of our knowledge and belief, no transaction entered into by the Company

during the year ended 31st March, 2011 which are fraudulent, illegal or violative of the Company’s

code of conduct.

c) We accept responsibility for establishing and maintaining internal controls for Financial

Reporting and that we have evaluated the effectiveness of the internal control systems of the

Company pertaining to the Financial Reporting and we have disclosed to the auditors and the

Audit Committee, deficiencies in the design or operation of such internal controls, if any, of

which we are aware and the steps we have taken or prepared to take to rectify these

deficiencies.

d) We have indicated to the Auditors and the Audit Committee:

i) Significant changes, if any, in internal control over financial reporting during the year;

ii) Significant changes, if any, in accounting policies during the year and that the same have

been disclosed in the notes to the Financial Statements; and

iii) that there were no instances of significant fraud of which we have become aware and the

involvement therein, if any, of the management or an employee having a significant role

in the Company’s internal control system over financial reporting.

(Sd.) A. DoraiswamySecretary and

Vice President - Finance

CFO

(Sd.) N. Jaychander

Director-in-Charge

CEO

Coimbatore

27.05.2011


16

Auditors’ Report

TO THE MEMBERS OF M/s. LAKSHMI AUTOMATIC

LOOM WORKS LIMITED :

1. We have audited the attached Balance Sheet

of M/s. Lakshmi Automatic Loom Works

Limited, as at 31st March, 2011 and also the

Profit and Loss Account and the Cash Flow

Statement of the Company for the year

ended on that date annexed thereto. These

financial statements are the responsibility

of the Company’s management. Our

responsibility is to express an opinion on

these financial statements based on our

audit.

2. We conducted our audit in accordance with

auditing standards generally accepted in

India. Those standards require that we plan

and perform the audit to obtain reasonable

assurance about whether the financial

statements are free of material

misstatement. An audit includes examining,

on a test basis, evidence supporting the

amounts and disclosures in the financial

statements. An audit also includes assessingthe accounting principles used and significant

estimates made by management, as well as

evaluating the overall financial statement

presentation. We believe that our audit

provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors’

Report) Order, 2003 issued by the Central

Government of India in terms of sub-section

(4A) of section 227 of the Companies Act,

1956, we enclose in the Annexure a

statement on the matters specified in

paragraph 4 of the said order.

4. Further to our comments in the Annexure

referred to in paragraph 3 above, we report

that:

i. We have obtained all the information

and explanation, which to the best of

our knowledge and belief were

necessary for the purposes of our audit:

ii. In our opinion, proper books of accounts

as required by law have been kept by

the company so far as appears from our

examination of such books;

iii. The Balance Sheet and Profit and Loss

Account and Cash Flow Statement dealt

with by this report are in agreement

with the books of account;

iv. In our opinion, the Balance Sheet and

Profit and Loss Account and Cash Flow

Statement dealt with by this report

comply with the accounting standards

referred to in sub-section (3C) of section

211 of the Companies Act, 1956;

v. On the basis of written representations

received from the directors, as on

31st March, 2011 and taken on record by

the Board of Directors, we report that

none of the directors is disqualified as

on 31 st March, 2011 from beingappointed as a director in terms of

clause (g) of sub-section (1) of section

274 of the Companies Act, 1956.

vi. In our opinion and to the best of our

information and according to the

explanations given to us, the said

accounts give the information required

by the Companies Act, 1956, in the

manner so required and give a true and

fair view in conformity with the

accounting principles generally accepted

in India read with the significant

accounting policies and other notes

thereon,

a) in the case of the Balance Sheet, of

the state of affairs of the Company

as at 31st March, 2011; and


17

b) in the case of Profit and Loss

Account, of the Profit for the year

ended on that date.

Annexure to the Auditors’ Report

(Referred to in paragraph 3 of our report of even

date)

In our opinion and according to the information

and explanations given to us,

i) a) The Company has maintained proper

records to show full particulars

including quantitative details and

situation of its fixed assets.

b) The fixed assets of the company have

been physically verified during the year

by the management and no material

discrepancies between the book

records and the physical inventory have

been noticed.

c) The fixed assets disposed off duringthe year, in our opinion do not

constitute a substantial part of the

fixed assets of the Company and such

disposal has, in our opinion, not

affected the going concern status of

the Company.

ii) In respect of its inventories :

a) As explained to us, inventories were

physically verified during the year by

the management at reasonable

intervals.

Coimbatore

30.05.2011

For N.R. DORAISWAMI & COChartered Accountants

Regn. No. 000771S



b) In our opinion and according to the

information and explanations given to

us, the procedures of physical

verification of inventories followed by

the management are reasonable and

adequate in relation to the size of the

company and nature of its business.

c) The company has maintained proper

records of inventories and the

discrepancies between the physical

inventories and the book records which

have been properly dealt with in the

books of account were not material.

iii) The Company has neither taken nor granted

any loans or advances in the nature of loans

to parties covered in the register

maintained under section 301 of the

Companies Act, 1956. Hence, the question

of reporting whether the terms and

conditions of such loans are prejudicial to

the interests of the Company and whether

reasonable steps for recovery/repayment

of overdue amounts of such loans are

taken, does not arise.

iv) In our opinion and according to the

information and explanations given to us,

there are adequate internal control

procedures commensurate with the size of

the Company and the nature of its business

for the purchase of inventory and fixed

assets and for the sale of goods. During

c) in the case of Cash Flow Statement,

of the cash flows for the year ended

on that date.


18

the course of our audit, we have not

observed any continuing failure to correct

major weaknesses in internal control.

v) In respect of contracts and arrangements

entered in the register maintained in

pursuance of section 301 of the Companies

Act, 1956;

a) To the best of our knowledge and belief

and according to the information and

explanations given to us, contracts

and arrangements that needed to be

entered into the register have been so

entered.

b) In our opinion, the aforesaid

transactions exceeding the value of

five lakhs rupees in respect of any

party during the year have been made

at prices which are reasonable havingregard to the prevailing market prices

at the relevant time.

vi) Based on our scrutiny of the Company’s

records and according to the information

and explanations provided by the

management, in our opinion the Company

has not accepted any deposits from the

public.

vii) In our opinion, the internal audit functions

carried out during the year by independent

Chartered Accountants appointed by the

management have been commensurate

with the size and nature of its business.

viii) As explained to us, no order for the

maintenance of cost records under section

209(1) (d) of the Act has been made by the

Central Government for any of the products

of the Company.

ix) In respect of statutory dues :

a) According to the records of the

Company, the company is regular in

depositing with appropriate authorities

undisputed statutory dues includingprovident fund, investor education and

protection fund, employees’ state

insurance, income tax, sales tax,

service tax, wealth tax, customs duty,

excise duty, cess and other statutory

dues applicable to it.

b) According to the information and

explanations given, there were no

undisputed amounts payable in respect

of income tax, service tax, wealth tax,

customs duty, excise duty, cess and

other statutory dues which have

remained outstanding as at March

31st, 2011 for a period of more than

six months from the date they became

payable.

c) According to the records of the

Company, there are no dues of sales

tax, income tax, service tax, customs

duty, wealth tax, excise duty and cess

which have not been deposited on

account of any dispute.

x) The accumulated losses of the Company at

the end of the financial year ended

31.03.2011 are in excess of 50% of its net

worth. The Company has not incurred any

cash losses during the financial year

covered by our audit and the immediately

preceeding financial year.

xi) Based on our audit procedures and on the

information and explanations given by the

management, we are of the opinion that

the Company has not defaulted in the

repayment of dues to banks.

xii) According to the information and

explanations given to us, the Company has

not given any loans and advances on the

basis of security by way of pledge of

shares, debentures and other securities.

xiii) The Company is not a Chit Fund or a Nidhi

/ Mutual Benefit Fund / Society and as such

reporting under clause (xiii) of the Order

is not applicable to the Company.


19

Coimbatore

30.05.2011

For N.R. DORAISWAMI & COChartered Accountants

Regn. No. 000771S



xiv) The Company is not dealing or trading in

shares, securities, debentures and other

investments and as such clause (xiv) of the

Order is not applicable to the Company.

xv) According to the records of the Company

and the information and explanations

provided by the management, the company

has not given any guarantee for loans taken

by others from bank or financial

institutions.

xvi) According to the records of the Company,

the Company has not obtained any term

loans. Hence, the question of commentingon the utilization of such term loans does

not arise.

xvii) On the basis of review of utilization of

funds on an overall basis, in our opinion,

the funds raised on short term basis have

not been used for long term investment

during the year.

xviii) The Company has not made any preferential

allotment of shares during the year.

xix) The Company has not issued any

debentures during the year.

xx) The Company has not raised any money by

public issue during the year.

xxi) During the course of our examination of

the books of account carried out in

accordance with the generally accepted

auditing practices in India, we have not

come across any instance of fraud on or by

the Company nor have been informed by

the management of any such instance

being noticed or reported during the year.


20

Balance Sheet as at 31st March, 2011

SCHEDULE 31.03.2011 31.03.2010

Rs. in Lakhs Rs. in Lakhs Rs. in Lakhs Rs. in Lakhs

SOURCES OF FUNDS:Shareholders’ Funds:

a) Capital 1 1460.40 1460.40b) Reserves and Surplus 2 457.92 457.92

Total Shareholders’ Funds 1918.32 1918.32

Loan Funds:

a) Secured Loans 3 11.95 -b) Unsecured Loans 4 73.74 175.05

Total 85.69 175.05

Total Funds Employed 2004.01 2093.37

APPLICATION OF FUNDS:

Fixed Assets: 5

a) Gross Block 2693.98 2646.36b) Less: Depreciation 2249.67 2231.14

Net Block 444.31 415.22

Current Assets, Loans and Advances: 6

a) Inventories 259.42 222.24b) Sundry Debtors 80.85 60.34c) Cash and Bank Balances 201.40 314.73d) Other Current Assets 35.49 20.13e) Loans and Advances 55.27 62.11

632.43 679.55

Less: Current Liabilities and Provisions: 7

a) Current Liabilities 706.41 699.44b) Provisions 50.18 78.68

756.59 778.12

Net Current Assets (-)124.16 (-)98.57

Miscellaneous Expenditure and Losses 8 1683.86 1776.72

Total 2004.01 2093.37

Note : Schedules 1 to 8 and Notes to Profit and Loss Account and Balance Sheet form part of this

Balance Sheet.Directors

(Sd.) S. PATHYChairman

(Sd.) R. SANTHARAMDirector

(Sd.) N. JAYCHANDERDirector-in-Charge

(Sd.) A. DORAISWAMYSecretary and

Vice President-FinanceCoimbatore

30.05.2011

As per our report of even date



Regn. No. 000771S

(Sd.) SUGUNA RAVICHANDRANPartner



21

Profit and Loss Account for the year ended 31st March, 2011

SCHEDULE 31.03.2011 31.03.2010


Income:

Sales 9 487.62 252.03Stock Adjustment 10 0.08 (-)56.62Fabrication Charges 4.76 14.87Other Income 11 167.73 1482.72

Total 660.19 1693.00

Expenditure:

Raw Materials and Components Consumed 12 153.86 148.48Purchase of Machines Traded 14.57 4.90Material Fabrication andMachinery Hire Charges 34.66 15.61Salaries and Wages 13 218.97 361.16Power and Fuel 34.07 30.92Stores Consumed 24.21 23.93Repairs 14 34.76 16.43Interest 15 1.34 39.02Other Expenditure 16 78.30 88.81Depreciation 39.74 38.51

Total 634.48 767.77

Profit for the year 25.71 925.23Add : Excess provision for interest withdrawn 67.16 -

: Excess Depreciation withdrawn - 0.03Less : Share Issue Expenses written off 0.33 11.79

92.54 913.47Less : Proposed Dividend on Preference Shares - 5.87

92.54 907.60Add : Balance brought forward

from previous year (-)1773.79 (-)2681.39

Balance carried to Balance Sheet (-)1681.25 (-)1773.79

Earnings per share in Rs. 1.52 14.87(Face value Rs.10/- per share)

Note : Schedules 9 to 16 and Notes to Profit and Loss Account and Balance Sheet form part of this

Profit and Loss Account.Directors





Vice President-Finance

Coimbatore

30.05.2011




Regn. No. 000771S




22

Schedules to the Balance Sheet

31.03.2011 31.03.2010

Rs. in Lakhs Rs. in Lakhs

SCHEDULE 1 : SHARE CAPITAL

Authorised :

65,00,000 Equity Shares of Rs.10/- each 650.00 650.00

9,00,000 - 6% Cumulative Redeemable

Preference Shares of Rs.100/- each 900.00 900.00

Total 1550.00 1550.00

Issued, Subscribed, Called and Paid-up:

61,03,988 Equity Shares of Rs.10/- each

fully called up 610.40 610.40

8,50,000 - 6% Cumulative Redeemable

Preference Shares of Rs.100/- each 850.00 850.00

Total 1460.40 1460.40

SCHEDULE 2 : RESERVES AND SURPLUS

Share Premium Account :

As per last Balance Sheet 457.92 457.92

Total 457.92 457.92

SCHEDULE 3 : SECURED LOANS

From Bank

a) Working Capital Borrowings

i) Open Loan 11.95 -

Total 11.95 -

(Secured by First Charge on the Current Assets

and Second Charge on the Fixed Assets)

SCHEDULE 4 : UNSECURED LOANS

Agency Deposit 10.00 10.00

Interest Free Sales Tax Loan from SIPCOT (Two of the - 7.43

Promoters have given personal guarantee to SIPCOT)

Sales Tax - Deferred - 26.71

Interest accrued and due 63.74 130.91

Total 73.74 175.05


23

SCHEDULE 5 : FIXED ASSETS (Rs. in Lakhs)

1 Land 29.16 - - 29.16 - - - - 29.16 29.16

2 Buildings 551.60 68.53 - 620.13 301.49 17.66 - 319.15 300.98 250.11

3 Machinery 1153.52 - 15.93 1137.59 1091.45 7.21 15.93 1082.73 54.86 62.07

4 Technical

Know-how 187.79 - - 187.79 187.75 0.03 - 187.78 0.01 0.04

5 Electrical

Equipments 121.87 - 0.35 121.52 111.56 1.42 0.35 112.63 8.89 10.31

6 Computer

Equipments 35.85 - - 35.85 32.89 1.60 - 34.49 1.36 2.96

7 Furniture &Office

Equipments 83.86 0.18 - 84.04 78.71 2.85 - 81.56 2.48 5.15

8 Vehicles 33.76 - 4.93 28.83 16.69 2.42 4.93 14.18 14.65 17.07

9 Library 0.93 - - 0.93 0.91 0.02 - 0.93 - 0.02

10 Material

Handling Equipments 123.24 0.12 - 123.36 121.86 0.42 - 122.28 1.08 1.38

11 Jigs &Fixtures 126.92 - - 126.92 117.63 1.59 - 119.22 7.70 9.29

12 Patterns 148.15 - - 148.15 135.33 2.70 - 138.03 10.12 12.82

13 Laboratory

& TestingEquipments 49.71 - - 49.71 34.87 1.82 - 36.69 13.02 14.84

Total 2646.36 68.83 21.21 2693.98 2231.14 39.74 21.21 2249.67 444.31 415.22

(Previous

year figures) 2612.95 72.66 39.25 2646.36 2206.51 38.51 13.88 2231.14 415.22 406.44

As at

31.03.2010

As at

31.03.2011

Upto

31.03.2011

With-

drawn

For

the

year

Cost

Upto

31.03.2011

Upto

31.03.2010

Sales/

Adjust-

ments

Addi-

tions

Cost

Upto

31.03.2010

AssetsSl.

No.

GROSS BLOCK DEPRECIATION NET BLOCK

Costless Depreciation


24

31.03.2011 31.03.2010


SCHEDULE 6 : CURRENT ASSETS, LOANSAND ADVANCES

a) Inventories :i) Stock-in-trade

(As per Lists certified by the Director-in-ChargeRaw Materials, Components, Work-in-progressand Finished Goods valued at cost or Netrealisable value whichever is less)

Raw Materials 43.61 35.89Components 58.48 65.98Work-in-progress 75.08 37.44Finished Goods 48.64 48.56

ii) Stock of Stores, Tools and Machinery Spares 33.61 34.37(Valued at cost or Net realisable value which-ever is less as per Inventories certified by the

Director-in-Charge)

259.42 222.24b) Sundry Debtors :

Unsecured considered good :Outstanding for more than six months 17.08 20.75Others 61.65 78.73 37.47 58.22

Unsecured considered doubtful :Outstanding for more than six months 2.57 76.60Less : Provision for doubtful debts 0.45 2.12 74.48 2.12

80.85 60.34

c) Cash and Bank Balances :Cash on hand 0.16 0.14Cash with Nationalised Banks :In Current Accounts 7.42 112.83In Deposit Accounts 193.75 201.68Stamps and Stamp Papers on hand 0.07 0.08

201.40 314.73

d) Other Current Assets :Interest accrued and other receivables 35.49 20.13

Carried over 577.16 617.44


25

31.03.2011 31.03.2010


SCHEDULE 6 : CURRENT ASSETS, LOANSAND ADVANCES (Contd.)

Brought forward 577.16 617.44

e) Loans and Advances :Unsecured-considered good-recoverablein cash or in kind :Advance for Capital Expenditure 0.69 5.15Advance for Purchases 5.79 6.34Advance for Others 6.10 5.81Advance for Central Excise 18.22 21.36Deposits 7.56 13.85Prepaid Expenses 2.13 3.94

Income Tax Deducted at Source 14.78 5.66

55.27 62.11

Total 632.43 679.55

SCHEDULE 7 : CURRENT LIABILITIES AND PROVISIONS

a) Current Liabilities :Liabilities for Capital Expenditure 27.20 16.04

Liabilities for Purchases:

Due to micro, small and medium enterprises 12.72 16.36

Due to Others 246.44 268.71

259.16 285.07

Liabilities for Other Finance 153.82 130.92

Liabilities for Expenses 189.16 187.27

Advance received for the supply of goods 77.07 80.14

706.41 699.44

b) Provisions:Provision for Gratuity 36.08 55.04

Provision for Leave encashment 14.10 17.77

Proposed Dividend on Preference Shares - 5.03

Tax on Proposed Dividend - 0.84

Total 756.59 778.12

SCHEDULE 8 : MISCELLANEOUS EXPENDITUREAND LOSSES

Share Issue Expenses 2.61 2.93

Profit and Loss Account 1681.25 1773.79

Total 1683.86 1776.72


26

Schedules to the Profit and Loss Account

31.03.2011 31.03.2010


SCHEDULE 9 : SALES

Sale of Weaving Machines 136.91 38.34

Sale of Parts and Accessories for Machine Tools 154.24 88.66

Sale of Accessories & Spares 191.42 108.81

Sale of Components 27.45 31.02

510.02 266.83

Less :

Excise Duty 16.84 9.64

Sales Tax 6.37 5.17

23.21 14.81

486.81 252.02

Sale of other items 0.81 0.01

Total 487.62 252.03

SCHEDULE 10 : STOCK ADJUSTMENT

Closing Stock of Finished Goods 48.64 48.56

(A) 48.64 48.56

Opening Stock of Finished Goods 48.56 56.63

Stock adjustment - 48.55

(B) 48.56 105.18

(A-B) 0.08 (-)56.62

SCHEDULE 11 : OTHER INCOME

Realisation of Scrap 16.43 26.43

Sale of Consumables 0.12 0.40

Interest 11.13 4.17

Miscellaneous Income 2.46 4.06

Profit on Sale of Assets 5.23 1447.66

Rent 114.59 -

Difference in Exchange 5.56 -

Security Deposit forfeiture 12.21 -

Total 167.73 1482.72


27

31.03.2011 31.03.2010


SCHEDULE 12 : RAW MATERIALS ANDCOMPONENTS CONSUMED

Opening Stock :

Raw Materials 35.89 62.57

Components 65.98 99.14

Work-in-Progress 37.44 58.47

139.31 220.18

Add : Purchases



(A) 331.03 286.19

Closing Stock :



Work-in-Progress 75.08 37.44

(B) 177.17 139.31

(A-B) 153.86 146.88

Add : Payment under Cenvat Rule 6(3)(b) - 1.60

Total 153.86 148.48

SCHEDULE 13 : SALARIES AND WAGES

Salaries, Wages, Gratuity, etc., 169.33 189.31

VRS Payment 31.09 152.78

Contribution to Provident Fund 7.02 9.37

Staff and Labour Welfare 11.53 9.70

Total 218.97 361.16

SCHEDULE 14 : REPAIRS

Machinery 8.61 4.09

Buildings 24.66 11.18

General 1.49 1.16

Total 34.76 16.43


28

31.03.2011 31.03.2010


SCHEDULE 15 : INTEREST

On Long Term Loans - 18.50

On Others 1.34 20.52

Total 1.34 39.02

SCHEDULE 16 : OTHER EXPENDITURE

Staff Selection and Training - 0.01

Printing and Stationery 2.56 1.61

Postage and Telephone 3.64 4.23

Travelling and Maintenance of Motor Vehicles 22.57 18.86

Bank Charges, Filing Fees and Licence and Taxes 6.53 7.16

Advertisement, Subscription and Exhibition 4.34 8.69

Insurance 2.49 2.60

Sales Commission 9.37 6.04

Sales Expenses 0.36 0.40

Difference in Exchange - 4.14

Export Expenses 2.45 0.83

Directors’ Sitting Fees 0.76 1.14

Auditors’ Remuneration 0.92 0.91

Legal and Professional Charges 7.87 16.57

Rent, Lighting and water 2.97 4.01

Erection and Commissioning Charges 2.98 -

Miscellaneous Expenses 4.04 2.62

Vehicle Hire Charges 4.45 8.99

Total 78.30 88.81

Signatures to Schedules 1 to 16

Directors






30.05.2011




Regn. No. 000771S




29

Significant Accounting Policies and Notes to Profit and Loss Account for the

year ended 31st March, 2011 and Balance Sheet as at 31st March, 2011

A. SIGNIFICANT ACCOUNTING POLICIES

1. Method of Accounting :

The financial statements have been prepared under the historical cost convention on an accrual

basis and in accordance with the Accounting Principles generally accepted in India (IndianGAAP) and comply with mandatory Accounting Standards notified by the Central Governmentof India under the Companies (Accounting Standard) Rules, 2006 and the relevant provisions

of the Companies Act, 1956 to the extent applicable.

2. Fixed Assets :

Fixed Assets are stated at cost inclusive of expenses in connection with acquisition of the

assets and net of cenvat credit/value added tax including appropriate direct and allocatedexpenses less accumulated depreciation and impairment losses, if any.

3. Investments :

The Investments are accounted at cost. Diminution in the value of Investments if any, inrespect of long term Investments is recognised.

4. Valuation of Inventories :

Inventories are valued at lower of cost and net realizable value after providing for obsolescencewhere necessary. Cost is determined on weighted average basis. Net realizable value is theestimated selling price in the ordinary course of business, less estimated costs of completion

and estimated costs necessary to make the sale.

5. Transalation of Foreign Currency Transactions :

Foreign currency transactions are recorded at the prevailing exchange rates at the time of

initial recognition. Exchange differences arising on final settlement are adjusted and recognisedas income or expense in the profit and loss account. Outstanding balances of monetary itemsdenominated in foreign currency are restated at closing exchange rates and the difference

adjusted as income or expense in the profit and loss account.

The premium or discount arising at the inception of forward exchange contracts is accounted asincome or expense over the life of contract. Any profit or loss arising on cancellation or renewal of

forward exchange contract is recognised as income or as expense in the period in which they arise.

6. Depreciation :

i) Depreciation on Fixed Assets for the year has been provided on straight line method in

accordance with Schedule XIV of the Companies Act, 1956. For additions and deletionsdepreciation is provided on pro-rata basis. Items of Fixed Assets costing Rs.5,000/- andbelow is depreciated at the rate of 100%.

ii) Payments towards Technical Know-how have been classified under Fixed Assets and hasbeen appropriately depreciated.

7. Recognition of Revenue :

Income and Expenditure are recognised and accounted on accrual basis as and when they areearned or incurred. Revenue from sale transaction is recognised as and when significant risksand rewards attached to ownership in the goods is transferred to the buyer. Revenue from

service transactions is recognised when invoiced / upon completion of work based on confirmedcontracts. Dividend from Investments and Export Incentives under duty draw back scheme are


30

recognised when the right to receive payment/credit is established and no significant uncertaintyas to measurability or collectability exists.

8. Borrowing cost :

Borrowing costs, if any, attributable to acquisition/construction of qualifying assets arecapitalized and included in the cost of the asset, as appropriate.

9. Earnings per Share :

Basic Earnings per share is calculated by dividing the Net Profit after tax attributable to the EquityShareholders by the weighted average number of Equity Shares outstanding during the year.

10. Employee Benefits :

Provision for Gratuity and Leave encashment are made as per actuarial valuation at the endof the year as per AS15 (revised) of The Institute of Chartered Accountants of India.

11. Taxes on Income :

Current tax liability on income for the period is determined on the basis of taxable income andtax credits computed in accordance with the provisions of the Income Tax Act,1961 and basedon the expected outcome of assessment/appeals.

Deferred tax is recognised on timing differences between the accounting income and thetaxable income for the year and quantified using the tax rates and laws enacted or substantivelyenacted as on the Balance Sheet date.

Deferred tax assets are recognised and carried forward to the extent that there is reasonablecertainty that sufficient future income will be available against which such deferred tax assetscan be realised.

12. Provisions, contingent liabilities and contingent assets :

Contingent liabilities are not recognised but are disclosed in the notes to financial statements.Contingent assets are neither recognised nor disclosed in the financial statements. Provisions,

contingent liabilities and contingent assets are reviewed at each balance sheet date and adjustedto reflect the current best estimate.

13. Cash Flow Statements :

Cash Flows are reported using the Indirect method, whereby profit before tax is adjusted forthe effects of transactions of a non-cash nature, any deferrals or accruals of past or futureoperating cash receipts or payments and items of income or expense associated with investingor financing cash flows. Cash and cash equivalents include cash on hand and balances withbanks in current and deposit accounts with necessary disclosure of cash and cash equivalentbalances that are not available for use by the company.

14. Impairment of assets :

As at each balance sheet date, the carrying amount of assets is tested for impairment so as todetermine (i) the provision for impairment loss, if any, required or (ii) the reversal, if any,

required of impairment loss recognised in previous periods. Impairment loss is recognisedwhen the carrying amount of an asset exceeds its recoverable amount.

15. Segment Reporting :

Business segments are identified on the basis of the nature of products / services, the risk-return profile of individual businesses, the organizational structure and the internal reportingsystem of the Company.

Segment revenue, segment expenses, segment assets and liabilities include those directlyidentifiable with the respective segments.


31

B. NOTES TO PROFIT AND LOSS ACCOUNT AND BALANCE SHEET

31.03.2011 31.03.2010Quantity Rs. in Lakhs Quantity Rs. in Lakhs

1. Details of Turnover:

a) Sale of Weaving Machines 12 Nos. 136.92 6 Nos. 37.27

b) Sale of Parts and Accessoriesfor Machine Tools. 24854 Nos. 154.24 13140 Nos. 88.66

c) Sale of Accessories andSpares, etc. - 195.66 - 126.10

Qty. in Tons Qty. in Tons

2. I. Raw Materials Consumed:

a) Iron and Steel 223.582 97.04 * 134.813 95.41 *

b) Non-metallic items etc. 0.48 0.51

(Quantitative details for non-metallic items could not be givenas their list is large and the unit ofmeasurement differs from item toitem and no item individuallyaccounts for 10% or more of theRaw Materials Consumed)

II. Components Consumed:a) Components - Indigenous 54.23 39.40b) Components - Imported 2.11 13.16

(Quantitative details could not begiven as their list is too large andno item individually accounts for10% or more of the ComponentsConsumed)

* Net of work-in-progress stock adjustment.

3. Stock of Finished Goods:

a) Opening Stock - Weaving Machines 10 Nos. 11 Nos. Circular Knitting Machines 2 Nos. 2 Nos.

b) Closing Stock - Weaving Machines 10 Nos. 10 Nos. Circular Knitting Machines 2 Nos. 2 Nos.

4. Licensed and Installed Capacity:

Licensed Installed Licensed Installed

Weaving Machinery and Components,Accessories and Spares of WeavingMachinery 1800 Nos. 1200 Nos. 1800 Nos. 1200 Nos.

Circular Knitting Machinery andParts and Accessories of CircularKnitting Machinery 200 Nos. 200 Nos. 200 Nos. 200 Nos.

Parts and Accessories for MachineTools including work or ToolHolders and Accessories 500000 Nos. 500000 Nos. 500000 Nos. 500000 Nos.


32

31.03.2011 31.03.2010


5. Actual Production:

Weaving Machines 12 Nos. 5 Nos.

Parts and Accessories for MachineTools including work or Tool

Holders and Accessories 24854 Nos. 13140 Nos.

6. A. Value of Imports (C.I.F.) :

a) Raw Materials - -

b) Components - 4.50

c) Consumable Stores - -

d) Capital Goods - -

B. Expenditure in Foreign Currency:

Travelling Expenses 0.99 -

Rs. in Lakhs % to total Rs. in Lakhs % to total

consumption consumption

C. Consumption:

a) Raw Materials - Imported - - 0.03 0.02

b) Components - Imported 2.11 1.37 13.16 8.86

c) Raw Materials - Indigenous 97.52 63.38 95.89 64.58

d) Components - Indigenous 54.23 35.25 39.40 26.54

Total 153.86 100.00 148.48 100.00

D. Amount remitted during the yearin Foreign Currencies :

a) On account of dividends (Net after

deduction of tax at source) Nil Nil

b) Number of Non-resident shareholders 136 137

c) Number of shares held by Non-resident

shareholders on which dividends are due Nil Nil

d) The year to which dividends related N.A. N.A.

E. Earnings in Foreign Exchange:

Export of goods calculated on F.O.B. Basis 318.40 107.92

7. Remuneration to Auditors:

a) Audit Fees 0.50 0.50

b) Other Fees:

Issue of Certificates and others 0.15 0.41

Management Services 0.25 -

Travelling Expenses 0.02 -

Total 0.92 0.91


33

}

31.03.2011 31.03.2010

Rs. in Lakhs Rs. in Lakhs

Gratuity Leave Gratuity Leave

(Unfunded) encashment (Unfunded) encashment

(Unfunded) (Unfunded)

8. Defined Benefit PlansA. Expense recognised during year ended 31.03.2011

1. Current Service Cost 1.83 0.25 3.02 0.892. Interest Cost 3.44 1.32 6.58 1.653. Expected return on plan assets - - - -

4. Actuarial Losses / (Gains) during the year 0.32 2.83 28.43 (3.29)5. Total Expense 4.95 1.26 38.03 (0.75)

B. Actual return on plan assets

1. Expected return on Plan Assets - - - -

2. Actuarial(Loss) / Gain on Plan assets - - - -

3. Actual return on Plan assets - - - -

C. Net Asset/(Liability)recognisedin the Balance Sheet1. Present value of the obligation as on 31.03.2011 36.08 14.10 55.04 17.77

2. Fair value of plan assets as on 31.03.2011 - - - -

3. Difference 36.08 14.10 55.04 17.774. Unrecognised past service cost - - - -

5. Liability recognised in the Balance Sheet 36.08 14.10 55.04 17.77

D. Change in Present value of the obligationduring the year ended 31.03.20111. Present value of the obligation

as at 01.04.2010 55.04 17.77 150.55 23.732. Current Service Cost 1.83 0.25 3.02 0.893. Interest Cost 3.44 1.32 6.58 1.65

4. Benefits paid 23.91 2.41 133.54 5.215. Actuarial(gain)/loss on obligation 0.32 2.83 28.43 (3.29)6. Present value of plan assets as at 31.03.2011 36.08 14.10 55.04 17.77

E. Change in Assets during the year ended 31.03.20111. Fair value of plan assets as at 01.04.2010 - - - -

2. Expected return on plan assets - - - -

3. Contributions made 23.91 2.41 133.54 5.214. Benefits paid (23.91) (2.41) (133.54) (5.21)5. Actuarial gain/(loss) on plan assets - - - -

6. Fair value of plan assets as at 31.03.2011 - - - -

F. Major categories of plan assets as apercentage of total plan

Qualifying Insurance policiesOwn plan assets Nil Nil Nil NilTotal

G. Actuarial Assumptions1. Discount rate 8.00% 8.00% 7.85% 7.85%2. Salary escalation 4% 4% 4% 4%

3. Expected rate of return on plan assets0 % 0% 0% 0%

4. Attrition rate 10% 10% 10% 10%


34

9. 8,50,000 - 6% Cumulative Redeemable Preference Shares of Rs.100/- each issued and alloted

on 24.02.2010 are redeemable in February, 2020. No provision for payment of Dividend of

Rs.51.00 lakhs for the financial year ending 31.03.2011 has been made since not recommended.

10. There are no derivative financial Instruments either for hedging or for speculation outstandingas at the Balance Sheet date.

11. Estimated amount of contracts remaining to be executed on Capital Account and not provided

for Rs.26.00 lakhs. (Previous Year Rs.13.57 lakhs)

12. The following contingent liabilities have not been provided for: Rs. in lakhs

2010-11 2009-10

a) 1) Reimbursement of expenses received on rectification 10.83 10.83

of roof leakage restricted to Rs.5.04 lakhs by the High Court

of Madras under appeal before the Supreme Court.

2) Claim for damages against the Company contested 10.00 10.00

before the High Court, Madras.

b) Bonds executed in favour of The Asst. Commissioner of 98.95 98.95

Central Excise for duty free import of capital goods

and excise duty exemption for procurement of raw

materials and components for 100% EOU (Unit 2).

c) Bank guarantee furnished under (b) above 4.89 4.89

d) Bonds executed in favour of Deputy Commissioner of 8.00 8.00

Central Excise for import of components at Concessional

rate of duty for manufacture of weaving machines

e) Export obligation for machinery imported by associate 356.92 356.92

company under EPCG scheme and leased to the

company to be fulfilled before 4th December, 2014.

13. Segment Report for the year ended 31st March, 2011

Primary Business Weaving Machinery Other Engineering Total

Segment and spares Services

Revenue 31.03.2011 31.03.2010 31.03.2011 31.03.2010 31.03.2011 31.03.2010

External Sales 273.57 149.40 214.05 102.63 487.62 252.03

Inter Segment Transfers 0.44 0.01 1.12 0.44 1.56 0.45

Allocable other Income 144.03 22.40 28.46 27.53 172.49 49.93

Total Revenue 418.04 171.81 243.63 130.60 661.67 302.41

Less : Inter Segment Transfers 1.56 0.45

Add : Unallocable other Income 1447.66

Enterprise Revenue 660.11 1749.62


35

13. Segment Report for the year ended 31st March, 2011 (Contd.)

Primary Business Weaving Machinery Other Engineering Total

Segment and spares Services

Result 31.03.2011 31.03.2010 31.03.2011 31.03.2010 31.03.2011 31.03.2010

Segment Result 156.21 (-)334.83 (-)62.33 (-)160.34 93.88 (-)495.17

Less : Unallocated Expenses - -

Operating Profit 93.88 (-)495.17

Less : Interest Expenses 1.34 (-)39.02

92.54 (-)534.19

Less : Income Tax Current and Deferred - -

92.54 (-)534.19

Add : Other Income - 1447.66

Net Profit after Tax 92.54 913.47

Other Information

Segment Assets 663.99 679.29 412.75 415.49 1076.74 1094.78

Add : Unallocated

Corporate Assets - -

Enterprise Assets 1076.74 1094.78

Segment Liabilities 556.29 552.28 212.24 225.84 768.53 778.12

Add : Unallocated

Corporate Liabilities 308.21 316.66

Enterprise Liabilities 1076.74 1094.78

Capital Expenditure 68.53 72.31 0.30 0.35 68.83 72.66

Depreciation 17.08 15.14 22.66 23.37 39.74 38.51


36

14. Details of transactions with related parties as required under AS-18 are as below:

a. Names of related parties : Relationship

The Lakshmi Mills Company Ltd. Associate

Infocus Marketing and Services Ltd. - do -

Lakshmi Card Clothing Manufacturing Company Private Ltd. - do -

Balakumar Shipping & Clearing Agency P Ltd. - do -

Aloha Tours & Travels (India) Pvt. Ltd. - do -

Prathista Weaving and Knitting Company Ltd. - do -

b.Transaction during the year 31.03.2011 31.03.2010

Sl. No Nature of Transaction (Rs. in Lakhs)

1. Purchase of Goods 3.33 3.28

2. Sale of Goods 1.84 0.34

3. Rendering of Services 0.41 4.62

4. Receiving of Services 8.50 9.63

5. Agency arrangements 0.75 1.40

6. Leasing arrangement 7.78 7.90

Amount receivable as on 31.03.2011 0.05 -

Amount payable as on 31.03.2011 310.80 284.35

15. As defined under Micro, Small and Medium Enterprises Development Act, 2006 the disclosure in

respect of the amount payable to such enterprises as at 31.03.2011 has been made in the financial

statement based on information received and available with the company. The scheme sanctioned

by the BIFR being under implementation, the liability towards interest has not been recognised.

31.03.2011 31.03.2010

(Rs. in Lakhs)a) The principal amount remaining unpaid to any supplier

as at the end of each accounting year. 12.72 16.36

b) The amount of interest paid by the buyer in terms ofSection 16 of the Micro, Small and Medium EnterprisesDevelopment Act, 2006 along with the payment made tothe supplier beyond the appointed day duringeach accounting year. Nil Nil

c) The amount of interest due and payable for the period ofdelay in making payment (which have been paid but beyondthe appointed day during the year) but without adding theinterest specified under this Act. Nil Nil

d) The amount of interest accrued and remaining unpaid at theend of each accounting year. Nil Nil

e) The amount of further interest remaining due and payableeven in the succeeding years, until such date when the duesare actually paid for the purpose of disallowance underSection 23 of the Micro, Small and MediumEnterprises Development Act, 2006. Nil Nil


37

31.03.2011 31.03.2010

(Rs. in Lakhs)

16. Earnings per share as per AS-20 :a) Net Profit after taxes 92.54 907.60

b) No. of Shares outstanding 6103988 6103988

c) EPS/diluted EPS 1.52 14.87

(Face value of Rs.10/- per Share)

17. Figures have been rounded off in terms of decimals in thousands and previous year figures

have been regrouped/rearranged wherever necessary.

Directors






30.05.2011




Regn. No. 000771S




38

CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH, 2011

31.03.2011 31.03.2010

(Rs. in Lakhs)

A. Cash flow from operating activities

Net profit as per Profit & loss Account 25.71 925.23

Add :

Depreciation 39.74 38.51

Interest 1.34 39.02

Less:

Interest Income 11.13 4.17

Profit on sale of assets 5.23 1447.66

Share Issue Expenses written off 0.33 24.39 11.79 (-)1386.09

Operating Profit Before Working Capital Changes 50.10 (-)460.86

Adjustments for

Increase in Inventories (-)37.18 149.69

Increase in Debtors (-)20.51 40.55

Increase in Other Current Assets (-)15.36 (-)2.33

Decrease in Loans & Advances 6.84 34.76

Decrease in Current Liabilities (-)15.68 (-)908.78

Decrease in deferred revenue expenditure 0.33 8.54

(-)81.56 (-)677.57

Net Cash used in operating activities (A) (-)31.46 (-)1138.43

B. Cash Flow from Investment Activities

Purchase of Fixed Assets (-)68.83 (-)72.66

Interest Income 11.13 4.17

Sale of Fixed Assets 5.23 1473.06

Net Cash used in Investing activities (B) (-)52.47 1404.57

C. Cash Flow from Financial Activities

Interest (-)1.34 (-)41.88

Increase in Share Capital - 850.00

Increase in Working Capital Loan 11.95 (-)258.00

Increase in Indian Bank Term Loan - (-)230.80

Decrease in Sales Tax Deferred (-)34.14 (-)57.11

Decrease in Inter corporate loan - (-)226.00

Dividend & Dividend tax on Preference Shares (-)5.87 -

Net Cash used in Financing activities (C) (-)29.40 36.21

Net Increase in cash and cash equivalents (A+B+C) (-)113.33 302.35

Cash and cash equivalents as at 01.04.2010 314.73 12.38

Cash and cash equivalents as at 31.03.2011 201.40 314.73

-ve sign before the figures represent cash outflows.

Directors

(Sd.) S. PATHY

Chairman

(Sd.) R. SANTHARAM

Director

(Sd.) N. JAYCHANDER

Director-in-Charge

(Sd.) A. DORAISWAMY

Secretary and


Coimbatore

30.05.2011




Regn. No. 000771S

(Sd.) SUGUNA RAVICHANDRAN

Partner



39

BALANCE SHEET ABSTRACT AND COMPANY’S GENERAL BUSINESS PROFILE

I Registration Details

Registration No. : 181-000680 State Code : 18

Balance Sheet Date : 31.03.2011

II Capital Raised during the year(Amount in Rs.Thousands)

Public Issue : Nil Rights Issue : Nil

Bonus Issue : Nil Private Placement : Nil

III Position of Mobilisation and Deployment of Funds (Amount in Rs. Thousands)

Total Liabilities : 200401 Total Assets : 200401

Sources of Funds

Paid-up Capital : 146040 Reserves & Surplus : 45792

Secured Loans : 1195 Unsecured Loans : 7374

Application of Funds

Net Fixed Assets : 44431 Misc.Expenditure : 261

Net Current Assets : (-)12416

Accumulated Losses : 168125

IV Performance of Company(Amount in Rs.Thousands)

Turnover : 48762 Total Expenditure : 63448

Profit /Loss before tax : 9254 Profit/Loss aftersetoff and tax : 9254

Earnings per Share in Rs. : 1.52 Dividend Rate % on

Equity Shares : Nil

Dividend on 6%Cumulative RedeemablePreference Shares : Nil

V Generic Names of Three Principal Products / Services of the Company (as per monetaryterms)

Item Code No. Product Description (ITC Code)

a) 84462109 Weaving Machines-Shuttle type, Accessories and Spares

b) 84471211 Circular Knitting Machines, Accessories and Spares

c) 84660000 Parts and Accessories for Machine Tools including Work or

Tool Holders and Accessories

Directors

(Sd.) S. PATHY

Chairman

(Sd.) R. SANTHARAM

Director

(Sd.) N. JAYCHANDER

Director-in-Charge

(Sd.) A. DORAISWAMY

Secretary and


Coimbatore

30.05.2011




Regn. No. 000771S

(Sd.) SUGUNA RAVICHANDRAN

Partner


Year ended

31st March 2011 2010 2009 2008 2007 2006 2005 2004

Gross Block 2693.98 2646.36 2612.95 2600.16 2551.15 2508.44 2492.81 3084.39

Depreciation 2249.67 2231.14 2206.51 2160.22 2091.81 2011.64 1918.46 2299.96

Net Block 444.31 415.22 406.44 439.94 459.34 496.80 574.35 784.43

Investments - - 69.95 69.95 69.95 69.95 69.95 69.95

Current Assets 577.16 617.44 503.00 890.62 936.25 1596.69 1282.49 935.17

Loans and

Advances 55.27 62.11 96.87 106.12 117.50 115.38 127.66 121.98

Sub Total 1076.74 1094.77 1076.26 1506.63 1583.04 2278.82 2054.45 1911.53

Secured Loans 11.95 - 491.65 472.29 560.14 763.07 785.99 856.30

Unsecured Loans 73.74 175.05 458.16 509.03 605.39 813.60 897.34 834.84

Current Liabilities

and Provisions 756.59 778.12 1681.03 1998.38 1880.00 2503.00 2259.65 2164.50

Sub Total 842.28 953.17 2630.84 2979.70 3045.53 4079.67 3942.98 3855.64

Net Worth 234.46 141.60 (-)1554.58 (-)1473.07 (-)1462.49 (-)1800.85 (-)1888.53 (-)1944.11

Represented by

Share Capital 1460.40 1460.40 610.40 610.40 610.40 610.40 610.40 610.40

Reserves and

Surplus 457.92 457.92 527.87 527.87 527.87 527.87 527.87 542.87

Miscellaneous

Expenditure

and Losses (-)1683.86 (-)1776.72 (-)2692.85 (-)2611.34 (-)2600.76 (-)2939.12 (-)3026.80 (-)3097.38

Net Profit / Loss 25.71 925.23 (-)292.06 (-)25.00 297.86 47.71 11.86 47.39

Balance Sheet - SummaryRs. in Lakhs

LAKSHMI AUTOMATIC LOOM WORKS LIMITEDLAKSHMI AUTOMATIC LOOM WORKS LIMITED

40

41

LAKSHMI AUTOMATIC LOOM WORKS LIMITEDRegistered Office:

686, AVANASHI ROAD, PAPPANAICKENPALAYAMCOIMBATORE - 641 037

Phone:91-422- 2245484, 2245485 [email protected]

Dear Shareholders,

Sub: “GREEN INITIATIVE IN THE CORPORATE GOVERNANCE”

The Ministry of Corporate Affairs has taken a “Green Initiative in the Corporate Governance” by

allowing paperless compliances by the companies vide its circular no.17/2011 dated 21/04/2011

and circular no.18/2011 dated 29/04/2011. Accordingly service of documents are allowed to be

made through electronic mode on obtaining e-mail address of the members for sending the notice/

documents such as Notice of AGM, Audited financial statement, Directors Report, Auditors Report

etc through e-mail by giving an advance opportunity to every shareholder to register their e-mail

address and changes therein from time to time, with the company.

In cases were any member has not registered his/her e-mail address with the company, the

service of document etc will be effected through postal service.

We therefore request you to kindly register your e-mail ID with the company’s registered office at

686, Avanashi Road, Coimbatore-641037 by mailing your E-Mail ID with the following details to

[email protected]

Folio No. :

Name :

E-mail ID :

Mode of dispatch : Electronic mode / Physical Mode (✓ in the box whichever is applicable)

The Annual Report and other Communications/ documents will also be displayed on the company’s

website:www.lakshmiautomatic.com

As a member of the company, you will be entitled to be furnished, free of cost, a copy of the

Balance sheet, and all other documents required by law to be attached thereto including the profit

and loss account, Auditors Report and other communication that may be sent to you, on receipt of

a requisition from you to this effect.

Thanking you

Yours faithfully

For Lakshmi Automatic Loom Works Ltd

(Sd.) A. DoraiswamyCompany Secretary &

Vice President – Finance

Coimbatore

11.07.2011

LAKSHMI AUTOMATIC LOOM WORKS LIMITEDRegistered Office:

686, AVANASHI ROAD, PAPPANAICKENPALAYAMCOIMBATORE - 641 037

FORM OF PROXY

I/We..........................................................................................................................................................

of ...................................................................................................................................................................

in the district of .............................................................................................................................................

being a Member/Members of Lakshmi Automatic Loom Works Limited hereby appoint

.........................................................................................................................................................................

..................................................................... of ..................................................................in the district

of ............................................................... or failing him.............................................of.............................

in the district of ..............................................................................................................as my/our Proxy

in my / our absence to attend and vote for me/us and on my/our behalf at the THIRTY SEVENTH

ANNUAL GENERAL MEETING of the Company to be held at the Registered Office at 686, Avanashi

Road, Pappanaickenpalayam, Coimbatore - 641 037 on Thursday, the 11th

day of August, 2011

at 4.30 P.M. and at any adjournment thereof.

Signed by the said.........................................................................................................................

Date ............................................... 2011

Shareholder’s Code No. ................................................................

Note : 1. A Member entitled to attend and vote is entitled to appoint a proxy to attend and vote

instead of himself.

2. A Proxy need not be a Member.

3. A 15 Paise Revenue Stamp should be affixed to this and it should then be signed by the

Member.

4. The proxy must be deposited at the Registered Office of the Company at 686, Avanashi

Road, Pappanaickenpalayam, Coimbatore - 641 037 not less than 48 hours before the

time for holding the meeting.

15 Paise

Revenue

Stamp

If undelivered please return to :


686, AVANASHI ROAD

COIMBATORE - 641 037

TAMILNADU

INDIA

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