* The Company at its Extra-ordinary General Meeting of the Shareholders held on 24^th day of March,2021 has resolved to consolidate 10 (Ten) Equity Shares of T10/- each into 1 (one) Equity Share of T100/- each fully paidup with effect from the ‘Record date’ ie 05.05.2021 and the allotment of the consolidated shares has been completed on 07.05.2021 after obtaining relevant approvals during the financial year 2021-2022.

(c) Rights, Preferences and restrictions attached to Shares

The company has only one class of equity shares having a par value of T 100/- per share. Each share holder is entitled for one vote. As per the terms of the share issued, dividend is payable to the share holders in proportion to the respective equity shares held by them on a fully diluted basis. Repayment of share capital on liquidation will be in proportion to the number of equity shares held.

Details of security for non-current and current borrowings from bank:

The open cash credit facility and GECLS Term loan are secured by a charge on the entire current assets of the Company and plant & machinery and extension of charge on land and Building measuring 8.67 acres in Plot No.44 in SIPCOT industrial Complex, Hosur. Term loans are secured by Equitable Mortgage of land and buildings measuring 8.67 acres at SIPCOT Industrial Complex, Hosur.

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 necessary reconciliations.

The CEO 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 two reportable business segments - “Warehousing Rental Services” and “Engineering Services”. The reportable business segments are in line with the segment wise information which is being presented to the CODM.

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.

(a) Defined Contribution Plan:

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 towards the benefits. The Company has recognised ? 19.98 Lakhs (for the year ended March 31, 2025:? 20.74 Lakhs) as contribution to Provident Fund, and ? 3.03 Lakhs (for the year ended March 31,2025 ? 3.80 Lakhs) as payment under Employee State Insurance Scheme 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.

(b) Defined Benefit Plans:

Gratuity and Leave encashment

The gratuity obligation is funded. The following table sets out the status of the defined benefit schemes and the amount recognised in the financial statements as per the Actuarial Valuation done by an Independent Actuary:

The retirement age of employees of the Company is 58 years.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary. The mortality rates considered are as per the published rates in the Indian Assured Lives Mortality (2012-14) Ultimate table.

Sensitivity analysis

The key actuarial assumptions to which the defined benefit plans are particularly sensitive to are discount rate, salary escalation & attrition rate. The sensitivity analysis below, have been determined based on reasonably possible changes of the assumptions occurring at end of the reporting period, while holding all other assumptions constant.

The weighted average duration of the defined benefit obligation is 9.88 years (March 31, 2025 - 9.99 years).

Note: The compensation for employee absences are expected to be discharged within 12 months from the relevant reporting period. As a result, the leave salary is determined to be a short-term employee benefit expense in accordance with IND AS 19, Employee Benefits.

The employee benefit obligations expose the Company to actuarial risks such as: longevity risk, salary risk, market risk, legislative risk and liquidity risk

Longevity Risk: The present value of the defined benefit obligation is calculated by reference to the best estimate of the mortality of the participants during their employment. An increase in the life expectancy of the participants will increase the obligation.

Salary risk: The present value of the defined benefit obligation is calculated by reference to the future salaries of the participants. As such, an increase in the salary of the participants will increase the obligation.

Market risk: Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets. One actuarial assumption that has a material effect is the discount rate. The discount rate reflects the time value of money. An increase in discount rate leads to decrease in Defined Benefit Obligation of the plan benefits & vice versa. This assumption depends on the yields on the corporate / government bonds and hence the valuation of liability is exposed to fluctuations in the yields as at the valuation date.

Legislative risk: Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the legislation /regulation. The government may amend the Payment of Gratuity Act thus requiring the companies to pay higher benefits to the employees. This will directly affect the present value of the Defined Benefit Obligation. The new labour code is a case in point and the same will have to be recognized immediately in the year when any such amendment is effective.

Liquidity risk: Employees with high salaries and long durations of service or those higher in hierarchy, accumulate significant level of benefits. If some of such employees resign / retire from the company there can be strain on the cash flows.

NOTE 31 - FINANCIAL INSTRUMENTS

31.1 Capital Management

The Company’s management objectives are:

- to ensure the Company’s ability to continue as a going concern

- to create value for Shareholders by facilitating the meeting of long term and short term goals of the Company.

The Company determines the amount of capital required on the basis of annual business plan coupled with long term and short term expansion plans. The funding needs are met through equity, cash generated from operations, long term and short term bank borrowings.

The Company monitors the capital structure on the basis of net debt to equity ratio and maturity profile of the overall debt portfolio of the Company. Net debt includes interest bearing instruments less cash and cash equivalents and other bank balances (including non-current earmarked balances)

31.2 Categories of Financial Instruments

This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments. The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised in respect of each class of financial asset and financial liability are disclosed in Note 2C(7) of Material Accounting Policies.

The management has assessed that the fair values of cash and cash equivalents, bank balances, trade receivables, other financial assets, trade payables and other financial liabilities recorded at amortised cost is considered to be a reasonable approximation of fair value.

The following methods and assumptions are used to estimate the fair values:

Fair values of the Company’s interest-bearing instruments are determined by using Effective Interest Rate (EIR) method. The own non-performance risk as at March 31, 2026 was assessed to be insignificant.

B. Fair value hierarchy

The Company uses the following hierarchy for determining and/or disclosing the fair value of financial instruments by valuation techniques. The three levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

31.3 - Financial risk management objective

The Company’s activities expose it to certain / reasonable financial risks. The Company’s primary focus is to foresee the unpredictability of such risks and seek to minimize potential adverse effects on its financial performance.

The Company has a risk management process and framework in place. This process is coordinated by the Board, which meets regularly to review risks as well as the progress against the planned actions. The Board seeks to identify, evaluate business risks and challenges across the Company through such framework. These risks include market risks, credit risk and liquidity risk.

The risk management process aims to:

-improve financial risk awareness and risk transparency

-identify, control and monitor key risks

-identify risk accumulations

-provide management with reliable information on the Company’s risk situation -improve financial returns

Market Risk - Foreign Exchange

The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to Euro. Foreign exchange risk arises from recognised assets and liabilities denominated in a currency that is not the Company’s functional currency. Exposures to foreign currency balances are periodically reviewed to ensure that the results from fluctuating currency exchange rates are appropriately managed.

The Company does not have any foreign currency receivable or payable exposures as at 31.03.2026 and 31.03.2025.

(ii) Assets:

The Company’s financial assets are carried at amortised cost and are at fixed rate only. They are, therefore, not subject to interest rate risk since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

Credit Risk

Credit risk is the risk that a customer or counterparty to a financial instrument will fail to perform or pay amounts due to the Company causing financial loss. It arises from cash and cash equivalents, deposits with banks, security deposits, loans given and principally from credit exposures to customers relating to outstanding receivables. The Company’s maximum exposure to credit risk is limited to the carrying amount of financial assets recognised at reporting date.

In respect of trade and other receivables, the Company is not exposed to any significant credit risk exposure to any single counterparty or any company of counterparties having similar characteristics. The Company has very limited history of customer default, and considers the credit quality of trade receivables, that are not past due or impaired, to be good.

Therefore, the Company does not expect any material risk on account of non performance by any of the Company’s counterparties. The Company uses a simplified approach of estimated credit losses for trade receivables which provide for expected credit loss on lifetime expected losses. The credit risk for cash and cash equivalents, bank deposits, security deposits and loans is considered negligible, since the counterparties are reputable organisations.

Liquidity Risk

The Company requires funds both for short-term operational needs as well as for long-term expansion programmes. The Company remains committed to maintaining a healthy liquidity ratio, deleveraging and strengthening the balance sheet. The Company manages liquidity risk by maintaining adequate support of facilities and by continuously monitoring forecast and actual cash flows and by matching the maturity profiles of financial assets and liabilities.

The Company’s Finance department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management.

The Company’s financial liability is represented significantly by long term and short term borrowings from banks and trade payables. The maturity profile of the Company’s short term and long term borrowings and trade payables based on the remaining period from the date of balance sheet to the contractual maturity date is given in the table below. The figures reflect the contractual undiscounted cash obligation of the Company.

The bank open credit 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.

32.2 The Government of India with effect from 21^st November 2025, notified the Code of Social Security, 2020, the Occupational Safety, Health & Working Conditions Code, 2020, the Industrial Relations Code 2020 and the Code on Wages, 2019 (collectively the “Labour codes”) which replace existing Central labour legislations. Based on the company’s assessement, the provisions currently in force do not have a material impact on the financial results of the company. After the Balance sheet date, while the Central Government notified the rules on May 08^th 2026, the State Rules are yet to be notified. The company continues to monitor the developments pertaining to Labour Codes and will evaluate impact if any on the measurement of liability pertaining to the employee benefits and would provide appropriate accounting treatment on the basis of such developments as required.

32.3 Additional disclosures under Schedule III of the Companies Act,2013

i The Company did not undertake transactions that were not recorded in the books of accounts and which have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

ii The Company has not made investments in any body corporate and hence disclosure regarding compliance with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017 does not apply.

iii The Company has not been declared a Wilful Defaulter by its lenders.

iv The Company does not hold any benami property and hence no proceedings have been initiated against the company under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

v The Company has not traded in cryptocurrencies or vitual currencies during the year.

vi The Company has not entered into transactions with Companies that have been struck off the Register of Companies

vii 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.

viii 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

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

x The Company has not availed fresh term loans during the year and hence reporting on whether the funds raised have been used for the specific purposes does not arise.

xi The Company does not have any charges or satisfaction thereof which are yet to be registered with the Registrar of Companies (ROC) beyond the statutory period.

The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

Lease liabilities are monitored within the Company’s treasury function. All lease obligations are denominated in currency units.

34.1 The financial statements of Lakshmi Engineering and Warehousing Limited were approved by the Board of Directors and authorised for issue on 29^th May 2026.

34.2 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 ? 10 (10%) each per equity share of the face value of ? 100 each, subject to the approval of the shareholders at the ensuing Annual General Meeting. This will result in a total dividend outgo of ? 66.87 Lakhs.

35 All 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.