2.18 Provisions, contingent liabilities and contingent
assets

Provisions involving substantial degree of estimation in
measurement are recognized when there is a present
obligation as a result of past events and it is probable
that there will be an outflow of resources. Contingent

liabilities / assets are not recognized but are disclosed
in the notes to financial statements when an inflow of
economic benefits is probable. Provisions, contingent
liabilities are reviewed at each balance sheet date and
adjusted to reflect the current best estimate.

The amount recognized as a provision is the best estimate
of the consideration required to settle the present
obligation at the end of the reporting period, taking
into account the risks and uncertainties surrounding
the obligation. When a provision is measured using the
cash flows estimated to settle the present obligation, its
carrying amount is the present value of those cash flows
(when the effect of the time value of money is material).

Present obligations, legal or constructive, arising under
onerous contracts are recognized and measured
as provisions.

An onerous contract is considered to exist where the
company has a contract under which the unavoidable
costs of meeting the obligations under the contract
exceed the economic benefits expected to be received
from the contract.

Provisions for the expected cost of warranty obligations
are recognized at the date of sale of the relevant products,
at the management's best estimate of the expenditure
required to settle the company's obligation.

2.19 Cash Flow Statement and Cash and Cash equiv¬
alents

Cash Flows are reported using Indirect method, whereby
profit before tax is adjusted for the effects of transactions
of non-cash nature, any deferrals or accruals of past or
future operating cash receipts or payments and items
of income or expense associated with investing or
financing cash flows. Cash and cash equivalents include
cash on hand and balances with banks in current and
deposit accounts.

2.20 Segment Reporting

An operating segment is a component of the company
that engages in business activities from which it may
earn revenues and incur expenses, including revenues
and expenses that relate to transactions with any of the
company's other components, and for which discrete
financial information is available. All operating segments'

operating results are reviewed regularly by the company's
Chief Executive Officer (CEO), who is the Chief Operating
Decision Maker (CODM), to make decisions about
resources to be allocated to the segments and assess
their performance. Information reported to the CODM
for the purpose of resource allocation and assessment of
segment performance focuses on the type of goods or
services delivered or provided.

The company has three reportable segments, viz., Textile
Machinery Division, the Machine Tool Division / Foundry
and the Advanced Technology Centre, which are the
company's strategic business units. These business units
offer different products and services and are managed
separately because they require different technology and
marketing strategies. For each of these business units, the
company's CODM reviews internal management reports.
Performance is measured based on segment profit before
tax, as included in the internal management reports, that
are reviewed by the company's CODM. Segment profit is
used to measure performance as management believes
that such information is the most relevant in evaluating
the results of certain segments relative to other entities
that operate within these industries. Inter-segment
pricing is determined on arm's length basis.

2.21 Leases

The company as a Lessee

The Company's lease asset class primarily consists of
leases for land and buildings. The Company assesses
whether a contract contains a lease, at inception of a
contract. A contract is, or contains, a lease if the contract
conveys the right to control the use of an identified
asset for a period of time in exchange for consideration.
To assess whether a contract conveys the right to
control the use of an identified asset, the Company
assesses whether:

(i) the contract involves the use of an identified asset

(ii) the lessee has substantially all of the economic
benefits from use of the asset through the period of
the lease and

(iii) the lessee has the right to direct the use of the asset.

At the date of commencement of the lease, the
Company recognizes a right-of-use asset ("ROU") and a

corresponding lease liability for all lease arrangements in
which it is a lessee, except for leases with a term of twelve
months or less (short-term leases) and low value leases.
For these short-term and low value leases, the Company
recognizes the lease payments as an operating expense
on a straight-line basis over the term of the lease.

If lease arrangements include the options to extend or
terminate the lease before the end of the lease term,
then ROU assets and lease liabilities include these options
when it is reasonably certain that they will be exercised.

The right-of-use assets are initially recognized at cost,
which comprises the initial amount of the lease liability
adjusted for any lease payments made at or prior to the
commencement date of the lease plus any initial direct
costs less any lease incentives. They are subsequently
measured at cost less accumulated depreciation and
impairment losses.

Right-of-use assets are depreciated from the
commencement date using written down value method.
Right of use assets are evaluated for recoverability
whenever events or changes in circumstances indicate
that their carrying amounts may not be recoverable.
For the purpose of impairment testing, the recoverable
amount (i.e. the higher of the fair value less cost to sell
and the value-in-use) is determined on an individual asset
basis unless the asset does not generate cash flows that
are largely independent of those from other assets. In
such cases, the recoverable amount is determined for the
Cash Generating Unit (CGU) to which the asset belongs.

The lease liability is initially measured at amortized cost at
the present value of the future lease payments. The lease
payments are discounted using the interest rate implicit
in the lease or, if not readily determinable, using the
incremental borrowing rates in the country of domicile
of these leases. Lease liabilities are re-measured with
a corresponding adjustment to the related right of use
asset if the Company changes its assessment if whether
it will exercise an extension or a termination option.

Lease liability and ROU asset have been separately
presented in the Balance Sheet and lease payments have
been classified as financing cash flows.

In case of short-term leases or leases for which underlying
asset is of low value, the Company recognizes the lease

When the Company is an intermediate lessor, it accounts
for its interests in the head lease and the sublease
separately. The sublease is classified as a finance or
operating lease by reference to the right of-use asset
arising from the head lease.

For operating leases, rental income is recognized on a
straight-line basis over the term of the relevant lease.

iii) Fair Value of financial assets and liabilities measured at amortised cost

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

30.5 Exceptional Items

During the year ended 31^st March 2025, the Company sold/transferred the investments in their wholly owned
subsidiaries, namely LMW Textile Machinery (Suzhou) Co., Ltd, China and LMW Global FZE, UAE with a total carrying
value of B70.26 Crores to its another wholly owned subsidiary namely LMW Holding Limited, UAE. Consequently,
a gain on sale/transfer aggregating to B131.61 Crores was recognized as exceptional item during the year ended
31^st March 2025.

Other companies/firms in which directors or their relatives are interested

Alampara Hotels and Resorts Private Limited, Chakradhara Aerospace and Cargo Private Limited, Chakradhara Agro
Farms Private Limited, Dhanajaya Agro Farms Private Limited, Dhanuprabha Agro Private Limited, Eshaan Enterprises
Private Limited, Harshni Textiles Private Limited, Hermes Academy of Training Private Limited, Lakshmi Caipo Industries
Limited, Lakshmi Card Clothing Mfg Co. Private Limited, Lakshmi Cargo Company Limited, Lakshmi Electrical
Control Systems Limited, Lakshmi Electrical Drives Private Limited, Lakshmi Energy and Environment Designs Private
Limited, Lakshmi Life Sciences Private Limited, Lakshmi Precision Technologies Limited, Lakshmi Ring Travellers
(Coimbatore) Private Limited, LCC Cargo Holdings Private Limited, Lakshmi Technology and Engineering Industries
Limited, Mahalakshmi Engineering Holdings Private Limited, Coimbatore Lakshmi Cotton Press Private Limited, Petrus
Techonologies Private Limited, Quattro Engineering India Private Limited, Rajalakshmi Engineering, Revantha Agro
Farms Private Limited, Revantha Services Private Limited, Shri Kara Engineering Private Limited, Sowbarnika Enterprises
Private Limited, Sri Dwipa Properties Private Limited, Sri Kamakoti Kamakshi Enterprises Private Limited, Starline Travels
Private Limited, Sudhasruthi Agro Private Limited, Super Sales India Limited, Supreme Dairy Products India Private
Limited, The Lakshmi Mills Company Limited, Titan Paints Private Limited, Venkatavaradhaa Agencies Private Limited,
Waterfield Financial and Investment Advisors Private Limited.

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

J. Brief description of the plans & risks

These plans typically expose the company to actuarial risks such as: investment risk, interest rate risk, longevity risk
and salary risk.

Investment risk

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

Interest Rate risk

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

Longevity risk

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

Salary risk

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

Credit risk - Credit risk arises from the risk of default on its obligation by the counterparty resulting in financial loss,
such as cash and cash equivalents and outstanding receivables.

Credit risk on cash and cash equivalents is considered negligible as the company generally invests in fixed deposits
with reputable banks. They are not impaired or past due for each of the reporting dates.

Credit risk on outstanding receivables is the exposure to billed receivable and are normally unsecured and derived
from revenue earned from customer mostly from India. Credit risk is managed by the company through credit

approvals and continuously monitoring the credit worthiness of the customer to which the company grants credit in
the normal course of business. The company applied simplified approach of estimated credit loss for trade receivable,
which provide for expected credit loss based on life-time expected losses. Trade receivables consist of a large number
of customers, spread across diverse industries and geographical areas. The Company does not have any significant
credit risk exposure to any single counterparty.

The concentration of credit risk is limited due to the fact that the customer base is large and unrelated.

Liquidity risk - Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of
liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements.
The company's principal source of liquidity is from cash and cash equivalent and the cash flow from operations.
The company does not have any external borrowings from banks or any other financial institution. The company
believes that the working capital through internal accruals is sufficient to meet its current requirements and hence the
Company does not perceive any such risk.

Market risk

Market risk is the risk of any loss in future earnings, in realisable fair values or in future cash flows that may result from
a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes
in the interest rates, foreign currency exchange rates, equity price fluctuations, liquidity and other market changes.
Future specific market movements cannot be normally predicted with reasonable accuracy.

Equity Price risk

Equity Price risk is related to the change in market reference price of the investments in equity securities. The fair
value of some of the Company's investments measured at fair value through other comprehensive income exposes
the Company to equity price risks. These investments are subject to changes in the market price of securities. The
fair value of Company's investment in quoted equity securities as of 31^st March 2025 and 2024 was B315.89 Crores
and B264.52 Crores respectively.

A 5% change in equity price as of 31^st March 2025 and 2024 would result in an impact of B15.79 Crores and B13.23
Crores respectively.

(Note: The impact is indicated on equity before consequential tax impact, if any).

Capital management

The company's objective is to safeguard its financial stability, financial independence and its ability to continue as
a going concern in order to generate returns for the shareholders and benefits for the other stake holders. The
company incentivise the shareholders by paying optimum and regular dividends."

The Company determines the amount of capital required on the basis of annual operating plans and other strategic
investment plans. The funding requirements are met through internally generated funds . The Company does not
have any borrowings in its capital portfolio.

30.15 Revenue Expenditure on Research & Development of Textile Machinery Division amounting to B47.12 Crores
(FY 2023-24 B30.11 Crores) and for Machine Tool Division amounting to B7.77 Crores (FY 2023-24 B4.86 Crores) has
been charged to Statement of Profit and Loss and Capital expenditure relating to Research and Development for
Textile Machinery Division amounting to B1.63 (FY 2023-24 B4.98 Crores) and for Machine Tool Division amounting to
BNil (FY 2023-24 BNiL) has been included in Fixed Assets.

30.16 Additional regulatory information required by Schedule III

i) Details of benami property held

No proceedings have been initiated on or are pending against the company for holding benami property under
the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

ii) WiLfuL Defaulter

The company had not been declared a wilful defaulter by any bank or Financial Institution or other Lender (as
defined under the Companies Act, 2013) or consortium thereof, in accordance with the guidelines of the wilful
defaulter issued by the Reserve Bank of India.

iii) Relationship with struckoff companies - Nil

iv) Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under the Companies Act, 2013.

v) Compliance with approved scheme(s) of arrangements

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

vi) Utilisation of borrowed funds

The Company does not have borrowed funds.

vii) Undisclosed income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments
under the Income Tax Act, 1961, that has not been recorded in the books of account.

viii) Details of crypto currency or virtual currency

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

ix) Valuation of Property, Plant & Equipment, intangible asset and investment property

The Company has not revalued its property, plant and equipment or intangible assets or both during the current
or previous year.

In terms of our report attached p_or and _on behalf of the Board of Directors

For S. Krishnamoorthy & Co

Firm Registration No. 001496S

Chartered Accountants Sanjay Jayavarthanavelu Jaidev Jayavarthanavelu

Chairman and Managing Director Director

B. Krishnamoorthi DIN:00004505 DIN:07654117

Partner

^{Membership N}°. ⁰²⁰⁴³⁹ V. Senthil C R Shivkumaran

Place : Coimbatore Chief Financial Officer Company Secretary

Date : 14^th May 2025