Lakshmi Automatic Loom Works Ltd Management Discussions

Warehousing sector in India has seen a tremendous change over the decades from being an unorganized go down structures to getting recognized as a prominent asset class. While the sector was witnessing growth on the back of Indias burgeoning consumer market, a boom in organized retail, changing consumer behaviors, and regulatory measures, added with the pandemic was a true test of this supply chain model.

Entire leasable Building space in the Warehousing Division at Hosur has been let out to Corporates of repute. Located on the Bangalore Salem / Chennai Highway with proximity to Karnataka and Other Southern State the demand for building space in Hosur is continuously growing.

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

There is a preferential upsurge in Grade A warehousing facilities. This transformation towards sophisticated state-of-the-art warehousing has increased the average size of Grade A warehouses considerably in India. The rising trend of Grade A development in continuing in Financial Year 2023-24 with developers focusing on higher grade park development compliant with contemporary norms with the higher throughput requirements of businesses today. Companys buildings with large space and the location is an added advantage for corporate clients.

The Companys Engineering Services Division is catering to the Customers for supply of Parts for Machine Tools and Tool Holders, Textile Spares and Accessories to Domestic and Overseas clients. The increase in input cost may affect the operational margin. With re-engineering and addition of new machineries and identifying new reputed clients, your Company is endeavoring to improve the turnover and the bottom line.

With the leasing of the entire available area to reputed parties, the income will improve during 2023-24. Further addition of warehousing space is awaiting for Building Plan approval from the Government Authorities.

Your Companys efforts in increasing the supply of Spares and Accessories to domestic and overseas consumers and Textile Machinery Manufacturers are yielding better results.

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

The Company has achieved Revenue of T 1,424.52 Lakhs from operations and the Net Profit for the year under review is T 211.89 Lakhs after providing T 98.49 Lakhs for Depreciation and T 60.66 Lakhs towards Taxation.

The number of employees engaged during the year was in line with operational requirement of the Company. The relation with labour continued to be cordial during the year. Total employees as on 31.03.2023 were 115 (One Hundred Fifteen only).