Lakshmi Electrical Control Systems Limited has received show cause notices from the Office of the Assistant Commissioner (GST) demanding a total of ₹5.49 crore across two financial years. The notices, received on May 7, 2026, allege short payment of tax under Reverse Charge Mechanism (RCM), issues related to Input Tax Credit (ITC) reversals, and insufficient documentary proof for exempted or nil-rated supplies.

The first notice pertains to Financial Year 2022-2023 and demands ₹1,56,88,534. This amount includes a tax component of ₹1,41,40,145, cess of ₹2,922, interest of ₹1,11,452, and a penalty of ₹14,34,015. The second notice covers Financial Year 2023-2024 and involves a significantly higher demand of ₹3,92,93,425, comprising tax of ₹3,57,21,295 and a penalty of ₹35,72,130.

Breakdown of Demands

The following table details the financial implications of the notices received by the company:

Company Response and Non-Compliances

The regulatory authorities identified specific aberrations, including short payment of tax under RCM, proof requirements for exempted, nil-rated, or non-GST supplies, and details of turnover reported in GSTR forms. Additionally, the notices cite ITC reversals and the need for documentary proof regarding credit notes and ITC claimed.

Lakshmi Electrical Control Systems Limited stated that it is currently in the process of filing the necessary replies and explanations to substantiate its case against these demands. The company clarified that there is no material impact on its financials, operations, or other activities as a result of these communications. The intimation to the exchanges was filed on June 2, 2026, after the notices were retrieved from the spam folder of the official email account.

Lakshmi Electrical Control Systems Limited has announced its audited financial results for the quarter and financial year ended March 31, 2026. The company reported a net profit of ₹118.70 lakh for the full year, a decline from ₹347.23 lakh recorded in the previous fiscal year. Revenue from operations for FY26 rose to ₹23,758.05 lakh from ₹21,231.22 lakh in the corresponding period last year.

For the quarter ended March 31, 2026, the company posted a net profit of ₹118.73 lakh, a turnaround from the net loss of ₹105.33 lakh in the preceding quarter ended December 31, 2025. Revenue from operations for the quarter increased to ₹6,847.12 lakh from ₹5,839.01 lakh in the previous quarter. The total income for the quarter stood at ₹6,973.58 lakh.

Financial Performance

The Board of Directors, at its meeting held on May 20, 2026, approved the audited financial results. The statutory auditors, M/s. Subbachar & Srinivasan, issued an audit report with an unmodified opinion for the financial year. The company's total expenses for the year amounted to ₹24,101.76 lakh, up from ₹21,166.43 lakh in the previous year.

Dividend Recommendation

The Board has recommended a dividend of ₹3.00 per equity share, which represents 30% of the face value of ₹10 each, for the financial year ended March 31, 2026. This dividend is subject to the approval of shareholders at the ensuing Annual General Meeting (AGM). The record date for determining eligibility of shareholders for the dividend is fixed as July 24, 2026.

Corporate Announcements

The Board has approved the convening of the 45th Annual General Meeting of the company on July 31, 2026. The register of members and share transfer books will remain closed from July 25, 2026, to July 31, 2026, for the purpose of dividend payment and the AGM. Additionally, the Board has recommended the appointment of M/s. NRD Associates as the new Statutory Auditors for a term of five years, subject to shareholder approval, following the expiration of the term of the current auditors.

The Board also re-appointed Sri. S. Subbaraman as Cost Auditor and Sri V.C. Tirupathi as Internal Auditor for the financial year 2026-2027. Furthermore, the Board approved the amendment to Article 84 of the Articles of Association regarding the appointment and remuneration of directors, subject to shareholder approval.