Lakshmi Electrical Control Systems Limited announced on July 01, 2026, that the Madras High Court has ruled in its favour regarding a dispute over Arasur Panchayat licence fees. The order disposes of a writ petition by directing the company to pay the old rate rather than the higher rate imposed by the local authority. This decision eliminates the need to pay a disputed due of Rs 1.67 Lakhs, providing relief from the previous financial demand.

The communication, received under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, details the court's decision. The matter pertains to the Financial Year 2026-2027. The company stated that there is no material impact on its financials, operations, or other activities as a result of this order.

Court Order Details

The order from the Honourable High Court, Madras, specifically addresses the Arasur Panchayat Running Licence fees matter previously disclosed in the company's Annual Reports. The court's intervention resolves the issue by validating the older fee structure.

Next Steps

Following the court order, Lakshmi Electrical Control Systems Limited plans to approach the local authority to facilitate any potential refunds based on the new directive. The company confirmed that no aberrations, non-compliances, penalties, or sanctions were identified in the communication.

Lakshmi Electrical Control Systems Limited has scheduled its 45th Annual General Meeting for July 31, 2026, at 09.45 A.M. IST in Coimbatore. The meeting will seek shareholder approval for financial statements for the year ended March 31, 2026, and material related party transactions aggregating ₹550 crore. The company proposes to enter into transactions worth up to ₹450 crore with LMW Limited and up to ₹100 crore with Lakshmi Precision Technologies Limited until the conclusion of the next AGM.

The Board recommends the appointment of M/s. NRD Associates as statutory auditors for a term of five years from FY27 to FY31, replacing M/s. Subbarchar & Srinivasan. Shareholders will also consider ratifying the remuneration of ₹40,000 for the cost auditor, Sri S. Subbaraman, for FY27. Additionally, the meeting will propose the re-appointment of Sri D. Senthilkumar, Director, who retires by rotation.

Related Party Transactions

The company requires shareholder approval for transactions with related parties that exceed 10% of its annual consolidated turnover. The proposed transactions with LMW Limited involve the purchase of control panel components and the sale of control panels and engineering plastics. These transactions are estimated at ₹275 crore for FY27 and ₹175 crore for FY28.

Transactions with Lakshmi Precision Technologies Limited include the purchase of sheet metal cabinets and the sale of engineering components. The estimated limits for these transactions are ₹60 crore for FY27 and ₹40 crore for FY28. Both sets of transactions will be conducted on an arm's length basis.

Auditor and Director Appointments

M/s. NRD Associates, Chartered Accountants, have been recommended for appointment as statutory auditors following the completion of two terms by the incumbent firm. The proposed fee for the first year is ₹3,50,000. The company also seeks ratification for the cost auditor's remuneration, fixed by the Board.

Sri D. Senthilkumar (DIN: 00006172) is eligible for re-appointment as a Director. He holds 100 shares in the company and serves as the Chairman of the Corporate Social Responsibility Committee. The Articles of Association will also be amended to align with the Companies Act, 2013.

AGM Details

The register of members will remain closed from July 25, 2026, to July 31, 2026. Dividend, if declared, will be paid to members whose names appear on the register of members as on July 24, 2026. Remote e-voting will be available from July 28, 2026, to July 30, 2026.