Lokesh Machines Limited, a Hyderabad-based manufacturing company, has taken significant steps to address its current sanctions status with U.S. authorities. The company has formally submitted a request to the U.S. Office of Foreign Assets Control (OFAC) seeking removal from the sanctions list, marking a crucial development in its efforts to resolve its international compliance issues.

Request for Removal from OFAC Sanctions List

According to a recent disclosure by Lokesh Machines, the company has filed necessary documents and information through its U.S.-based lawyers in response to a questionnaire from OFAC. This action is aimed at expediting the removal or reconsideration of the company's designation on the list of Specially Designated Nationals and Blocked Persons.

Timeline of Events

The company's latest move follows a previous communication dated February 1, 2025, indicating ongoing efforts to address the sanctions issue. The recent filing of documents occurred on August 20, 2025, at 11:27 P.M. (US-EST) or 04:10 A.M (IST) on August 21, 2025.

Company's Assurance to Shareholders

In its disclosure to the stock exchanges, Lokesh Machines assured its shareholders that it is taking all necessary steps to secure the removal of the company's name from the OFAC sanctions list. The management expressed confidence that this recent action represents a significant step towards achieving this goal.

Commitment to Transparency

Lokesh Machines has committed to keeping the stock exchanges and its shareholders informed about future developments regarding its sanctions status. This commitment aligns with the company's obligations under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

About Lokesh Machines Limited

Lokesh Machines Limited, with its registered office in Balanagar, Hyderabad, operates multiple manufacturing units across Balanagar, Bonthapally, Medchal, Toopran, and Ranjangaon-Pune.

Lokesh Machines Limited , a prominent player in the machinery and components sector, has released its financial results for the first quarter. The company also announced significant leadership changes and set the date for its Annual General Meeting.

Financial Performance

The company reported a mixed financial performance for Q1:

Lokesh Machines operates through two segments:

• Machinery Division: Generated revenue of 4,636.43 lakhs
• Components Division: Contributed 195.94 lakhs

Leadership Changes and Board Recommendations

The Board of Directors has recommended the continuation of K. Krishna Swamy as Non-executive Director for a five-year term from September 27, 2025, to September 26, 2030, subject to shareholder approval at the upcoming Annual General Meeting.

In a significant change to the company's leadership, Gurprit Singh has resigned as Company Secretary, effective August 14, 2025. Pusuluru Kodanda Rami Reddy will take over as the new Company Secretary from August 15, 2025. Mr. Reddy brings over 15 years of experience in company secretarial and legal matters to his new role.

Annual General Meeting

Lokesh Machines Limited has scheduled its 41st Annual General Meeting for September 26, 2025. The meeting will be conducted via video conferencing, in line with current corporate practices.

US Treasury Sanctions

The company addressed its ongoing situation regarding the US Treasury sanctions list. Lokesh Machines' name has been on this list since October 30, 2024, which has prevented the company from engaging in foreign currency transactions. The company has stated that it is actively working through a US-based law firm to have its name removed from the sanctions list, having filed an application for expedited removal/reconsideration on January 31, 2025.

Segment Performance

The Machinery Division remained the primary revenue driver for Lokesh Machines in Q1, contributing 4,636.43 lakhs to the total revenue. The Components Division added 195.94 lakhs to the company's top line during the same period.

Equity Updates

During the quarter ending June 30, 2025, Lokesh Machines converted 4,03,040 warrants into equity shares for members of the promoter/promoter group, increasing the company's paid-up equity share capital. As of June 30, 2025, 2,43,398 warrants were still pending conversion.

Lokesh Machines Limited continues to navigate challenges while focusing on its core operations in the machinery and components sectors. The company's efforts to address the US Treasury sanctions and its recent leadership changes indicate a proactive approach to overcoming obstacles and positioning itself for future growth.