Dear Members,
 
 The Directors have pleasure in presenting the 48th Annual Report of
 your Company together with the audited accounts for the year ended 31st
 March, 2011.
 
 Financial Results                                      (in Rupees)
 
 YEARS                                       2010-11          2009-10
 
 Gross Profit                          3,432,685,837    2,463,827,001
 
 Depreciation                          1,041,083,505      958,206,666
 
 Profit Before Tax                     2,391,602,332    1,505,620,335
 
 Provision for Income Tax - Current 
 Tax                                     810,000,000      590,000,000
 
 -Wealth Tax                                 164,370          147,833
 
 - Deferred Tax (Net)                    (54,896,885)    (140,245,732)
 
 Prior year taxes                        (23,459,613)       8,878,744
 
 Profit After Tax                      1,659,794,460    1,046,839,490
 
 Add: Investment Fluctuation Reserve      25,588,704      607,808,970
 
 Balance brought forward I             6,572,260,081    5,243,968,357
 
 Balance Available For Appropriation   8,257,643,245    6,898,616,817
 
 Appropriations: 
 
 Proposed dividend                       337,995,120      185,538,750
 
 Dividend Tax                             54,831,258       30,817,986
 
 Transfer to General Reserve             170,000,000      110,000,000
 
 Surplus carried to Balance Sheet      7,694,816,867    6,572,260,081
 
 Total                                 8,257,643,245    6,898,616,817
 
 Dividend
 
 Your Directors have recommended payment of dividend at Rs. 30/- per
 equity share of Rs. 10/- each (300 %) on the reduced equity share
 capital of Rs.112,665,040/- for the year ended 31st March, 2011
 aggregating to Rs. 337,995,120/- and to pay a Dividend Tax of Rs.
 54,831,258.
 
 The dividend, if approved by the shareholders, will be paid to those
 members or their mandates whose name appear on the Register of Members
 on 10th August, 2011 for those holding shares on physical form and as
 per the details furnished by the depositories as at the end of business
 hours on 1st August, 2011 for those holding shares on Dematerialised
 form.
 
 Operations
 
 During the year under review, your Company has recorded a turnover of
 Rs 177331.17 lakhs (2009-10 Rs. 113690.44 lakhs) resulting in a Net
 Profit of Rs 23916.02 lakhs before tax (2009 -10 Rs.15056.20 lakhs).
 During the year under review the turnover has increased by 56% and
 profit by 59% respectively over the previous year due to good demand
 for Textile Spinning Machinery and CNC Machine Tools.
 
 Textile Machinery Division
 
 The Textile Machinery Division of your Company, during the year under
 review, has recorded a turnover of Rs.  151,813.21 lakhs as against
 Rs.96,473.42 lakhs achieved during the last year recording an increase
 of 57% over the previous year.
 
 Financial year 2010-11 started on a
 
 positive note with demand having picked up substantially for the
 Textile Spinning Machinery manufactured by your Company. The increasing
 trend was seen throughout the year due to good performance of Textile
 Spinning Mills which benefited on account of sustained domestic demand
 for yarn; moderate input costs and a good yarn price realisation. Such
 favourable conditions made the Textile Spinning Mills to embark with
 their expansion and modernisation programmes during the period under
 review. Equally the export market remained encouraging throughout
 2010-11. The buoyancy in the spinning sector has resulted in a good
 demand for Textile Spinning Machinery manufactured by your Company.
 Apart from the robust external demand, prompt delivery of machinery
 within a reasonable lead time to customers, efficient after sale
 service, launch of a new cost-efficient, state of the art Ring Frame
 model during the year enabled your Company to achieve this increased
 turnover.
 
 Though the year under review was favourable, perceivable threats for
 the Textile Spinning Industry are also foreseen. Frequent changes in
 the cotton and yarn export policy by the government; infrastructure
 bottleneck like acute power shortage is creating an unpredictable
 future for the Textile sector. The wide fluctuation of cotton and yarn
 prices always affects the performance of the Spinning sector and in
 turn defers their plans for expansion.  The US and Europe,
 traditionally the large buyers of Textile products are still struggling
 to recover from the after- effects of global economic melt down.  Also,
 the levy of additional Excise Duty on branded garments by the
 Government in the Union Budget for 2010-11 has added further to the
 woes of the Textile sector.
 
 Though the Union Budget of 2010-11 did not provide any sops to the
 Textile sector, announcements such as allowing of 100% Foreign Direct
 Investment in Textiles, commitment to quickly disburse funds under the
 Technology Upgradation Fund Scheme and the steps taken by the Apparel
 Export Promotion Council to encourage overseas investment in Indian
 Textile Industry provide good hope for the Textile sector.
 
 The recent announcement for revival of Technology Upgradation Fund
 Scheme is expected to give a fillip to the demand for machinery.
 
 The Global players are establishing their manufacturing facilities in
 India to take a share in the market and your Company has to meet the
 competition.
 
 Machine Tool Division
 
 Turnover of the Machine Tool Division during the year under review was
 Rs 18,434.52 lakhs as against Rs.9,480.65 lakhs recorded d uring the
 last year showing an increase of 94% over the previous year.
 
 The Machine Tool Division of your Company has witnessed a strong demand
 growth during the year under review. With India becoming a major auto
 manufacturing hub in Asia, the auto and related ancillary industries
 have contributed strongly to the demand growth within the Machine Tool
 sector.  Also huge investments are taking place in Construction,
 Railways, and Defence sectors across the country.  Additionally, fast
 growth rates recorded by emerging industries like Aerospace, Civil
 Aviation, Tool Room and Farm Equipments provide huge business
 opportunity for your Company within the Machine Tool industry.  It has
 to be noted that the current trend within the Machine Tool Industry is
 on buying more of standard machinery with tooled up solutions.  There
 is a huge business opportunity in this area which your Company is
 technologically competent to take complete advantage of.
 
 Your Company had manufactured 1,081 machines during the year under
 review which is the highest number in the history of this division.
 Your Company''s precision machine tool LH55 is an import substitution
 for the Horizontal Machining Centres imported by OEMs and Tier One high
 end customers.
 
 To cater generally to the growing demand for CNC Machine Tools in the
 country, your Company has entered into technology tie ups for
 developing high precision machinery range that result in value addition
 to the customers.
 
 Foundry Division
 
 Foundry Division has recorded a turnover of Rs 7,083.44 lakhs as
 against Rs.7,736.37 lakhs recorded during the previous year showing a
 decrease of 8% over the previous year. This Division has exported
 castings worth Rs 2,913.70 lakhs accounting for about 41% of the
 turnover. Though the division has a huge order book, decline in
 turnover is mainly attributable to the lower capacity utilisation due
 to shortage of power and trained workforce.
 
 During the year, your Company has taken necessary steps to overcome the
 acute power shortage and as well is doing the needful to re-position
 the division''s capabilities by concentrating on high tech heavy
 castings. Demand for the products of this division is likely to be
 strong in future with the development of metro rail projects across
 multiple cities in India, enhanced demand for turbo/traction parts for
 Indian Railway retrofit projects and also with a greater emphasis being
 placed on Wind Energy Projects.
 
 Wind Mill Division
 
 It is the continuous endeavor of your Company to tap non conventional,
 renewable, clean resources for energy. In this regard, Wind Energy
 occupies a centre stage in the energy policy of your Company.
 
 As on 31st March 2011, your Company has installed 23 numbers of high
 capacity Wind Energy Generators with a total installed capacity of
 27.95 MW. During the year under review this division has generated 689
 lakh units as against the 728 lakh units generated in the previous
 year. Out of the 689 lakh units 29 lakh units were sold to TNEB and 660
 lakh units were adjusted against the power drawn from TNEB for captive
 consumption.
 
 The wind power generated by the Company meets a major portion of its
 power requirements and thereby brings about appreciable savings in the
 energy cost.
 
 Advanced Technology Centre
 
 This division is focussing on the manufacture of parts, components and
 accessories required by the Aerospace industry, and also intended for
 undertaking job work to meet the Defence sector requirements and is
 currently at an advanced stage of completion in one of our existing
 factory premises. In this regard, arrangements have been made with
 leading original equipment manufacturers/intermediaries for sourcing
 business. This division is expected to commence commercial production
 during the financial year 2011-12.
 
 Real Estate Division
 
 This division is about to start work on its maiden project. The process
 of seeking statutory approvals in this regard is currently underway.
 Initially, about five acres of land situated at Ganapathy, Coimbatore
 will be developed into a residential project consisting of flats.
 
 Exports
 
 During the year under review, the Company has achieved an export
 turnover as indicated below:
 
 a. Textile Machinery Rs. 22,227.68 lakhs (previous year Rs.3,998.88
 lakhs)
 
 b.  Castings Rs 2,913.70 lakhs (previous year Rs.3,427.77 lakhs)
 
 Total Rs 25,141.38 lakhs (previous year Rs.7,426.65 lakhs)
 
 Export of Textile Machinery includes exports worth Rs 9,147.62 lakhs
 made to the wholly owned subsidiary, LMW Textile Machinery (Suzhou)
 Co., Ltd, China.
 
 Research and Development
 
 Your Company views its customers as partners in business and does what
 it takes to enhance their competitive strength. The Voice of Customer
 is actively pursued within Research and Development whereby customer
 requirements are actively blended into future product offering. It is
 also a consistent endeavour on the part of your Company to offer
 solutions that offer value for money proposition to buyers.  Your
 Company not only develops technology indigenously but also looks around
 to source technology that can further add value to customers. For
 design and development of high-tech machines your Company is
 associating itself with renowned institutes world- wide.
 
 The end result of Research and Development activities are seen in the
 numerous product launches made by your Company both in the Textile
 Machinery Division and in the Machine Tool Division.
 
 Awards
 
 During the year your Company has received the Silver Shield for Star
 Performer-Large Enterprise 2008-09 EEPC Regional Award from the
 Engineering Export Promotion Council.
 
 Directorate
 
 Dr D Jayavarthanavelu Chairman and Managing Director passed away on
 11th June, 2010, after a brief illness.
 
 Dr. D. Jayavarthanavelu has done yeoman services to the cause of
 Textile Industry for over five decades. He was a person of clear
 perception, progressive outlook who always worked towards developing,
 upgrading existing business with technological sophistication in tune
 with the needs of the Industry. It goes without saying that the
 industrialization of Coimbatore Region is associated with his efforts
 and endeavours. He was dynamic, a visionary, and a philanthropist who
 maintained his stand by gentle persuasion. He also had the rare gift of
 expressing in few words.
 
 Dr. D. Jayavarthanavelu was the personification of purposeful
 industrialist.  By his passing away, a good leader always a great
 source of help and encouragement, a wise counsel whose indomitable
 courage; instrumental in solving many issues has been lost. His
 valuable guidance and contribution to the Company is being placed on
 record.
 
 Justice Sri G Ramanujam (Retd.) Director and Justice Sri S Natarajan
 (Retd.) Director are liable to retire by rotation at the ensuing Annual
 General Meeting.  Though eligible for reappointment, they do not seek
 re-appointment.
 
 Sri Aditya Himatsingka, Dr. Mukund Govind Rajan and Sri R.Rajendran the
 Additional Directors appointed by the board during the year will hold
 office upto the ensuing Annual General Meeting. Nominations with
 necessary deposit have been received from members of the company for
 all the three Additional Directors for election as Directors of the
 Company.
 
 Industrial Relations
 
 Relationship with the employees was cordial throughout the year.
 
 Joint Venture: Rieter- LMW Machinery Limited (RLM)
 
 During the year under review the Company recorded a Turnover
 (Provisional) of Rs. 17,150.14 lakhs (turnover of Rs.6, 349.16 lakhs
 during 2009-10) resulting in a Net Profit (Provisional) of Rs 991.57
 lakhs (Net Loss of Rs.237.27 lakhs during 2009-10).
 
 The increase in turnover is due to the increased demand for Textile
 Machinery by the Joint Venture partner.
 
 Your Company has entered into an MOU with the Joint Venture Partner,
 Rieter Machine Works Limited, Switzerland for the purchase of the 50 %
 share held by them in RLM. After the purchase of the shares, the JV
 Company, RLM will become a wholly owned subsidiary of your Company. The
 take over will be effective from 1st July, 2011.
 
 Subsidiary: LMW Textile Machinery (Suzhou) Co. Ltd.  (LMWTMSCL)
 
 Your Company has established a wholly owned subsidiary in China under
 the name LMW Textile Machinery (Suzhou) Co Ltd, for the manufacture of
 Textile Spinning Machinery. This project is located in the Wujiang
 Economic Zone, Jiangsu Province in the Peoples Republic of China. This
 wholly owned subsidiary of your Company has commenced production from
 the first quarter of 2010.
 
 The turnover of the company during the year under review was Rs.
 11,221.18 lakhs. As on 31st March, 2011 the company has received orders
 for 339 machines worth Rs. 16, 300.00 lakhs and the same is under
 execution. The consolidated financial result incorporating the
 financial statements of the subsidiary company is attached with the
 balance sheet of your Company.
 
 Fixed Deposits
 
 The Company has not accepted any fixed deposits.
 
 Listing
 
 Your Company''s shares are listed in the Bombay Stock Exchange Limited,
 Mumbai, and the National Stock Exchange of India Limited, Mumbai and
 the respective listing fees have been paid.
 
 As approved by the shareholders through a special resolution at the
 Annual General Meeting held in July, 2009 an application was made to
 the Madras Stock Exchange for the voluntary de-listing of the shares in
 September, 2009. The Madras Stock Exchange Limited has informed that
 they are restarting the trading facilities and have advised us to
 reconsider the delisting proposal. In view of the benefits to
 shareholders your Directors have decided to withdraw the delisting
 application and continue with the listing in Madras Stock Exchange
 Limited.
 
 Buy Back of Shares
 
 As approved by the shareholders by a special resolution through postal
 ballot, your Company had announced a Buy back of shares by Tender
 method. The scheme was kept open between 9th Feb, 2011 to 24th Feb,
 2011. The Company has bought back 11,02,746 shares at the rate of Rs
 2045/- per share. Consequent to the buy back and extinguishment of
 shares bought back the paid up share capital of the Company is reduced
 from Rs 12,36,92,500 to Rs 11,26,65,040 with effect from 9th March,
 2011.
 
 Auditors
 
 M/s M S Jagannathan & Visvanathan and M/s Subbachar & Srinivasan, Joint
 Auditors of the Company are to retire at the ensuing Annual General
 Meeting.  Being eligible for reappointment have consented to act as
 Joint Auditors of the Company if appointed and necessary certificate
 pursuant to Section 224(1 B) of the Companies Act, 1956 has been
 received from them.
 
 Information pursuant to Section 217 of the Companies Act, 1956.
 
 Information in accordance with Clause (e) of section 217 of the
 Companies Act, 1956, read with the Companies (Disclosure of particulars
 in the Report of Board of Directors) Rules, 1988 and forming part of
 the Director''s Report for the year ended 31st March, 2011 is given in
 Annexure-I of this Report.
 
 Information in accordance with Sub- section (2A) of Section 217 of the
 Companies Act, 1956, read with the Companies (Particulars of Employees)
 Rules, 1975 and forming part of Directors'' Report for the year ended 31
 st March, 2011 is given in Annexure - II of this Report.
 
 Additional Disclosures
 
 Management Discussion and Analysis Report, Corporate Governance Report,
 Segment report, and Related Party Disclosures provided elsewhere in the
 Annual Report forms a part of this Report as required under the Listing
 Agreement entered into with the Stock Exchanges.
 
 Directors'' Responsibility Statement
 
 In compliance of Section-217 (2AA) of the Companies Act, 1956 the
 Directors of your Company confirm that:
 
 - All applicable Accounting Standards have been followed in preparation
 of Annual Accounts and that there are no material departures;
 
 - Such accounting policies have been selected and applied consistently
 and such judgments and estimates made are reasonable and prudent so as
 to give a true and fair view of the state of affairs of the Company as
 at 31st March, 2011 and of the profit of the Company for the year ended
 on that date;
 
 - Proper and sufficient care has been taken for the maintenance of
 adequate accounting records in accordance with the provisions of the
 Act for safeguarding the assets of the Company and for preventing and
 detecting fraud and other irregularities.
 
 - The Annual Accounts of your Company have been prepared on a going
 concern basis.
 
 General
 
 Details of Production, Licensed and Installed capacity are annexed to
 the Balance Sheet as required by Law.
 
 Your Directors thank the customers'' for their support and patronage.
 
 Your Directors thank the Company''s bankers and Selling Agents for their
 valuable assistance.
 
 Your Directors record their appreciation of the co-operation and
 contribution made by the employees at all levels towards the progress
 of the Company.
 
                                              On Behalf of the Board
 
                                                 R. Venkatrangappan
 
                                                       Chairman
 
 Place: Coimbatore
 
 Date: 20th May, 2011