Laxmi Cotspin Ltd

Dear Shareholders,

On behalf of the board of director of your company, it is great pleasure for me to extend a very warm welcome to each one of you at the 18^th Annual General Meeting of your company.

We take immense pleasure by sharing with you about the performance of your company and present the Annual Report for the financial year 2022-2023.

We would like to state that your company is progressing to achieve new milestones in its journey towards growth through total excellence.

Your Company engaged in the manufacturing of cotton yarn, cotton bales, oil cake and oil seeds. Over the years we believe that we have established a strong customer base and good marketing setup. Further, our group has sufficient marketing expertise and wide marketing network, which is and would be channelled for our business and future expansion, if any. We have dedicated divisions for marketing different types of products and for different geographical locations. The sales division and export division are responsible for marketing of our products. All the divisions have well trained and adequate teams to handle daily activities and are supervised regularly.

We would like to assure that we will continuously seek opportunities and make our best efforts to contribute towards the growth and success of the organization.

Financial year 2022-23 Was very tough year for textile industry due to various factors, like high prices of raw material resulted to no parity in the export of cotton yarn disturb the whole textile sector.

Indian cotton prices were very high in the FY 2022-23 as compare to US cotton hence there is no parity in the exports of the yarn, resulted many big domestic players dump their yarn in Domestic market hence yarn market becomes very competitive. There was no parity in cotton yarn for whole year.

One more factor that disturbed the spinning industry, that farmers hold their crop in the FY 2022-23, generally they sold out their cotton after diwali but this time till June 2023 they have not bring their cotton to the ginning. Hence prices of raw material were skyrocketed.

For every spinning industry raw material plays vital role, now we are expecting the things cool down from here onwards and we expect normal cotton season in the FY 2023-24.

This year we have enhanced our godown capacity of raw material by constructing 18000 sq feet new godown in the company premises with NABARD support.

I thank all valued shareholders of the Company for their confidence and trust and we assure that all efforts shall be put forth for achieving greater heights in future and shareholders can look forward for robust growth of our Company in the years to come.

I would like to thank our employees for their persistent efforts, Board for their guidance and support and all our stakeholders for their consistent support and encouragement in all our endeavours. We continue to look forward to your guidance and support, motivating us to reach newer heights.