The case was heard at Leicester Crown Court on 22 January 2001.
Narinder Bharj was working a night shift at the company's factory in Belgravia, Leicestershire on June 15 1999, and after being pulled into the machine while loading it.
Mr Bharj had opened the lid of the machine and was feeding fabric into the cage while it was revolving, The material caught round his body and he was pulled into the machine.
The case was brought by the Health and Safety Executive under Regulation 5 (1) of the Provision and Use of Work Equipment regulations 1998 which relates specifically to machine maintenance.
HM Inspector Health and Safety David Coackley told LCN that the mechanical interlock, a rotation sensing device, was not working which meant that the lid could be raised while the drum was still revolving. He said that the case sends out a message to the industry that machinery needs to be properly maintained and he added: "These rotation sensing devices do wear with use and regular testing is essential."