LS5 has better zoom and better wide & telephoto angle with optical stabilization plus shoots HD video while it has smaller sensor and no info about macro focus range. I assume it is same as normal focus range i.e., 15cms.
On the other hand VG110 macro focus range is as close as 5cms which is better than LS5 and cheaper.
LS5 uses AA size batteries. As your budget is very tight, I assume you can't afford to buy a quick charger and/or spare batteries in the near future. So you can very well pick VG110.
Letsbuy's prices are better than Flipkart's (14% higher) and you have COD. My suggestion would be VG110 from Letsbuy. If you have coupon, use it...
Buy Olympus VG-110 Black Digital Camera at Best Price in India - Also find Specifications, Photos, Features & Reviews