CARE has assigned rating of ‘CARE BB+’ for Lippi Systems’s long-term bank facilities amounting to Rs 7.57 crore. The credit rating agency has assigned ‘CARE A4+’ rating for company’s short-term bank facilities aggregating to Rs 13.25 crore.
The ratings favourably take into account the vast experience of the promoters and established operations of LSL with track record of more than 16 years.
However, the ratings are mainly constrained by increased focus of Lippi Systems (LSL) on trading activities resulting in consistent decline in profit margins, modest liquidity position resulting in high reliance on bank borrowings, its modest scale of operations and highly fragmented nature of the industry.
Lippi Systems is engaged in the engraving process on rotogravure cylinders which are used for decorative printing and adhesive coating by packaging and other decorative and gravure printing industries.
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