Lippi Systems Limited is an Indian public limited company, listed on the **BSE Limited (BSE)**, currently navigating a fundamental structural transformation. Historically a specialist in high-precision industrial manufacturing and renewable energy, the company has systematically liquidated its legacy physical infrastructure to transition into a new, yet-to-be-defined business phase. --- ### **Strategic Pivot: From Manufacturing to Asset Monetization** Lippi Systems is currently in a state of "operational hibernation" following a strategic decision to exit its traditional manufacturing footprint. The company is pivoting away from its legacy segments to reallocate capital into "forthcoming proposed projects" aimed at driving future growth. * **Manufacturing Cessation:** In **FY 2021-22**, the company sold its plant, machinery, and inventories on an **"as is where is basis."** Consequently, there has been **no revenue recognition** from manufacturing activities for three consecutive fiscal years (**FY 2022-23** through **FY 2024-25**). * **Final Infrastructure Liquidation:** During the quarter ended **December 31, 2025**, the company completed the sale of its **entire factory land**, factory building, and remaining capital assets at its Rakanpur premises. * **Current Activity:** While core production has ceased, the company engages in the **trading of goods** to maintain a baseline of business activity while management evaluates new lines of business. --- ### **Legacy Business Segments & Infrastructure Status** In accordance with **IND AS-108**, the company’s historical operations were divided into two primary segments. The current status of these segments is as follows: | Segment | Core Activity | Current Status | | :--- | :--- | :--- | | **Manufacturing** | Production of **Roto Gravure Printing Cylinders** via **Digital Engraving** for packaging and laminates. | **Cessation of Operations.** All plant and machinery sold. | | **Power Generation** | Electricity generation via **Wind Turbine Generators (WTGs)**. | **Divestment in Progress.** Disposal of all WTG units approved in 2025. | #### **Asset Disposal Schedule (2024–2025)** The company has utilized **Section 180(1)(a)** of the Companies Act to authorize the sale of substantially all physical undertakings: * **Immovable Property (Aug 2024):** Sale of **Plot No. 540, Ahmedabad-Santej Road**, including the entire land parcel and buildings. * **Wind Turbine Machine 1 (Sep 2025):** Disposal of **0.750 MW** capacity unit at Village Nani Matli, Jamnagar. * **Wind Turbine Machine 2 (Sep 2025):** Disposal of **0.750 MW** capacity unit at Galpadar, Kalawad, Jamnagar. * **Solar Plant (Nov 2025):** Sale invoice executed for the solar plant at the Rakanpur premises to **Kshetrapal Realty LLP**. --- ### **Financial Performance & Scale-Down Metrics** The company’s financial profile reflects the deliberate scale-down of operations. While revenue has effectively vanished, the company has successfully eliminated its debt burden. | Particulars (Rs. in Lacs) | FY 2024-25 | FY 2023-24 | FY 2022-23 | FY 2021-22 | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | **Nil** | **Nil** | **Nil** | **1,058.55** | | **Other Income** | **53.82** | **79.42** | **64.36** | **397.14** | | **Finance Cost** | **0.00** | **0.01** | **0.34** | **41.46** | | **Depreciation** | **82.87** | **85.54** | **87.06** | **130.32** | | **Net Profit / (Loss)** | **(74.23)** | **(85.94)** | **(161.17)** | **68.16** | **Key Financial Observations:** * **Revenue Streams:** Current income is derived exclusively from **Other Income** (**Rs. 53.82 Lacs** in FY 2024-25), primarily representing interest or miscellaneous gains rather than core operations. * **Debt Elimination:** The company has effectively reached a **zero-debt status**, with **Finance Costs** dropping from **Rs. 41.46 Lacs** to **zero** over the four-year period. * **Loss Containment:** While the company remains loss-making due to fixed costs and depreciation, the **Net Loss** has narrowed from **Rs. 1.61 Crores** (FY 22-23) to **Rs. 0.74 Crores** (FY 24-25). --- ### **Capital Structure & Corporate Governance** * **Share Capital:** As of March 31, 2025, the **Authorised Share Capital** stood at **Rs. 10,00,00,000** (1,00,00,000 equity shares of **Rs. 10 each**). * **Corporate Leanliness:** The company has **no subsidiaries, joint ventures, or associates**, maintaining a simplified corporate structure. * **Compliance:** The company reports full compliance with **Secretarial Standard 1** (Board Meetings) and **Secretarial Standard 2** (General Meetings). There are currently **no material orders** from regulators that impact the company’s **going concern status**. --- ### **Risk Management Framework** Lippi Systems maintains a structured risk oversight mechanism despite its reduced operational scale. | Risk Category | Exposure | Mitigation Strategy | | :--- | :--- | :--- | | **Liquidity Risk** | Managed | Rolling cash flow forecasts; oversight by **Senior Management** to ensure obligations are met. | | **Credit Risk** | Moderate | Internal assessment of counterparty financial condition; **allowance for impairment** based on history. | | **Foreign Exchange** | **Nil** | No exports, no imports, and no foreign currency borrowings as of **Sept 2025**. | | **Interest Rate** | **Nil** | No exposure to **Rupee term loans** or floating-rate bank debt. | **Operational Risks:** * **Technological Obsolescence:** Any return to manufacturing will require **huge investment** in new engraving technology to remain competitive. * **Counterparty Risk:** Transactions are limited to financial institutions with **high credit ratings**. * **Internal Controls:** Audits are conducted by an independent **firm of Chartered Accountants** to ensure the integrity of the remaining financial processes. --- ### **Future Outlook & Diversification Strategy** The primary strategic objective of Lippi Systems is the entry into a **new line of business**. The liquidity generated from the sale of the Rakanpur factory and the Jamnagar wind turbines is earmarked for: 1. **Capital Expenditure** for new projects. 2. **Manufacturing of new products** (to be identified). 3. **General Corporate Purposes** to sustain the transition period. Management’s stated intent is to utilize its existing marketing and pre-press divisions to identify evolving customer needs and deploy the company's liquid capital into more competitive, technologically upgraded sectors.