­Incorporated in 1981, Lamina Foundries Limited (LFL) is engaged in manufacturing of iron castings such as auto brake drums, motor bodies, flywheels, valve bodies etc. and catered to the needs of domestic customers until 1990. The company entered into the export market since 1990 by exporting machined Brake Drums to Germany. The day-to-day operations are managed by its directors, Mr. Nitte Vinaya Hegde, Mr. Guruprasad Adyanthaya and Mr. Tonse Ramesh Shenoy. The company has secured business with TATA Motors Limited, Ashok leyland, Automotive Axles Limited to name a few. The company has an installed manufacturing capacity of 17200 Tn, and the unit is set up in Karnataka.

Lamina Group (LG) comprises of Lamina Suspension Products Limited, Lamina Engineering Company Private Limited, Lamina Investments Private Limited, Lamina Leasing and Finance Limited, Lamina Foundries Limited and Lamina International established in 1976 by Mr. Nitte Vinaya Hegde, Mr. Guruprasad Adyanthaya and Mr. Tonse Ramesh Shenoy. At present, it has presence in casting industry, automobile springs and brake drums and separate export arm for marketing automobiles accessories. Group has total employees of around 1500.

Improvement in the group's overall operating performance
Deterioration in the financial risk profile
Further elongation in the working capital cycle

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The Group’s liquidity profile is adequate marked by moderate net cash accruals against maturing debt obligations. The Group generated cash accruals of Rs.5.60 crore in FY22 as against debt obligations of Rs.3.46 crore for the same period. The cash accruals of the company are estimated to remain in the range of around Rs.7.55-9.17 crore during FY2023-25 against repayment obligations ranging from Rs.1.43 crore to Rs.3.23 crore for the same period. The average utilisation of bank facilities is 68.95 percent for last 6 months ended as on March 2023. The company maintains unencumbered cash and bank balances of Rs.1.52 crore as on March 31, 2022. The current ratio stood at 1.45 times as on March 31, 2022. 

­Acuité believes that LFL will maintain a ‘Stable’ outlook over the medium term owing to its experienced management and long track record of operations. The outlook may be revised to 'Positive' if the firm sustains the growth in its revenues while maintaining its profitability margins and capital structure. Conversely, the outlook may be revised to 'Negative' in case the firm registers lower than expected growth in revenues and profitability or deterioration in its working capital management or larger-than-expected debt-funded capex leading to deterioration in its financial risk profile and liquidity

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­In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’ s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.