For arriving at its ratings, CRISIL has combined the business and financial risk profiles of FLCL and its wholly owned subsidiary, Fedders Lloyd Trading FZE.

The ratings reflect FLCL's established market position in the heating, ventilation, air--conditioning, and refrigeration (HVAC&R) segment, besides the increasing diversity in the company's revenue profile (FLCL has added two new business segments-steel structure, and power transmission and distribution [T&D]--over the past two years), and improvement in its profitability.

FLCL has an established market position in the HVAC&R segment, with presence in both the commercial and retail AC segments (market shares of 6 and 1.8 per cent respectively).

FLCL's operating profitability, however, is vulnerable to volatility in the prices of its key raw materials (copper, aluminum foil and steel), which form 80-85 per cent of the company's operating income.

CRISIL believes that FLCL will maintain its business risk profile over the medium term, supported by increasing diversity in its revenue profile and its sizeable order book.

FLCL, based in New Delhi, was incorporated in January 1957.

Then a task force led by Khanna and senior members of SSL collaborated to refine the design through on-site research and stakeholder meetings, incorporating critical aspects of FLCL business imperatives and Satyam's cultural tenets.

"In the last sixteen months, we covered only the top FLCLs," says Khanna.