CRISIL has assigned its ‘BB-/Stable/P4+’ ratings to Filter Manufacturing Industries Pvt Ltd’s (FMIPL’s) bank facilities.

The ratings reflect FMIPL’s modest scale of, and working-capital-intensive, operations. These rating weaknesses are partially offset by FMIPL’s promoter’s experience in the industrial filters and air pollution control segments, and its established customer relationships.

Outlook: Stable
CRISIL believes that FMIPL will continue to benefit from its promoter’s experience in the industrial filters and air pollution control systems segment. The outlook may be revised to ‘Positive’ if FMIPL’s operating revenues and net cash accruals increase significantly while its debt protection metrics improve. Conversely, the outlook may be revised to ‘Negative’ if the company’s debt protection metrics weaken because of larger than expected debt-funded capital expenditure or deterioration in working capital cycle.

About the Company
Established in 1972 as a proprietorship concern of Mr. Adrish Basu, a technocrat and a first-generation entrepreneur, FMIPL was reconstituted as a private limited company in 1990. After Mr. Adrish Basu’s demise in 2009, his son, Mr. Pritish Basu has been looking after the day-to-day management of the company. FMIPL designs and erects industrial filters and air-pollution control systems, catering to a wide range of industries, including steel, fertilisers, power and railways. The company is also into fabrication of sheet metal and manufacturing of, and trading in, medical disposables. The manufacturing units are located at Salt Lake and Rajarhat in Kolkata.

FMIPL reported a profit after tax (PAT) of Rs.3.5 million on net sales of Rs.95.1 million for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of Rs.3.4 million on net sales of Rs.88.1 million for 2008-09.