DSCL

ICRA has upgraded the commercial paper programme rating of DCM Shriram Consolidated Limited (DSCL) from A1 to A1+ for an enhanced amount of Rs 35 crore.

The revised short-term rating indicates highest safety and takes into account the substantial improvement in DSCL profitability in 1999-2000 due to increased realisations in the PVC and the chlor alkali businesses and the company's cost rationalisation efforts. This, coupled with the successful negotiation of better terms with key suppliers, improved liquidity for the company. DSCL also restructured its debts, which reduced interest cost and increased the maturity profile of its loan portfolio. The rating also takes into account the continued high urea receivables and cyclical nature of the chemical businesses. However, these are not expected to affect the company's liquidity position in the short term.