DCL Finance get MB rating

ICRA has downgraded the fixed deposit programme of DCL Finance to inadequate safety. It has assigned MB from MA minus indicating inadequate safety. The downgradation factors in the deterioration in the performance of the company and the resultant strain on liquidity, which is expected to continue.

DCL's fresh business during 1999-2000 has been insignificant with focus being entirely on recovery of overdues. The company has taken a decision to discontinue fund-based activities and has diversified into software services.

The deterioration of collections of receivables from corporate sector has resulted in DCL delaying repayment of some of its obligations. However, DCL has been able to retire a significant portion of its fixed deposits since the time of the previous rating.

Corporate Bureau

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Section  : Business
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