Onida Finance, which has been facing a severe liquidity crisis, has not been able to discharge its fixed deposits liability. In a statement to the CLB, the company said it is financially sound and stable, but liquidity is a major problem. The company has a total liability of Rs 5.39 crore towards deposits and interest up to August 31. Its assets are worth Rs 23.16 crore upto March 31, 1998.

As part of the repayment scheme, deposits up to Rs 5,000 will be repaid within one year from the date of maturity along with interest due. Deposits between Rs 5,000 and Rs 10,000 will be repaid within two years from the date of maturity, with 40 per cent in the first year and balance 60 per cent in the secondyear.

Deposits between Rs 10,000-25,000 will be repaid in three years from the date of maturity with 30 per cent in the first and second year and the balance 40 per cent in the third year. All deposits between Rs 25,000 and Rs 1,00,000 will be repaid in four years from the matured date at the rate of 25 per cent each year; interest for both the pre-and post-maturity periods will be paid along with the last instalment.

Deposits of over Rs 1 lakh will be paid in four years with 15 per cent of the amount to be paid in the first and second year, 30 per cent in third year and balance 40 per cent in the fourth year. CLB has also directed Onida Finance to pay 10.5 per cent per annum interest on the deposit amount after the date of maturity. Onida Finance, which has a fixed-deposit base of Rs 12.20 crore, defaulted on repayment of matured deposits from December 1997. The company has already repaid Rs 6.81 crore, while another Rs 5.39 crore is still pending.

AT present, the company is not accepting freshdeposits from the public and the credit rating agency, Crisil, has already downgraded its rating from FB (safe investment) to FD (default) in August this year. The company's ran into problems because of huge defaults by its hire-purchase customers as well as the recessionary trend in the industry. The company suffered a loss of Rs 11.66 crore in fiscal 1997-98.