Crisil has downgraded the fixed deposit programmes of ICDS Ltd from `FA' to `FB' rating watch with negative implications. The revision in rating reflects the pressure on credit fundamentals of the company arising out of sharp deterioration in the asset quality, decline in profitability and the significant asset-liability mismatch of the company.Moreover, the need to reduce deposit levels in line with the recent changes in the regulatory framework with regard to mobilisation of public deposits could affect the liquidity of the economy. This is also expected to affect the future growth potential of the company.ICDS Ltd, a Manipal-based hire-purchase finance company, has been promoted by the Pal group. For the accounting year ended December 31, 1997 ICDS had around Rs 530 crore of funds employed and reported an income of Rs 85.62 crore and a profit after tax of Rs 1.37 crore.
