Yes ,This is correct whereas the interest rate in banks are around 6.50 to 7% per annum for fixed deposit ,Hawkins Cooker Limited has offered a Fixed deposit scheme for members and general Public for unsecured fixed deposit scheme at 10.75 interest rate in case of deposit of three years on cumulative basis ,The yield will be around 11.30% in such case.
PARTICULARS OF THE DEPOSIT SCHEME
a. Date of passing of Board resolution: August 7, 2018.
b. Date of passing of resolution in the general meeting authorizing the invitation of such deposits: August 7, 2018.
c. Type of deposits: Unsecured.
d. (i) Amount which the Company can raise by way of deposits as per the Act and the Rules made thereunder:
- From Members Rs. 6,51.97 lakhs
- From Public Rs. 16,29.93 lakhs
- Total Rs. 22,81.91 lakhs
Terms of raising of deposits:
Duration: Upto three years.
The minimum amount of a Fixed Deposit and the period shall be as per Scheme A & B shown as under is Rs 25000/-. Additional amount will be accepted in multiples of Rs. 1,000 in respect of both the Schemes.
- In case of Non-Cumulative Deposit simple interest at the rates indicated in the Scheme will be calculated and will be paid on 30th September and 31st March every year and the balance at maturity.
- In case of Deposits received during the last one month of any half year, interest for such broken period will be paid along with interest of next half year.
- Interest for half year will be calculated at half of the interest for a full year irrespective of the number of days in the half year. However, the first instalment of interest and the last instalment of interest payable on maturity will be calculated on the basis of 365 days a year.
- Interest on Deposits under Cumulative Deposit Scheme will be compounded monthly and payable on maturity along with principal amount. In case where Income Tax has been deducted a certificate for interest credited as well as Income Tax deducted shall also be issued to the Depositor.
- Interest shall be calculated on the basis of 365 days per year.
- Both period of Deposit(s) and the calculation of interest thereon shall commence from the date of realisation of the cheque/draft by the Company.
- Interest shall cease on the date of maturity.
- Deposits once accepted under either Scheme cannot be interchanged before the expiry of the said Deposit under any circumstances.
Mode of payment and repayment: Payment of Interest: by ECS/Direct Credit/ RTGS/NEFT/Warrant. Repayment of Deposits: by ECS/Direct Credit/RTGS/ NEFT/Cheque. (Subject to SEBI and RBI guidelines as issued from time to time.)
Proposed time schedule mentioning the date of opening of the Scheme and the time period for which the circular or advertisement is valid: September 18, 2018, to September 30, 2019, or the date of the Company’s next Annual General Meeting, whichever is earlier.
Credit rating obtained:
- (i) Name of the Credit Rating Agency: ICRA Limited.
- (ii) Rating obtained: [ICRA] MAA (Stable).
- (iii) Meaning of the rating obtained: High credit quality with low credit risk.
- (iv) Date on which rating was obtained: August 3, 2018.
Interest Coverage Ratio : Means how much times cash flow is generated by the company in comparison to the interest payable in respective year for fy 2015-16 this ratio is 13.87 times, for fy 2016-17 # 12.88 times and for fy 2017-18 it is 13.63 times. Means it is good . Further company is paying regular divided of 700% to its share holder .Company has never defaulted in payment of Fixed deposit or any loans from financial institutions or Banks.
TAX DEDUCTION AT SOURCE Income Tax will be deducted at source as per the applicable provisions of the Income Tax Act, 1961. Under the regulations, currently in force, if the interest credited or paid or likely to be credited or paid during a financial year exceeds Rs. 5000 Income Tax at the prescribed rate of 10% will be deducted at source if the Permanent Account Number (PAN) is furnished. If the PAN is not furnished Income Tax will be deducted at source at the rate of 20%. Income Tax will not be deducted if the individual submits valid Form 15G or 15H, as prescribed under the Income Tax Rules, 1962. Please note that unless we have the said forms with us at the time interest is payable or, in the case of cumulative deposits, latest by March 31 in each year, we shall be obliged to deduct the requisite tax at source. Please also note that only one such said form is required for each financial year.
Nomination facility may be availed by Sole/Joint Deposit Holders. Minors may also be nominated. However, the applicant(s) should appoint a guardian other than the applicant(s), who must sign the application form. In the event of death of the Deposit Holder(s), the Company will deal with the guardian, till the minor attains majority. The nominee must be a Resident Indian only. Sole/Joint Deposit Holders may at any time substitute the name of the nominee and guardian.
Should you Invest: In our view one should invest in this scheme and should allocate at least 1-10% of the their debt portfolio subject to minimum of 25000 (as prescribed by the company) and maximum 10 lakh in the scheme as the fixed deposit offered by the company is at decent rate of interest and Higher credit rating.
(A) CUMULATIVE DEPOSITS Interest compounded monthly Period Interest rate Minimum Amount payable p.a. Deposit (Rs.) at Maturity (Rs.) 12 months 10.25% 25,000* 27,686 24 months 10.5% 25,000* 30,814 36 months 10.75% 25,000* 34,465 * Additional amount acceptable in multiples of Rs. 1000
(B) NON-CUMULATIVE SCHEME Interest payment Half-Yearly Period Minimum Rate of Interest Deposit (Rs.) per annum 12 months 25,000* 10.25% 24 months 25,000* 10.5% 36 months 25,000* 10.75% * Additional amount acceptable in multiples of Rs. 1000