Pratibha Industries launches fixed deposits
Pratibha Industries has launched
fixed deposits for a time frame of one, two and three years respectively. The
minimum amount of investment is Rs 20,000 and in multiples of Rs 5,000
thereafter. The Company is engaged in the business of Infrastructure
development and SAW pipe Manufacturing. Mumbai based Pratibha Industires has
project sites across India and Dubai and a manufacturing unit in Thane,
Maharashtra.
Product
Interest on the fixed deposit will be paid half-yearly, annually or on a cumulative basis. For a one year deposit you will get 11.5%, for two years 12% and for three years 12.25%. Senior citizens, shareholders and employees are eligible for a 0.25% extra interest. Deposits will be repaid only on maturity. However, in exceptional circumstances, the company may, at its sole discretion, allow premature withdrawal of Deposit. All such premature refunds shall be subject to such terms, as stipulated by the company including reduction in the rate of interest.
Why invest
The interest of 12.25% pa is higher by 250-300 basis points than that offered by most banks. The company is profit making and dividend paying. It posted a net profit of Rs 83.24 crore for the year ended March 2012.
Why not to invest
Company fixed deposits are unsecured and illiquid. Interest income from company fixed deposits is taxable and for those in the highest tax bracket the post tax return works out to a mere 8.46%.
Product
Interest on the fixed deposit will be paid half-yearly, annually or on a cumulative basis. For a one year deposit you will get 11.5%, for two years 12% and for three years 12.25%. Senior citizens, shareholders and employees are eligible for a 0.25% extra interest. Deposits will be repaid only on maturity. However, in exceptional circumstances, the company may, at its sole discretion, allow premature withdrawal of Deposit. All such premature refunds shall be subject to such terms, as stipulated by the company including reduction in the rate of interest.
Why invest
The interest of 12.25% pa is higher by 250-300 basis points than that offered by most banks. The company is profit making and dividend paying. It posted a net profit of Rs 83.24 crore for the year ended March 2012.
Why not to invest
Company fixed deposits are unsecured and illiquid. Interest income from company fixed deposits is taxable and for those in the highest tax bracket the post tax return works out to a mere 8.46%.
Regards,
Arvind Trivedi
Certified Financial Planner
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