Sumeet Industries Fixed deposit scheme-Yield of 15.07%-Should you invest?

Sumeet Industries Fixed deposit scheme-Yield of 15.07percent-Should you investSumeet Industries Fixed deposit scheme-Yield of 15.07%-Should you invest?

Last week, Sumeet Industries has launched fixed deposit scheme. The annualized yield is as high as 15.07% for a 3 year fixed deposit. While the yield looks good, there are several other factors to be considered before investing in Sumeet Industries Fixed deposit scheme. Should you invest in this FD Scheme?

About Sumeet Industries Ltd

Surat based Sumeet Industries Ltd is into textile business in India. It has a spinning capacity of 100,000 TPA. It manufactures and exports Pet chips, polyester yarn, Polypropylenes Yarn. It has 20 years of track record in textile sector. This company is listed in NSE and BSE and has a track record of paying dividend for the last 3 years.

Features of Sumeet Industries Fixed Deposit Scheme

FD scheme is available in cumulative and non-cumulative schemes.

Also read: DHFL Fixed deposit scheme-Review

a) Features of cumulative FD scheme

  • Your interest would be compounded monthly and would be paid at maturity.
  • Minimum investment is Rs 50,000. You can invest additional amounts in multiples of Rs 1,000.
  • Interest rates would be as per below table.

Sumeet Industries Fixed deposit scheme-Non-Cumulative-Rates-Table

b) Features of Non-Cumulative FD scheme

  • Your interest would be compounded monthly and would be paid at the end of the quarter.
  • Minimum investment is Rs 20,000. You can invest additional amounts in multiples of Rs 1,000.
  • Interest rates would be as per below table.

Sumeet Industries Fixed deposit scheme-Cumulative-Rates-Table

c) Common features for both cumulative and non-cumulative deposits

  • Post dated interest cheques would be dispatched in advance. Also post dated principal repayment cheque would be sent along with FD receipt.
  • TDS would be deducted as per applicable rates.
  • Nomination facility is available.
  • Pre-mature withdrawal is available after 6 months. However 2% would be reduced as penalty from original interest rates.

How to apply for this FD scheme?

  • Download the application form at this URL:
  • Fill and sign the application form
  • Application form + cheque/draft in favoring “Sumeet Industries Ltd – FD collections” should be sent to collection centers. Collection centers are listed in the application PD document.

Why should you invest?

  1. High interest rates of 12.5% per annum for 3 years. Annualized yield would work out to be 15.07%. Banks are offering FD rates of 9%. Considering this, it would be a good option to invest in such FD schemes. Other company FD schemes are offering 12% p.a, except for a few schemes like SRS or DHFL where they are offering similar rates of 12.5% per annum.
  2. Sumeet Industries has a track record of paying dividend for the last 3 years. Its profit for the last financial year ending Mar-13 is Rs 19.15 Crores.

Also read: Highly Rated-Mahindra FD-Review

Why you should not  invest?

  1. Company FD schemes are always unsecured and high risk.
  2. You may be delayed for interest payment and principal repayment.
  3. These are illiquid. However Sumeet Industries FD scheme offers pre-mature withdrawal after 6 months. However 2% interest rate would be reduced as penalty from original rate. Means if you withdraw say after 1 year, instead of getting 12% rate for 1 year, you would get 10% interest rate.
  4. Promoter’s shares to the extent of 55.42% have been pledged with banks.

Conclusion: Sumeet Industries Fixed deposit scheme interest rates are attractive. It has good track record of profits and it pays dividend for the last 3 years. However, in case of urgent need, one cannot withdraw the amount as there is a 2% penalty on original interest rate. Considering this, an investor who is willing to take risk, can invest moderate investment in such fixed deposit schemes. Like I said earlier, invest part of your portfolio in such fixed deposits to diversify your risk.

If you enjoyed this article, share this with your friends and colleagues on Facebook and twitter.

Suresh
Sumeet Industries Fixed deposit scheme-Yield of 15.07%

8 comments

  • Pooja

    HI Suresh,

    Which is the last date to apply for FD of Sumeet Industries?

    Thanks.

     

     

    • Hi Pooja, This scheme came in Apr-2013, but looks still open. Please keep watching our blog so that you would know latest FD or NCD so that you can invest.

  • Lakhvinder Singh

    HI suresh,

    I want to know that when u had made this website and with how much of amount, and now what are u getting in terms of money from this website.

    and please advise me should i make this type of website.

    regards

    Lakhvinder Singh

    • Ha ha, good question. To set-up this site I spent only Rs 10,000, but to maintain this site, I spend few thousands every month. It took break-even after 9 months after several hard work. If you are interested in a particular subject you can start, but start with a commitment that you would take it to the top level.

      • Lakhvinder Singh

        Really suresh i am very much motivated from u, you are too fantastic and your articles too good.

        I have many question regarding making and running of website, so could u please make an article of it.

        i will very thankful to u

        • Hi Lakhvinder, you can refer allbusinessideasdotcom where I posted few articles on how to create a website and how to make money from it.

  • Angeli

    Hi Suresh,

    I am still eagerly waiting for your review and most valuable feedback on the Muthoot Debentures Secured paying 11.5% per annum with monthly payouts.

    You said you would get back to me within a week.

     

    Any updates cause

     

    • Angeli, I have already responded last week, looks you missed. There are no muthooth debentures being offered now. They have issued somewhere in Sep/Oct-12. Currently they are not even traded on stock exchange, hence you cannot buy from stock market too. Please let me know where you heard on this ?

Leave a Reply

Your email address will not be published. Required fields are marked *