SRS Ltd – Fixed deposit scheme – Yield of 15.07% p.a. – Can we invest?

SRS FD SchemeSRS Ltd – Fixed deposit scheme – Yield of 15.07% p.a. – Can we invest?

Last week SRS Limited has announced new fixed deposit scheme and indicated that the effective yield is 15.07% p.a. Can we invest in SRS fixed deposit scheme? What are the risks involved if we invest in in SRS FD scheme?

About SRS Ltd

SRS Ltd is part of Rs 3,500 SRS group (which was formed in 1985). SRS Ltd is a multi domain company which was formed in the year 2000. SRS is into real estate, cinemas, Jewellery, Retail, hospitality business.  Revenues for the last year (FY 11-12) were Rs 2,270 Crores and 3 quarters for current year (Apr-12 to Dec-12) were Rs 1,761 Crores. SRS Ltd is listed in Bombay Stock exchange and its current market capitalization is Rs 600 Crores.

Also Read: Mahindra Finance FD – High returns of 12.21% p.a.

About SRS Ltd Fixed deposit scheme

Earlier SRS group has offered fixed deposit scheme in Apr-12 through its company SRS real estate Infra Ltd. Currently SRS Ltd is issuing the fixed deposit scheme.

Below are the features of the SRS Ltd Fixed deposit scheme. (http://www.srsparivar.com/pdfs/srsltd_fd_28_2_13.pdf)

It offers the FD scheme Non cumulative and Cumulative options.

Scheme-A – Non cumulative fixed deposit scheme

SRS FD Scheme (SchemeA)

  • Additional amount in multiples of Rs.1,000/- can be invested.
  • Interest will be compounded monthly and paid quarterly calculated from the date of realization of the cheque/draft.
  • Post-dated Interest warrants from the date of realization of cheque of deposit up to the following 31st March will be sent in advance along with the Fixed Deposit Receipt and for subsequent years by 30th April.
  • Post-dated cheque for repayment of Principal amount will be dispatched in advance along with Fixed Deposit Receipt.
  • Deduction of Tax at Source would be at the rate applicable.
  • Nomination Facility is available and Pre-mature withdrawal of deposits is as per Rules applicable.

Also Read: Best and Safe Company Fixed deposit schemes to invest

Scheme-B –Cumulative fixed deposit scheme

SRS FD Scheme (SchemeB)

  • Additional amount in multiples of Rs.1,000/- can be invested
  • Interest is compounded monthly and payable on maturity.
  • The amount of interest due on maturity, after deducting TDS, if applicable, will be dispatched after the Deposit Receipt issued by the Company is received back by the Company, complete in all respects.
  • Post-dated cheque for repayment of Principal amount will be dispatched in advance along with Fixed Deposit Receipt.
  • Deduction of Tax at Source would be at the rate applicable.
  • Nomination Facility is available and Pre-mature withdrawal of deposits is as per Rules applicable.

Risks involved:

  • This is a fixed deposit scheme like any other company fixed deposit. It may involve risks in repayment of interest or principal.
  • Company has not declared any dividends for FY 2009-10 and FY 2010-11 though it has earned profit of Rs 2,594 lakhs in FY 2009-10 and Rs 3,713 lakhs in FY 2010-11.
  • Company is into multi domain business where there is stiff competition and margins may get reduced in future.

How to invest in SRS FD Scheme

You can visit the link http://www.srsparivar.com/srs%20limited/invest.html and click on Fixed deposit option and download the application. You need invest though the Managers for this scheme who are Almond, IIFL, Karvy and SMC,

Conclusion: Investors gets attracted towards SRS fixed deposit scheme due to its high yield. Though these FD schemes involve some risks, investors who are with moderate risk appetite can invest. Instead of investing high amount, you can diversify part of your portfolio to such schemes to reduce the risk.

If you enjoyed this article, share the link in Facebook/Twitter. The links are provided below.

Suresh
SRS Ltd – Fixed deposit scheme – Yield of 15.07% p.a.

15 comments

Leave a Reply

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