Unitech Ltd – Fixed deposit scheme – Yield of 15.07% per annum-Review
Last week couple of my friends got an email about Unitech fixed deposit scheme which indicates that the effective yield is 15.07% p.a. They have forward the e-mail asking me to analyze and let them know whether they can invest it. Though, Unitech fixed deposit schemes have been issued for some time, it caught my attention when it indicated such high interest rate. Can we invest in Unitech fixed deposit schemes? What are the risks involved?
About Unitech Ltd
Unitech Ltd is a New Delhi based real estate developer in India. It is India’s most geographically diversified real estate developer with properties in Gurgaon, Noida, Bangalore, Chennai, Kolkata, Lucknow, Mysore, Mohali, Ambala, Rewari and Bhopal. Its land reserves of thousands of acres have some of the most premium apartments, luxury villas & well-planned townships in Noida, Gurgaon, Kolkata, Bangalore and Chennai. Unitech luxury homes are crafted and designed especially for the aficionados of luxury. ‘The Villas’ in Uniworld Resorts, Gurgaon is a stunning example of the same.
Also read: Mahindra Fixed deposit scheme – Should we invest?
Features of Unitech Ltd Fixed deposit scheme
Below are the features of the Unitech Ltd Fixed deposit scheme.
It offers the FD scheme Non cumulative and Cumulative options.
Scheme-A – Non cumulative fixed deposit scheme
- Additional amount in multiples of Rs.1,000/- can be invested.
- Interest would be paid every quarter.
- Interest will be compounded quarterly and calculated from the date of realization of the cheque/draft.
- Post-dated Interest cheques from the date of realization for the financial year will be sent in 15 days prior to due date of the first interest cheques.
- TDS would be deducted at 10% per annum if PAN card is submitted, else the TDS rate would be 20% per annum.
- Nomination Facility is available
Scheme-B –Cumulative fixed deposit scheme
- 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, would be sent 15 days before the date of the maturity.
- Post-dated cheque for repayment of Principal amount will be dispatched along with interest cheque indicated above.
- TDS would be deducted at 10% per annum if PAN card is submitted, else the TDS rate would be 20% per annum.
- Nomination Facility is available.
Risks involved:
- It’s managing director Sanjay Chandra, an accused in the 2G spectrum allocation case, was given clean chit by CBI in the telephone conversation row during Mar, 2013. As per media reports the investigating agency (CBI) found that the conversation between the Chandra and AK Singh had no impact on the prosecution of the 2G case. We should wait and watch for any further news on this in future.
- Company has posted a negative revenue growth of (-12.7%) in FY2012-13 compared to its previous financial year.
- Company profits have declined from 27.12% (FY12) to 14.43% (FY13).
- This is a fixed deposit scheme like any other company fixed deposit. It may involve risks in repayment of interest or principal.
- Company is into Real estate sector business where there is stiff competition and pressure on margins.
Also read: How to file income tax return online
Conclusion: Investors may get attracted towards Unitech fixed deposit scheme due to its high yield. All company fixed deposit schemes are high risk, high return investments. I am not un-favor to corporate fixed deposits. However, considering negative revenue and profitable growth, it would be high risk to invest in such fixed deposit schemes.
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Suresh
Unitech Ltd – Fixed deposit scheme – Yield of 15.07% per annum
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Do never make a mistake of investing with Unitech as FDs, I am waiting to get my 3.5 lakhs since Jan.2014. Noone replies to mails sent by me number of times. I have also written to Company Law Board, but so far there is no news!
I have deposited Rs.2,00,000/-as FD in M/s Unitech ltd on 10.08.2013.I have got quarterly interest cheques for Oct,13 and Jan,14 after deduction of 10% TDS total amount Rs.988/-.This TDS amount is not appearing in Form No.26AS. I have file returns by paying Income tax in July,14 .I have send several mails to customer care of M/s Unitech Limited. I have not got any reply till now.Kindly advise how to proceed further.
Sudhir kumar mittal
FD. No.1233875
Account No.1247791
I jointly with my wife invested a good amount of money in Unitech FDs. Unfortunately, I did not get interest cheques for 2014-15. I got their contact numbers in Gurgaon as well as in Kolkata but I failed to talk to them because they never receive the calls. I don't know whom to contact and what should be my next course of action.
Gurgaon No. (0124)4697800 & Kolkata No. 9830867766.
Dhruves, File complaint at SEBI. Please visit sebi.gov.in and visit complaints section and select complaints against companies.
Dear Sir
Iam planning to invest in Sriram Transport Finance as FD for 3 years. Please suggest the Pros and cons doing so
Srinivas, Shriram FD schemes are MAA+/stable by ICRA and Crisil. Company FD’s are always riskly. You know what happened to Gitanjali Gems when they have come up for FD scheme. But if you are still interested, you can invest with risk. Rating is ok.
I am 24yrs old, with a less experience with investments. Just wanted to know if it would be okay to invest just a part(around 20% of total investment) in such FDs? Whats the worst case scenario that could happen?
Ankur, You should always diversify and you can invest part of you investmetns in such FD’s. The worst case would be that your interest and capital would get delayed. The other extreme could be that a company can go wind-up and you may loose money. But this is the rare case. Instead of investing 20%, invest say 5% in such FD and wait and watch for other high yield investment options.