Rasoya Proteins Fixed Deposit scheme-Yield of 14.89%-Should you invest?
Rasoya Proteins Ltd has launched FD Scheme. The yield is as high as 14.89% per annum. There are several companies lined up to issue fixed deposits from markets. While it offers attractive interest rates, there are several facts which need to be considered before investing in Rasoya Proteins FD Scheme.
About Rasoya Proteins Ltd
Maharashtra based Rasoya Proteins is engaged in business of Soya processing through solvent extraction and it manufactures soya edible oil, poultry feed, wheat flour and aqua feed.
Features of Rasoya Proteins Fixed Deposit Scheme
- Rasoya Protein FD scheme is offered for 1, 2 and 3 years tenure.
- It offers interest rate as high as 12.5% per annum.
- FD Scheme is available in cumulative and non cumulative scheme.
- Interest would be compounded every quarter. In case of non cumulative scheme, interest would be paid every quarter.
- Premature withdrawal is available after 6 months from the date of fixed deposit with 1% penalty which would be reduced from original interest rate.
- TDS as per applicable tax laws
- Nomination facility available
- Individuals, HUF’s, domestic companies, societies and trusts can invest in this FD Scheme. NRI’s cannot invest in this FD Scheme.
- Minimum deposit is Rs 25,000.
Interest rate charges are enclosed below
How to apply for Rasoya Proteins FD Scheme?
The duly filled applicable form need to be submitted at HDFC Bank Ltd or any other authorized centre indicated in the form. Cheque should be in favor of “Rasoya Protein Ltd Fixed deposit a/c”.
Why to invest?
- Good profit making company. Profit for the last financial year ended Mar-2013 is Rs 20 Crores.
- High interest rate of 12.5% per annum for 3 year FD scheme. The annualized yield works out to be 14.89%
Why not to invest
- Company fixed deposits are always unsecured and risky.
- Performance of company may or may not repeat in future. Hence profits earned now may or may not exist due to performance of company.
- 1% penalty on premature withdrawal would reduce your returns.
- Sticking to reputed companies would always better rather investing in new players who are coming for FD Schemes.
Conclusion: It is becoming tough for companies to raise funds from banks and markets. Such companies are tapping to go through FD route as last effort. Earlier Sumeet Industries has also raised similar FD schemes where promoter’s shares were pledged for more than 50%. Similarly, Gitanjali Gems though shown good profits up to last financial year, but there were several internal issues where share price was beaten for more than 90%. Finally, I do not know whether any one has subscribed for that or not. We are yet to know what is happening in such company. Considering all these facts, it is better to stay away from these new companies which are coming up for fixed deposits instead of taking risk.
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Rasoya Proteins Fixed Deposit scheme