The fixed deposits are unsecured in nature and carry MAA (Stable) rating from the rating agency ICRA.
Company Fixed Deposit: Hawkins Cookers Limited is offering fixed deposits (FD) of tenure up to 36 months with an interest rate of 10.5 per cent per annum. Hawkins Cookers FD scheme is a company fixed deposit and unlike a bank fixed deposit, has its share of risks. The company is engaged in the manufacture and marketing of Hawkins, Futura and Miss Mary pressure cookers and Hawkins and Futura cookware.
The company has manufacturing units for its products at Thane, Hoshiarpur and in the Jaunpur district. Currently, as per the prospectus of the company, there is no default on any loan from any bank or financial institution. Hawkins Cookers’ FD scheme is open from September 18 and the company is authorised to raise Rs 6.76 crore from the members and Rs 16.90 crore from the public, totalling Rs 23.66 crore.
The fixed deposits are unsecured in nature and carry MAA (Stable) rating from the rating agency ICRA. The rating assigned to the Hawkins Cookers FD on July 26, 2019, signifies ‘High credit quality with low credit risk’. Further, the directors in their declaration state that in case of any adverse change in credit rating, depositors will be given a chance to withdraw deposits without any penalty.
Interest Rate on Hawkins Cookers Fixed Deposit Scheme
The minimum investment is Rs 25,000 and the tenure can either be for 12, 24 or 36 months. The interest rate on 12 months FD is 10 per cent, 10.25 per cent on 24 months deposit while 10.5 per cent on 36-month deposit. The FD scheme pays interest either on the half-yearly basis or on a cumulative basis i.e. on maturity.
In case of Non-Cumulative Deposit, simple interest will be paid on 30th September and 31st March every year and the balance at maturity. Interest on deposits under Cumulative Deposit Scheme will be compounded monthly and payable on maturity along with the principal amount.
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Financial position of the company
Profits of the Company
(Rs in Crore)
(Rs in Crore) * Subject to the approval of the shareholders at the 59th AGM
In the case of company FDs, if the interest income exceeds Rs 5,000 in a financial year, there is TDS applicable on the interest income. TDS of 10 per cent will be applicable if Permanent Account Number (PAN) is furnished. If the PAN is not furnished, then Income Tax will be deducted at source at the rate of 20 per cent. To avoid one can submit, Form 15G or 15H to the company, if applicable.
The company fixed deposits are unsecured in nature and the ratings assigned also may change over a period of time. Anyone looking to invest should carefully evaluate the company’s financial and also one’s risk profile and even consult a financial advisor before investing. Remember, high returns generally commensurate with high risk. If at all one needs to invest, a small portion of the portfolio or investible corpus may be put into the scheme.