Jyoti Structures launches fixed deposit scheme

NEW DELHI: Jyoti Structures has launched fixed deposits for a time frame of one, two and three years respectively. The minimum amount of investment is Rs 25,000 and in multiples of Rs 5,000 thereafter.

Jyoti Structures undertake turnkey projects on a global scale, offering services in Design, Testing, Manufacturing, Sourcing, Supply and Construction. The company has established manufacturing plants at Nashik, Raipur and Dubai with a combined manufacturing capacity of 160,000 MT of Transmission Line Towers.

It also has an in-house Tower Testing facility at Ghoti, Igatpuri, India.

Product

Interest on the fixed deposit will be paid half yearly or on a cumulative basis. For a one year deposit you will get 12 per cent, for two years 12.25 per cent and for three years 12.5 per cent.

Senior citizens, shareholders and employees are eligible for a 0.25 per cent extra interest. You can choose to receive post dated interest warrants or interest payment through NECS.

Why invest

The interest rate of 12.5 per cent pa is higher by 300-350 basis points than that offered by most banks. The company is profit making and dividend paying. It posted a net profit of Rs 85.53 crore for the year ended March 2012.

Why not to invest

Company fixed deposits are unsecured and illiquid. Interest income from company fixed deposits is taxable and for those in the highest tax bracket the post tax return works out to 8.68 per cent. As of September 2012, 75.83 per cent of the promoter shareholding is pledged.