The leading cookware manufacturing firm Hawkins Cooker has floated an FD scheme bearing an interest rate of 10.5% per annum. The scheme with a tenure of up to 3 years opened for subscription by general public on September 18, 2019 and closes down on September 30, 2019. Here are detailed finer details on the scheme:

Hawkins Cooker 10.5% FD scheme

The company has got an approval to raise a total of Rs. 23.66 from the fixed deposit scheme i.e. Rs 6.76 crore from members and Rs 16.90 crore from the public.
Minimum investment amount: An investor needs to park a minimum of Rs. 25,000 towards the Hawkins Cooker FD scheme and thereafter an additional amount in multiples of Rs. 1000 can be invested.

Through the funds garnered from the scheme, the company would meet its working capital requirement as well as fund its future exigencies.

Details of the FD scheme: The FD of Hawkins Cooker comes in two schemes i.e. Scheme A and Scheme B. In case of Scheme A which is cumulative in nature interest is compounded monthly whereas in Scheme B that is non-cumulative interest will be paid half-yearly.

Cumulative Scheme:

Non-cumulative scheme - Interest payable half-yearly

Taxation of interest earned on Hawkins Cooker FD:

Since it is a company deposit, interest realized on FD scheme of Hawkins Cooker over and above Rs. 5000 in a financial year would attract TDS @ 10% if PAN is provided. If the depositor does not furnish his or her PAN, TDS @ 20% will be deducted. For those of you, whose annual income does not exceeds the taxable limit, you can furnish 15G or 15H to the company.

Credit rating: The FD offer by Hawkins Cooker has a credit rating of MAA (stable) by ICRA. The rating signifies high credit quality and there is less probability of default by the company. Further, in the declaration, directors have said that in case the credit rating of the FD scheme changes on the adverse side, investors will have the option to redeem their investments without any penalty. Notably, the rating was assigned on July 26, 2019 and there can be a change in the company's financial position since that time.

Risks: It is an unsecured deposit i.e. if the company defaults on principal and interest payment, investors will not be able to claim the same from the assets of the company.

How to apply for Hawkins Cooker FD?

For investing in this FD scheme, you can visit the link https://www.hawkinscookers.com/fdinstructions.pdf and follow the given steps.

Should You Invest in Hawkins Cooker FD offering 10.5% p.a.?

Keep in mind that the current offering being a company deposit is unsecured in nature. While the current rating of the FD scheme considers it to be highly safe and there are lower chances of default. One should change that the credit rating may change over a period of time. Also, if one can go by the risk involved for better and higher returns, only a small portion of the total corpus should be parked into the scheme.

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