Fix Deposits by Companies ... 3

Advantages:

1. Variety of Deposit Scheme to Suit individual needs.
2. Reasonable Return
3. Liquidity
4. Moderate Safety
5. Good Service & Response

Disadvantages:

1. Deposits are unsecured.

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Fix Deposits by Companies ... 2

Differences between Manufacturing companies and Finance companies,

Manufacturing Companies: Manufacturing Companies are permitted to mobilize deposits from the Public up to 25% of their net worth and up to 10% from their Share Holders. They can accept deposits for a Minimum Period of 6 Months and a Maximum of period of 36 Months. Interest will be paid on Monthly, Quarterly, Half-yearly, Annually & on Maturity. (cumulative). Investor can withdraw the deposits before the maturity. In this case he gets the interest till date, but less penalty which is usually 1% or 2 %  Finance Companies: Finance Companies are permitted to accept deposits based on their credit rating issued by any of the agencies like CARE, ICRA,CRISIL and FITCH. They can accept deposits for a minimum period of 12 months and a maximum period of 60 months. Interest will be paid on monthly, quarterly, half-yearly, Annually & on maturity. (cumulative). Deposits with highest /high rating companies are safe. They may offer an Interest rate between 9 % & 11%. Investors can avail a loan up to 75% of the amount invested and also allowed Premature withdrawal.

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Fix Deposits by Companies .... 1

Fixed Deposits mobilized by companies are governed by the provision of Section 58-A of the Companies Act 1956. The Fixed Income instrument provides Fixed/committed return on the amount invested and is the most convenient investment options to all investors. Fixed Deposits can be classified into deposits received from,

1. Manufacturing Companies ( Non Banking-Non Finance Companies)
2. Non Banking Finance Companies (NBFC)

Points to consider before choosing companies:

• Go for the company which is in operation for at least 10 years.
• The company should be a Public limited/Government company.
• The company should be a prior maturity and dividend paying company.
• Check out the management of the company, it should be known and well established management.
• Do go through track record of the company.
• And last but not the least, in fact most important check out rate of interest offered by the company.

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Tax Structure in India

Qus. : What are you doing?
Ans. : Business.
Tax : PAY PROFESSIONAL TAX!

2) Qus. : What are you doing in Business?
Ans. : Selling the Goods.
Tax : PAY SALES TAX!!

3) Qus. : From where are you getting Goods?
Ans. : From other State/Abroad
Tax : PAY CENTRAL SALES TAX, CUSTOM DUTY & OCTROI!

4) Qus. : What are you getting in Selling Goods?
Ans. : Profit.
Tax : PAY INCOME TAX!

Qus. : How do you distribute profit ?
Ans : By way of dividend
Tax : Pay dividend distribution Tax

5) Qus... : Where you Manufacturing the Goods?
Ans. : Factory.
Tax : PAY EXCISE DUTY!

6) Qus. : Do you have Office / Warehouse/ Factory?
Ans. : Yes
Tax : PAY MUNICIPAL & FIRE TAX!

7) Qus. : Do you have Staff?
Ans. : Yes
Tax : PAY STAFF PROFESSIONAL TAX!

8) Qus. : Doing business in Millions?
Ans. : Yes
Tax : PAY TURNOVER TAX!
Ans : No
Tax : Then pay Minimum Alternate Tax

9) Qus. : Are you taking out over 25,000 Cash from Bank?
Ans. : Yes, for Salary.
Tax : PAY CASH HANDLING TAX!

10) Qus.: Where are you taking your client for Lunch & Dinner?
Ans. : Hotel
Tax : PAY FOOD & ENTERTAINMENT TAX!

11) Qus.: Are you going Out of Station for Business?
Ans. : Yes
Tax : PAY FRINGE BENEFIT TAX!

12) Qus.: Have you taken or given any Service/s?
Ans. : Yes
Tax : PAY SERVICE TAX!

13) Qus.: How come you got such a Big Amount?
Ans. : Gift on birthday.
Tax : PAY GIFT TAX!

14) Qus.: Do you have any Wealth?
Ans. : Yes
Tax : PAY WEALTH TAX!

15) Qus.: To reduce Tension, for entertainment, where are you going?
Ans. : Cinema or Resort.
Tax : PAY ENTERTAINMENT TAX!

16) Qus.: Have you purchased House?
Ans. : Yes
Tax : PAY STAMP DUTY & REGISTRATION FEE !

17) Qus.: How you Travel?
Ans. : Bus
Tax : PAY SURCHARGE!

18) Qus.: Any Additional Tax?
Ans. : Yes
Tax : PAY EDUCATIONAL, ADDITIONAL EDUCATIONAL & SURCHARGE ON ALL THE CENTRAL GOVT.'s TAX !!!


19) Qus.: Delayed any time Paying Any Tax?
Ans. : Yes
Tax : PAY INTEREST & PENALTY!

20) INDIAN :: can I die now ??
Ans :: Wait, we are about to launch the funeral tax!!! 

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Invest in the direction of the Trend!

The fastest way to make money in the market and that too in most risk free way is to identify a change of trend in the market as early as possible. Take your position, ride the trend and close your position shortly after the trend reverses.

Any market professional will tell you that it is impossible to buy at the lows and sell at the highs or sell at the highs and buy at the lows consistently. But that's the fun part, you always need to be alert and aware.

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Stock Charts

Stock charts gained popularity in the late 19th Century from the writings of Charles H. Dow in the Wall Street Journal. His comments, later known as "Dow Theory". His theory says that markets move in all kinds of measurable trends and that these trends could be deciphered and predicted in the price movement seen on all charts.

A stock chart is a simple two-axis (x-y) plotted graph of price and time. Each individual equity, market and index listed on a public exchange has a chart that illustrates this movement of price over time. Individual data plots for charts can be made using the CLOSING price for each day. The plots are connected together in a single line, creating the graph. Also, a combination of the OPENING, CLOSING, HIGH and/or LOW prices for that market session can be used for the data plots. This second type of data is called a PRICE BAR. Individual price bars are then overlaid onto the graph, creating a dense visual display of stock movement.

Stock charts can be drawn in two different ways. An ARITHMETIC chart has equal vertical distances between each unit of price. A LOGARITHMIC chart is a percentage growth chart. It has equal vertical distances between the same percentages of price growth. For example, a price movement from 10 to 20 is a 100% move. A move from 20 to 40 is also a 100% move. For this reason, the vertical distance from 10 to 20 and the vertical distance from 20 to 40 will be identical on a logarithmic chart.

Stock chart analysis can be applied equally to individual stocks and major indices. Analysts use their technical research on index charts to decide whether the current market is a BULL MARKET or a BEAR MARKET. On individual charts, investors and traders can learn the same thing about their favorite companies.

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Primary and Secondary Markets

Primary Market: Primary Market is the means by which companies float shares to the general public in an Initial Public Offering to raise capital. An Issuer/Company enters the Primary markets to raise capital. They issues new securities in Exchange for cash from an investor. If the Issuer is selling securities for the first time, these are referred to as Initial Public Offers (IPO's).

Secondary Markets: Once new securities have been sold in the Primary Market, an efficient mechanism must exist for their resale, if investors are to view securities as attractive opportunities. Secondary Market transactions are referred to those transactions where one investor buys shares from another investor at the prevailing market price or at whatever price both the buyer and seller agree upon. The Secondary Market or the Stock Exchanges are regulated by the regulatory authority. In India, the Secondary and Primary Markets are governed by the Security and Exchange Board of India (SEBI).

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