IMPAL: Go for a re-run

Anup Menon

GIVEN the interest rates on offer, the fixed deposit programmes of India Motor Parts and Simpson and Company are relatively safe. The risks associated with these companies are low. Both only renew deposits and do not accept fresh deposits.

IMPAL's fixed deposit programme is open for renewals only. The company renews deposits under both the fixed and cumulative schemes. While the tenure for the former is three years at 12 per cent, that for the latter is two and three years with effective yields of 11.45 per cent and 12.69 per cent respectively. The former can be avoided. Deposits are accepted at the registered office of the company at 21 Patullos Road, Chennai - 600 002.

IMPAL, of the TVS group, distributes auto spare parts. The strong parentage of the TVS group ensures that the default risk of the company is low. The company derives significant revenues by distributing the products manufactured by some of the group companies.

IMPAL's performance is linked to the automobile industry. Of late, there have been some signs of slowing down in the industry. However, this is not likely to have a significant impact on the cash flows and the FD servicing capacity of the company. Against this backdrop, existing investors can consider renewing their deposits.

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Simpson and Company

The fixed deposit programme of Simpson and Company is open for renewals only. The company renews deposits under the fixed and cumulative deposit schemes. While the tenure for both is two and three years, the former offers rates of 12 per cent and 12.5 per cent and the latter effective yields of 12.47 per cent and 13.05 per cent respectively. The company accepts deposits for Rs. 5,000, which are renewed at its registered office.

Simpson and Company, flagship of the Amalgamations group, has business interests in automotive, tractor, industrial diesel engines and spare parts. It has a fairly well-established presence in its line of business and has performed consistently well.

The company has set up a joint venture with Varity Perkins, a division of Lucas Varity Plc, UK, for a world-class production facility at the Sembium complex near Chennai. The new facility has been established to produce a range of engines for industrial, agricultural, power generation and vehicle markets. Against this backdrop and the reputation enjoyed by the company, existing investors can consider renewing their deposits.