“the purpose of business is to create a customer who creates … breeze/july 2015... · 2015. 7....

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Shriram City - News Letter - Breeze - 1st July 2015

“The purpose of business is to create a customer who creates customers.” - Shiv Singh

1st JULY 2015

The Star of the Month section in Breeze is an attempt to showcase and appreciate the efforts of

our employees who have put in exceptional performances. We hope that this section will motivate and

inspire all our readers!

In the July 2015 edition of Star of the Month, we wish to highlight the achievement

of Mr. Munna Kumar Prasad (Officer II Grade) in the Accounts team of North

Region.

Munna Kumar Prasad started his career in SCUF seven years ago. He joined as

Executive for Delhi Division, and is now the NOC issuing officer for North Region. Due to his

efforts, the North region has put up an excellent performance in Loan Settlements, securing

the pan-India 2nd rank for settlements in June 2015. They have set an example for other

states with their efficiency and hard work, and are a source of pride for the North region.

North TW Loan Settlement performance for the month of June 2015 is summarized below:

We congratulate Munna Kumar Prasad for his efforts and leadership, and wish him the very

best for the future.

Star of the Month

STATE TW SETTLED COUNT %

NEW DELHI

8042 25.05%

RAJASTHAN

PUNJAB

UTTAR PRADESH

HARYANA

HIMACHAL PRADESH

UTTARANCHAL

BIHAR

JAMMU AND KASHMIR

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An investor can choose to make an investment in mutual fund schemes through lump sum

investments or by investing a specific amount regularly. Even for regular investments there are

various ways in which you can choose to transact. Let’s take a look at the options available to the

common investor.

Investment modes for Mutual FundsInvestment modes for Mutual Funds

SIP (Systematic Investment Plan)

In this method, you invest a fixed sum regularly in a scheme, regardless of market conditions.

Over a long term, you end up buying more units when the markets are down and fewer when the

markets are up. Thus you have automatically bought lower when the markets are up. This is a good

and affordable method to invest, as you set aside a monthly amount to meet your goals.

STP (Systematic Transfer Plan)

An STP is a regular transfer from one scheme to another under

the same fund house. Its like an SIP, the only difference being the

money here is coming form another scheme. Investors frequently use

STPs when they have a lump sum to invest in an equity scheme, but

want to do it in installments. The way to do it is to put a lump sum in

a debt scheme and then give instructions to transfer a fixed amount

into the chosen equity scheme at regular intervals. It proves better

than keeping a lump sum in a savings bank account.

How to invest in Mutual Funds

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… Contd.

SWP (Systematic Withdrawal Plan)

These are regular redemptions from a scheme. Investors can either redeem a fixed number of

units, a fixed amount or all returns above a certain base level. This is mostly used to get a regular

income by retirees or investors allocating money for a fixed recurring expense every month. It also

helps fight extreme volatility closer to a planned redemption date.

Options at a Scheme levelOptions at a Scheme level

Dividend Payout Option

In case of dividend payout, option, the mutual fund scheme will pay you from the profits made

by the scheme at regular periods (this could be quarterly, half-yearly or yearly). But dividends are

not guaranteed i.e. the scheme may or may not declare a dividend. When a scheme declares divi-

dend, this dividend gets deducted from the NAV (Net Asset Value) of the scheme and is paid to the

investor. For instance: If the NAV of a scheme is ₨.20 and the scheme declared a 10% dividend (₨.1

on a face value of ₨.10 per unit), the NAV will go down by ₨.1 (plus applicable taxes if any) after

paying the dividend.

Thus, in dividend payout, the NAV of the scheme falls after the dividend is paid. You receive

the dividend in your bank account and the NAV goes down to reflect the impact of the dividend paid.

Use the dividend option if you need regular income to meet your cash flows.

Dividend Reinvestment Option

Here the dividend amount is not paid to the investor but is used to by more units of the

scheme by the fund house. In this case also, the NAV of the scheme declines after the dividend is

paid. In this case of equity funds, there is no difference in dividend reinvestment and growth options

because equity funds neither impose DDT nor do they attract long-term capital gains tax. However

in debt funds it makes a difference. Dividends from debt funds are subject to a dividend distribution

tax (DDT) of 28,325 percent, for individuals/HUF. Every time the scheme distributes dividends, it first

deducts DDT out of the distributable dividend and pays you the rest. Under the dividend re-

investment option, your scheme first declares a dividend and then immediately re-invests it in the

same scheme at that day’s net asset value (NAV). There is no exit load on units allotted via dividend

reinvestment.

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… Contd.

Growth Option

Under the growth option, the scheme does not pay any dividend, and the NAV continues to

grow. Therefore an investor receives nothing in the bank account and there is nothing to reinvest.

Whatever gains are made by selling any scheme’s holdings are invested again into the scheme. This

gain can be seen in the NAV which rises over time. The number of units with the investor also re-

mains the same.

Tax ImpactTax Impact

It is also important to consider the tax impact, in addition to the returns that you may receive

on your investment; be it through growth, dividend payout or dividend reinvestment, as the post tax

returns will differ. This is so because the tax treatment is different for long term and short term

holding period. The tax treatment also differs for equity funds and debt funds. While equity funds

and balanced funds are eligible for tax benefits on long term capital gains after one year. Units of

debt oriented funds need to be held for three years to be eligible for tax benefits on long term

capital gains.

Note: Information given herein is as per the prevailing tax laws, which are subject to change. In

view of individual nature of tax consequences, investors should consult their professional tax

advisor.

Source: Times of India

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Did You Know Series (DYKS) - 23

The details and rules of the DYKS are as follows:

Each issue will contain 3 multiple answer questions

All staff members are eligible and are encouraged to reply to the questions

All replies to be sent only to [email protected]

The mails should be sent from the official mail ID of the employee.

The response mail should be as follows:

The name of the staff from whom the first correct response comes will be published in the subsequent issue of ‘Breeze’. This will be done for each of the states.

======================================================================

SNo. Required Information

1 Employee Name 5 Branch code and name

2 Employee Number 6 State

3 Designation 7 Answers:1

4 Email ID 2

S

N Question Answer

1

We have a customer login platform on our website

www.shriramcity.in. The customer can register on our web-

site if he wants to see the basic details of his loan. While

registering he generates a User ID and password. Suppose

he forgets his user ID. What should he do?

(B) Send a mail to [email protected]

and request for the same

2

A Customer complaints that he has been being misguided by

a Sales / Marketing Executive that he does not have to pay

any pre-closure charges if he wants to preclose his loan.

And now the customer wants to preclose his loan but branch

staff is insisting that he pays the preclosure charges. The

customer is now agitated for being misguided and visits the

branch. What will you do as a branch head??

(C) Will convince the customer that all finance

companies have a concept of pre-closure charges.

Shall ask him to refer to the welcome / sanction

letter given to him and ask him to pay the pre-

closure charges. Apologize for probable miscom-

munication, collect the pre-closure charges and

close the loan.

3

One of our Recovery Executives (RE) goes to collect the

EMI payment from the customer at his residence. Unfortu-

nately there occurs a technical fault in the machine and the

Receipt could not be generated. What should the RE do in

your opinion???

(E) Option B or Option C

(B) RE should direct the customer go to a near-by

branch, where he can pay the cash and collect the

receipt (OR) (C) RE should inform the customer

about the problem and will tell him that he would

rectify the problem and collect the cash later dur-

ing the day.

S. No. State Count of

responses State

Count of

responses S. No.

1 Tamil Nadu 5 Punjab 1 7

2 Maharashtra 15 Uttar Pradesh 5 8

3 Karnataka 1 Uttarakhand 1 9

4 Kerala 1 Rajasthan 1 10

5 Haryana 1 HO - Chennai 2 11

6 New Delhi 2

PART III – State wise correct responses to Quiz in June 2015 Issue

PART II – Answers to Quiz of June 2015 issue

mailto:[email protected]

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By:

Sri D. Srinivasan (Sr. Manager)

BPR, Santhome

S.No State Name S.No State Name

1 Tamil Nadu P. Pitchaimani 7 Punjab Sandeep Tandon

2 Maharashtra Ajimon Dasappa Kurup 8 Rajasthan Krashank Jain

3 Karnataka G.S. Radha 9 New Delhi Aftab Anwar

4 Uttar Pradesh Sanjay Kumar Yadav 10 Haryana Menu Sharma

5 Uttarakhand Naval Kishore 11 Kerala Harsha Hariharan

6 HO - Chennai R.V. Sreenivaas Rajan

PART IV – State wise 1st correct response to Quiz in June 2015 Issue

1) A customer completes his loan and applies for his NOC. You call the client and inform him to collect it from the branch. Agreed time is 5.00 pm the next day. But you get caught up in a meeting at the said time. What will you do?

A) I shall diarize the request. Before I go to the meeting, I shall request my colleague to handover the NOC to the client at the said time.

B) I will make the customer to wait till I return from the meeting.

C) I will call the customer and intimate about my meeting and will ask the customer to come some other day.

D) I will call and inform the customer that I will send the NOC through courier.

2) A customer wants to foreclose his loan and he requests you to provide the fore-closure amount details. What constitutes a foreclosure amount payable by the cli-ent??

A) Arrears of Amounts due + future principle + future Interest + broken period interest.

B) Arrears of Amounts due + future principle + Broken period Interest + foreclosure charges.

C) Arrears of Amounts due + foreclosure charges + future principal + future Interest.

D) Only the arrears of the amounts due

3) A customer’s PDC gets returned due to the reason “Cheque over writing”. While paying the installment, the customer is asked to pay the Cheque bounce charges, but he refuses claiming that only the SCUF staff has filled the cheque. How will you avoid the problem?

A) Customer is right, we should not collect the Cheque bounce charges.

B) Wrong, for all returns the customer has to pay the charges. There is no mistake on our part.

C) At the time of collecting the documents, the client must be asked to fill in the PDC’s. If we as-sist the client in filling the PDC, we should exercise caution and make it clear that we are doing the job on his behalf. Only after completely filling all the PDC’s, signature should be obtained

from the customer on the cheques.

D) Collect cash for the installment and forget about it.

PART V – Quiz for July 2015

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The Unspoken Rules of Civility at the WorkplaceCivility at the Workplace

RULE #1

A prairie dog is cute in the wild, not in office

What is prairie dogging? It’s when someone stands up and tosses something to a

person a few desks or cubes over, pokes his head out of his cubicle to survey the

environment, and peers over the wall of someone’s cubicle. In office, this behavior is pretty

annoying. Even if the walls are low enough to gaze over, go around to the opening and

treat it as a doorway. Check if it is a good time to speak to your co-worker instead of

simply barging in and blabbering away. If your co-worker is talking to someone else or is in

deep thought, don’t try to get his.her attention at that moment. Try to catch up later. If the

matter is urgent, either drop a note on his/her desk or go back to your cubicle and send

an email or chat message.

Ssshhhhhh!

DID YOU KNOW?

A prairie dog is a herbivorous burrowing rodent native to North America,

specifically in the grasslands or prairies, as they are called. A prairie dog is

named for its habitat and its warning call, which sounds like a dog’s bark.

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RULE #2

Silent zones aren’t just for hospitals

No, you aren’t expected to whisper, but just speak in a low voice so that you don’t

disturb people who are working around you. Understand that every individual needs to pay

full attention to the task in front of them to perform at their full capacity. Contact your

neighbour by walking up to them, sending them an e-mail or calling them on the office land-

line. Yelling from your desk asking, “Supriya, is the report ready?” is jarring.

RULE #3

Handle your smartphone smartly

Phones are hard to ignore. They connect us to friends and family and are important

for work too. Playing Candy Crush at work to un-

wind may not seem like a bad idea, but go some-

place private to disengage. Playing the game at

your desk with sounds coming from your phone is

unacceptable. Also, you may be a music lover, but

that doesn’t mean you sing along with your favor-

ite tunes or listen to them on the computer /

Smartphone with your head phones on. Moreover,

keep your phone on ‘silent’ or ‘vibrate’ mode; you

certainly don’t want to be a nuisance to your co-workers. Be courteous.

RULE #4

Everything you see isn’t public property

Walking into a momentarily vacant cubicle and picking up whatever you want to as if

it’s your personal property is a strict no-no. Just because the item is lying in the open or

the colleague is friendly doesn’t mean you can walk away with it. It is invasion of one’s

privacy. Even if the stapler is owned by the company, you need to ask for it each time you

require it. Also, let them know when they can expect to get it back, and return it before

time. This way, your colleague will be happy to lend you whatever you may need in the

future.

….Contd.


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RULE #5

Wafts from a coworker’s desk can be displeasing

Put other people’s needs- and nose – ahead of your own. You are busy and want to

devote every minute at work to work; but remember, eating at your desk doesn’t make you

super-dedicated. It only indicates that you are incapable of finishing your day’s work in the

course of an average day. Plus, eating involves crackling of wrappers, food aromas, smack-

ing, chewing, crunching, gulping and lots of other sounds which might make a co-worker

hungry, making it difficult for him to concentrate. Also, never invite your office buddy to

have lunch with you in your cube and chit-chat for 30 minutes. Go to the office lunch

room, maybe find others who are eating and join them. Having a meal together is a great

way to fortify office relationships.

This month, we take the opportunity to appreciate Mr. G. Kaviraja (Branch Ac-

counts, Santhome) who has been with SCUF for 2 years, for his willing and timely

blood donation for the surgery of Mr. P.V. Kumar, a close relative of our employee

Mr. R. Swaminathan (Accounts, Santhome). Similarly, we are confident that SCUFians

everywhere will rise to the occasion whenever a helping hand is the need of the

hour.

….Contd.


Shriram City’s everyday heroes….hats off to you!

Mr. G. Kaviraja

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CORNER

Featuring thought-provoking stories and forwards that are doing the rounds on social media.

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Editorial Committee

Shri K.Subramaniam

Senior Consultant, CO, Mylapore

Smt M.Subhashree

TED., BSC, Santhome

Sri M.Radhakrishnan

Consultant, BSC, Santhome

Sri D. Srinivasan

Sr. Manager, BSC, Santhome

Ms. Teena Philip

Business Manager, BSC, Santhome

Communication Address:

Editorial Committee,

(News Letter—Breeze)Shriram

City Union Finance

144, Santhome High Road,

Chennai—600 004

Phone: 044 43925300

Email:

[email protected]

A parting thought

What we

are

What we want

to be MAKE THE JUMP!MAKE THE JUMP!

“the purpose of business is to create a customer who creates … breeze/july 2015... · 2015. 7....

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