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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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Shriram City - News Letter - Breeze - 1st July 2015
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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Shriram City - News Letter - Breeze - 1st July 2015
… 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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Shriram City - News Letter - Breeze - 1st July 2015
… 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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Shriram City - News Letter - Breeze - 1st July 2015
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
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Shriram City - News Letter - Breeze - 1st July 2015
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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Shriram City - News Letter - Breeze - 1st July 2015
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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Shriram City - News Letter - Breeze - 1st July 2015
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.
The Unspoken Rules of Civility at the WorkplaceCivility at the Workplace
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Shriram City - News Letter - Breeze - 1st July 2015
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.
The Unspoken Rules of Civility at the WorkplaceCivility at the Workplace
Shriram City’s everyday heroes….hats off to you!
Mr. G. Kaviraja
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Shriram City - News Letter - Breeze - 1st July 2015
CORNER
Featuring thought-provoking stories and forwards that are doing the rounds on social media.
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Shriram City - News Letter - Breeze - 1st July 2015
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:
A parting thought
What we
are
What we want
to be MAKE THE JUMP!MAKE THE JUMP!