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  Comparative Study of Investments

COMPARATIVE STUDY OF INVESTMENTS :

SELF-INVESTMENT CONCEPT : The concept being followed in investing depositors’ money itself provides utmost safety to the deposit money deposited by customer in Cherukuri Group. Cherukuri Group has invested the depositors money along with its own contribution towards share capital in it’s own sister concerns like Cherukuri Swarnanjali, Cherukuri Real Estate and Constructions, and Cherukuri Advertising and Educational Society which is running a Vidyalayam in Korukonda village of East Godavari District. All these units have been proved successfully.

This will ensure total safety for depositors’ money as well as good returns on depositors’ investment. Apart from safety aspect and beautiful returns, this concept adopted by Cherukuri is providing for another angle to the depositors investment in the form of high liquidity or easy liquidity it need arises.

The investment pattern of Cherukuri Group can better be explained in the following manner.

CHERUKURIG GROUP BALANCE SHEET

Liabilities
Rs.
Assets
Rs.
Cherukuri Capital
40,000
Real Estate
80,000
Depositors investment
60,000
CSJ Investments
8,000
 
Advertisements
3,000
 
Vidyalayam
2,000
 
Cash / Bank Balance
7,000
Total:
1,00,000
Total:
1,00,000

The above figures are taken only as example.

Other Finance Companies, Schedule Banks and Co-operative Banks Balance Sheet.

Liabilities
Rs.
Assets
Rs.
Share Capital
10,000
Security Loan
65,000
Depositors Investments
90,000
Unsecured Loan
15,000
 
 
Fixed Assets
10,000
 
 
Cash / Bank Balance
10,000
Total:
1,00,000
Total:
1,00,000

The salient features of the difference in investments patterns are explained like here under :

S.No.
Cherukuri Group
Other Concerns
1
Assets and Liabilities are maintained by the same person.
Assets and Liabilities are controlled by more than one person.
2
Since Assets and Liabilities are handled by same person, assets can be liquidated very easily.
Since Assets and Liabilities are in the hands of different persons conversion of assets into cash is either difficult or delayed.
3
Transactions are carried on between Cherukuri Group at it’s sister concern Only, Hence the problem of recovery Does not arise and depositors and get Their money’s worth either Cherukuri Group or its sister concerns.
Here, the financial transactions are carried on between depositors / investment concerns, and loanees. So recovery of investments recoveries from the company depending on repayment by the persons Who Follow the amount as loan.
4
Cherukuri Group Assets can be converted to cash 100% at any time.
Only 10% of total assets can be converted to cash as per the above table at any time.

Investments Map :

Investments of Cherukuri