PLAN FOR THE FINANCIAL YEAR ENDING
As the financial year draws to a close on 31st March 1998, it is suggested that all subscribers must update their books of accounts and closing balances in accordance with the balances that appear in our books. The subscribers may get statement of account or certificate for their transactions well in time to avoid the last minute rush.
There are instances when some subscribers have been given an advance against a chit etc. In such cases the chit is prized later on and the prize amount is adjusted against the advance. It is suggested that the subscribers may properly record all these entries in their books. The subscribers may also consult their CAs if there is a case for TDS in such circumstance and must deposit TDS since non-compliance attracts heavy penalties.
It is a good financial and accounting practice to clear all payables within the financial year. It is suggested that the subscribers clear all their dues for this financial year before the year end.

NON BANKING FINANCE COMPANIES
(Reserve Bank) Directions,1998 (2nd January 1998)
The Reserve Bank has announced a new set of Directions for NBFCs. Chit Funds have been excluded from the stringent provisions just announced because the nature of chit fund activity and its present regulation is considered safe and adequate by the policy makers.
Addressing a meeting on the "Future of Domestic Finance Companies", Mr. P.R. Khanna, (Chairman, RBI's expert group for designing a supervisory framework for NBFCs), advocated the need for increasing net owned funds of Finance Companies. At Chandra Lakshmi, we stand committed to fulfill whatever net owned funds requirement and guidelines that the RBI issues from time to time.
In the address , Mr. A.C. Shah (Former CMD of Bank of Baroda And Chairman, RBI's working group of Finance Companies) pointed out to the RBI that issuing guidelines and provisions every now and then may have a short term effect. But the RBI must give thought to a long term policy stance, a comprehensive legislation and a definite direction to the NBFC sector. He urged the RBI to take a lead role and bring about development effort in creating a market for the NBFC sector just like it did in the 50's for the Development Finance Sector through IFCI.
Mr. A.C. Shah also made an invaluable suggestion for creating a Nation wide "Centralised Credit Information System" and a "Common Registry" for all borrowers in the economy.
On the Occassion Mr. Mahender Kumar (Manager,Department of Non- Banking Supervision, RBI, Mumbai) commented on the issue of deposit insurance for depositers in NBFCs. He said that even though insuring of deposits was a nice idea but the " Shere Committee" has looked into it and concluded that by insurance the efficients in the industry will subsidise the inefficients and the present scenerio is not right for insurance of deposits. At Chandra Lakshmi, we hope that deposit insurance at a reasonable premia is still a good solution for creating goodwill & confidence in the investors and believe that such a facility will be a welcome feature.

THE SIGNIFICANCE OF INVESTING IN A USED CHIT
After having taken membership in one of the series, sometimes the subscriber wishes to switch over to another new series which he finds more suitable for himself in terms of duration or monthly payment or some other aspect. When such a switch over takes place he vacates the old and joins the new series. The series that he once took up and lates vacated, this used chit, is at times, open for subscription.

INVESTMENT AVENUES FOR SMALL INVESTORS
The rate of savings in the household sector in India is very high. The savings are traditionally effected through the conversion into physical & financial assets.
The immidiate economic scenerio presents a bleak picture for investors. The stocks and shares markets have not been performing too well. The market for property and real estate has also taken a beating in recent times. Gold, which provided a safe and solid avenue for investment and a hedge against inflation, has lost its lusture of late. Company FDs are also losing confidence in the market.
Amidst all this, the chit fund still presents a reasonable avenue for investing the regular surpluses available to small investors.Chit schemes work as an instrument for savings and borrowings and act as contingency buffers at the time of need. Chits have consistently performed well in the past and offer stability and confidence to the investors in his financial plans.

CHIT SCHEME FOR EVERY OCCASION.
Chandra Lakshmi has just completed its first High Value Series for Rs.7,50,000/-. The coming months will see further additions to the range of High Value Series. We now offer chit schemes to match a bigger range of financial requirements with monthly instalments ranging from Rs.2000/- to Rs.25000/-. The chits have been structured for durations ranging from 10 months to 100 months to provide a tailor made solution for every financial plan. The auction cycles have been stepped up from the conventional monthly break to fortnightly and weekly breaks. These provide additional liquidity and much greater satisfaction. Then there are specialised schemes like the "Children Benefit Chit Linked Scheme" and the "Maximum Dividend Series". The schemes are often packed with many features and backed by good quality of support, that has been our hallmark for several decades now.
The fifth series in the range of "Maximum Liquidity Series" is open for subscription in the month of February'98. This Rs.1,00,000/- series has a 100 week duration and a weekly auction plan. Subscribers from similar series before have benefited from the speedy disbursal of prize amounts and the flexibility inherent in the series. The first month instalment in this series of Rs.3462/- carries a dividend of Rs.538/- and the subscriber starts to get dividend right from the first month itself. Rather than take up membership in a Rupees Two or Three lacs series, subscribers prefer to take two or three tickets in this series. This helps them to get the entire fund together or one by one as required .
The fourth series in the range of "Maximum Dividend Series" is also open for subscribers. This Rs.2,50,000/- series has a total of 50 auctions and the subscription is Rs.5,000/- per auction. Fifteen instalments of this series are now due i.e.15 x Rs.5000 = Rs.75,000/-. Out of this, the actual payment would work out to Rs.53,000/- (approx.) and Rs.22,000/-(approx.) is dividend earned. The next instalment will work out to Rs.3300/- and Rs.1700/-will be dividend earned. Subscribers who wish to make a one time lumpsum payment to earn a sizable dividend may join this series. The subsequent monthly payment of Rs.3300/- in the beginning is quiet low for a series of Rs.2,50,000/-.