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GST

How GST Can Affect Your Festive Season Shopping

Consumers are often spoilt for choice when it comes to festive shopping. Retail brands and stores try their best to boost sales through hefty discounts. But the launch of the new indirect tax regime in India, the goods and services tax (GST), prompted consumer-oriented companies to tweak their discount strategy. Tactics such as gift vouchers, free goods on the purchase of a certain amount, and promotional offers may not directly work to woo consumers. But, it also comes with multiple advantages of GST. According to the new tax regime, freebies or free goods would also attract GST. As a result, most of the shopping done online and otherwise became expensive after the implementation of GST. This article explores how GST affects consumers’ festive season shopping and the benefits of GST registration. [B-01] The Need for New Strategies Post-GST, consumer goods companies need to think of new strategies to attract customers due to the following reasons: Discounts, vouchers, and free goods will also come under the purview of GST. You can avail of the input tax credit only for products with economic value—goods with a price tag. The deduction cannot happen on zero-value products, i.e., free products given to a customer. Consumer-oriented businesses would suffer a double loss because they would be unable to claim deductions and would also have to pay GST. Change in Popular Brands and Their Strategies Post GST Implementation Here’s a gist of how well-known clothing retailers and food product companies plan to function post-GST implementation: Brands like Vero Moda, ONLY, etc., provide straight discounts. Parle products no longer provide the “buy one, get one” offer. Instead, they offer upfront discounts. Brands such as Dabur and Marico have opted for combo packs and price cuts. Popular food chains, such as Domino’s and Pizza Hut, no longer have the “buy one, get one free” offer. The Pizza Hut sales pitch changed to “2 pizzas at 50% off.” Advantages of GST Tax Collected At Source Many retailers and online brands did not collect tax in any form. Under the GST, these brands began collecting tax at a fixed rate. eCommerce websites, for example, collect tax at a fixed rate of 1% and pay the sellers on their websites, allowing consumers to avoid paying taxes on goods. They can pay it upfront to the retailer while they purchase goods. Faster Delivery If consumers buy from an online retailer or an eCommerce site, their goods will reach them faster. This is because, under GST, retailers do not have to file separate paperwork for each state across India. For example, if the seller is in Mumbai and you are based in Bangalore, the current system calls for filing a separate bill for logistics. The bill for state taxes must also be filed separately. Post-GST, this system got simplified. The states no longer impose extra paperwork. Everything will come under the garb of GST, saving everyone the hassle. This eventually results in making the entire delivery process faster. Decrease in the Price Of Goods & Services The central government charges GST at all levels of the supply chain. Therefore, you will find a considerable difference in the product prices post-GST implementation. Customers will hence be able to avail the advantages of GST as it will be lesser than VAT and service taxes. For example, food items like grains, spices, etc. fall under the 0-5% GST range. This is extremely beneficial for the customers, as they would buy it at a cheaper price. Many other daily-use items, such as shampoos, tissue papers, toothpaste, soaps, electronic items, etc., have also become cheaper. Other than that, there are multiple GST slabs applicable to different items. The mass consumption of spices falls under the GST slab of 5%, processed foods come under the GST slab of 12%, whereas luxury goods fall under the GST slab of 28%. Improved Competitiveness GST reduces the transaction costs of doing business considerably. As a result, the competitiveness of trade and industry has improved since the implementation of the GST. This is perhaps the most crucial advantage of the GST for consumers. Dismantling interstate taxes is one of the most crucial reforms long awaited in India’s manufacturing and retail markets. Linear Pricing Across the Country One of the major GST benefits is that it regulates the pricing structure. This is great for consumers, as they will get to pay the same price irrespective of their location or place of purchase. Under the GST, customers will be able to buy the product at the same price across the country. However, the products that fall under the GST tax slab only can avail of these GST benefits. Improved Transparency Another major advantage for traders (importers, eCommerce sellers, retailers, etc.) is the transparency that comes with GST. Under the GST, a majority of businesses have streamlined their operations for traders. This is because they have to pay only one tax — GST—for everything they purchase along the supply chain. Easy Borrowing GST unifies all of your financial transactions into a single system. This makes it easier for small and large businesses to maintain records of their transactions. Since it is easy to maintain these records, it has become much easier for traders to apply for bank loans. The system has all the history of the assets and the financial ability of the trader. [B-02] Final Thoughts The onset of GST redefined shopping behaviour completely, even during the festival seasons. Consumers now expect discounts rather than over-the-top freebies. Be it food, garments, electronics, or any other industry benefiting from festival shopping, the GST had a massive impact on them in terms of profit. If you have any further doubts regarding the advantages of GST or want to learn more about the benefits of GST registration, consider consulting an institution like Piramal Finance. Their experts can help you calculate how much GST you will need to pay as a business owner and how to manage your finances.

08-11-2023

Know More

What are the Market Opportunities to Capture Right Now?

It’s not easy to grow a business. In this chaos, it’s getting harder to do well. The pandemic, inflation at the time, and global chaos cause the problems. Your company’s success depends on how well you can find ways to stay alive. There is a lot of work to do. But we’re here to help you on your way. It would help if you looked closely at your company’s business direction, resources, and other analyzing market opportunities. Intelligent analysis is key to making decisions based on facts. [B-01] Types of Analyzing Market Opportunities Scenario analysis for purchases It’s not easy to make decisions about what to buy. Different things affect what, when, and where people buy. You need to know how your customers buy things so you can change your options and change the way they buy. Here are some things to ask: When do customers purchase our goods or services? When do they buy it? Where do they shop? They pay in what way? Explore your customers’ buying habits by tracking how they pay and get your products. This will let you make your offer fit what they want. Let’s look at the retail business as an example. Customers today want things to be quick and easy to get to. When retailers saw these new options, they changed how they did business to attract more customers. Businesses could offer delivery within minutes and take advantage of consumers’ impulse purchases because of how fast they could do business. The way your customers buy things can tell you a lot about what they need. Consumer segmentation Find out what consumers have in common and put them into groups. This will give you the right amount of reach. Consumers could also be grouped based on age, gender, location, education, job, and income. You can change by looking at your lifestyle, attitude, beliefs, and buying instincts, among other things. Demography is a way to figure out how big your customer base is. For example, the people who make diapers need to know how many children live in a country. People buy because of the price, how easy it is to buy, the quality, the design, and the material. Population groups change over time. Most world’s workers are from Generation X and the Millennial generation. For example, you need to change your marketing opportunities to meet the needs of the different age groups you are trying to reach. Foreign analyzing market opportunities. If you have a business in a mature or crowded field, looking to other countries can help you reach your financial goals. Their economies and cultures differ, so their marketing opportunities grow at different rates. You can figure out how far along a product’s life cycle is by tracking how much a certain item is used per person in each country. Knowing how big the market is and how much competition there is will make it easier to figure out how much money the business could make. How many people use their phones to pay for things they buy? How much of the market do private brands make up in an industry? These questions can help you determine if there is a market for your goods or services in your country. But it could also make you think of new ways to improve your current market opportunities. Complementary product and service analysis Keeping an eye on the growth chart of the goods and services your business needs to succeed would be helpful. For example, there are many kinds of butter and sweet spreads. They should look into what’s happening in the bread and cookie business. And people who make tomato sauce should learn more about the pasta market. By doing the same research, you can find out how your customers use your product in the same situations as other people. Find out about new needs, opportunities, and threats. Make new products or improve the ones you already have. Sell more successfully Think about a company that makes freshly ground coffee and wants to sell it in more places. You should get sales data from companies like Nespresso and Dolce Gusto that make pod coffee makers figure out how big their marketing opportunities could be. When you think about funding, you should also consider other market opportunities. Use different strategies to guide your product innovation and grow your market share. Direct competitor analysis Direct rivals provide similar goods or services. Coca-Cola and Pepsi, as well as Netflix and Hulu, are two examples. Do a thorough analysis of your industry’s competitive landscape and pay attention to what other vital players are doing to get a decisive competitive edge. Then, find out how they stack up against your company. You should ask the following questions: Which businesses are getting bigger, and why? Why are they worth different amounts? How do they get the word out about their goods? What do we have going for us that they don’t? Think about the IKEA store. When they opened their first store in Chile in 2022, they took advantage of new market opportunities. But IKEA did a thorough study before deciding to grow. Most likely by looking at companies like Sodimac, which has 74 locations and is already a competitor. This kind of analysis is vital for success. Environmental analysis Don’t forget to look at things outside of your business that can affect it. This includes money, geopolitical events, changes in the law, scientific and technological progress, and climate change. You can find marketing opportunities and develop winning strategies by paying attention to these things. Think about how amazing science is. The market opportunities are going up and down because of these new products, like robotics. Companies like Google, Microsoft, and Nike were used as business models to invest in these untapped markets. But it’s not just these big companies that are looking into this. [B-02] Conclusion Your company can make long-term decisions using analytical methods. All it has to do is plan and project what will happen next. You can do this by looking at the different ways to get into the market or make room for yourself. As soon as an opportunity is found, make a proposal, plan the process, and figure out how much it will cost and how much it will cost. Not every market opportunity that is found will make money. Because of this, many businesses spend money on research and analysis. Before going into a new market or making changes to a product, this is done. Studying markets can be done differently, such as with Porter’s five forces model, which looks at competitors, suppliers, buyers, subsidiary-producing companies, and environmental forces. Now that you have everything you need about marketing opportunities, you should visit Piramal Finance for more information.

08-11-2023

Other

Types of Investments Can You Consider For Your Portfolio

As an investor, you always want to ensure that your portfolio is diversified well. This means investing in a variety of asset categories. These assets can include stocks, bonds, and even mutual funds. But what are the different types of investments that you can consider for your portfolio? Wait, first of all, what are the different types of portfolios? Let’s dive deeper. Let’s learn about different types of portfolios. By the end, you would also have learned about various types of investments you can consider. Let’s dig in! [B-01] Types of Portfolio Investing is an art and your portfolios can show if you are good at it or not. A person can have various types of portfolios. In the finance world, there’s a name for each one of these types. Let’s see some of the most popular ones: Aggressive Portfolio This type of portfolio showcases a lot of high-risk investments. These are typically made in the desire for higher returns. These portfolios describe the investor as a risk taker and adventure seeker. Aggressive Portfolios need keen observation and close monitoring at all times. Defensive Portfolio These portfolios do not have any high-risk stocks. These are usually the safest investments. They don’t react much to market movements. Thus, the defensive portfolio is very immune to risky moves in any direction! Income Portfolio Income portfolios are a great way to diversify your investments. They have the potential of creating stability in an unpredictable market. They focus on dividends, interest payments or other forms of revenue. Speculative Portfolio Speculative investments are often compared to gambling. They require such an appetite for taking risks. Most people would consider this type of trading risky. However, it’s important not to get caught up in the essence that comes with such a high degree of risk. Hybrid Portfolio The name says it all — this type of investment portfolio contains a mixture of assets with different types of criteria. You can use it to get both growth and dividends. Well, enough about types of portfolios! Let’s now move forward to the main deal — types of investments for your portfolio. Types of Investments for Portfolio Stocks If one wishes to invest, the options are endless. However, only a few are worth your while. Stocks are a type of investment that represents ownership in a company. There are two main types of stocks: common stock and preferred stock. Common stock allows the shareholder of voting rights and a share of the company’s profits. Preferred stock does not have voting rights. However, it does have a preference over common stockholders for receiving dividends and other distributions from the company. Bonds A bond is a debt investment, where an investor loans money to an entity (usually a government or corporation). In return, receives interest payments over a fixed period. Corporations often use bonds to raise capital for growth or other projects. Mutual Funds A mutual fund is an investment vehicle that takes money from many investors and invests it in a variety of securities, such as stocks, bonds, and short-term debt instruments. Mutual funds are managed by professional money managers and offer investors diversification, which can help mitigate risk. Real Estate Investment Trusts (REITs) A REIT is a type of security that invests in real estate and allows investors to pool their money and receive regular income payments (in the form of dividends). REITs can be publicly traded or privately held. They must meet specific conditions to be eligible for special tax treatment. Exchange Traded Funds (ETFs) An ETF is a type of security that tracks an index, commodity, or basket of assets like an index fund but trades like a stock on an exchange. ETFs offer investors exposure to various asset classes in one investment plan. Commodities A commodity is a physical good that is interchangeable with other goods of the same type. Commodities include metals (such as gold and silver), energy (such as oil), food (such as wheat and corn), and livestock (such as cattle). Cash Equivalents Cash equivalents are short-term investment options that are highly liquid and considered very low risk. Examples of cash equivalents include money market funds, commercial paper, and Treasury bills. Short-term government bonds with maturities of three years or less also come under cash equivalents. Alternative Investments Alternative investments are non-traditional assets that can provide diversification benefits. This is due to their low correlation with other asset classes in your portfolio. Some examples of alternative investment options include: hedge funds, private equity, venture capital, real estate, precious metals, and collectables, such as art or wine. Derivatives A derivative is a financial instrument whose value is derived from the underlying asset on which it is based (hence the name “derivative”). The most common types of derivatives are futures contracts, options contracts, and swaps contracts. Derivatives can be used for hedging purposes or for speculating on the future price movements of the underlying asset. Structured Products A structured product is a financial instrument whose payout depends on the performance of one or more underlying assets, such as stocks, bonds, commodities or currencies. Structured products can be custom tailored to meet the specific needs of investors. For example, a bank might create a structured product that pays out if the S&P 500 Index rises above 3000 points within the next year. If the index does not reach 3000 points, the investor would receive nothing. [B-02] Conclusion As you can see, there are many different types of investments you can consider for your portfolio. It’s important to remember that no single investment plan is right for everyone, so it’s important to do your research before making any decisions. Also, keep in mind that all investing involves risk, so please consult with a financial advisor before making any final decisions. Make your financial decisions risk-proof. Consult with experts from Piramal Finance today.

08-11-2023

Other

What is a Cancelled Cheque? : Its Meaning, Purpose, and Sample Image

A cheque is a written order from one person to another instructing the bank to pay a specific sum of money from your account to the account of the person in whose name the cheque is drawn. Even though the digital age has made it easy to perform any commercial transaction swiftly, many people still choose to use cheques for payment because they lack confidence in online means. A cancelled cheque may be required in many banking and financial transactions. [B-01] What is Meant By A Cancelled Cheque? A cancelled cheque is one that has the words “cancelled” written across it and has been crossed by drawing two parallel lines. If a mistake was made when writing the cheque, it might be cancelled. However, other than the word “cancelled,” there is nothing more that needs to be written over the cheque, such as the payee’s name or the amount. Cancelling a cheque is important so that it doesn’t fall into someone else’s hands and potentially be used for fraudulent purposes. A cancelled cheque serves as verification that the concerned individual has a bank account. Furthermore, even though a cancelled check can’t be used to draw out funds from the drawer’s account, it contains additional information such as the account number, account holder’s name, expiration date, name and address of the branch in which the individual holds a bank account, MICR code, and IFSC Code. Here is a Sample Cancelled Cheque Image [B-02] How to write a cancelled cheque? A cancelled cheque is simply a cheque with two parallel strike lines which has “cancelled” written in between them. It is important to cancel a cheque or otherwise, it can easily be misused. If you have to provide a cancelled cheque for any purpose, you need to follow some steps as mentioned below: First: Get a fresh cheque from your chequebook that you want to cancel. Second: Make sure to not write anything over the cheque, including the name of the payee, the amount, or your signature. Third: Draw two parallel lines crossing the cheque. Fourth: The word “CANCELLED” needs to be written in capital letters between the two parallel lines. Make sure the cancelled cheque does not contain any significant information such as the name of the account holder and account number, the IFSC code, the MICR code, the name and branch address of the bank, and so on. If you want to cancel a cheque because of an error made on the cheque, you can do so by following the steps outlined above. Although nobody can withdraw from a cancelled cheque, many fraudulent acts may still occur if the cancelled cheque is mishandled. To be on the safer side, when you give a cancelled cheque, make sure you do not sign it and that you hand it over only to the person responsible for collecting it. What is the purpose of a cancelled cheque? A cancelled cheque can be used for many purposes like opening a bank account, investing in mutual funds, KYC purposes, etc. Below listed are the purposes for which you may be required to submit a cancelled cheque: Know Your Customer(KYC): This is one of the most common reasons for which you need a cancelled cheque. Cancelled cheques are used to complete many KYC procedures as they serve as proof that the concerned individual has an account in the bank. It holds details like the name of the account holder and A/C number, name and address of the bank’s branch in which the person has an account. Opening a Bank Account: A cancelled cheque needs to be submitted at the time of opening a bank account as a part of the documentation process. Investing In Mutual Funds: If you are planning to invest in mutual funds or the stock market, you must have a DEMAT account. When opening a DEMAT account, the company would require you to provide a cancelled cheque to confirm that the bank account linked to the investment is owned by you. According to the Know Your Customer (KYC) regulations, a cancelled cheque is required. Equated Monthly Instalments (EMI): EMI is the most preferred method of payment when purchasing a gadget or a high-value item. Individuals make monthly payments on loans such as vehicle loans, housing loans, student loans, and personal loans. To begin the monthly instalment process, you are required to provide a cancelled cheque as proof of having a bank account. Opening a DEMAT Account: You are required to have a DEMAT account for holding shares in electric form by shareholders. If you want to open a DEMAT account, you’re required to provide evidence of your identity and address. In addition, other KYC documents might include proof of your identity, residency, proof of residence and employment status. which need to be submitted to the stock brokerage in order for the account opening process to proceed. Withdrawal of Provident Fund: If you want to take money out of your Employee Provident Fund, you must provide your employer with a cancelled cheque. Electronic Clearance Service (ECS): ECS is an electronic mode of fund transfer that automatically deducts money from your account every month for any transaction you have done. To set up an ECS from your account, you will have to provide a cancelled cheque. Once your ECS account is set up with the bank, there will be a deduction of money from your account every month. Insurance Policy: Some organizations may require you to present a cancelled cheque when you are purchasing an insurance policy. This is done to verify that the bank information provided by you is correct. [B-01] Wrapping Up When a cheque is cancelled, it cannot be used to access your account or withdraw funds. However, a cancelled cheque still contains your financial information including your name, account number, name and address of the bank’s branch, IFSC and MICR code. So to stay safe, make sure you never sign a cheque that you intend to cancel. If you need help managing your finances, Piramal Finance is here to be your financial guide. Contact us today. Note: Plag is above 10 per cent because of the repeated word “cancelled cheque”

08-11-2023

Business Loan

Top 5 Challenges of an MSME Loan in the Current Year

Businesses play a vital role in the growth of any country. In developing nations like India, micro, small, and medium-sized enterprises (MSMEs) are the engines of economic growth. The MSME sector contributes significantly to GDP. It also provides employment opportunities for millions. Despite being the engine of growth, when it comes to business expansion, the MSME industry faces enormous obstacles in getting an MSME loan. This major factor prevents the MSME sector from achieving its full potential. The government has revised earlier policies and regulations to help fund MSME owners. This new help from the government could boost the MSME sector. However, financial institutions are still hesitant to approve MSME business loans. Let’s learn about the challenges of getting an MSME loan. [B-01] Challenges of MSME Loan in the Current Year 1. Lack of Confidence Even before the COVID-19 pandemic, the MSME sector of India was struggling. Then, it was due to the ongoing trade war between China and America. The two extended lockdowns during COVID-19 broke the backbone of the MSME sector in India. Because of the lockdowns, many businesses defaulted on their EMIs. This resulted in a lack of confidence in the repayment capabilities of MSMEs. Banks have adopted strict eligibility and approval criteria for lending to MSME businesses. Because of the absence of credit histories, banks consider most MSMEs high-risk businesses. Thus, there is a higher MSME loan interest rate for these businesses. Due to the high MSME loan interest rate, companies avoid applying for an MSME business loan from banks. Another factor that affects banks’ confidence in MSMEs is the loan amount. Compared to big corporations, MSMEs require small amounts of loans. Due to the lack of credit activity, banks prefer to avoid taking a chance with their capital. 2. Lack of Financial Awareness Many businesses have shown exemplary courage in making business decisions. However, most fail when it comes to financial knowledge. The inability to make the right financial choice at the right time can affect your business. It can result in high operating costs and a lower debt score. Moreover, if you fail to choose the right lender for your business, the interest rate on your MSME loan could also be high. A high-interest MSME business loan could lead to unequal working rates and low credit scores. A business owner who lacks financial knowledge may be unable to make critical financial decisions. This can affect the business negatively. So, basic financial education is essential to help you secure a low-interest MSME loan. Moreover, as an MSME owner, you must learn about MSME loan interest rates and compare them to other loans before availing of an MSME business loan. 3. Lack of Collateral As mentioned, banks now have strict eligibility and approval processes for MSME business loans. The MSME loan might also include collateral at some point. Some businesses may find it hard to fulfil the strict collateral rule for the MSME loan. For example, small companies may need more space and collateral to guarantee loan repayment terms. Due to the inability to secure a loan through collateral, many MSME owners prefer to borrow unsecured business or personal loans. In some cases, they also choose to borrow money from relatives and other sources. The government is trying hard to make corporate loans easily accessible to MSMEs. Most small businesses are finding it hard to get MSME loans. With the strict collateral policy, small business owners need help to get an MSME loan. For example, regional businesses such as handicrafts, stonework, and wood carving are performing very well in the international market. Yet, banks aren’t showing any significant initiative to support them financially. 4. Lack of Modern Financial Solutions in MSME Loans While the government is updating the older management systems, the remnants of the licence raj are hurting the financial sector, including the MSME sector. For MSME loans, banks need various documents related to licenses, insurance, and certificates. Because of this reason, MSMEs don’t get loans on time. Different regulatory gaps also consume valuable time in obtaining required licences and certifications, thus hampering growth opportunities for MSMEs. 5. Outdated Technology While the banks fail to distribute MSME loans on a large scale, small business owners need to update themselves with the latest technology. Many small business owners refrain from using online transactions. It is due to trust issues and the inability to deal with new technology. Failing to adjust to new technologies also affects the expansion plans of MSMEs. While the government is trying hard to boost the MSME sector, some businesses are still using the old method. These methods affect productivity as well as product quality. Due to this inability, small businesses fail to benefit from technological advancements. So, this is also a major challenge faced by MSMEs. If the bank notices a single red flag in your loan application, it might reject it. Thus, as an MSME owner, you should be aware of the latest technological advancements in your field. If you are applying for an MSME loan for increasing production, the banks will be more likely to consider it. [B-02] Summing Up The MSME sector has faced various hardships recently and is healing slowly. However, the challenges faced by the MSME sector in securing a loan are many. Apart from the government’s will, financial institutions also need to put in some effort. As the driver of the Indian economy, a positive performance by MSME is the need of the hour. With an MSME loan, businesses can prosper and help the country become “Aatmnirbhar.” However, if you fail to get an MSME loan for your business, you can get a personal loan from Piramal Finance. You can also increase your financial awareness by reading similar articles about topics such as applying for business loans, MSME business loans, and various types of business loans on the Piramal Finance website.

08-11-2023

Education

How Do I Convert the Units of Area?

Let’s consider converting between different area units such as square centimeters, square meters, and square kilometers. In this article, we will learn about area units and how to convert them. You need to learn how to convert area to square feet for buying and renting homes. [B-01] What is Area? A surface’s area is its size! One needs units of measurement to quantify these factors. It is only sometimes the case that the units of measurement in use are those that are most preferred or most practical for a certain process or application. Converting these units to a level where they may be properly understood and utilized is essential. Think about it from the perspective of someone who has only ever used the metric system. Discussing Surface Area An area of a 3-dimensional object’s face represents the object’s surface. We use the surface areas of various things whenever we wish to wrap, paint, or eventually build something to get the best design. The procedure for calculating an object’s surface area differs from its area. The primary distinction between area and surface area is that area is measured for a two-dimensional object or a flat shape. In contrast, the surface area is calculated for a three-dimensional object. Or, you can use a unit converter area to determine the area of a given space. Surface area, however, is measured for 3-dimensional (3D) shapes. A 3D shape can have multiple 2D faces. Because the surface area represents the total area covered by the object’s surface, it is an aggregate of the areas of all the object’s faces. Surface Area Varieties As previously stated, there are two types of surface areas for three-dimensional shapes: Total Surface Area (TSA) and curved or Lateral Surface Area (LSA). While the curved or lateral area only includes the area of the shape’s side faces, the total surface area (TSA) includes the area of all the shape’s faces. Understand this well to convert area to square feet. Formulas for Surface Area The method used to calculate the surface area of a geometric shape is unique to that shape, but the end goal of all of the surface area formulas is to find the total area that is filled by the faces of the item. In the next part, we will discuss the many equations used for determining the surface area of various things. In contrast to the TSA, which takes into account all of the sides of the three-dimensional shape, including both the flat and curved surfaces, the LSA is used to calculate the area occupied by a curved surface of the shape. The space in the middle of the base is left out of the calculation. A sphere is three-dimensional. It lacks flat bases and only has one round surface. The whole process would be a lot easier if you used an online unit converter area, which will take hardly a moment to calculate. 3D ShapeTSALSACube6a24a2Cuboid2 (lw + wh + lh)2h (l + w), in this formula, l, w, and h depict the length, width, and height of a cuboid.Coneπr(r + l)πrl, where r stands for the radius and l is the slant height of a coneCylinder2πr(r + h)2πrh, where r depicts the radius and h is the height of a cylinder.Sphere4πr2, where r depicts the sphere’s radiusNot applicable Area Units in SI In the metric system, the square meter is the basic unit of area measurement. It is the surface area of a square with one-meter sides. Other units, the multiples and submultiples of the square meter, are used to measure large and small areas. The table below compares the m2 SI unit of area to various other units of area. Usually, we use SI units for measurement. But often, people use square feet to describe the area of space. So, always convert area to square feet after final calculations. square kilometrekm²1,000,000 m²square hectometerhm²10,000 m²square decameterdam²100 m²square meterm²1 m²square decimeterdm²0.01 m²square centimetrecm²0.0001 m²square millimetremm²0.000001 m² Land Measurement Units Depending on the state, different terminology is used to describe the area of a landed property across the country. Hectares, square meters, square yards, etc., are common land measurement units in India (Gaj). Terms like cent, ground, and guntha are only found in the southern parts of India, but bigha and marla are common in the north. The actual sizes of all units vary by state, as per their names. But calculating these can be tricky. So you can use an online unit converter area to ease the pressure. The following is a list of the common units that are used to measure the area of land: Hectare The hectometer is the square unit of measurement that corresponds to the hectare. 1 hectare = 1 hm² = 10,000 m² Acre The square decameter is similar to the acre in size. 1 a = 1 dam² = 100 m² Centiare The centiare is the unit of area measurement comparable to the square meter. 1 ca = 1 m² Unit Conversion It takes several steps to convert between units, including multiplying or dividing a number. Weight, distance, and temperature can all be measured differently. Unit conversion is the division or multiplication operation used to convert measurements of the same quantity between different units. In mathematics, conversion means converting something from one form to another, such as from inches to millimeters or liters to gallons. The measurements are in units: length, weight, capacity, temperature, and speed. Use a unit converter area for accurate calculations. By multiplying or dividing the unit by one and then adding as many pairs of zeros as there are spaces between them, we can change one unit of the area into another. For example, convert 8.4 hm2 into m2 1 square hectometer = 10,000 square metres 8.4 square hectometers = 8.4x 10000 = 84000 m2 [B-02] Conclusion This article gave you all the information needed to understand area and the numerous techniques for converting units associated with area. We hope you found this information useful. Follow Piramal Finance to stay updated on all finance and investment related information.

08-11-2023

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Which Trading Account Is Best for Beginners?

Trading accounts hold investments and securities. A trading account is a good place to keep your stocks and shares safe. It makes it possible to trade and do business online in a way that is quick, easy, and safe. You’ll need a trading account to do this. You’ll need one that is strong, safe, and can meet all your customers’ needs. There are many different ways to open a trading account in India. So, it’s hard to choose the right one. We’ve made a list of the best accounts for trading in India. So, without further ado, let’s get right into it! Top 5 Best Trading Account Options in India for Beginners Zerodha Pros Zero-brokerage No annual maintenance fees Easy money deposits Very easy-to-use Cons The account opening process takes a lot of time. Zerodha’s main goal has always been to give its customers the best service. They do this by using cutting-edge technology solutions. Their Demat service works with three different mobile phone apps. This is the best trading account you can get in India. They pay close attention to every detail. Zerodha has made a great user interface by making it easy to use and useful (UI). The user interface has a lot of features and is easy to use. They have become one of India’s most important trading accounts. In 2010, Zerodha was India's first company to offer discount brokerage services. You can trade stocks, bonds, government securities, currency F&O, commodity F&O, and equity F&O. All can be traded with the Zerodha trading account. Upstox Pros Zero commission Invest with as low as ₹1 Simple interface Quick application processing Cons No recommendations or tips for users Clients can use Upstox to access tools that help them manage their trading accounts. Its brokerage fees are some of the lowest of any trading account. India has several trading accounts from which to choose. However, some of the fastest response times and friendliest staff are at Upstox. As a customer, you can be sure that your problems will be solved quickly and well. All this is because their support team is knowledgeable, helpful, and good at what they do. Because it has so many tips and insights, Upstox is the best trading account in India. These insights keep you updated on your trading account’s business, market, and portfolio. They used to be called RKSV Securities, and now only Zerodha is ahead of them. Almost everything about their brokerage model is the same as Zerodha’s. They used to have unlimited monthly options, but they stopped doing that. They do not charge brokerage fees for trades with delivery. They charge Rs 20 per completed order. Opening an account with them is also free. They have support from well-known people, such as Mr Ratan Tata. Groww Pros Paperless account opening Advanced trading platform Simple UI Can also invest in US markets Cons No support for IPO investments You won’t have to pay anything when you open a trading account with Groww. Also, there are no fees to keep the account open. You can sign up for an online account from the comfort of your home. No brokerage fees are charged. So, their trading account is the best in India. Systematic investment plans, direct mutual funds, and reliable intraday trading are all supported. It’s easy to integrate with other apps and services to improve your workflow. Groww was started in 2016 to help millions of Indians who needed financial help. A Groww trading account is a great way to keep track of your investments. And get news and information about the market and your portfolio. Such information can help you make smart choices about your money. With a Groww trading account, you can trade stocks, index funds, commodities, and other assets. The platform also has charts with market information, which can help you make better decisions. Groww is one of the safest trading programs you can use. As a bonus, there are no fees to trade on Groww. ICICI Direct Demat Account Pros Supports paperless account opening. Detailed watchlist Reliable broker Cons Has annual maintenance charges Investing in equity markets is very easy with an ICICI Direct Demat Account. Equity funds, partial shares, and individual stocks are only some assets you can trade. You can trade the shares of companies worldwide. Also, you can gain market insight with an ICICI Direct Demat Account. The ICICI Direct Demat Account is one of India’s most user-friendly trading accounts. That’s because of the flexibility of its interface. The ICICI Direct trading account can be linked to your ICICI Bank account. It will also give you the convenience of a “3-in-1” trading account. Customers can select from several packages to meet their requirements. This is a great option for current ICICI Bank account holders. Customers with an ICICI Direct Demat Account can access other ICICI services, such as loans, fixed deposits, and more. Angel Broking Pros Can invest in multiple markets Large network of brokers Zero Brokerage Cons Poor customer service Investors can rely on Angel Broking for sound tips based on solid data analytics and expert guidance on allocating their capital. All investors get free access to their investment advice and mobile apps. If you’re looking for a trading account in India, go no further than Angel Broking. Their excellent services, user interface, and Angel One app make them a top choice. More than thirty years ago, it began operating as a discount broker. Customers can select their preferred package among the available options. Their asset management solutions and brokerage services are top-notch. That’s before we even mention how great they are at providing trading accounts. When you open a trading account with Angel Broking, you can do so quickly, easily, and at no cost. Paytm Money Trading Account Pros Great investing insights Easy fund transfers Can invest with as little as Rs. 100 Cons Doesn’t support commodities Regarding low-cost investment options, Paytm Money is the most well-known in India. The services provided by Paytm Money’s trading account are sturdy and trustworthy. Apps are available for Android and iOS, designed to make even the most unskilled trader feel comfortable. The Paytm trading account updates its users on the latest news in certain areas, such as personal finance, the stock market, and more. Getting started in trading requires only Rs. 100, which can be readily deposited into a trading account. You can use your Paytm trading account to invest in multiple products. For example, the stock market, mutual funds, ETFs, IPOs, futures, and options. You can even invest in the National Pension System (NPS). [B-02] Conclusion Time is money, and trading accounts have allowed people to save both. Trading accounts have enabled this by facilitating paperless trading. And remove the need for associated administrative processes. Upstox and Zerodha are two of India's greatest trading accounts. Having the option to buy and sell at any time is crucial during volatile market conditions. A trading account serves this purpose. But, before a beginner can select a trading account, there’s something they should do. They must look for certain helpful features when picking a trading account. For example, educational resources and personalized guidance. Finally, they must ensure that the brokerage fee is minimal.

08-11-2023

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Online Gratuity Formula to Find Your Gratuity Amount

Determining how much gratuity you’ll get after working in India for at least 5 years is easy. You can do this by using the gratuity formula available online. The Payment of Gratuity Act, enacted in 1972, provides such a benefit. Here’s what “gratuity” means and how much money you should expect in this category. [B-01] What Is Gratuity? The term “gratuity” describes the extra payment made by an employer to an employee for his work. But, gratuity is only for workers who have worked for the organization for 5 years or more. The Payment of Gratuity Act of 1972 regulates this. If the worker becomes disabled, they can collect the gratuity earlier than 5 years. Your final paycheck and service length are the primary factors determining your gratuity. Online Gratuity Formula to Find Your Gratuity Amount Case 1: If your employer is eligible under the gratuity act Gratuity = n b 15 / 26 This formula determines how much of a gratuity an employee is entitled to. But, this is valid only if their employer falls under the purview of the Gratuity Act. Where n = Total Number of Years of Service and b = Most Recently Taken Total Salary For example, let’s say you have spent the last 15 years employed at an XYZ firm. Your most recent salary statement reported receiving a total of Rs 30,000. Hence: The amount of gratuity = 15 30,000 15 / 26 = Rs 2,59,615 There are two things to keep in mind: The greatest gratuity allowed by the Gratuity Act is Rs 20 lakh. In the event of overages, they would be considered gratuitous. Suppose the total number of months worked in the previous calendar year exceeds 6 months. In that case, the amount will get rounded down to the nearest 6 months. If you have worked for the company for 16 years and 7 months, you would be eligible for a 17-year gratuity. If it’s not exactly 16 years, it’s for 16 and 4 months. Case 2: If your company is not covered under the gratuity act. Suppose your company isn’t required to pay gratuity under the Gratuity Act. In that case, you’ll get half your annual income for every year of service you put in. The calculation is: (15 x last drawn salary x years of service) / 30. For example, suppose you receive Rs 30,000 per month as your base wage. And, you have worked for 7 years but the Gratuity Act does not protect your company. Money Given as Gratuity = (15 30,000 7) / 30 = Rs 1,05,000. What Is a Gratuity Calculator? A gratuity calculator online would compute the gratuity amount according to the gratuity formula. Gratuity Formula: (15 your last drawn salary tenure of working) / 26. For employees who have worked for at least 5 years, a gratuity calculator can help them. It can help them determine how much money they will receive upon leaving their position. It helps you figure out how much money you’ll get when you leave your job. The last paycheck received and length of continuous employment are required inputs. Basic pay, dearness pay, and sales commissions are part of your earned income. In a matter of seconds, the online gratuity calculator would provide the total amount to be given as a tip. You may utilize it easily and repeatedly. Benefits of Using a Gratuity Calculator Online Using a gratuity calculator online is super simple. It’s as simple as plugging in the employee’s annual salary and the number of years of service. It assumes you’ve worked for 5 years or longer without interruption. Then, it calculates how much of a gratuity you would be entitled to. The gratuity calculator will have the totals ready for you in a few seconds. Investing the bonus money wisely will help you plan for the future financially. With internet access, you can use the gratuity calculator online from your home or anywhere else. Payment of Gratuity by the Employer The employer must pay the gratuity within 30 days after billing it in favour of the person. But, suppose the employee fails to make the payment by the due date. In that case, the employer will pay simple interest on the same sum from the date on which the gratuity is payable. But, the employer will pay it at a rate that doesn’t surpass the rate established by the government. The employer must pay the gratuity sum in cash unless the receiver requests another form of payment. Gratuity Rules Gratuity rules in India apply to all employees. They don’t just apply to eligible people under the Payment of Gratuity Act of 1972. Companies with 10 or more workers need to follow the Payment of Gratuity Act, of 1972 But, the Payment of Gratuity Act 1972 does not apply to employees of the Central or State Governments. Instead, these employees must follow their respective governments’ service standards. Nomination Under Gratuity The employee has 30 days to submit a nomination after reaching the one-year mark. In this case, one of the relatives must put their name forward for the nomination. A worker’s nomination of a third party (someone who is not a close relative) will not be entertained. Suppose the employee’s nominee dies before they do. In that case, the employee will, by default, be the nominee’s share owner. Whenever this occurs, the worker needs to submit a new nomination. The worker must fill out Form F to do this. What Are the Eligibility Criteria for Payment of Gratuity? There are a few requirements to complete before you can cash in on the bonus: You must be eligible for superannuation. You must have retired from service. You must have left the company after continuous employment of 5 years or more with the company. The employer pays the gratuity to your designated beneficiary during your death. Or, to you, if you become disabled due to illness or an accident. [B-02] Conclusion It’s easy to figure out how much gratuity you’ll receive. As was discussed, you can accomplish this with a web-based app. But, this depends on several factors. For example, the length of time you’ve stayed employed and the amount of your most recent base wage. The retirement year is also significant. That’s because you can calculate the total number of years of service. So, to determine the gratuity you are owed, use the guidelines above. Did you find this article helpful? Visit our blog for more valuable content!

08-11-2023

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5 ways to jumpstart your savings habit

The future is shaped by habits. So, if you save now, it will stay with you forever. It might multiply too. You earn it or take out a loan along with it. You spend as much as you earn, or even exhaust the loan. You’re content. But what if there is an emergency? What if your child hasn’t stopped asking for a tablet? What if you wish to fulfil a long-awaited self-gift? Will you take another loan? Don’t! Take out loans only when they are necessary. Rely on your savings to reward yourself and your friends or family. Don’t just be content; be happier. Saving money is a short-term sacrifice for a long-term reward. Sometimes, one of the hardest parts is starting. The following list will help you make an almost accurate (or practical) plan to save to meet both your short- and long-term goals. It is mainly for beginners, but experienced people too can go through the tips if they want to change their conventional ways. You might come across several articles that will enlighten you on how to save the most. Read them for sure. But without the following, Nirvana would be incomplete. [B-01] 1. Record expenses Calculating how much you spend is the first step to beginning a savings plan. Maintain a record of every rupee you spend, including routine monthly bills and purchases like tea and coffee. Use a pen and paper, an Excel sheet, or an estimator app to record your expenditure. After gathering data, group the figures into categories like loans, petrol and food, and then add them up to get different sums. Verify these sums with your bank’s debit and credit statements. 2. Include savings You can begin with a budget once you know your monthly spending. A budget should indicate how your expenses match your income. You can plan your spending and prevent overspending. Don’t forget to account for costs like water purifier maintenance, which occurs frequently but not monthly. Include a savings category in your spending plan so that you don’t feel it is a burden. Experts say that one should save up to 20% of their income. 3. Sometimes, stay away from spending! It’s time to stop spending everywhere. Selective spending can be resorted to. Determine all that you can do without, such as watching all the films and eating outside every day. Look for ways to save on your fixed monthly bills as well, such as your wifi plan or coffee subscription. Some more suggestions for snap spending are: For free thingsFind free or cheap sources of entertainment. Find sites like 123Movies instead of Netflix for movies that don’t matter. Recurring feesCancel or take a break from subscriptions, especially if you don’t use them. Cooking vs. eating outPlan to prepare most of your meals at home, and when you want to reward yourself, look for options in your locality. Unless you live close to Taj! Control Uday, control!Wait before making an immediate purchase. If possible, wait a few days before making a tempting purchase. You might come to realise that you wanted the item more than you needed it. You could rather make a plan to save money for it. 4. Set goals This is the best method to save money. Start by considering your most achievable savings goals, both short-term (up to 3 years) and long-term (4+ years). Calculate how much you’d need and how much time you’d need to save that amount. Estimate accordingly. Short-term: A vacation, a down payment on a car, or emergency funds (three to nine months of expenses). Long-term: Examples can be a down payment on a house or remodelling work. Or, all that covers your child’s tuition fees is your retirement. Establish a modest, doable short-term objective for a pleasant purchase that exceeds your monthly spending caps, like a new smartphone or holiday. Reaching minor goals first and rewarding yourself will help relieve your financial stress. It will also motivate you to follow through on the major goals. And thereby maintaining the practice. 5. Determine your financial priorities Priority is the most important aspect of management. Be it household or money. Priorities constitute one-tenth of your wallet. You must carry it along. For example, you might begin saving for a new electric car the moment your old one needs to be replaced. But why lose track of your long-term objective? One’s retirement plans shouldn’t be neglected in favour of pressing for a lavish education for your dear daughter. You will, for sure, have a sense of how to allocate your savings if you know how to prioritise your saving goals. Make it all automatic An automated transfer between your current and savings accounts is available almost everywhere. The amount, time, and location of the money transfer are all in your hands, anyway. Consider splitting the deposit in such a way that the major portion goes to your savings account. Rely more on your savings account, in short. Review At the end of every month, review your budget and evaluate if there has been progress. It will help you not only stay on track with your goal but also instantly spot and address any issues. Knowing how to save money could even motivate you to come up with ways to save and reach your objectives quickly. [B-02] Conclusion The above-mentioned ways are tips or pieces of advice to make better use of money. To help it grow, and you grow along with it. Piramal has enlisted these 5+ guaranteed ways for veterans and beginners who want to make the most of their money. It doesn’t guarantee an increase in quantity but, without a doubt, in quality. It also has several blogs and articles that will guide you toward your financial goals. Please visit our website to start your financial journey now. We specialise in housing and housing-related loans and offer personal loans at competitive rates. Click here.

08-11-2023