This query relates to acceptance of deposits by company
The Companies (Acceptance of deposits) rules say:
A company can accept deposits for repayment earlier than 6 months subject to 2 conditions 1)Deposit not to exceed 10% of paid up capital and free reserves 2)Not repayable earlier than 3 months Can a company accept deposits repayable in 6 months? Also, if the Company fulfills the above conditions, does it still needs to fulfill the other conditions viz, advertisement or statement in lieu of advertisement, maintenance of liquid assets etc.
19 September 2012
Yes, all other conditions are to be complied with all these are mandatory conditions without which the company cannot accept / renew deposit.
CAclubindia
