Acceptance of Deposits – Test 1

An eligible company as per section 76, which is accepting deposits within the limits specified under section 180
(1) may accept deposits by means of

Every company shall pay a penal rate of interest for the overdue period in case of deposits, whether secured or
unsecured, matured and claimed but remaining unpaid

A reserve account that shall not be used by the company for any purpose other than repayment of deposits is
called:

Where depositors so desire, deposits may be accepted in joint names not exceeding ____

No deposits are repayable earlier than from the date of such deposits or renewal thereof.

On 30th June 2017, the liability side of Balance Sheet of X Ltd. showed balance of paid up share capital of Rs. 65
lacs, free reserve of Rs. 10 lacs, share premium account of Rs. 20 lacs, deposits of Rs. 25 lacs, repayable in the
current financial year, during the month of September 2017. In July 2017, the company was in need of some
short-term funds to the tune of Rs. 20 lacs for a period of 6 months. The maximum amount which the company
may hold as deposit together with existing deposits will be—

XYZ Private Limited, has passed a resolution in general meeting to accept deposit from its members. Terms and
conditions are finalized in consultation with Reserve Bank of India. Company accepted deposits of INR 30 Lakhs
in year 2016. Company wants more deposits in the next quarter. Board of Directors are aware that as per the
Act, they have a Ceiling limit, beyond which they cannot accept deposits. What percentage of aggregate of paidup
share capital, free Reserves and securities premium account, they cannot cross?

___________________ is required to be passed, if a company intends to accept deposits from its members

Where a company accept deposits from its members, it shall issue a circular to the members. The circular shall
be filed by the company with the registrar, at least _____________ prior to the issue of the circular to the
members.

Where a company accepts deposits from its members, it shall deposit in a Scheduled Bank in a separate bank
account a sum equal to __________ of the amount of deposits maturing during the following financial year.
Such amount shall be deposited on or before the ____________ of each year.

The amount of deposits outstanding together with the amount of deposits proposed to be accepted shall not
exceed __________ of the aggregate of the paid-up share capital, free reserves and securities premium account
of the company.

All the companies accepting deposits shall file the details of monies so accepted with registrar in Form No.
___________.

No company shall accept or renew any deposit which is repayable after __________ from the date of
acceptance of such deposit

For the purpose of providing security, every company inviting secured deposits shall provide for security by way
of charge on its assets as referred to in _________ of the act excluding __________ assets of the company
for the due repayment of the amount of deposit and interest thereon.

In case of deposits which are secured by the charge on assets, the amount of such deposits and the interest
thereon shall not exceed the __________ of such assets as assessed by __________.

The security for deposits shall be created in favour of a trustee for the depositor shall not being the nature of
__________.

A company shall execute a deposit trust deed in Form ____________ at least 7 days before issuing the circular
or circular in the form of advertisement.

A company shall be liable to pay a penal rate of interest of ____________ per annum for the overdue period
in case of deposits whether secured or unsecured, matured and claimed but remaining unpaid.

19. If a company had accepted any deposit before the commencement of Companies Act, 2013, and such deposit or
interest thereon remains unpaid as on such commencement, then, the company shall file a statement in Form
No. __________

A company may make an application to ___________ seeking extension of time for repayment of any deposit
accepted before the commencement of the Companies Act, 2013.

A company may accept deposits from person other than its members, only if it is a public company and the net
worth of the company is ____________ or more, __________ turnover of the company is ___________
or more.

Every eligible company shall obtain __________ credit rating for deposits accepted by it and a copy of the
credit rating shall be filed with the Registrar along with the returns of deposits

Which of the following is not deposit?

Which of the following is deposit?

Which of the following statement is true?
I. Minimum duration of deposit is 6 months
II. Minimum duration of deposit is 9 months
III. Minimum duration of deposit is 3 months provided such deposit shall not exceed 10% of the aggregate of
the paid-up share capital, free reserves and securities premium account
IV. Maximum duration of deposit is 36 months
V. Maximum duration of deposit is 24 months
Select the correct answer

Which of the following statement is true?
I. Maximum deposit accepted by an eligible company from its members or public can’t exceed 35% of
aggregate of the paid-up share capital, free reserves and securities premium account of the Company.
II. Maximum deposit accepted by an eligible company from its members can’t exceed 10% of aggregate of the
paid-up share capital, free reserves and securities premium account of the Company.
III. Maximum deposit accepted by an eligible company from public can’t exceed 25% of aggregate of the paidup
share capital, free reserves and securities premium account of the Company.
IV. Maximum deposit accepted by a Government company can’t exceed 35% of aggregate of the paid-up share
capital, free reserves and securities premium account of the Company.
V. Private Company can accept deposit from its members upto 100% of aggregate of the paid-up share capital,
free reserves and securities premium account.
Select the correct answer

What are the conditions subject to which a private company can accept deposit from its members exceeding
100% aggregate of the paid-up share capital, free reserves and securities premium account of the Company?