Rasik mentioned that he is a legal advisor to MNO Corporation Ltd; a government company. The balances extracted from the latest audited financial statements of the company are as follows: Sr.No. Particulars ₹ in crore 1

As per rule 3(5) of the Companies (Acceptance of Deposits) Rules, 2014, no Government Company eligible to accept deposits under section 76 of the Companies Act 2013, shall accept or renew any deposit, if the amount of such deposits together with the amount of other deposits outstanding as on the date of acceptance or renewal exceeds thirty-five per cent of the aggregate of its Paid-up share capital, free Reserves, and securities premium account of the company. As per section 76(1) of the Companies Act, 2013 read with Rule 2(1)(e) of the Companies (Acceptance of Deposits) Rules, 2014- To become an 'Eligible Company" the net worth of the company should not be less than ₹100 crore or the turnover should be at least ₹500 crore. Hence, eligible government company may accept deposits from public to the extent of specified limit. In the given case scenario MNO Corporation Ltd, a government company does not fulfil any of the criteria of net worth or turnover, as it is less than the threshold limit. Thus, it is not an eligible company. Although the amount of proposed deposits of ₹4 crore is within the stipulated limit of 35% of the paid-up share capital, free reserves, and security premium the company cannot invite deposits of ₹4 crore from public as it is not an eligible company.