Comment on the following: Credit rating at the time of accepting Deposit by a company is mandatory.

According to Rule 3 of the Companies (Acceptance of Deposit) Rules, 2014, every eligible company shall obtain, at least once in a year, credit rating for deposits accepted by it and a copy of the rating shall be sent to the Registrar of Companies alongwith the return of deposits in Form DPT-3. According to Rule 2(1)(e) of the Companies (Acceptance of Deposits) Rules, 2014 "eligible company" means a public company as referred to in sub-section (1) of section 76, having a net worth of not less than one hundred crore rupees or of a turnover of not less than five hundred crore rupees and which has obtained the prior consent of the company in general meeting by means of a resolution and also filed the said resolution with the Registrar of Companies before making any invitation to the Public for acceptance of deposits. Credit rating is not mandatory for private companies and other non-eligible public companies which accept deposit only from its members.