AB Ltd. whose net worth is of ₹51 crore and annual turnover of ₹400 crore as per the latest audited financial statements intends to accept deposits from the general public. In this scenario answer the following questions

CS Executive · Company Law · PYQS · December 2022
AB Ltd. whose net worth is of ₹51 crore and annual turnover of ₹400 crore as per the latest audited financial statements intends to accept deposits from the general public. In this scenario answer the following questions as per the provisions of the Companies Act, 2013 (the Act). (iv) How much quantum of money should be deposited in a separate account for deposits maturing each year?

Answer & Explanation:

As per section 73(2)(c) of the Companies Act, 2013, on or before the thirtieth day of April each year, the company to deposit such sum which shall not be less than twenty percent of the amount of its deposits maturing during the following financial year and keeping it in a separate bank account called Deposit Repayment Reserve Account.

Topics: Acceptance of Deposits by Companies

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