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). (v) Is there any time limit for issuance of deposit receipts for money accepted?

Answer & Explanation:

Yes, as per rule 12 of the Companies (Acceptance of Deposits) Rules, 2014, every company shall, on the acceptance of a deposit, furnish to the depositor or his agent a receipt for the amount received by the company, within a period of twenty one days from the date of receipt of money or realisation of cheque.

Topics: Acceptance of Deposits by Companies

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