State the disclosures that need to be annexed to the Report of Board of directors with regard to "Public Deposits" as per the Secretarial Standard-4 (SS-4).

CS Professional · Secretarial Audit, Compliance Management and Due Diligence · PYQS · December 2019
State the disclosures that need to be annexed to the Report of Board of directors with regard to "Public Deposits" as per the Secretarial Standard-4 (SS-4).

Answer & Explanation:

The Companies Act, 2013 requires the Board of directors of every company to attach its report along with the financial statements to be laid before the members at the Annual General Meeting. Accordingly, the Secretarial Standard (SS-4) prescribes a set of principles for making disclosures in the Report of the Board of Directors of the company and other matters related thereto. The company as per this standard (SS-4) amongst various disclosures, a detailed information with regard to the Public Deposits shall be given which contains the following disclosures; (a) Details of deposits accepted during the year; (b) Deposits remaining unpaid or unclaimed as at the end of the year; (c) Whether there has been any default in repayment of deposits or payment of interest thereon during the year and if so, the number of such cases and the total amount involved: at the beginning of the year; maximum during the year (i.e. highest number of cases pending repayment of deposits or interest during the year and maximum amount that was due); at the end of the year; (d) Details of deposits which are not in compliance with the requirements of the Act; (e) Details of National Company Law Tribunal (NCLT) /National Company Law Appellate Tribunal (NCLAT) orders with respect to depositors for extension of time for repayment, penalty imposed, if any; (f) In case of a private company, details of amount received from a person who at the time of the receipt of the amount was a Director of the company or relative of the Director of the company.

Topics: Secretarial Audit

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