Comment if the following transactions entered into by A Ltd attract compliance with provisions relating to acceptance of deposit: Bharat, a customer who has bought a machinery from the Company has paid a sum of ₹5 lakh t

Rule 2(c)(xii)(e) excludes from deposit any advance received for warranty and maintenance, if the warranty period does not exceed the period prevalent as per common business practice or 5 years whichever is less. In this case, as it is a 'life-time warranty', it does not fall under the exclusion (as it exceeds 5 years). Hence, it is considered a deposit and attracts compliance with provisions relating to acceptance of deposit.