English

Explain the following term/concept.Credit Rating - Secretarial Practice

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Question

Explain the following term/concept.
Credit Rating

Short/Brief Note
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Solution

(1) Every company has to get credit rating of its deposits and include the ratings in the circular or advertisement. The credit rating agency considers the net worth of the company, liquidity position, ability to repay deposits on time etc.
(2) The rating shall be obtained for every year during the tenure of deposits. A copy of the credit rating shall be submitted to ROC.

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Terms and Conditions for Acceptance of Deposits
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Chapter 5: Deposits - Exercises [Page 91]

RELATED QUESTIONS

Select the correct answer from the options given below and rewrite the statement:
Deposit is a type of ______________________.


Return of deposit must be filed every year on or before ______.


Write a word or a term or a phrase which can substitute the following statement.
Company which can accept deposits from public up to 35% of its paid-up share capital and free reserves.


Write a word or a term or a phrase which can substitute the following statement.
Minimum tenure of a deposit.


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Document issued by a company to invite its members to subscribe for its Deposits.


Government company can collect deposits from its members.


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Deposit Receipt is issued within 21 days of receipt of deposits.


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Deposit Trust Deed is an agreement between company and Deposit Trustee


Find the odd one.


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Charge on assets is created when company issues unsecured deposit.


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Minimum tenure of deposit is 36 months.


Arrange in proper order.
a. Appoint Deposit Trustee.
b. Hold General Meeting.
c. Create charge on assets.


Explain the following term/concept.
Eligible Public Company


Explain the following term/concept.
Tenure of Deposit


Explain the following term/concept.
Deposit Trustee


Select the correct option from the bracket.

Group ‘A’ Group ‘B’
a) Retained earnings 1 ______
b)  ______ 2 Written communication
c) 36 months 3 ______
d) ______ 4 Charge on assets
e) Cash sales 5 ______

(Less working capital, Correspondence, Secured debentures, Internal source of finance, Maximum tenure of deposits.)


Give one word or phrase for the following sentence:

Type of company that can accept deposits only from its members or directors.


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