English

Justify the following statement. Companies have to create a charge on their tangible assets while issuing secured deposits.

Advertisements
Advertisements

Question

Justify the following statement.

Companies have to create a charge on their tangible assets while issuing secured deposits.

Short/Brief Note
Advertisements

Solution

Justification:

  1. Every company accepting deposits from the public shall create a charge on its tangible assets of an amount not less than the number of deposits accepted in favour of the deposit holders in accordance with such rules as may be prescribed.
  2. The charge should be created within 30 days of accepting the deposits.
  3. The minimum amount of security should be equal to the amount not covered by Deposits Insurance. The security is created in favour of the Deposit Trustee.
  4. Thus, it is rightly justified that, companies have to create a charge on tangible assets while issuing secured deposits.
shaalaa.com
Terms and Conditions for Acceptance of Deposits
  Is there an error in this question or solution?
Chapter 5: Deposits - Exercises [Page 92]

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.
Time within which company has to issue deposit Receipt


Return of deposit must be filed every year on or before 31st March.


Government company can collect deposits from its members.


Find the odd one.


Find the odd one


Complete the sentence:
Account which is used only for repaying deposits is called ______.


Select the correct option from the bracket.

Group 'A'

Group 'B'

a) Government Company

1) ___________________

b) ___________________

2) Deposits from members

c) 36 months

3) ___________________

d) ___________________

4) Charge on tangible assets

e) Return of deposit

5)   __________________

(File on or before 30th June, Private Company, Secured deposits, Deposits from public, Maximum tenure of deposits.)


Correct the underlined word and rewrite the following sentence.
Company appoints Credit Rating Agency to protect the interest of Depositors.


Correct the underlined word and rewrite the following sentence.
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.
Deposit Trustee


Explain the following term/concept.
Charge on tangible assets


Justify the following statement
While issuing secured deposits, company has to appoint Deposit Trustee.


Answer the following question:
Explain the provisions related to circular or advertisement for inviting deposits.


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.


Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×