Advertisements
Advertisements
Question
Justify the following statement.
Companies have to create a charge on their tangible assets while issuing secured deposits.
Advertisements
Solution
Justification:
- 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.
- The charge should be created within 30 days of accepting the deposits.
- 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.
- Thus, it is rightly justified that, companies have to create a charge on tangible assets while issuing secured deposits.
RELATED QUESTIONS
Select the correct answer from the options given below and rewrite the statement:
Deposit is a type of ______________________.
Write a word or a term or a phrase which can substitute the following statement.
Period within which a company has to create a charge on its tangible assets
Return of deposit must be filed every year on or before 31st March.
State whether the following statement is true or false.
Deposit can be accepted for a maximum of 36 months.
State whether the following statement is true or false.
For secured deposits, company has to create a charge on its tangible assets.
Find the odd one.
Complete the sentence:
Agency which gives ratings of the deposits of a company is called ______________.
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.
Charge on assets is created when company issues unsecured deposit.
Correct the underlined word and rewrite the following sentence.
Minimum tenure of deposit is 36 months.
Explain the following term/concept.
Eligible Public Company
Explain the following term/concept.
Deposit Trustee
Explain the following term/concept.
Charge on tangible assets
State any four terms and conditions regarding acceptance of deposit.
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.)
Arrange in Proper Order:
(a) Payment of Deposits
(b) Deposit Receipt
(c) Acceptance of Deposit
Study the following case/situation and express your opinion.
| CC Company Ltd. is an eligible Public Company as per the Companies Act, 2013 with reference to accepting Public Deposits. |
- Can the company accept deposits in joint names?
- Can the company accept deposits from its members?
- Can the company issue secure deposits?
