Discuss the following situations in the light of Deposit provisions as contained in the Companies Act, 2013
Question:
Discuss the following situations in the light of ‘Deposit provisions’ as contained in the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014, as amended from time to time.
(i) Bhupendra, one of the Directors of Moon Technology Private Limited, a start-up company, requested his close friend Paras to lend to the company ` 20.00 lacs in a single tranche by way of a convertible note repayable within a period of six years from the date of its issue. Advise whether it is a deposit or not.
(ii) Shriram Readymade Garments Limited wants to accept deposits of ` 50.00 lacs from its member for tenure, which is less than six months. Is there any possibility to do so?
(iii) The turnover of Y Ltd. is ` 400 crore as per last audited financial statement and net worth is ` 50 crores. Can Y Ltd. accept deposits from the public as per section 73 of the Companies Act, 2013?
Accounting Principles
ISBN: 978-0470533475
9th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso