RS Ltd. received share application money of ` 50.00 Lakh on 01.06.2019 but failed to allot shares within the prescribed time limit. The share application money of ` 5.00 Lakh received from Mr. Khanna, a customer of the Company, was refunded by way of book adjustment towards the dues payable by him to the company on 30.07.2019.
The Company Secretary of RS Ltd. reported to the Board that the entire amount of ` 50.00 Lakh shall be deemed to be ‘Deposits’ as of 31.07.2019 and the Company is required to comply with the provisions of the Companies Act, 2013 applicable to acceptance of deposits in relation to this amount.
You are required to examine the validity of the reporting of the Company Secretary in light of the relevant provisions of the Companies Act, 2013.

Answer rating: 100% (QA)

The detailed answer for the above question is provided below According to Rule 21 c of the Companies Acceptance of Deposits Rules 2014 the following c... View the full answer