Professional Documents
Culture Documents
ADVANTAGES OF PUBLIC DEPOSITS (Key: compare with bank loan) 1. Public deposit is an imp. & simple source of business finance. 2. ROI is low 3. No charge on assets 4. Public prefer PD as they get higher rate of interest than from Fixed deposit in banks 5. Better than loan? Why?
Definition of deposit Acc. To co's act 1956 Any deposit of money with a company and any amount borrowed by a company deposit does not include: 1. Any amt rec.from CENTRAL OR STATE GOVT,FOREIGN GOVT. AND LOCAL AUTHORITY. 2. Any LOAN from banking co. 3. Amt. rec. from any other co. 4. Amt rec. from employee as security. 5. Amt rec. as advance from business 6. Amt. rec. from trust 7. Deposit rec. from pvt. cos directors, their relatives or members.
Provision of deposits invitation,acceptance,renewal,repayment,default INVITATION 1. No deposit <1 crore Rs. 2. Cannot invite deposits is its default 3. Issue advertisement in leading english and vernacular newspaper. 4. Advertisement inviting deposit= prospectus, so all rules and regulations acc ICA 1956. 5. Advertisement should be issued in the name of BOD & contents include: Name,date,type of business brief about management, name,add.,occupation of directors, profits of last 3 years, declaration of rules
Continue
6. Advertisement must be signed by directors 7. Advertisement valid for 6 months from date of closure of financial year 8. Copy to ROC 9. Statement in lieu of advertisement.
ACCEPTANCE OF DEPOSITS 1. The co will not accept deposit over and above the limits: @ Unsecured debentures, shareholders and guarantee by directors:10% of the paid up capital @other deposit:25% of paid up capital @government co:35% of the paid up capital. 2. Issue of deposit Receipt to each Depositor: The company must issue a Receipt of Deposit(signed by the Authorized officer) to all the depositors within 8 weeks from the date of receipt of money 3. Entry in the Register(s) of Deposit: 4. Filing of Return of deposit: Return of deposit must be filed with the registrar on or before 30th June of each year, 5. Copy to RBI copy of Return of Deposit also be filed with the RBI ( Reserve bank of India ) 6. Payment of Interest on Deposit and Repayment of Deposit: 7. Refund of Excess Deposit: 1. Maximum intrest payable on deposits is 12.5% as per co. rule.
Continue provisions..
Ref. No.:MEM/123 Nitin S. Sharma 54/B,reel estate, Chaitanya Bunglow. Shahapur : 4100043.
Sub: yearly interest payment against deposit receipt no.1230. Dear sir, We wish to inform you..................................... ...........................................the details are as follows:
D.R.No. 1230
Net.amt Rs.9396
Tax deducted at source(TDS)--------------------------------------Yours faithfully, For XYZ industries Ltd. Sd/(secretary) Encl: A) TDS certificate B) interest warrant