public deposits

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ibha singh

ibha singh (Querist)
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23 January 2010 what are celing for acceptance of deposits u/s 58A

CA Vijay Kumar Gupta

CA Vijay Kumar Gupta (Expert)
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28 January 2010 Aggregate of paid up capital and free reserves Less unprovided depreciation (if any)

Ankur Garg

Ankur Garg (Expert)
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28 January 2010 Limit of amount for acceptance of deposits

As per rule 3(2) a company may accept deposits from the public upto the following limits subject to fulfillment of the conditions of the Companies (Acceptance of Deposit) Rules, 1975:â€”
(a) upto 10% of its paid-up capital and free reserves from its shareholders (other than a shareholder in a private company). These deposits may also include any deposit from any person guaranteed by a director of the company or against unsecured debenture issued by a company;

(b) upto 25% of the paid-up capital and free reserves of the company from public.

Ankur Garg

Ankur Garg (Expert)
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28 January 2010 Limit applicable for borrowing by a Government company

Rule 3(2A) provides that a Government company may accept or renew deposits, if the amount of such deposits does not exceed 35% of its paid-up capital and free reserves including any short-term deposits accepted by a government company up to 10% of its paid-up capital and free reserves.

CA Vijay Kumar Gupta

CA Vijay Kumar Gupta (Expert)
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28 January 2010 sorry for the typing error. agree with the expert Ankur Garg.

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