hi...
Please help me..
will acceptance of freezer deposits from the retails by a Private Limited Company attract sec 58A?
Thank you
Hariharan S
(Research Analyst)
(64 Points)
Replied 13 August 2011
Yes, acceptance of deposits by a pvt co is covered by sec.58A. However, a Pvt. Co. can borrow any amount specified under exempted categories in Rule 2(b)(i) to (xi) of deposit rules, 1975. Also a Pvt. Co. can borrow inter
corporate Deposit.
For details refer Companies Acceptance of Deposit Rules 1975
Tareq Imam
(CA LLB CISA DISA)
(170 Points)
Replied 13 August 2011
@ mr Hariharan deposit for freezers given to retailers for displaying and selling company products comes under advancement of business pl check clause vi of exclusions from the definition of deposits
Hariharan S
(Research Analyst)
(64 Points)
Replied 13 August 2011
i'm sorry.....i misunderstood the question as acceptance of deposits from the retail investors (public)....in your case the acceptance of deposits being part of the business it is surely exempted
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