Chapter 5 & 6

Suneet Spices Limited decides to raise deposits of 20.00 lacs from its members. However, it is of the opinion to secure such deposits partially by offering security worth 15.00 lacs. Which of the following options best describe such deposits:

Ruchita wants to renew her deposit of 5.00 lakh maintained with Kewal Constructions Limited before the expiry of original period with a view to avail higher rate of interest. For how much extended period, Ruchita is required to renew her deposit, so that the company shall pay her higher rate on deposits?

MN Limited failed to repay the Public Deposits on maturity after they are claimed. The company is required to pay penal interest at the rate of _____ for the overdue period.

Any person acquiring property (on which charge is registered under section 77) shall be deemed to have notice of charge from

A charge was created by Cygnus Softwares Limited on its office premises to secure a term loan of 1.00 crore availed from Next Gen Commercial Bank Limited through an instrument of charge executed by both the parties on 16th February, 2019. Inadvertently, the company could not get the charge registered with the concerned Registrar of Companies (ROC) within the first statutory period permitted by law and the default was made known to it by the lending banker with a stern warning to take immediate steps for rectification. Advise the company regarding the latest date within which it must register the charge with the ROC so that it is not required to pay a specific type of fees for charge registration.

Mr. Manoj Samwal is retired chief librarian from Central University of Technical Education. After retirement, he joined his family business as a whole-time director of Samwal Paper Mill Limited (SPML). Mr. Manoj also incorporated another company Doon Printers and Publishers Limited (DPPL), which is engaged in printing and publishing books of academic and professional importance. Assets of SPML were charged in favour of a financial institution as collateral for a loan. Due to default in the re-payment of the amount due, financial institutions has moved the court. The court appoints Mr. Rawat as a receiver in its order dated 10th November 2020. A Copy of the order was received by him on 13th November 2020. DPPL is growing its business, for which it requires funds. After considering the available sources of funds and the cost of capital, DPPL decided to raise funds through the public deposit route. DPPL accepted deposits on 1st September 2020. The opinion of management at DPPL was divided regarding the creation of charge. Nearly half of the directors suggested that the assets should be kept unencumbered, and to take up deposit insurance in order to keep the credit rating of the company healthy, whereas remaining directors were of the opinion that premium cost may be saved by registering a charge over the assets, they also argued that creating a charge is mandatory irrespective of whether deposit insurance is available or not.

In furtherance to a court order regarding the appointment of Mr. Rawat as a receiver, Mr. Rawat shall give notice (along with a copy of the order) of such appointment to

ABC Publications Limited accepted deposits from the public to the tune of 70 Lakh on 1st May 2021, for a period of 36 months at an interest rate of 10% per annum. The repayment would be made on 30th April, 2024. It has complied with all the statutory requirements for the acceptance of deposits by a Public Limited Company. One of the depositors Mr. Y was in urgent need of money as his son wanted to pursue his higher education abroad. His total deposit with ABC Publications Limited was 10 lakh. On 1st June 2022, he sent his request to the company asking for premature repayment of his deposit along with interest. Another depositor, Mr. U had deposited 6 lakh in his name. On 18th September 2022, he sent an application to the company to change the name on his deposit and make it a joint holding in the names of himself, his wife and two children. The company is contemplating the requests received from its depositors. In addition to the deposits received form the public, the company had also raised funds by amount received from a Public Sector Bank, by issue of bonds and debentures and amounts against issue of commercial papers which were issued according to the guidelines issued by the Reserve Bank of India.

ABC Publications Limited accepted deposits from the public to the tune of 70 Lakh on 1st May 2021, for a period of 36 months at an interest rate of 10% per annum. The repayment would be made on 30th April, 2024. It has complied with all the statutory requirements for the acceptance of deposits by a Public Limited Company. One of the depositors Mr. Y was in urgent need of money as his son wanted to pursue his higher education abroad. His total deposit with ABC Publications Limited was 10 lakh. On 1st June 2022, he sent his request to the company asking for premature repayment of his deposit along with interest. Another depositor, Mr. U had deposited 6 lakh in his name. On 18th September 2022, he sent an application to the company to change the name on his deposit and make it a joint holding in the names of himself, his wife and two children. The company is contemplating the requests received from its depositors. In addition to the deposits received form the public, the company had also raised funds by amount received from a Public Sector Bank, by issue of bonds and debentures and amounts against issue of commercial papers which were issued according to the guidelines issued by the Reserve Bank of India.

The Banker of ABC Publications Limited wanted a list of deposits accepted by the company. Advise the company on what among the following constitute deposit: