EXPLAIN THE FEATURES/ADVANTAGES OF DEPOSITS or PUBLIC DEPOSITS.

Meaning: -Public deposits are an important source of financing short term requirement of company. Companies generally receive public deposits for the period ranging from 6 months to 36 months.

               Under this method, general public is invited to deposit their saving with the company for varied period. Interest is paid by companies on such deposits. The rates of interest are higher than those allowed by commercial banks. The company issues 'Deposit Receipt' to the depositor. The term of deposit is mentioned in the 'Deposit Receipt'. Deposit Receipt is an acknowledgement of debt by the company. Deposits are unsecured loans offered to company. It is considered as risky investment but investors can earn high return on public deposits.

               Companies Act 1956, sec 58-A, provides the power to the central government to make rules and regulations for controlling public deposits. Government of India has made Companies (Acceptance of Deposits) Rule 1975. These rules are as under.

Definition: -According to Companies Act 1956 the term deposit means 'Any deposit of money with the company and any amount borrowed by the company'.

1.       Ceiling on deposits: -

a)       Company can accept public deposits up to the 25% of total paid up capital and free reserves.

b)       Company can accept public deposits from existing shareholders and debenture holders up to 10% of total paid up capital and free reserves.

2.        Maturity of Deposits: -Company has to accept deposits from public minimum for 6 months and maximum for 36 months.

3.        Interest on Deposits: -Company can fix rate of interest on deposits money according to the regulations of Reserve Bank of India.

4.        Register of Deposit: -Company should record name, address, deposits money, date, maturity date, rate of interest in 'Register of Deposits'.

5.       Status of Deposit holder: -Deposits holders are creditors of the company.

Advantages of Accepting Deposits:

1.       The rate of interest payable on deposits is lower than the rate of interest on loan.

2.       The deposit does not create charge on the assets of the company.

3.       It is a simple method of financing as it has very few legal complications and formalities to be fulfilled.

4.       Deposits holders are the creditors of the company. Company can collect huge amount of money without interference of deposit holders in the management of it.

PDF FILE TO YOUR EMAIL IMMEDIATELY PURCHASE NOTES & PAPER SOLUTION. @ Rs. 50/- each (GST extra)

HINDI ENTIRE PAPER SOLUTION

MARATHI PAPER SOLUTION

SSC MATHS I PAPER SOLUTION

SSC MATHS II PAPER SOLUTION

SSC SCIENCE I PAPER SOLUTION

SSC SCIENCE II PAPER SOLUTION

SSC ENGLISH PAPER SOLUTION

SSC & HSC ENGLISH WRITING SKILL

HSC ACCOUNTS NOTES

HSC OCM NOTES

HSC ECONOMICS NOTES

HSC SECRETARIAL PRACTICE NOTES

2019 Board Paper Solution

HSC ENGLISH SET A 2019 21st February, 2019

HSC ENGLISH SET B 2019 21st February, 2019

HSC ENGLISH SET C 2019 21st February, 2019

HSC ENGLISH SET D 2019 21st February, 2019

SECRETARIAL PRACTICE (S.P) 2019 25th February, 2019

HSC XII PHYSICS 2019 25th February, 2019

CHEMISTRY XII HSC SOLUTION 27th, February, 2019

OCM PAPER SOLUTION 2019 27th, February, 2019

HSC MATHS PAPER SOLUTION COMMERCE, 2nd March, 2019

HSC MATHS PAPER SOLUTION SCIENCE 2nd, March, 2019

SSC ENGLISH STD 10 5TH MARCH, 2019.

HSC XII ACCOUNTS 2019 6th March, 2019

HSC XII BIOLOGY 2019 6TH March, 2019

HSC XII ECONOMICS 9Th March 2019

SSC Maths I March 2019 Solution 10th Standard11th, March, 2019

SSC MATHS II MARCH 2019 SOLUTION 10TH STD.13th March, 2019

SSC SCIENCE I MARCH 2019 SOLUTION 10TH STD. 15th March, 2019.


SSC SCIENCE II MARCH 2019 SOLUTION 10TH STD. 18th March, 2019.

SSC SOCIAL SCIENCE I MARCH 2019 SOLUTION20th March, 2019

SSC SOCIAL SCIENCE II MARCH 2019 SOLUTION, 22nd March, 2019

XII CBSE - BOARD - MARCH - 2019 ENGLISH - QP + SOLUTIONS, 2nd March, 2019

HSC Maharashtra Board Papers 2020

(Std 12th English Medium)

HSC ECONOMICS MARCH 2020

HSC OCM MARCH 2020

HSC ACCOUNTS MARCH 2020

HSC S.P. MARCH 2020

HSC ENGLISH MARCH 2020

HSC HINDI MARCH 2020

HSC MARATHI MARCH 2020

HSC MATHS MARCH 2020

SSC Maharashtra Board Papers 2020

(Std 10th English Medium)

English MARCH 2020

HindI MARCH 2020

Hindi (Composite) MARCH 2020

Marathi MARCH 2020

Mathematics (Paper 1) MARCH 2020

Mathematics (Paper 2) MARCH 2020

Sanskrit MARCH 2020

Sanskrit (Composite) MARCH 2020

Science (Paper 1) MARCH 2020

Science (Paper 2)

Geography Model Set 1 2020-2021

MUST REMEMBER THINGS on the day of Exam

Are you prepared? for English Grammar in Board Exam.

Paper Presentation In Board Exam

How to Score Good Marks in SSC Board Exams

Tips To Score More Than 90% Marks In 12th Board Exam

How to write English exams?

How to prepare for board exam when less time is left

How to memorise what you learn for board exam

No. 1 Simple Hack, you can try out, in preparing for Board Exam

How to Study for CBSE Class 10 Board Exams Subject Wise Tips?

JEE Main 2020 Registration Process – Exam Pattern & Important Dates


NEET UG 2020 Registration Process Exam Pattern & Important Dates

How can One Prepare for two Competitive Exams at the same time?

8 Proven Tips to Handle Anxiety before Exams!

BUY FROM PLAY STORE

DOWNLOAD OUR APP

HOW TO PURCHASE OUR NOTES?

S.P. Important Questions For Board Exam 2021

O.C.M. Important Questions for Board Exam. 2021

Economics Important Questions for Board Exam 2021

Chemistry Important Question Bank for board exam 2021

Physics – Section I- Important Question Bank for Maharashtra Board HSC Examination

Physics – Section II – Science- Important Question Bank for Maharashtra Board HSC 2021 Examination