Scope and provision of Companies (Acceptance of Deposits) Rules, 1975 explained - Companies Law - Letter : No. 1/24/75‑CL‑XIV,

Letter : No. 1/24/75 ‑ CL ‑ XIV, dated 2 ‑ 7 ‑ 1975. Subject:- Scope and provision of Companies (Acceptance of Deposits) Rules, 1975 explained Query : A company s accounts close on June 30,1975. If it advertises for deposits before this date, can it continue to receive deposits from July 1, 1975 onwards till the balance sheet for the year ended June 30, 1975 is audited? Further, if the above company has not advertised for deposits prior to June 30, 1975, which is its accounts closing date, can it advertise subsequent to July 1, 1975 giving the audited figures up to June 1, 1974 only ? Answer : According to the existing provisions of the Rules, an advertisement issued during the course of the financial year of a company remains valid up to the close of that very financial year. The figures of the profits and dividends of the company for the three financial years immediately preceding the date of an advertisement are to be given in the advertisement as required under clauses (f) and (g) of sub‑rule (2) of rule 4.