Companies (Acceptance of Deposits) Rules, 1975 - Companies Law - Letter : No. 3/13/80‑CL‑X,

Letter : No. 3/13/80 ‑ CL ‑ X, dated 20 ‑ 5 ‑ 1980. Public Deposits - Acceptance of ‑ Scope and provision of Companies (Acceptance of Deposits) Rules, 1975 explained Rule 3A : REQUIREMENT OF DEPOSITING OR INVESTING 10 PER CENT OF DEPOSITS MATURING DURING THE YEAR ENDING ON 31ST MARCH NEXT FOLLOWING Query : Under rule 3A, a company is required to make deposit/investment, etc., within one month namely up to April 30 each year of 10 per cent of the deposits as on March 31 each year, maturing within a year. However, if any deposits are maturing within the following month of April itself, the entire amount of deposit would be repaid before April 30. In such case, a view is expressed that the deposit of 10 per cent of the amount outstanding on March 31 and repayable within a year should not be required to be deposited in a separate current account or invested in the manner stipulated in the said rule since the deposit itself would be repaid within the following month itself namely, by April 30,1980. Answer : Rule 3A requires a company to deposit 10 per cent of the deposits maturing during the year. This amount can be utilised only for repayment of deposits and the amount is to be kept at the level of 10 per cent of the deposits maturing. Accordingly, there does not appear to be any question of company not required to keep deposits if they have to pay some deposits in April itself. However, in case of doubt details of the particular case under reference with full facts may be sent to the Department for consideration.