Public Deposits - Acceptance of ‑ Scope and provision of Companies (Acceptance of Deposits) Rules, 1975 explained - Companies Law - Letter : No. 3/1/80‑CL‑X,

Letter : No. 3/1/80 ‑ CL ‑ X, dated 3 ‑ 2 ‑ 1982. Subject:- Public Deposits - Acceptance of ‑ Scope and provision of Companies (Acceptance of Deposits) Rules, 1975 explained Rule 2(d) : WHETHER AMOUNT OF SURPLUS IN THE PROFIT AND LOSS ACCOUNT FORMS PART OF FREE RESERVE AS DEFINED IN THE RULES After re‑examination of the matter in detail, it has since been decided that the amount of surplus shown in the profit and loss account carried forward under the heading Reserve and Surplus appearing in the balance sheet of company, may be treated as part of free reserve , as defined under the Rules, subject, of course, its satisfying condition that it arises by appropriation out of the profits of the company.