Companies (Acceptance of Deposits) Rules, 1975 - Companies Law - Letter : No. 3/5/84‑CL‑X

Letter : No. 3/5/84 ‑ CL ‑ X dated, 5 ‑ 12 ‑ 1984. Public Deposits - Acceptance of ‑ Scope and provision of Companies (Acceptance of Deposits) Rules, 1975 explained Rule 2(d) : WHETHER SUBSIDY RECEIVED UNDER CENTRAL GOVERNMENT OUTRIGHT GRANT OR SUBSIDY SCHEMES, 1971 A FREE RESERVE UNDER RULE 2(d) OF ACCEPTANCE OF DEPOSITS RULES The subsidy received under the Central Government Outright Grant and Subsidy Scheme can be treated as Free Reserve as defined in rule 2(d) of the Companies (Acceptance of Deposits) Rules, if all the following conditions are fulfilled: (i) the subsidy under the Central Government Outright Grant or Subsidy Scheme, 1971 is received in cash; (ii) the subsidy is utilised for the purpose for which it is received; and (iii) the period of 5 years from the commencement of production has lapsed and the subsidy has not become recoverable in terms of conditions of the grant.