Scope and provision of Companies (Acceptance of Deposits) Rules, 1975

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..... le 3, Explanation : DETERMINATION OF PAID ‑ UP SHARE CAPITAL FOR THE PURPOSES OF RECKONING LIMITS UNDER SUB ‑ RULE (2) According to Explanation under rule 3, the permissible limits for acceptance of deposits under rule 3(2)(ii) of the said Rules are required to be computed with reference to the aggregate of the paid‑up share capital and free reserves appearing in the lates .....

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..... ts, other than the paid‑up share capital, which go into the computation of net worth on the basis of which the limits laid down under rule 3 for acceptance of deposits are worked out. By taking into account only the increase in the share capital of the company and at the same time ignoring the other components of the net worth, the position would get distorted. In view of the position set .....

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