Angel Company Ltd. plans to raise funds through public deposits. Its net worth is ₹ 250 crores.(a) Can they accept deposits from the public?(b) Can they accept deposits which mature after 5 years?(c) Within what period should the company issue deposi…

Answer: (a) Yes (b) No (c) Within 21 days

(a) Yes. A public company with a net worth of at least ₹ 100 crore (or a turnover of at least ₹ 500 crore) is an ‘eligible company’ under Section 76 and may accept deposits from the public, after passing a special resolution, filing it with the Registrar and obtaining a credit rating. Angel Company's net worth of ₹ 250 crore qualifies.

(b) No. A deposit can be accepted for a maximum period of 36 months (minimum 6 months). A deposit maturing after 5 years (60 months) is not allowed.

(c) The company must issue a deposit receipt to the depositor within 21 days from the date of receipt of the money or realisation of the cheque.