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Question
Explain the following term/concept.
Credit Rating
Solution
(1) Every company has to get credit rating of its deposits and include the ratings in the circular or advertisement. The credit rating agency considers the net worth of the company, liquidity position, ability to repay deposits on time etc.
(2) The rating shall be obtained for every year during the tenure of deposits. A copy of the credit rating shall be submitted to ROC.
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RELATED QUESTIONS
Select the correct answer from the options given below and rewrite the statement:
Deposit is a type of ______________________.
Write a word or a term or a phrase which can substitute the following statement.
A company which can accept deposits from its members, directors, or their relatives not exceeding 100% of aggregate of paid up share capital and free reserves.
Write a word or a term or a phrase which can substitute the following statement.
Company which can accept deposits from public up to 35% of its paid-up share capital and free reserves.
Write a word or a term or a phrase which can substitute the following statement.
Agreement between company and Deposit Trustee.
Write a word or a term or a phrase which can substitute the following statement.
Book which contains details of deposits accepted or renewed.
State whether the following statement is true or false.
Eligible public company can collect deposits from public not exceeding 35% of its paidup share capital and free reserves.
State whether the following statement is true or false.
Deposit Receipt is issued within 21 days of receipt of deposits.
Complete the sentence:
Agency which gives ratings of the deposits of a company is called ______________.
Complete the sentence:
Account which is used only for repaying deposits is called ______.
Arrange in proper order.
a. Appoint Deposit Trustee.
b. Hold General Meeting.
c. Create charge on assets.
Explain the following term/concept.
Eligible Public Company
Explain the following term/concept.
Tenure of Deposit
Answer in brief.
State the contents of circular or Advertisement for Deposit
Answer in brief.
State the provisions regarding appointment of Deposit Trustee.
Justify the following statement.
Company has to fulfill certain provisions related to issue of circular or advertisement.
Select the correct option from the bracket.
| Group ‘A’ | Group ‘B’ | ||
| a) | Retained earnings | 1 | ______ |
| b) | ______ | 2 | Written communication |
| c) | 36 months | 3 | ______ |
| d) | ______ | 4 | Charge on assets |
| e) | Cash sales | 5 | ______ |
(Less working capital, Correspondence, Secured debentures, Internal source of finance, Maximum tenure of deposits.)
Give one word or phrase for the following sentence:
Type of company that can accept deposits only from its members or directors.
