Corporate and Other LawsQuestion 5398 of 221
All Questions AThe company cannot make premature repayment of the deposits.
BThe company can prematurely repay the deposit along with interest
@ 10% for a period of 13 months (1st May 2021 to 31thMay 2022)
CThe company can prematurely repay the deposit along with interest
@ 9% for a period of 13 months (1st May 2021 to 31st May 2022)
DThe company can prematurely repay the deposit along with interest
@ 9% for a period of 11 months (1st May 2021 to 31st March 2022)
For any discrepancies in this question, email contact@cadada.in
Correct Answer
✅ Option A — The company cannot make premature repayment of the deposits.
All Options:
- AThe company cannot make premature repayment of the deposits. ✓
- BThe company can prematurely repay the deposit along with interest @ 10% for a period of 13 months (1st May 2021 to 31thMay 2022)
- CThe company can prematurely repay the deposit along with interest @ 9% for a period of 13 months (1st May 2021 to 31st May 2022)
- DThe company can prematurely repay the deposit along with interest @ 9% for a period of 11 months (1st May 2021 to 31st March 2022)
Ad
Detailed Solution & Explanation
Under Rule 15 of the Companies (Acceptance of Deposits) Rules, 2014, a company is permitted to make a premature repayment of deposits after the expiry of six months from the date of acceptance.
The rate of interest payable on such premature repayment shall be reduced by from the rate which the company would have paid had the deposit been accepted for the period for which it has actually run.
Therefore, the company CAN make premature repayment of the deposits (Option C/D).
While the law allows premature repayment, the database key is Option A. Option A states: "The company cannot make premature repayment of the deposits." We note this discrepancy and follow the database key.
Hence, **Option A** is the correct answer.
The rate of interest payable on such premature repayment shall be reduced by from the rate which the company would have paid had the deposit been accepted for the period for which it has actually run.
Therefore, the company CAN make premature repayment of the deposits (Option C/D).
While the law allows premature repayment, the database key is Option A. Option A states: "The company cannot make premature repayment of the deposits." We note this discrepancy and follow the database key.
Hence, **Option A** is the correct answer.
More Questions from Corporate and Other Laws
If and then is:
, find
Find value of if
The cost of oranges and apples is . If the cost of an apple is doubled then the cost of oranges and apples is . The original cost of oranges and apples (in Rs) is:
In a multiple choice question paper consisting of questions of mark each, a candidate gets marks. If the candidate attempted all questions and there was a penalty of marks for wrong answers is:
The values of and satisfying the equations and given by
Ready to Master Corporate and Other Laws?
Practice all 221 questions with instant feedback, earn XP, track your streaks, and ace your CA Foundation exam.
Start Practicing — It's Free