Question
State the contents of Circular or Advertisement for Deposit.

Answer

  • Circular or Advertisement:

    • If a company invites deposits from its members, it issues a circular.
    • If a company invites deposits from the public, it issues an advertisement.

    Contents of circular or advertisement:

    • Statement about the financial position of the company.
    • The portion of secured and unsecured deposit of fresh issue.
    • Credit rating obtained from a Credit Rating Agency (only for eligible public companies).
    • Details of the scheme.
    • Name of Deposit Trustees.
    • Amount due towards deposits of any previous deposits accepted by the company.

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