CA Inter P2 · Chapter 5 · Question 1 of 10
Silverline Ltd, a public company, received the following sums. Which one is a 'deposit' under section 2(31) read with the Companies (Acceptance of Deposits) Rules, 2014?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) An unsecured loan from the wife of one of its directors
Explanation
Section 2(31) treats any receipt of money by way of deposit or loan as a deposit, except categories excluded by the rules. Amounts from the Central or State Government, banking companies and other companies are excluded. A loan from a director is excluded if the director declares in writing that it is not out of borrowed funds, and a loan from a relative of a director is excluded only for a private company. A loan from a director's relative to a public company is therefore a deposit.
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