Following are the extracts of information (as per the latest audited balance sheet) in respect of Play World Ltd.: (in crore) (i) Paid-up share…

As per Rule 2 (1) (e) of the Companies (Acceptance of Deposit) Rules, 2014, “eligible company” means a public company as referred to in section 76 (1) , having a net worth of not less than one hundred crore rupees or a turnover of not less than five hundred crore rupees and which has obtained the prior consent in general meeting by means of a special resolution and also filed the said resolution with the Registrar of Companies before making any invitation to the public for acceptance of deposits: However, an eligible company, which is accepting deposits within the limits specified under section 180 (1) (c), may accept deposits by means of an ordinary resolution. A public company is 'eligible' to accept deposits from the public at large only if it meets the above-mentioned criteria. According to Rule 3 (1) , a company is not permitted to accept or renew deposits (whether secured or unsecured) which is repayable on demand or in less than six months. Further, the maximum period of acceptance of deposit cannot exceed thirty six months. However, as an exception to this rule, for the purpose of meeting any of its short-term requirements of funds, a company is permitted to accept or renew deposits for repayment earlier than six months subject to the conditions that: such deposits shall not exceed ten per cent. of the aggregate of the paid-up share capital, free reserves and securities premium account of the company; andsuch deposits are repayable only on or after three months from the date of such deposits or renewal. (i) In the given question, Play World Ltd., has turnover of 510crore, hence, it is an eligible company. Further, the duration of deposit is 36 months. Hence, Play World Ltd. can accept deposit from the public other than its members after passing an ordinary resolution, if the amount of 50crore is within the limits specified under section 180 (1) (c) of the Companies Act, 2013. (ii) The company can accept 5 crore of funds as the amount of deposit is within the prescribed limit (10% of 60 crore). Further, the tenure of deposit is 5 months i.e. it is repayable only after 3 months from the date of such deposits and it is required to meet company's short term requirements. Hence, the company can raise such deposits.