Answer the following citing relevant provisions of the Companies Act, 2013: (i) ABC Limited having paid-up capital of 1.00 crore availed a term loan…

(i) In terms of Rule 2 (1) (c) (iii) of the Companies (Acceptance of Deposits) Rules, 2014, any amount received as a loan or facility from any banking company shall not be considered as 'deposit'. In view of the above, the contention of Mr. Atanu that the term loan of 10,00,000 availed by the company from Y Bank Limited shall be considered as 'deposit' is not correct. (ii) As per Rule 3 (5) of the Companies (Acceptance of Deposits) Rules 2014, a Government Company is not eligible to accept or renew deposits under section 76, if the amount of such deposits together with the amount of other deposits outstanding as on the date of acceptance or renewal exceeds thirty five per cent of the aggregate of its paid-up share capital, free reserves and securities premium account. Therefore, the given statement where the limit of 25% has been stated for acceptance of deposits is not correct.