PRT Ltd. is an eligible public company. The following details are available from its audited balance sheet as on 31st March 2024: Paid-up Share…

As per section 76 read with Rule 3 of the Companies (Acceptance of Deposits) Rules, 2014, an eligible company is permitted to accept or renew deposits as under: From its Members: The amount of such deposit together with outstanding deposits from the members as on the date of acceptance or renewal can be maximum 10% of the aggregate of its paid-up share capital, free reserves and securities premium account.From Persons other than its Members: The amount of such deposits together with the amount of outstanding deposits (excluding deposits from members) on the date of acceptance or renewal can be 25% of the aggregate of its paid-up share capital, free reserves and securities premium account. Calculation Basis Aggregate of paid-up share capital (20crore), free reserves (8crore), and securities premium (2crore), totals 30crore. Maximum Permissible Limit Category Maximum Limit Exiting deposits Proposed deposits Maximum further permissible deposits still allowable From Members 10% of 30crore = 3 crore 2 crore 3 crore 1 crore From Public 25% of 30crore = 7.5 crore In view of the above, the company's proposal to accept 3crore from members is incorrect and 2crore from persons other than members (general public) is correct.