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4. Form and particulars of advertisements

(1) Every company 27[intending to invite or allowing or causing any other person to invite deposits] shall issue an advertisement for the purpose in a leading English newspaper and in one  vernacular newspaper circulating in the State in which the registered office of the company is situated.


(2) No company shall issue or allow any other person to issue or cause to be issued on its behalf, any advertisement, inviting deposits, unless such advertisement is issued on the authority and in the name of the Board of Directors of the company and contains a reference to the conditions subject to which deposits shall be accepted by the company the date on which the said Board of Directors has approved the text of advertisement, and the following information namely:-


(a) name of the company;


(b) the date of incorporation of the company;


(c) the business carried on by the company and its subsidiaries with the details of branches or units, if any;


(d) brief particulars of the management of the company;


(e) names, addresses and occupations of the Directors;


(f) profits of the company, before and after making provision for tax, for the three financial years immediately preceding the date of advertisement;


(g) dividends declared by the company in respect of the said years;


28[(h) a summarized financial position of the company as in the two audited balance sheets immediately preceding the date of advertisement in the following form, namely:


Summarized financial position of the company as appearing in the two latest audited balance sheets



Figures for the latest financial year for which audited accounts are available

Figures for the financial year previous to the year referred to in column 2


Figures for the latest financial year for which audited accounts are available

Figures for the financial year previous to the year referred to in column 5







Share Capital



Fixed assets



Reserves and









Current assets



Secured loans



Loans and
























Profit and



and provisions



loss account










Note.- Brief particulars of contingent liabilities may be added by way of a footnote.


(i) the amount which the company can raise by way of deposits under these rules and the aggregate of deposits actually held on the last day of the immediately preceding financial year.


(j) a statement to the effect than on the day of the advertisement, the company has no overdue deposits other than unclaimed deposits, or a statement showing the amount of such overdue deposits, as the case may be.


(k) a declaration to the effect-


(i) that the company has complied with the provisions of these rules;


(ii) that compliance with these rules does not imply that repayment of deposits is guaranteed by the Central Government; and


(iii) that the deposits accepted by the company (other than secured deposits, if any, accepted under the provisions of these rules, the aggregate amount of which may be indicated) are unsecured and ranking pari passu with other unsecured liabilities.


20[(iv) that the company is not in default in the repayment of any deposit or part thereof and any interest thereupon in accordance with terms and conditions of such deposits.]


(3) An advertisement issued in accordance with this rule shall be valid 27[until the expiry of six months from the date of closure of the financial year in which it is issued or until the date on which the balance sheet is laid before the company in general meeting or, where the Annual General Meeting for any year has not been held, the latest day of which that meeting should have been held in accordance with the provisions of the Act whichever is earlier] and a fresh advertisement shall be made, in each succeeding financial year, 4[ for inviting deposits during that financial year].


(4) No advertisement shall be issued by or on behalf of a company unless on or before the date of its issue, there has been delivered to the Registrar for registration a copy thereof 4[signed by a majority of the Directors on the Board of Directors of the company as constituted at the time the Board approved the advertisement, or their agents, duly authorized by them in writing].


Explanation- For the purpose of this rule, the date of the issue of the newspaper in which the advertisement appears shall be taken as the date of issue of the advertisement.



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