Q.Angel Company Ltd. plans to raise funds through public deposits. Its net worth is ₹ 250 crores.
Can they accept deposits from the public?
Can they accept deposits which mature after 5 years?
Within what period should the company issue deposit receipt to its depositors?

My opinion: (1) yes, Angel Company can accept public deposits as its net worth of ₹250 crore makes it an eligible company; (2) no, it cannot accept deposits maturing after 5 years, as the maximum term is 36 months; (3) it must issue the deposit receipt within 21 days.

Under Section 76 of the Companies Act, 2013, only an 'eligible company' — a public company having a net worth of not less than ₹100 crore or a turnover of not less than ₹500 crore — may accept deposits from persons other than its members (the public). Angel Company's net worth of ₹250 crore is well above ₹100 crore, so (assuming it is a public company) it is eligible and can accept deposits from the public.

On tenure: a company can accept deposits repayable only within 6 to 36 months. The maximum maturity is therefore 3 years, so the company cannot accept deposits that mature after 5 years.

…