Balbharti Maharashtra State Board Class 12 Secretarial Practice Important Questions Chapter 8 Correspondence with Depositors Important Questions and Answers.
Maharashtra State Board 12th Secretarial Practice Important Questions Chapter 8 Correspondence with Depositors
1A. Select the correct answer from the options given below and rewrite the statements.
Question 1.
_____________ capital is raised by accepting deposits.
(a) owned
(b) fixed
(c) borrowed
Answer:
(c) borrowed
Question 2.
Deposits are accepted to fulfil _____________ capital need of the company.
(a) working
(b) fixed
(c) owned
Answer:
(a) working
Question 3.
A company can accept deposit for minimum _____________ months.
(a) 12
(b) 36
(c) 6
Answer:
(c) 6
Question 4.
Person investing in company’s deposit is called _____________
(a) depositor
(b) debenture holder
(c) shareholder
Answer:
(a) depositor
Question 5.
Company makes payment of interest on deposits after deducting _____________
(a) ACS
(b) CGS
(c) TDS
Answer:
(c) TDS
Question 6.
Company can also make electronic payment of interest through _____________
(a) DGFT
(b) NEFT
(c) IEPF
Answer:
(b) NEFT
Question 7.
A government Company can accept maximum _____________ percent deposit.
(a) 25
(b) 35
(c) 30
Answer:
(b) 35
Question 8.
A private company can accept deposits from _____________
(a) directors
(b) government
(c) public
Answer:
(c) public
1B. Match the pairs.
Question 1.
| Group ‘A’ | Group ‘B’ |
| 1. Deposit maturity | (a) Letter of renewal |
| 2. Accuracy | (b) Investment up to ₹ 25000 |
| 3. Deposit receipt | (c) 21 days |
| 4. Small depositors | (d) Precaution |
| 5. Renewal of deposit | (e) 36 months |
| (f) Creditors |
Answer:
| Group ‘A’ | Group ‘B’ |
| 1. Deposit maturity | (e) 36 months |
| 2. Accuracy | (d) Precaution |
| 3. Deposit receipt | (c) 21 days |
| 4. Small depositors | (b) Investment up to ₹ 25000 |
| 5. Renewal of deposit | (a) Letter of renewal |
1C. Write a word or a term or a phrase that can substitute each of the following statements.
Question 1.
A person who invests in a company’s deposits.
Answer:
Depositor
Question 2.
The status of the deposit holder in the company.
Answer:
Creditor
Question 3.
Amount deducted from gross interest exceeding ₹ 10,000.
Answer:
TDS
Question 4.
Avoiding rude and harsh words while writing letters to the depositor’s means.
Answer:
Courtesy
Question 5.
The way of writing letters from depositors’ point of view.
Answer:
You attitude
1D. State whether the following statements are true or false.
Question 1.
The deposit represents owned capital of the company.
Answer:
False
Question 2.
Fixed deposit is a long-term source of finance.
Answer:
False
Question 3.
Company Secretary has to follow legal provisions while corresponding with depositors.
Answer:
True
Question 4.
Correspondence with depositors helps to maintain the goodwill of the company.
Answer:
True
Question 5.
The deposit receipt should be issued within 21 days from the date of acceptance of the deposit.
Answer:
True
Question 6.
Government companies can raise deposits up to 35 percent.
Answer:
True
1E. Find the odd one.
Question 1.
Repayment of Deposit, Convertible Debentures, Renewal of Deposit
Answer:
Convertible Debentures
Question 2.
Depositor, Creditor, Evidence of Ownership
Answer:
Evidence of Ownership
Question 3.
6 months, 25 months, 36 months
Answer:
25 months
1F. Complete the sentences.
Question 1.
Company cannot accept deposits for a period more than _____________ months.
Answer:
36 months
Question 2.
The company is liable to pay regular _____________ on the deposits at a fixed rate.
Answer:
Interest
Question 3.
Company cannot accept deposits for period less than _____________ months.
Answer:
6 months
Question 4.
Unnecessary and irrelevant information in the letter should be _____________
Answer:
Avoided
Question 5.
Secretary conducts correspondence with the depositors as per the instructions of the _____________
Answer:
Board of Directors
1G. Answer in one sentence.
Question 1.
Who gives instructions to the company secretary for corresponding with the depositors?
Answer:
The Board of Directors gives instructions to the company secretary for corresponding with the depositors.
Question 2.
Who’s consent is necessary for the renewal of the deposit?
Answer:
Depositors’ consent is necessary for the renewal of the deposit.
Question 3.
What is the time limit for sending deposit receipts to the depositor from the date of acceptance?
Answer:
A deposit receipt is sent to the depositor within 21 days from the date of acceptance of a deposit.
1H. Correct the underlined words and rewrite the following sentences.
Question 1.
Deposits can be accepted for a minimum period of 12 months.
Answer:
Deposits can be accepted for a minimum period of 6 months.
Question 2.
Deposit receipt can be issued within a period of 15 days of acceptance.
Answer:
Deposit receipt can be issued within a period of 21 days of acceptance.
1I. Arrange in proper order.
Question 1.
Legal provision, Board Resolution, Acceptance of deposits
Answer:
Legal provision, Board Resolution, Acceptance of deposits
Question 2.
Appoint banker, Credit rating, Deposit insurance
Answer:
Appoint banker, Credit rating, Deposit insurance
Question 3.
Return with depositors, Entries in register of deposit, Issue of the deposit receipt
Answer:
Issue of deposit receipt, Entries in the register of deposit, Return with depositors
2. Justify the following statements.
Question 1.
Public deposits can be renewed after the maturity period.
Answer:
- Deposits are unsecured loans offered to the company.
- Deposits can be accepted for a minimum period of 6 months and a maximum period of 36 months.
- If the Depositor agrees, deposits can be renewed for a further period.
- Renewal may take place with the same terms and conditions or maybe with different terms and conditions.
- For renewal, the depositor has to submit the old deposit receipt with the renewal request.
- The company will cancel the old deposit receipt and issue the new deposit receipt.
- The depositor enjoys a fixed rate of interest till further maturity.
- Thus, it is rightly said that Public deposits can be renewed after the maturity period.
Question 2.
Deposits are repaid on maturity.
Answer:
- Deposit is a short-term source of finance of the company and it is used in order to satisfy the short-term working capital needs of the company.
- The company cannot accept deposits for a period less than 6 months or more than 36 months,
- The company is liable to pay regular interest on the deposits at a fixed rate along with the principal amount on maturity.
- On maturity of tenure of deposits, it is binding on the company to repay the deposit.
- Default in repayment of deposit results in levy of penalty.
- The letter for repayment of the deposit is to be sent to the depositor when the deposit is to be redeemed.
- Thus, it is rightly justified that deposits are repaid on maturity.
Question 3.
Correspondence with the depositors enhances the goodwill of the company.
Answer:
- The depositors of the company are the creditors of the company.
- They provide borrowed capital to the company to meet its working capital needs.
- proper correspondence with the depositors is helpful to convey proper information about their investments.
- It generates a bridge of good relations between company and depositors which ultimately helps to generate goodwill in the Corporate market.