(1) The Central Government may, in consultation with the Reserve Bank of India, prescribe the limits up to which, the manner in which and the conditions subject to which, deposits may be invited or accepted by a company either from the public or from its members.

(2) No company shall invite, or allow any other person to invite or cause to be invited on its behalf, any deposit unless-

1. such deposit is invited or is caused to be invited in accordance with the rules made under sub-section (1),
2. (b) an advertisement, including therein a statement showing the financial position of the company, has been issued by the company in such form and in such manner as may be prescribed; and

(3) The provisions of this Act relating to a prospectus shall, so far as may be, apply to an advertisement issued under clause (b) of sub-section(2).

(4) The deposit holder may, at any time, nominate in the prescribed manner, a person to whom his deposit shall vest in the event of his death.

(5) Where a deposit is held by more than one person, jointly, the joint holders may together nominate in the prescribed manner, the person to whom the deposit shall vest in the event of the death of all the joint holders.

(6) Where a company accepts or invites, or allows or causes any other person to accept or invite on its behalf, any deposit in excess of the limits prescribed under sub-section (1) or in contravention of the manner or any condition prescribed under that sub-section or in contravention of the provisions of sub-section (2), as the case may be,-

(7) (a) Nothing contained in this section shall apply to,-

(8) Notwithstanding anything contained in this Act, a company, which has defaulted in the repayment of any deposit accepted under this section or part thereof or interest thereupon in accordance with the terms and conditions of such deposit, shall not, :

(a) declare or pay any dividend;

(c) make any investment in securities,till the default is made good.

(9) The Central Government may, if it considers it necessary for avoiding any hardship or for any other just and sufficient reason, by order, issued either prospectively or retrospectively from a date not earlier than the commencement of this Act, grant extension of time to a company or class of companies to comply with, or exempt any company or class of companies from, all or any of the provisions of this section either generally or for any specified period subject to such conditions as may be specified in the order:

Provided that no order under this sub-section shall be issued in relation to a class of companies except after consultation with the Reserve Bank of India.

(10) Where a company has failed to repay any deposit or part thereof in accordance with the terms and conditions of such deposit, the Company Law Tribunal may, if it is satisfied, either on its own motion or on the application of any depositor, that it is necessary so to do to safeguard the interests of the company, the depositors or in the public interest, direct, by order, the company to make repayment of such deposit or part thereof forthwith or within such time and subject to such conditions as may be specified in the order:

Provided that the Company Law Tribunal may, before making any order under this sub-section, give a reasonable opportunity of being heard to the company, in respect of any scheme, if any, proposed by the company for the repayment of the deposits and interest thereon and other persons interested in the matter.

(11) Whoever fails to comply with any order made by the Company Law Tribunal under sub-section (10) shall be punishable with imprisonment which may extend to three years and shall also be liable to a fine of not less than five hundred rupees for every day during which such non-compliance continues.

Explanation.-For the purposes of this section, "deposit" means any deposit of money with, and includes any amount borrowed by, a company but shall not include such categories of amount as may be prescribed in consultation with the Reserve Bank of India.

(1) A Company required under clause (d) of sub-section (1) of section 166 to include in its books of account the particulars referred to therein, may decide that audit of cost accounts of the company shall be conducted by a cost accountant within the meaning of the Cost and Works Accountants Act, 1959 (23 of 1959)

(2) An audit conducted by an auditor appointed under this section shall be in addition to an audit conducted by an auditor appointed under section 183.

(3) An auditor appointed under this section shall have the same powers and duties in relation to an audit conducted by him under this section as an auditor of a company has under sub-section (1) of section 186 and such auditor shall make his report to the company in such form and within such time as may be prescribed.

(4)(a) None of the persons referred to in sub-section (3) or sub-section (4) of section 185 shall be appointed or re-appointed for conducting the audit of the cost accounts of the company.

(b) A person appointed under section 183, as an auditor of a company, shall not be appointed or re-appointed for conducting the audit of the cost accounts of that company.

(c) If a person, appointed for conducting the audit of cost accounts of a company, becomes subject, after his appointment, to any of the disqualifications specified in clause (a) or clause (b) of this sub-section, he shall on and from the date on which he becomes so subject, cease to conduct the audit of the cost accounts of the company.

(5) If default is made in complying with the provisions of this section, the company shall be punishable with fine which may extend to five thousand rupees, and every officer of the company who is in default, shall be punishable with imprisonment for a term which may extend to three years, or with fine which may extend to five thousand rupees, or with both.

(1) Where, on perusing any document which a company is required to submit to him under this Act, the Registrar is of opinion that any information or explanation is necessary with respect to any matter to which such document purports to relate, he may, by a written order, call on the company submitting the document to furnish in writing such information or explanation, within such time as he may specify in the order.

(2) On receipt by the company of an order under sub-section (1), it shall be the duty of the company, and of all persons who are officers of the company, to furnish such information or explanation to the best of their power.

(3) If no information or explanation is furnished within the time specified or if the information or explanation furnished is, in the opinion of the Registrar, inadequate, the Registrar may by another written order call on the company to produce before him for his inspection such books and papers as he considers necessary within such time as he may specify in the order; and it shall be the duty of the company, and of all persons who are officers of the company, to produce such books and papers.

(4) If the company, or any such person as is referred to in sub-section (2) or (3), refuses or neglects to furnish any such information or explanation or if the company or any such person refuses or neglects to produce any such books and papers,-

(5) On receipt of any writing containing the information or explanation referred to in sub-section (1), or of any book or paper produced whether in pursuance of an order of the Registrar or of an order of the Court under sub-section (4), the Registrar may annex that writing, book or paper, or where that book or paper is required by the company, any copy or extract thereof, to the document referred to in sub-section (1); and any writing or any book or paper or copy or extract thereof so annexed shall be subject to the like provisions as to inspection, the taking of extracts and the furnishing of copies, as that document is subject.

(6) If such information or explanation is not furnished within the specified time or if after perusal of such information or explanation or of the books and papers produced whether in pursuance of an order of the Registrar or of an order of the Court under sub-section (4), the Registrar is of opinion that the document referred to in sub-section (1), together with such information or explanation or such books and papers discloses an unsatisfactory state of affairs or does not disclose a full and fair statement of any matter to which the document purports to relate, the Registrar shall report in writing the circumstances of the case to the Central Government.

(7) If it is represented to the Registrar on materials placed before him by any contributory or creditor or any other person interested that the business of a company is being carried on in fraud of its creditors or of persons dealing with the company or otherwise for a fraudulent or unlawful purpose, he may, after giving the company an opportunity of being heard, by a written order, call on the company to furnish in writing any information or explanation on matters specified in the order, within such time as he may specify therein; and provisions of sub-sections (2), (3), (4) and (6) of this section shall apply to such order.

(8).If upon inquiry the Registrar is satisfied that any representation on which he took action under sub-section (7) was frivolous or vexatious, he shall disclose the identity of his informant to the company.

(9) The provisions of this section shall apply mutatis mutandis to documents which a liquidator, or a foreign company is required to file under this Act.