MANDATORY DISCLOSURE FOR DEPOSITS/EXEMPTED DEPOSITS

MANDATORY DISCLOSURE FOR DEPOSITS/EXEMPTED DEPOSITS

The Companies (Acceptance of Deposits) Amendment Rules, 2019

Ø  Legal Framework:

The Ministry of Corporate Affairs (“MCA”) has notified The Companies (Acceptance of Deposits) Amendments Rules, 2019 w.e.f 22.01.2019 has amended Rule 16 and inserted Rule 16A in the Companies (Acceptance of Deposits) Rules, 2014.

By virtue of such amendments, Every Company other than Government Company is required to file a One-Time Return and Yearly Return for Deposits taken by the Company as well as the details of Money or Loan received by the Company not considered as Deposits under Rule 2 (1)(c) of the Companies (Acceptance of Deposits) Rules, 2014.

 Ø  Applicability:

These rules shall apply to ALL THE COMPANIES (Private, Public, OPC, Small Company, etc.) other than Government Companies.

"Government company" means any company in which not less than fifty-one per cent of the paid-up share capital is held by the Central Government, or by any State Government or Governments, or partly by the Central Government and partly by one or more State Governments, and includes a company which is a subsidiary company of such a Government company;

  

Ø  Compliance to be done:

Every Company other than Government Company is required to file the disclosures in:

    (a)   Initial one time return - Details of all the outstanding receipt of money or loan by a Company but not considered as Deposits for the period 01.04.2014 till 22.01.2019.

     (b)  Yearly Return - Details of all the Deposits (Return of Deposit) received by the Company or particulars of transactions not considered as Deposits or both as on 31^st March of every year duly Audited by the Statutory Auditors of the Company.

 Ø  Time Limit for Filing Return:

(a)     Initial Return – within 90 days from the date of notification i.e. on or before 22.04.2019.

(b)    Yearly Return – On or before 30^th June of every year.

 Ø  Form for Filing Disclosures:

       E-Form DPT 3 – Amended Form is not available on MCA till date.

 Ø  Notes:

·   “DEPOSITS” means Deposits accepted by the Company in terms of Section 73 of the Companies Act, 2013 read with the Companies (Acceptance of Deposits) Rules, 2014 as amended from time to time.

·      “MONEY NOT CONSIDERED AT DEPOSITS” means the receipt of amount or loan received by the Company which is exempted to be considered as Deposit under Rules eg. Loan received from Banks/Financials Institution, Loan received by any other Company, Loans received from a Director of a Company, Loans received from Relative of Director of a Private Company, etc.

·      Both Secured and Unsecured Loans, ECB received by the Company is required to be disclosed in the Form DPT 3.

Author – CS. Kunal Sharma (B.Com, ACS)

Focal Corporate Services P. Ltd, Ahmedabad

Kunal@focalcorporate.com

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