Acceptance of deposits
This query is : Open
25 June 2012
Dear Experts,
Kind Attn : Mr. Ankur Garg
I see many companies offering attractive returns on moneys collected by them (they say that the money invested will double in 5 years to be exact).
One such company's representatives persuaded me to make an investment decision and hence i did some due diligence work on the Company on the MCA -21 portal.
I was shocked to find that in the Auditors Report, the Auditor has stated that the Company has not accepted any deposits under section 58A of the Companies Act, 1956 ( I personally know some people who have been investing in that company for about 3 years as a Recurring Deposit of Rs 1000 per month).
On scrutiny of all the available data of the Company in the MCA -21 site, I found that the Company in its financial statements, never expressed its intention to accept public deposits.
Further the reason why the Company became popular among the people was that the commission it offered to one who collected the deposit.
Now let me ask you one thing, what is the fate of those who invested in the Company ?
Is there any competent authority to whom an official complaint can be lodged so as to protect the investors interest before it becomes a case of embezzlement of public money ?
Kind Attn : Mr. Ankur Garg
I see many companies offering attractive returns on moneys collected by them (they say that the money invested will double in 5 years to be exact).
One such company's representatives persuaded me to make an investment decision and hence i did some due diligence work on the Company on the MCA -21 portal.
I was shocked to find that in the Auditors Report, the Auditor has stated that the Company has not accepted any deposits under section 58A of the Companies Act, 1956 ( I personally know some people who have been investing in that company for about 3 years as a Recurring Deposit of Rs 1000 per month).
On scrutiny of all the available data of the Company in the MCA -21 site, I found that the Company in its financial statements, never expressed its intention to accept public deposits.
Further the reason why the Company became popular among the people was that the commission it offered to one who collected the deposit.
Now let me ask you one thing, what is the fate of those who invested in the Company ?
Is there any competent authority to whom an official complaint can be lodged so as to protect the investors interest before it becomes a case of embezzlement of public money ?
26 June 2012
Dear Sathyan,
Generally, Auditors used to write that During the year no Deposit was accepted or renewed from public within the meaning of section 58A.
It usually represent that DURING THE YEAR no deposit was accepted.
No deposit was accepted from PUBLIC.
In case of Private Company Deposit Rules are not applicable so, deposits are classified as Unsecured Loans.
Private Companies can offer rate of loan as they want.
otherwise a company wherein Acceptance of Deposit Rules are applicable can only offer 12.5% per annum.
Generally, Auditors used to write that During the year no Deposit was accepted or renewed from public within the meaning of section 58A.
It usually represent that DURING THE YEAR no deposit was accepted.
No deposit was accepted from PUBLIC.
In case of Private Company Deposit Rules are not applicable so, deposits are classified as Unsecured Loans.
Private Companies can offer rate of loan as they want.
otherwise a company wherein Acceptance of Deposit Rules are applicable can only offer 12.5% per annum.
12 July 2012
Dear Sir,
On further observation of the balance sheet i found that there are no amounts opposite the head Secured and Unsecured Loans.
Please clarify.
On further observation of the balance sheet i found that there are no amounts opposite the head Secured and Unsecured Loans.
Please clarify.
12 July 2012
If there is loan or deposit, the amount must reflect in the secured or unsecured loan.
12 July 2012
That is precisely my doubt about the credibility of the Company.
But i surely know at least 25 people from whom the Company is collecting Rs 500 each month.
Please let me know the forums to which i can raise a query so as to prevent any misembezzlement of funds.
Thanks in advance.
But i surely know at least 25 people from whom the Company is collecting Rs 500 each month.
Please let me know the forums to which i can raise a query so as to prevent any misembezzlement of funds.
Thanks in advance.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST Regis.
- Tax on capital gains revoked us 54f
- Inventory of finished goods
- Sale of property furniture sale
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Filing of Form 10BB instead of Filing Form 10B
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- Should I include march foreign salary received in April in my income for FY 2023-24?
- Applicability of Ind As to associate of associate
- Confusion around Form 26QB fields
- GST Registration Cancellation books of accounts asked by officer
- TDS Deduction Online Learing Platform
- Point (III) 9 of GSTR-9C
- As per our records, find the below outstanding demand(s)* and interest payable u/s 220(2):
- Regarding transaction th. credit card
- MIS MATCH OF INVOICE NUMBER
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
Trending Online Classes
CAclubindia
