Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Acceptance of deposits

RAJA P M ("Do the Right Thing...!!!") (128091 Points)

15 June 2019

Dear Sir / Madam,

As per CA rule 2(1)(C) Acceptance of Deposits means....

1. Directors Current Acount only

2. Director's Share Capital with Director's current Account...

Which one value is given to the filing...?

Please give Your reply

Thanks in Advance

Reply
Follow
Share

3 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178732 Points)
Replied 16 June 2019

Share capital will be included, if not refunded back in 60 days, without any adjustment.

Read ...

(c) “deposit” includes any receipt of money by way of deposit or loan or in any other form, by a company, but does not include –

...........................

(vii) any amount received and held pursuant to an offer made in accordance with the provisions of the Act towards subscripttion to any securities, including share application money or advance towards allotment of securities pending allotment, so long as such amount is appropriated only against the amount due on allotment of the securities applied for;

Explanation.- For the purposes of this sub-clause, it is hereby clarified that –

(a) Without prejudice to any other liability or action, if the securities for which application money or advance for such securities was received cannot be allotted within sixty days from the date of receipt of the application money or advance for such securities and such application money or advance is not refunded to the subscribers within fifteen days from the date of completion of sixty days, such amount shall be treated as a deposit under these rules.

(b) any adjustment of the amount for any other purpose shall not be treated as refund.

(viii) any amount received from a person who, at the time of the receipt of the amount, was a director of the company:

Provided that the director from whom money is received, furnishes to the company at the time of giving the money, a declaration in writing to the effect that the amount is not being given out of funds acquired by him by borrowing or accepting loans or deposits from others;

2 Like