Neetu Agrawal (PCS) (213 Points)
11 March 2011Hi All,
one of my company is into hospitlity (Health Resorts) and has accepted membership deposits in the year 2005. In the year 2005 BS it ws treated as long term liabilty by the auditor and from 2006 onwards he transferred the same into current liability.
Now my question is will this DEPOSIT will cum under the preview of sec 58A or ne exemption. Also till date company hs nt refunded the said amount.
Pothuganty sudheer
(Consultant, C.A, C.S)
(411 Points)
Replied 11 March 2011
I feel that by your descripttion, Membership deposits accepted fall into one of the category of exclusions specified in section 2 (b) of Companies acceptance of deposit rules 1975. Hence they donot come under the purview of Section 58A of companies Act.
Only my view. Expert opinions are welcome.
With best wishes for all of your future endeavours
Vikas Marele
(CA in Service)
(1144 Points)
Replied 11 March 2011
Dear neetu, whether deposit amount is requested publicly or it is privately acquired through kith n kin ones...?
Vikas Marele
(CA in Service)
(1144 Points)
Replied 11 March 2011
What is the mode of requistion of deposit from public...? Via public advertisement or any other mode......?
Jayashree S Iyer
(Company Secretary)
(3224 Points)
Replied 12 March 2011
If it's a private company, acceptance of deposit from members would fall under exclusions specified in Section 2(b)(ix) of the Companies Acceptance of Deposit Rules, 1975. Hence it would not attract the provisions of Section 58A of the Companies Act, 1956.
However in case of a public company, the deposits from members would attract the provisions of Section 58A.
Neetu Agrawal
(PCS)
(213 Points)
Replied 14 March 2011
Also Clarify,
cn the amount in Current liabilty stand for a period of 5 yrs... INTACT.
CAclubindia
