Deposits

CS SHIVAM SINGHAL E-mail id - csshivamsinghal17@gmail.com ACS, B.COM Contact - 9359135062, 8750993347 1 DEPOSITS UNDER COMPANIES ACT, 2013 CONTENTS DEPOSIT- Section 2(31) of Companies Act, 2013 provides that Deposit Includes any receipt of money by way of deposit or loan or in any other form by a company, but does not include- a) Any amount received from C.G/ S.G/ L.A/ S.A b) Any amount received from Foreign Government/ Foreig n Bank/ Foreign Company c) Any amount received as a loan from any Banking Comp any/ S.B.I/ P.F.I/ Insurance Company/ Schedule Bank. d) Any amount received against issue of Commercial Pap er/ Subscription to any Securities/ Issue of Bonds or Debentures e) Any amount received by a company from any other com pany f) Any amount received from a person who at time of th e receipt of the amount was a director of the Company or relatives of director of the Private Company. g) Any amount received from an employee of the company not exceeding his annual salary h) Any amount received as advance for the supply of go ods/ Services i) Any amount brought from the promoters or nidhis com pany NOTE- If the Securities for which application money was received cannot be allotted within 60 days from the date of receipt of application mon ey and such application money is not refunded to the subscribers within 15 days from the date of completion of 60 days, such amount shall be treated as a deposit. SECTION- 2(31), 73, 74, 75, 76, 76A FORMS- DPT-1, DPT-2, DPT- 3, DPT-4, SH-13, MGT-14 Companies (Acceptance of Deposits) Rules, 2014 CS SHIVAM SINGHAL E-mail id - csshivamsinghal17@gmail.com ACS, B.COM Contact - 9359135062, 8750993347 2 Depositor ELIGIBLE COMPANY- means any Public Company a) Having net worth of Rs. 100 Crore or more (or ) b) Turnover of Rs. 500 Crore or more SECTION 74 ANY MEMBER ANY PERSON In accordance with the provisions of Section 73 In accordance with the provisions of Section 76 a) File a Statement with ROC in Form DPT-4 upto 30th June, 2014 31st August, 2014 b) Repay old Deposit within 1 Year after Commencem ent of this Act i.e. 31st March, 2015 NCLT CLB may on application made by Company, allow further time to the Company to repay the Deposit a) Fine on Company not less than 1 crore or upto 10 crore b) Fine on Defaulted Person not less than 25 lakhs or upto 2 Crore & Imprisonment upto 7 Years SUBSECTION-1 SUBSECTION-2 SUBSECTION-3 CS SHIVAM SINGHAL E-mail id - csshivamsinghal17@gmail.com ACS, B.COM Contact - 9359135062, 8750993347 3 NOTIFICATIONS ISSUED BY MCA FOR SECTION 74- 1) Extend the date from 30 th June, 2014 to 31st August, 2014 2) Power of NCLT given to CLB 3) If a Company had received any amount by way of Subs criptions to any Shares, Debentures, Bonds before the 1 st April, 2014 and allotment is pending on the 31st March, 2015, the company shall by the 1st June, 2015 either return such amounts or allot such Shares, Bonds, Debentures. LIMITS FOR ACCEPTING THE DEPOSITS- 1) Eligible Company from its members upto 10% of Paid-up Share Capital , Free reserves & Security Premium Account and from any pe rson upto 25% of Paid-up Share Capital, Free reserves & Security Premium Acc ount. 2) Government Company upto 35% of Paid-up Share Capital, Free reserves & Security Premium Account. 3) Public Company (non-eligible Company) from its members upto 25% of Paid-up Share Capital, Free reserves & Security Premium Acc ount. 4) Private Company from its members upto 100% of Paid-up Share Capita l, Free reserves & Security Premium Account. (After Notification of 5th June, 2015). PERIODS FOR ACCEPTING THE DEPOSITS- CS SHIVAM SINGHAL E-mail id - csshivamsinghal17@gmail.com ACS, B.COM Contact - 9359135062, 8750993347 4 1) No Company shall accept any deposit which is repaya ble within a period of less than 6 months or more than 36 months from the date of ac ceptance of Deposit. 2) A Company may, for the purpose of meeting its short term requirement, accept the deposits for repayment earlier than 6 months but no t earlier than 3 months & such deposits shall not exceed 10% of Paid-up Share Capi tal, Free reserves & Security Premium Account. RESOLUTIONS TO ACCEPTING THE DEPOSITS- 1) Eligible Companies- Special Resolution [as per Comp anies (Acceptance of Deposits) rules, 2014] 2) Non Eligible Companies- Ordinary Resolution [as per Section 73(2) of Companies Act, 2013] EXEMPTIONS TO COMPLIANCE FOR ACCEPTING THE DEPOSITS - a) Banking Company. b) Non Banking Financial Companies. c) Notified by CG- Housing Finance Companies. COMPLIANCE FOR ACCEPTING THE DEPOSITS- 1) Every Company intending to invite deposit from its members shall issue a circular to all its members registered post/ Speed Post/ Electr onic Mode in Form DPT-1. 2) Every Eligible Company intending to invite deposits shall issue a circular in Form DPT-1 in a English newspaper & in a Vernacular Newspaper in which the registered office of the company is situated. 3) A Copy of DPT-1 Shall file with ROC within 30 days before the date of issue of Circular. 4) Every Company Shall enter into a Contract for provi ding Deposit Insurance atleast 30 days before the issue of circular. 5) Every Company Shall execute a Deposit Trust Deed in Form DPT-2 at least 7 days before issuing the circular. 6) Every Depositor may at any time nominate any person in Form SH-13. CS SHIVAM SINGHAL E-mail id - csshivamsinghal17@gmail.com ACS, B.COM Contact - 9359135062, 8750993347 5 7) Every Company Shall on the acceptance of Deposit fu rnish a Deposit Receipt to the Depositor within a period of 21 days from the date of acceptance of Deposit. 8) Every Company Shall maintain a Deposit Register at its registered office & made enteries within 7 days from the date of issuance of Receipt. 9) Every Company shall on or before the 30 th April of each year deposit the sum with any scheduled bank i.e. Deposit Repayment Reserve A ccount & shall not at any time fall below 15% of the amount of deposit maturing, u ntil the end of the current financial year and the next financial year. 10) Every Company Shall file with ROC a return in FORM DPT-3 upto 30 th June every year which is audited by auditor of the Company. 11) Every Company shall pay a penal rate of interest of 18% per annum for the overdue period. 12) Every Eligible Company shall the Form MGT-14 with R OC within 30 days after passing Special Resolution. NOTE- Point 1 to 4 & 9 is not applicable on Private Compa ny after notification by MCA on 5 th June, 2015. NOTE- Deposit Trustee not a Director, KMP, Employee inclu ding Relatives & indebted of the Company or its Holding, Subsidiary, Associate C ompany and has not any material pecuniary relationship with the company. PENALTY UNDER SECTION 76A FOR NON COMPLIANCE UNDER SECTION 73 & 76- a) Fine on Company not less than 1 crore or upto 10 cr ore. b) Fine on Defaulted Person not less than 25 lakhs or upto 2 Crore or Imprisonment upto 7 Years or both.