RETURN OF DEPOSITS TO BE FILED WITH ROC

RETURN OF DEPOSITS TO BE FILED WITH THE REGISTRAR

Amendment in?	Effective Date of New Rules	New Rules
RETURN OF DEPOSITS	22nd January, 2019	the Companies (Acceptance of Deposits) Rules, 2014

What is Deposits?

Deposits mean any receipt of money by way of deposit or loan or in any other form by a company, but do not include such categories of amount as may be prescribed in consultation with the Reserve Bank of India.

Deposits Includes	But Deposits doesn’t includes
any receipt of money by way of deposit or loan or in any other form by a company	1) any amount received from the Central Government or a State Government, or any amount received from any other source whose repayment is guaranteed by the Central Government or a State Government, or any amount received from a local authority, or any amount received from a statutory authority constituted under an Act of Parliament or a State Legislature
	2) any amount received from foreign Governments, foreign or international banks, multilateral financial institutions (including, but not limited to, International Finance Corporation, Asian Development Bank, Commonwealth Development Corporation and International Bank for Industrial and Financial Reconstruction), foreign Governments owned development financial institutions, foreign export credit agencies, foreign collaborators, foreign bodies corporate and foreign citizens, foreign authorities or persons resident outside India subject to the provisions of Foreign Exchange Management Act, 1999 (42 of 1999) and rules and regulations made there under
	3) any amount received as a loan or facility from any banking company or from the State Bank of India or any of its subsidiary banks or from a banking institution notified by the Central Government under section 51 of the Banking Regulation Act, 1949 (10 of 1949), or a corresponding new bank as defined in clause (d) of section 2 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) or in clause (b) of section (2) of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980) , or from a co-operative bank as defined in clause (b-ii) of section 2 of the Reserve Bank of India Act, 1934 (2 of 1934)
	4) any amount received as a loan or financial assistance from Public Financial Institutions notified by the Central Government in this behalf in consultation with the Reserve Bank of India or any regional financial institutions or Insurance Companies or Scheduled Banks as defined in the Reserve Bank of India Act, 1934 (2 of 1934);
	5) any amount received against issue of commercial paper or any other instruments issued in accordance with the guidelines or notification issued by the Reserve Bank of India
	6) any amount received by a company from any other company
	7) any amount received and held pursuant to an offer made in accordance with the provisions of the Act towards subscription 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 It is hereby clarified that -       i.        Please note that the securities for which application money or advance for such securities was received should be allotted within 60 days (sixty days) from the date of receipt of the application money or advance for such securities. However, if the company fails to allot the securities within 60 days, and also such application money or advance is not refunded to the subscribers within 15 days (fifteen days) from the date of completion of 60 days (sixty days), then that amount shall be treated as a deposit under these rules.      ii.        Some companies adjust that money towards other purpose or future allotment or any other purpose but such adjustment is also not allowed and shall be treated as Deposits. The only solution is refund within 15 days from the date of completion of 60 days(Sixty days)
	8)  It is very common that the company receives amount from Directors and from Directors relatives of the company in the form of loans or share capital. However, any amount received from any such person should furnish 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 and the Private company shall disclose the details of money so accepted in the Board's report.
	9)  If a company is raising amount by issue of bonds and debentures and such issue is backed by first charge on charge ranking pari passu with first charge on the assets that are mentioned in Schedule iii of the act excluding intangible assets of the company or bonds or debentures compulsorily convertible into shares of the company within 10 yrs provided that the amount of such bonds/debentures shall not exceed the market value of such assets valued by registered valuer Also companies that issue non convertible debentures for funds (without creating charge on the assets) and are listed on a recognized stock exchange as per SEBI regulation, such issue shall not be treated as deposits
	10)         If a company receives advance from his employee upto his annual salary under a contract of employment with the company and in the nature of non-interest bearing security deposit
	11)         Companies receiving non-interest bearing amount and holding such amount in form of trust
	12)         There are some companies which receive advance in the course of its business, such as a)    For the supply of goods/provision of services provided that such advance is used against supply of goods/provision of services within a period of 365 days of receiving such advance (in case of legal proceedings the time limit of 365 days shall be ignored.) b)    Consideration for an immovable property under an agreement or arrangement , provided that such advance is adjusted against such property c)    Security deposit for the performance of the contract for supply of goods or provision of services d)    For long term projects for supply of capital goods except those covered under item (b) above i.e. Immovable Property e)    For performing future service as in case of warranty or maintenance contract (written agreement) if period of completing such future service is upto 5 years f)     Received from sectoral regulator or as per the direction of Central or State Government g)    For subscription towards publication (print or electronic) and same will be adjusted against receipt of such publication Provided that if the amount received under items (a), (b) and (d) above becomes refundable (with or without interest) due to the reasons that the company accepting the money has not received necessary approvals, then the amount shall be treated as deposits. For the purposes of this sub-clause the amount shall be deemed to be deposits on the expiry of 15 days from the date they become due for refund
	13)         if promoters introduce advance by way of unsecured loan in pursuance of the stipulation of any lending financial institution or a bank subject to following conditions, namely a)    The loan is brought because of stipulation imposed by the lending institutions on the promoters to contribute such finance; b)    The loan is provided by the promoters themselves or by their relatives or by both; and c)    The exemption under this sub-clause shall be available only till the loans of financial institution or bank are repaid and not thereafter;
	14)         Any amount accepted by a Nidhi company in accordance with the rules made under section 406 of the Act. For the purposes of this clause, any amount.- a)    If company receives any amount (in installment or otherwise) from a person with promise/offer to give returns, (cash or kind) on completion of the period specified in the promise/offer, or b)    Any additional contributions, over and above the amount under item (a) above, made by the company as part of such promise/offer, shall be considered as deposits unless specifically excluded under this clause

It has been clarified vide explanation to Rule 16 that form DPT-3 shall be filled by all companies other than government companies for furnishing of information regarding outstanding loan, now the Rule 16 reads as follows

{Every company to which these rules apply, shall on or before the 30th day of June, of every year, file with the Registrar, a return in Form DPT-3 along with the fee as provided in Companies (Registration Offices and Fees) Rules, 2014 and furnish the information contained therein as on the 31st day of March of that year duly audited by the auditor of the company

“Explanation.- It is hereby clarified that Form DPT-3 shall be used for filing return of deposit or particulars of transaction not considered as deposit or both by every company other than Government company.”}

Moreover the addition of sub rule 3 to Rule 16A, has clarified the time limit, within which the form DPT-3 is required to be filled after publication of this notification which is 90 days(Ninety days), and now Rule 16A reads as follows

{16A. Disclosures in the financial statement.-

1.    Every company, other than a private company, shall disclose in its financial statement, by way of notes, about the money received from the director.

2.    Every private company shall disclose in its financial statement, by way of notes, about the money received from the directors, or relatives of directors.”

3.    Every company other than Government company shall file a onetime return of outstanding receipt of money or loan by a company but not considered as deposits, in terms of clause (c) of sub-rule 1 of rule 2 from the 01st April, 2014 to the date of publication of this notification in the Official Gazette, as specified in Form DPT-3 within ninety days from the date of said publication of this notification along with fee as provided in the Companies (Registration Offices and Fees) Rules, 2014}

So, every company other than Govt Company shall furnish onetime information about the outstanding receipt of money or loan by a Company but not considered as deposits. Cases between holding and subsidiary companies regarding Secured/Unsecured Loan, ECB are also required to be reported.

What if the company has only Deposits and no outstanding receipt of money??

Every company to which these rules apply, shall on or before the 30^th day of June, of every year, file with the Registrar, a return in Form DPT-3 along with the fee and furnish the information contained therein as on the 31^st day of March of that year duly audited by the auditor of the company.