Unsecured loan to be treated as Public Deposit

[BIJAL SALOT]

Dear All,

If Private Company has received unsecured loan from relative or person other than its directors than it will be treated as public deposit as per Companies Act 2013.So, whether private Company has to file form DPT -4 or if it repay it within 1 year than it will be exempted from filing DPT - 4.

Thanks & Regards,

Bijal

[sonam jain]

PFA

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[BIJAL SALOT]

Thanks Sonam.

But still my question is same  if as on 31/03/2014 private company has received unsecured loan from relative of director & it is continued till date than would it require to file form DTP 4 or it will be filed only if the same is not repaid within 1year period i.e. period allowed by the new Act.

Thanks & Regards,

Bijal

 

[Maharshi Ganatra]

Dear Ms. Bijal,

According to me it has to be filed in FORM DPT-4 because it states to give a statement of outstanding deposits as on 31.03.2014.

Regards,

Maharshi Ganatra

Mumbai

Mob:- +91-7208193776

          +91-9930692152

[BIJAL SALOT]

Thanks Sonam.

But still my question is same  if as on 31/03/2014 private company has received unsecured loan from relative of director & it is continued till date than would it require to file form DTP 4 or it will be filed only if the same is not repaid within 1year period i.e. period allowed by the new Act.

Thanks & Regards,

Bijal

 

On Tue, Jun 24, 2014 at 11:47 AM, sonam jain <satyam...@gmail.com> wrote:

[periwal...@gmail.com]

Both conditions are to be fulfilled, You are reqired to File form DPT 4 by 30th June as well as to repay deposits within an year.

[BIJAL SALOT]

Dear All,

Can anyone tell me in which section or rule it is mentioned that Company can not accept unsecured loan from anyone except its directors or it will be considered as public deposit.

Thanks & Regards,

Bijal

[VANDANA PERIWAL]

Kindly refer sec 73.

Acceptance of any kind of money will come under category of Deposits, other than those excluded from definition of deposits. Though public companies may accept deposits from other than members also, which will construded as public deposits, pvt company may accept deposits from members only.

 

Any money recieved from director doesnt come under category of deposits itself.

 

 

 

 

Thanks and Regards
CS Vandana Periwal

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[BIJAL SALOT]

[BIJAL SALOT]

Dear Vandana,

In Section 73 it is not mentioned that any loan received by the company from members  or relatives will be treated as public deposit.in new Companies Act is there any specific section mentioning it.

Thanks & Regards,

Bijal

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[VANDANA PERIWAL]

Kindly read Sec 73(2) and also definition of deposits as per rules.

 

"Deposits" includes any reciept of money by way of deposit or loan or in any other form................"

 

Accordingly loans from members whether secured or not shall also be treated as deposits.

 

 

 

 

Thanks and Regards
CS Vandana Periwal

[BIJAL SALOT]

Thank you.

[BIJAL SALOT]

Dear Vandana,

Thank you so much, but it will be very helpful for me if you can tell me where it is mentioned that loan from directors is exempt from public deposit.

Thanks & Regards,

Bijal

[Pracheta]

Refer Acceptance of Deposits Rules, 2014

Best Regards,

CS.Pracheta.M

Practising Company Secretary

Ph: 98446 88622

[VANDANA PERIWAL]

Loans from directors is excluded from the definition of deposits. Relevant part of definition is reproduced below-

 

 

 

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

 

(i).................

 

...

...

...
(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;

 

...

...

...

 

...

 

 

 

Thanks and Regards
CS Vandana Periwal

[BIJAL SALOT]

Thanks a lot.

Thanks & Regards,

Bijal

[SUDHIER KUMAR GUPTHA]

Going by the literal interpretation of the section, though it can be interpreted as  filing DPT 4 is mandatory, but by the details being sought in DPT 4 , it appears like  DPT 4 format is not built to capture the details of those transactions of which the MCA wants to change their nature retrospectively via the definition of deposits in NCA.

On Tue, Jun 24, 2014 at 11:47 AM, sonam jain <satyam...@gmail.com> wrote:

[Dhaval Doshi]

  i have some query related to this act please solve this and give me reply when u free..

1. One Company Taken Loan from its Share Holder since long years on which he paid interest every year as applicable rate and after deducting TDS .

My Question for Above is that
1. whether above deposit also repaid within 31.03.2015 ???

2. and if company will repaid within 31.03.2015.. and if he taken same on 1st April 2015 What will be the Consequences for this ????

Please give me your reply

[sonam jain]

A very important point to Note in the case of unsecured loan pending in balance sheet as on 31.04.2014 is that,

if such loan has been taken prior to 31.03.2013, then in the auditor's report of 2013 in the CARO part, it must be mentioned that the company has not taken any deposite u/s 58A or 58AA, etc.

Now, if we file DPT-4 for the same which requires mandatory attachment of Auditor's Report, Will it not be a contradiction??

So, in my view, lets not file DPT-4 for unsecured loan or pending share application as on 31.03.2014 and care should be taken that the same gets refunded or allotted by 31.03.2015.

 

[BIJAL SALOT]

I agree with Ms. Sonam.Other views are invited.

[VANDANA PERIWAL]

Nowhere it is a contradiction,

 

Auditor's Report in DPT 4 shall be certified as "deposits in terms of Sec 74 of Companies Act 2013."

 

No reference for old act or its section.

 

Thanks and Regards
CS Vandana Periwal

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[sonam jain]

Vandanaji,

Is it not that the Auditor's Report will be on the Public deposit as on 31.03.2014 on which CA, 1956 will be applicable??

for instance- suppose items like share application money pending, unsecured loans from members are standing on balance sheet 2013. Therefore Auditor's Report of 2013 will stated that there is no deposit u/s 58A or 58AA. Now for the same items, Auditor's Report 2014 can not classify them as deposit.

Now if u file DPT4 for such items, For which Auditor's Report will be required, will not there be contradiction??

Correct me if I am wrong??

[VANDANA PERIWAL]

Auditor's Report is not required for filing DPT 4. Auditor's Certificate is required for certifying the amounts wherein he will mention those amount as "Deposits as per Sec 74 of Companies Act 2014"

 

 

Thanks and Regards
CS Vandana Periwal

[sonam jain]

The point is not of Auditor Report or Auditor';s Certificate.

The point is that how can the same Auditor who has stated that there is no deposit in 2013 Auditor's Report can now certify the same items to be Deposit????

The main confusion is that will those items will be considered as 1956's deposit definition or 2013's deposit definition???

[VANDANA PERIWAL]

See. There is a difference between the two.

 

Auditor's Report is report on total accounts of company which shall be prepared as per Companies Act 1956. Which doesnt treat loan from members and relatives as deposits and thus they will come under category of unsecured loans and it shall be stated that "there is no outstanding deposits or the company has not accepted any deposits as per Sec 58A of Companies Act 1956."

 

 

Now Auditor's Certificate shall be attached to DPT 4 in which he shall certify the amounts of outstanding deposits in terms of Sec 74 of companies Act 2013

 

 

So where lies the confusion. He is certifying the same amount as being treated in two different  ways in pursuance of two different sections of two different acts. Whats the mess in this.

 

 

 

Thanks and Regards
CS Vandana Periwal

[SUDHIER KUMAR GUPTHA]

Auditor has given his report on the basis of Sec.58A in the Annual report and here in DPT on the basis of Sec.74 of NCA., but the definition of DEPOSITORS  gives altogether different meaning.

Its better people who have already filed DPT 4 reply to the queries, people are suggested not to reply simply on the strength of reading the act in free time.

[Kunal Karsia]

Maharshi u said deposits as on 31.03.2014 then how unsecured loan but it was not deposits as on 31.03.2014 nor at the time of receipt of money by company.

[JAIPRAKASH SINGH]

VANDANAJI

PLEASE RESTRICTIVE VIEW AND FILE DPT 4 AS THE PENALTY IS VERY HIGH. IF YOU WANT TO TAKE DEPOSIT FROM THE SAME PERSON AGAIN, MAKE HIM DIRECTOR AND TAKE DECLARATION OF REGARDING BORROWING. RULE 2 C VIII OF ACCEPTANCE OF PUBLIC DEPOSIT

[VANDANA PERIWAL]

Jaiprakash Ji, (jaipra...@gmail.com)

 

I was not the querist.

 

I have already filed DPT 4 and have no ambuiguities regarding the same.

 

 

 

Mr. Sudhir Ji, (sudhirk...@gmail.com)

 

I dont think so that any professional is having so much free time that they use this forum as time pass. This is an interactive and educative forum which people are using for updating themselves and sharing what they knows. 

 

Second thing, This is a new act, no one is having experience for the same. So everyone is applying their knowledge and interpretating the act as per them. If some one is experienced in Companies Act 2013, then pls let us know, we will raise our further queries from that person only.

 

 

 

And  yes, for your kind information, I have already filed DPT 4.

 

 

 

 

 

 

Thanks and Regards
CS Vandana Periwal

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