DEPOSITS

PRESENTED BY:-AMIT BACHHAWAT

TRAINING FORUM
 FROM WHOM DEPOSITS CAN BE ACCEPTED?

ELIGIBLE COMPANY
(only after comply sec
PUBLIC COMPANY
76 ) PRIVATE COMPANY

FROM PUBLIC FROM ANY

MEMBERS
 ELIGIBLE PUBLIC COMPANY

EVERY PUBLIC
COMPANY

CO. HAVING NW AT
LEAST 100
CRORES
OR
Special
provisions TURNOVER AT
for IFSC Pvt. LEAST 500
Co. / IFSC CRORES
Public
companies
 PRIVATE COMPANY

CANNOT ACCEPT DEPOSITS FROM PUBLIC

Can accept deposit from MEMBERS (SHAREHOLDERS) W.E.F = 5-6-15 without complying
Section 73(2) ,Pvt. Co. Can borrow UPTO 100% OF ITS PAID UP CAPITAL AND FREE
RESERVES FROM ITS SHAREHOLDERS WITHOUT COMPLYING WITH SECTION 73(2) ROC
must be informed about details of such money.

Note:-

A Pvt. Co. can borrow money FROM DIRECTORS/RELATIVES OF 'D'. It is EXEMPTED

from compliance of deposits Related section.
If 'd'/relatives give A DECLARATION that funds were lent. Not out of borrowings and
co. SHALL DISCLOSURE IN BOARD'S REPORT
 35% of paid up share capital and free reserves and
surplus:- 2 sections 73(2) & 76
For 35 %- Already deposits +Proposed deposits from
shareholders.
 SECTION 73(2)

1.Ordinary resolution in general 2.CIRCULARS to be issued to members

meeting including a statement showing financial
positions
3.First a circular is to be SUBMITTED with ROC within 30 days BEFORE ISSUE to
members
4.Maintainence of liquid assets atleast
5. Certification that the company has
15% OF THE DEPOSITS MATURING
not default any repayment of
DURING CURRENT YEAR AND NEXT
deposits
YEAR.

7. Deposits MAY BE secured / unsecured

 SECTION 76

2.SR RESULTS TO BE FILED WITH

1.SR IN GM
ROC

4.Circulars to be issued TO
3.CIRCULARS file with ROC IN DPT-1
PUBLIC.

5..Maintainence of liquid assets

6. CREDIT RATINGS EVERY YEAR. 7.Deposits must be SECURED

ATLEAST to the value of the
deposits
 A PRIVATE company can borrow more than 100 % if
• A pvt co.which s a startups for 5 yrs from the date of incorporation.
• A pvt co.which fulfills all the conditions :- REFER Class Discussion.
•
• Circular to ROC
• Circular to PUBLIC
• ADVERTISEMENT in English + Regional
newspaper.
• Sec 73(2) + website if any
• Maintainence of LIQUID ASSETS.

SEC 76(A)
CO.:- Min 1 crore
OR
Deposits amount whichever is lower.
Officer:-Maximum imprisonment 7 yrs
AND
MIN 25 LACS MAXIMUM 2 CRORES.
 PERIOD FOR ACCEPTING DEPOSITS

NO CO. Shall accept any deposit which is repayable within a period of:-

LESS THAN MORE

6 MONTHS THAN 36
MONTHS
 MAXIMUM AMOUNT OF DEPOSITS

GOVT.CO
NON GOVT .
PRIVATE
PUBLIC
CO.
COMPANY

SHAREHOLDERS 10%
100% OF PAID UP 35% OF PAID UP
OF PAID UP
SHARECAPITAL AND SHARECAPITAL AND
SHARECAPITAL AND
RESERVES RESERVES
RESERVES

OTHER 25% OF
PAID UP
SHARECAPITAL
AND RESERVES
 EXEMPTED DEPOSITS (EXAMPLE)

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

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

4. any amount received by a company from any other company;

5.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;
 6.Any amount raised through compulsorily convertible secured Bonds or debentures
shall be redeemed now WITHIN 10 YEARS. (EARLIER IT WAS 5 YEARS).

7.Any amount raised by issue of Non-Convertible Debentures (NCDs) not constituting

a charge on the assets of the company and listed on recognised stock exchange as
per SEBI.

8. Any NON-INTEREST bearing amount received and held in TRUST;

9. Any amount received in the ordinary course of business –

a) as an advance towards consideration for providing future services in the form of a

warranty or maintenance contract as per written agreement or arrangement, if the
period for providing such services does not exceed the period prevalent as per common
business practice or five years, from the date of acceptance of such service whichever is
less;
b. As an advance received and as allowed by any sectoral regulator or in accordance with
directions of Central or state Government;

c) As an advance for subscription towards publication, whether in point or in electronic to be

adjusted against receipt of such publications;
 IFSC COMPANY PROVISIONS

IFSC COMPANY :- INTERNATIONAL FINANCIAL SERVICE CODE

EX:- GUJARAT GIFT CITY GANDHINAGAR
IFSC CO.are limited by shares which carry the objects mentioned in SEZ.
GIFT:- Gujarat International Financial TECH city...JV BETWEEN:-
ILFS :- Infrastructure leasing &financial services ltd
&
GUJARAT URBAN DEVELOPMENT CORPORATION LTD.

“Provided that a SPECIFIED IFSC PUBLIC COMPANY AND A PRIVATE COMPANY may
accept from its members monies NOT EXCEEDING ONE HUNDRED PER CENT. OF
AGGREGATE OF THE PAID UP SHARE CAPITAL, FREE RESERVES AND SECURITIES
PREMIUM ACCOUNT and such company shall file the details of monies so accepted to
the Registrar in Form DPT-3.

Provided further that the MAXIMUM LIMIT IN RESPECT OF DEPOSITS to be accepted

from members shall NOT APPLY TO FOLLOWING CLASSES OF PRIVATE COMPANIES,
namely:—

1. a private company which is a start-up, FOR FIVE YEARS FROM THE DATE OF ITS
INCORPORATION;
2. a private company which fulfils ALL of the following conditions, namely:—

b.The borrowings of
a. Which is NOT AN such a company from
ASSOCIATE OR A banks or financial
SUBSIDIARY COMPANY institutions or anybody
OF ANY OTHER corporate is less than
COMPANY Twice of its paid up
share capital or fifty
crore rupees, whichever
is less;
Such a company
HAS NOT Provided also that all
DEFAULTED IN THE the companies
REPAYMENT OF accepting deposits
SUCH BORROWINGS shall file the details
subsisting at the time of monies so
of Accepting accepted to the
deposits under Registrar in Form
section 73: DPT-3