deposits & nclt

Presented By-:CA. Mayank MittalACA, PGDBA, CCBAF,B.Com

© 2013 Gurukul CA/CS Classes

CONFIDENTIAL: This document is for our company's internal use only and may not be copied nor distributed to another third party.

DEPOSIT & NCLT-9B Lecture

© 2017 Gurukul CA/CS Classes

CONFIDENTIAL: This document is for our company's internal use only and may not be copied nor distributed to another third party.

1

DEPOSITS

Deposits includes any receipt of money by way of-1- Deposit2- Loan3- in any other Form.

DEPOSITS Does not Include

Amt Recd From Indian Government

Amt Recd From Foreign Government

Loan From a Bank

Loan From PFI’sAmt Recd By issue Of

Commercial PaperAmt Recd From Other

CompanySecurity Deposit from Employees

Amt Recd as Application Money

Amt Recd From The DirectorAmount Bought by

PromotersAmt Held in TRUST

Amt Accepted By Nidhi CompanyAmt Received in the

Course of BusinessAmt Raised by Issue of Secured Debentures

© 2017 Gurukul CA/CS Prepared by CA.Mayank Mittal

• Where the Share application not refunded back to the applicant within 15 days in case

of no allotment then this Share Application Money will be treated as “DEPOSIT”

• Amt recd from Director or through their Relative is not a Deposit unless a

DECLEARATION is received from them that these Funds have not been given by them

from the BORROWED FUNDS.

DEPOSITS FROM MEMBERS (Sec 73)

A company may accept Deposit from the member –

On terms and Conditions as agreed upon the members

SUBJECT to the Following Conditions

Condition 1 A resolution need to be passed at General Meeting

Condition 2 Company need to Adhere to the rules as prescribed by CG

Condition 3

Company need to Issue Circular containing-1. Financial Position of the Company.2. Credit Rating of the Company.3. Details of old Deposits against which payment is pending.4. Such Other Details as prescribed.


Condition 4A copy of Circular containing the Statement need to be filled with ROC 30 days before issuance to Members.

Condition 5

Company need to Deposit 15% of the amount of Deposit maturing during the Current or Next FY to the Deposit Repayment Reserve Account opened with any Scheduled Bank

Condition 6Company need to Deposit Insurance to the extent prescribed fromtime to time.

Condition 7Company need to certify that it has not Defaulted in Repayment ofany Interest or Deposit thereon

If the Deposit is Secured over the Assets of the Company then they are termed as SecuredDeposits otherwise they are termed as UNSECURED Deposits

If the Company make Default in Payment of Matured Deposit or the Interest thereon

then the Depositor may make an application to the TRIBUNAL which in turn after

giving Opportunity of /being Heard can ask the Company to pay the Deposit & Interest

thereon along with any Loss or Damage incurred by the Depositor.


Broad Guidelines i.e RULE 3 of Deposit relating to Deposit from Members.

The Total Deposit of Company at any time should not Exceed25% of the Paid Up share Capital +Free Reserves+ Security Premium Account(Deposit Includes Proposed + Deposit taken up to Date)

Tenure of Deposit should not be less than 6 months and more than 36 monthsHOWEVER…………………………………..

Company can accept deposit for less than 6 months for meeting the Shot Termfinancial Assistance provided-1- Deposit is not repayable in less than 3 months. AND2- Such Short term deposit does not exceed 10% of the Paid up Share Capital + Free Reserves +Security Premium Account


A private Company if accepts deposit from Members it need not- *** IMPT1- Issue Circular to Members-2- Not required to Maintain Liquid Assets3- Not Required to Create Deposit Repayment Reserve4- Not required to Maintain Deposit Insurance5- Not required to Certify that Company has defaulted in Repayment of Deposit

IFFFFFFFFFFFFFFFFFFFF………………….“Private company has accepted Deposit less than the aggregate Paid up ShareCapital + Free Reserves” AND Details of Such Deposit has been Filled with ROC

DEPOSITS FROM PUBLIC (Sec 73 & 76)

Only ELIGIBLE Company can Accept the deposit from Public and they are-

Only PUBLIC Company having

NET WORTH of 100 Crore or MoreTURNOVER of 500 Crore or More

Matlab Private company nhi kar sakti……….

Above Provision Not applicable on-1- Banking company2- Non- Banking Financial Company3- Such Other Company as may be prescribed by CG.

Conditions for Acceptance of Deposits-1- The Company should follow the Rules as prescribed by CG.2- The Company need to get the Rating for its Deposits-(a) Rating should Include Net Worth & Liquidity.\(b) Rating should be obtained from certified Credit Rating Agency(c) Rating ensures Safety to Public.(d) It need to be Obtained every year during the tenure of Deposit.3- Where a Company accept SECURED DEPOSIT it shall create a charge within 30 days from the

date of acceptance of Depoit.


Broad Guidelines i.e RULE 3 of Deposit relating to Deposit from PUBLIC

The Total Deposit of ELIGIBLE Company at any time should not Exceed

IN CASE OF DEPOSIT ONLY FROM MEMBER10% of the Paid Up share Capital +Free Reserves+ Security Premium Account(Deposit Includes Proposed + Deposit taken up to Date)

IN CASE OF DEPOSIT OTHER THAN MEMBER25% of the Paid Up share Capital +Free Reserves+ Security Premium Account(Deposit Includes Proposed + Deposit taken up to Date) (excluding Deposit from Member)

IN CASE OF DEPOSIT By Government Eligible Company35% of the Paid Up share Capital +Free Reserves+ Security Premium Account(Deposit Includes Proposed + Deposit taken up to Date)

Repayment of Deposit before commencement of this Act

If the Company had Accepted deposit before the Commencement of this Act and it

is remaining Unpaid on the commencement of this Act then Company need to

need to File a return to ROC within 3 months in DPT-4 stating the Details of

Deposit, Interest Due , Nature of Deposit and such deposit need to be paid within

1 Year of commencement of the Act.

If the Company fails to repay the same it can ask the Tribunal to grant the

extension for payment of Deposit.


PENALTY IN CASE OF CONTRAVENTION OF SECTION 73 TO 76

Where a company makes a default in Acceptance, Repayment or Renewal of Deposit along with the Interest Due in any section or rule Specified then –

Penalty on Company not less than 1 Crore but which may extend to 10 Crores

Imprisonment to Officer in Default up to maximum 7 Years with the penalty ,minimum of 25Lakhs but which may extend to 2 Crore rupees.

*** Section in which Penalty is on Higher side…isiliye Bach ke rehna re baba bach ke rehna re …


9

NATIONAL COMPANY LAW TRIBUNIAL

The Central Government shall constitute a National Company Law Tribunal by issuing a

NOTIFICATION in the Official Gazette and NCLT has come into existence from 1st June’2016

With the Constitution of NCLT the Company law Board (CLB) stand Dissolved.

Initially NCLT has 11 Benches 2 at New Delhi and 9 in other cities,

The Tribunal shall consist of a president and such number of Judicial and Technical members

not exceeding 67 (for President) and 65 for others to be appointed by the central government.

The president of the Tribunal has been or is qualified to be a Judge of High Court.

The judicial members shall have held

A- is or has been a Judge of High Court

B- is or has been a Judge of District Court for a Period of 5 Years.

C- has been at least 10 years as an advocate of h Court

The Techincal members shall have held

A- shall be in practise of CA, CS or CMA for 15 years service

B- A peron with Ability , Integrity and Special Knowledge and experience for not less than 15

Years.

C- for 15 years have been member of Indian Corporate Law Service.. etx

The powers of Tribunal may be exercised by the Benches to be constituted by President

consisting of one judicial member and one technical member.


The Central Government may in consultation with Chief Justice of India may remove the

President or any member from the office in the event of insolvency , conviction, physical or

mental incapacity, acquisition of prejudicial financial or other interest and abuse of position of

the president or member as the case may be.

Appeal against the order of the Tribunal may be filed by the aggrieved party before the

National Company Law Appellate Tribunal which consists of the Chairman and not

more than 2 members to be appointed by the Central Government.

Tribunal has power to pass orders, rectify its mistake if any within two years from the

date of order and also to review its own order.

The Tenure of President along with Judicial and Technical Member is 5 Years and they are

eligible for Re- Appointment. Until it attains the age of 67 in case of President and 65in case of

technical & Judicial Member. PROVIDED member who has not completed the age of 50 cannot

be appointed as a member. ( Yanni bujurg log hi member ban sakte hai)

NATIONAL COMPANY LAW TRIBUNIAL Continued----


Serving of document to company: A document may be served on a company or an

officer thereof by sending it to the company or the officer at the registered office of the

company by-

♦ registered post, or

♦ speed post, or

♦ courier service, or

♦ leaving it at its registered office, or

♦ means of such electronic or other mode as may be prescribed:

However where securities are held with a depository, the records of the beneficial

ownership may be served by such depository on the company by means of electronic

or other mode.

(2) Serving of document to registrar or member: Save as provided in this Act or

the rules made thereunder for filing of documents with the Registrar in electronic

mode, a document may be served on Registrar or any member by sending it to him by-

♦ Post, or

♦ registered post, or

♦ speed post, or

♦ courier, or

♦ by delivering at his office or address, or


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