Amount received by private companies from their members, directors or their relatives before 1st April, 2014 – Clarification regarding applicability of Companies (Acceptance of Deposits) Rules, 2014

General Circular No. O5/2O15

F. No. 1/8/2013-CL-V
Government of India
Ministry of Corporate Affairs

5th Floor, A Wing, Shastri Bhavan,
Dr R.P. Road, New Delhi.

Dated 3oth March, 2015

To
All Regional Directors,
All Registrars of Companies,
All stakeholders.

Subject: Amount received by private companies from their members, directors or their relatives before lst April, 2014 – Clarification regarding applicability of Companies (Acceptance of Deposits Rules, 20l4)

Sir,

1. Stakeholders have sought clarifications as to whether amounts received by private companies from their members, directors or their relatives prior to 1st April, 2014 shall be considered as deposits under the Companies Act, 2013 as such amounts were not treated as ‘deposits’ under section 58A of the Companies Act, 1956 and rules made thereunder.

2.The matter has been examined in consultation with RBI and it is clarified that such amounts received by private companies prior to 16th April, 20l4 shall not be treated as ‘deposits’ under the Companies Act,2013 and Companies (Acceptance of Deposits) Rules, 2014 subject to the condition that relevant private company shall disclose, in the notes to its financial statement for the financial year commencing on or after lst April, 2014 the figure of such amounts and the accounting head in which such amounts have been shown in the financial statement.

3. Any renewal or acceptance of fresh deposits on or after 1st April, 2014 shall, however, be in accordance with the provisions of Companies Act, 20 13 and rules made thereunder.

4.This issues with the approval of the competent authority.

Yours faithfully.

(K.M.S Narayana)
Assistant Director (Policy)

Copy to:- 1 e-Governance Section and web contents Officer to place this circular on the Ministry website.
2. Guard File.

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