DPT-4 (QUERY ON DEPOSIT DEFINATION )

[CABIJENDERKUMAR BANSAL]

Please suggest:

As per Companies (Acceptance of Deposits) Rules, 2014.

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

point no. (viii)-- any amount received from a person who, at the time of the receipt of the amount, was a director of the company:

Query 1: for e.g. x was not a director as on 15.04.2012 give loan of Rs. 10 lacs to company xyz. after that he became director on 15.07.2013 and was a director on 01.04.2014, will this loan of Rs. 10 lacs be covered under deposit or not for filing DPT-4??

Query 2: for e.g. x was not a director as on 15.04.2012 give loan of Rs. 10 lacs to company xyz,

after that he became director on 15.07.2013,

after that on 20.08.2013 company repay loan of Rs. 3 lacs to X, closing balance is Rs. 7 lacs

after that x gives further loan of Rs. 6 lacs on 30.09.2013, closing balance Rs. 13 lacs,

what amount of closing balance as on 01.04.2014 of Rs. 13 lacs be covered under deposit for filing DPT-4??

Thanks a lot in advance for your valuable time.

[CAGOPALJI AGRAWAL]

In your question, if X was not the director, whether he was shareholder or relative of the director otherwise it would have been public deposit also. Whether your company is private limited or not is not clear from your question.

The loans outstanding as at March 31, 2014 taken from the directors are not deposits and not required to be reported in DPT4

[CABIJENDERKUMAR BANSAL]

Dear Sir,

Thanks for your feedback.

In both cases, company is Pvt. Ltd company . Mr.  X was the shareholder at the time of giving loan to company.

Our specific query is that whether we have to check Mr. X was director on the date of giving loan to company or on the date of 31st March 2014.

Please give your valuable advise on both case.

Regards

CA. B.K.Bansal

AI Summary

Deposit exclusion for amounts received from directors hinges on the lender's directorship at the time of receipt.
Interpretation of the deposit definition under the Companies (Acceptance of Deposits) Rules, 2014: whether the exclusion for amounts received from a person who, at the time of receipt, was a director depends on the lender's status at the date of receipt or at the reporting date. The query presents scenarios where loans were advanced before the lender became a director and asks if outstanding amounts as at March 31 must be treated as deposits for DPT-4. A respondent observed that loans outstanding as at March 31 taken from directors are not deposits and need not be reported in DPT-4.