DEPOSITS AND NCLT UNDER COMPANIES ACT 2013 FOR CA IPCC STUDENTS

1. Presented By-:
CA. Mayank Mittal
ACA, 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

2. DEPOSITS
Deposits includes any receipt of money by way of-
1- Deposit
2- Loan
3- 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’s
Amt Recd By issue Of
Commercial Paper
Amt Recd From Other
CompanySecurity Deposit from
Employees
Amt Recd as Application
Money
Amt Recd From The
DirectorAmount Bought by
Promoters
Amt Held in TRUST
Amt Accepted By Nidhi
CompanyAmt Received in the
Course of Business
Amt Raised by Issue of
Secured Debentures
© 2017 Gurukul CA/CS Prepared by CA.Mayank Mittal

3. • 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.
© 2017 Gurukul CA/CS Prepared by CA.Mayank Mittal

4. Condition 4
A 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 6
Company need to Deposit Insurance to the extent prescribed from
time to time.
Condition 7
Company need to certify that it has not Defaulted in Repayment of
any Interest or Deposit thereon
If the Deposit is Secured over the Assets of the Company then they are termed as Secured
Deposits 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.
© 2017 Gurukul CA/CS Prepared by CA.Mayank Mittal

5. Broad Guidelines i.e RULE 3 of Deposit relating to Deposit from Members.
 The Total Deposit of Company at any time should not Exceed
25% 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 months
HOWEVER…………………………………..
Company can accept deposit for less than 6 months for meeting the Shot Term
financial Assistance provided-
1- Deposit is not repayable in less than 3 months. AND
2- Such Short term deposit does not exceed 10% of the Paid up Share Capital + Free Reserves +
Security Premium Account
© 2017 Gurukul CA/CS Prepared by CA.Mayank Mittal
A private Company if accepts deposit from Members it need not- *** IMPT
1- Issue Circular to Members-
2- Not required to Maintain Liquid Assets
3- Not Required to Create Deposit Repayment Reserve
4- Not required to Maintain Deposit Insurance
5- Not required to Certify that Company has defaulted in Repayment of Deposit
IFFFFFFFFFFFFFFFFFFFF………………….
“Private company has accepted Deposit less than the aggregate Paid up Share
Capital + Free Reserves” AND Details of Such Deposit has been Filled with ROC

6. 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 More
TURNOVER of 500 Crore or More
Matlab Private company nhi kar sakti……….
Above Provision Not applicable on-
1- Banking company
2- Non- Banking Financial Company
3- 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.
© 2017 Gurukul CA/CS Prepared by CA.Mayank Mittal

7. 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 MEMBER
10% 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 MEMBER
25% 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 Company
35% 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.
© 2017 Gurukul CA/CS Prepared by CA.Mayank Mittal

8. 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 25
Lakhs 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
…
© 2017 Gurukul CA/CS Prepared by CA.Mayank Mittal

9. 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.
© 2017 Gurukul CA/CS Prepared by CA.Mayank Mittal

10. 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----
© 2017 Gurukul CA/CS Prepared by CA.Mayank Mittal

11. 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
© 2017 Gurukul CA/CS Prepared by CA.Mayank Mittal