DEPOSITS PRESENTED BY:-AMIT BACHHAWAT TRAINING FORUM

FROM WHOM DEPOSITS CAN BE ACCEPTED? ELIGIBLE COMPANY (only after comply sec 76 ) PUBLIC COMPANY PRIVATE COMPANY FROM ANY MEMBERS FROM PUBLIC

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

must be informed about details of such money. 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

For 35 %- Already deposits +Proposed deposits from shareholders. 35% of paid up share capital and free reserves and surplus:- 2 sections 73(2) & 76 For 35 %- Already deposits +Proposed deposits from shareholders.

Sec 76 PUBLIC 25% OF PUSC ,FR, & SP Shareholders Max 10% of PUSC,FR & SP

2.CIRCULARS to be issued to members SECTION 73(2) 2.CIRCULARS to be issued to members including a statement showing financial positions 1.Ordinary resolution in general meeting 3.First a circular is to be SUBMITTED with ROC within 30 days BEFORE ISSUE to members 4.Maintainence of liquid assets atleast During the next financial year 5. Certification that the company has not default any repayment of deposits 20% OF THE DEPOSITS MATURING 7. Deposits MAY BE secured / unsecured

7.Deposits must be SECURED ATLEAST to the value of the deposits SECTION 76 1.SR IN GM 2.SR RESULTS TO BE FILED WITH ROC 3.CIRCULARS file with ROC IN DPT-1 4.Circulars to be issued TO 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. •

MIN 25 LACS MAXIMUM 2 CRORES. 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:- MORE THAN 36 MONTHS LESS THAN 6 MONTHS

MAXIMUM AMOUNT OF DEPOSITS GOVT.CO . NON GOVT PUBLIC COMPANY PRIVATE CO. SHAREHOLDERS 10% OF PAID UP SHARECAPITAL AND RESERVES 100% OF PAID UP SHARECAPITAL AND RESERVES 35% OF PAID UP SHARECAPITAL AND 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) ot 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 CENTRE 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;

a. Which is NOT AN ASSOCIATE OR A 2. a private company which fulfils ALL of the following conditions, namely:— b.The borrowings of such a company from banks or financial institutions or anybody corporate is less than Twice of its paid up share capital or fifty crore rupees, whichever is less; a. Which is NOT AN ASSOCIATE OR A SUBSIDIARY COMPANY OF ANY OTHER COMPANY Such a company HAS NOT DEFAULTED IN THE REPAYMENT OF SUCH BORROWINGS subsisting at the time of Accepting deposits under section 73: Provided also that all the companies accepting deposits shall file the details of monies so accepted to the Registrar in Form DPT-3