The Eligible Company and the Manner of Acceptance
Section 73 prohibits a company from inviting, accepting, or renewing deposits from the public except in the manner provided under Chapter V. The eligible company must pass a board resolution, obtain the consent of the shareholders by special resolution where required, and comply with the prescribed deposit rules. The invitation must be accompanied by a circular containing the prescribed disclosures.
The Deposit Repayment Reserve
The company must create a deposit repayment reserve account and deposit at least twenty per cent of the amount of deposits maturing during the financial year on or before the thirtieth day of April each year. The reserve is a ring-fenced amount for repayment; a company that uses it for operations has not complied with the liquidity requirement.
The DPT-3 Return
Every company that has accepted deposits or has outstanding exempted deposits must file Form DPT-3 with the Registrar. The return must reconcile the deposits with the books and disclose the aging of exempted deposits where required. A DPT-3 that does not reconcile with the financial statements is a filing defect.
The Repayment and Renewal Discipline
Every deposit must be repaid with interest in accordance with the terms of the agreement. Renewal is permissible only in accordance with Chapter V and the rules. A rollover without a fresh agreement and without the prescribed disclosures is a renewal in an impermissible manner.
Documentation
The file should contain: the board resolution; the shareholder resolution where applicable; the deposit circular; the deposit agreement; the repayment reserve computation and challan; the DPT-3 filing; and the repayment schedule. A company that has the deposit receipt but not the reserve computation has not established compliance.
Call to Action: For Chapter V deposit compliance review, DPT-3 reconciliation, or repayment reserve computation, contact office@anujdesaiassociates.com or 9619456656. Website: https://anujdesaiassociates.com. LinkedIn: linkedin.com/in/ca-anuj-desai-122547230.