Public Deposits

Reporting requirement

Report whether the company has accepted any deposits or amounts deemed to be deposits as per directives issued by the Reserve Bank of India or as per the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act and the rules framed thereunder. If yes, whether the directives have been complied with — and report any contravention. Also report whether any order has been passed by CLB / NCLT / RBI on the company.

What to verify before signing

• Inquiry into receipt of any amount that could be deemed a deposit
• Rule 2(1)(c) of the Deposit Rules — list of exclusions (amounts received from directors, shareholders, banks etc.)
• Compliance with deposit limits (35% of paid-up capital + free reserves for eligible companies)
• Form DPT-1 (circular), DPT-3 (return), credit rating, deposit repayment reserve
• Any pending orders against the company

Sample observation — applicable

The Company has not accepted any deposits or amounts which are deemed to be deposits from the public. Accordingly, the provisions of clause 3(v) of the Order are not applicable to the Company.

Related standards