The Companies Act, 2013 had imposed certain restriction on acceptance of Deposits from Members, Directors & relatives. These were covered by Companies Acceptance of Deposits rules. There was no clarity on the deposits,loans accepted by the Private Limited Companies prior to 1st April 2014.
In order to clarify the same, the Ministry of Corporate affairs (MCA) has issued a new Circular No 5/2015 dtd 30th March 2015. The Clarification is as follows :-
The amounts received by private companies prior to 1 st April, 2014 shall not be treated as ‘deposits’ under the Companies Act,2013 and Companies (Acceptance of Deposits) Rules, 2014 subject to the condition that relevant private company shall disclose, in the notes to its financial statement for the financial year commencing on or after 1st April, 2014 the figure of such amounts and the accounting head in which such amounts have been shown in the financial statement.
However, any renewal or acceptance of fresh deposits on or after 1st April, 2014 shall, however, be in accordance with the provisions of Companies Act, 2013 and rules made thereunder.
The relevant notification is reproduced below :-