DSV & Associates

DSV & Associates DSV & Associates is an integrated company secretaries firm focused on providing services on Company

15/07/2025

Acceptance of Deposits from Members by a Private Limited Company

1. Pursuant to the provision of Section 73(2) of the Companies Act, 2013 A company may accept deposits from its members subject to the following conditions:

(a) Issue of a circular to members showing:

· the financial position of the company,
· credit rating obtained,
· total number of depositors, and
· the amount due towards any previous deposits;

(b) Filing a copy of the circular with the Registrar of Companies (ROC) within 30 days;

(c) Maintenance of a separate deposit repayment reserve account in a scheduled bank by 30th April of each year, with not less than 20% of deposits maturing in the following financial year;

(d) [Omitted];

(e) Certification that the company has not committed any default in repayment of deposits, or has made good such default and five years have lapsed since such default was remedied;

(f) Providing security for repayment of the deposits and interest thereon. In case of unsecured deposits, this must be clearly stated.

2. Exemption for Private Companies (MCA Notification dated 5th June 2015)
The above conditions under clauses (a) to (e) of Section 73(2) shall not apply to a private company which:

Accepts monies from its members not exceeding 100% of the aggregate of its paid-up share capital and free reserves; and

Files details of such monies accepted with the Registrar in Form DPT-3.

· Such a company is not required to:
· Issue a circular,
· Maintain the deposit repayment reserve account, or
· Obtain credit ratings, etc.

However, the company must still pass a resolution in the general meeting and may accept secured or unsecured deposits from its members, duly disclosed.

3. Limit under Rule 3 of the Companies (Acceptance of Deposits) Rules, 2014

A private company may accept deposits from its members up to 100% of the aggregate of paid-up share capital, free reserves, and securities premium account.

Details of such deposits must be filed with ROC in Form DPT-3.

4. Exemption from Limit – Certain Classes of Private Companies

The 100% limit for accepting deposits from members shall not apply to the following private companies:

Start-ups – for ten years from the date of incorporation.

Private companies meeting all the following criteria:

· Not an associate or subsidiary of any other company;
· Borrowings from banks/FIs/body corporates less than twice the paid-up share capital or Rs. 50 crore, whichever is less;
· No default in repayment of such borrowings at the time of accepting deposits.

The Company should file details of monies accepted in Form DPT-3 annually.

15/07/2025

Whether filing of Form ADT-1 is mandatory for appointment of First Auditor under V3 of MCA website due to technical reasons?

The Institute of Company Secretary of India “ICSI” has released a detailed FAQ on V3 portal and clarified that:

Although Rule 4(2) of the Companies (Audit and Auditors) Rules, 2014, only mentions Section 139(1) – appointment of auditors and not Section 139(6) – appointment of the first auditor, it is recommended that companies file Form ADT-1 even for the appointment of the first auditor. In case ADT-1 SRN is not available for first auditor, Z99999999 SRN can be entered.

Therefore, in case ADT-1 is not filed for First Auditor then Z99999999 SRN can still be used while filing of Form AOC-4.

28/01/2023

DSV & Associates is looking for Two CS Trainees for imparting training as per ICSI Guidelines.
Students who have passed CS Executive level or Professional level can apply for the training. Stipend as per ICSI Guidelines.
Selected candidates will get exposure of Corporate Law compliance, FEMA, Secretarial Audit, XBRL filing, Due Diligence, NCLT related matters etc.
Interested students can send their CV / Resume at [email protected]
We will give preference to those who live in and around Pimpri-Chinchwad (“PCMC”)

22/09/2022

Brief highlights of CSR Rules amendments:

Ministry of Corporate Affairs (“MCA”) vide notification dated 20th September, 2022 further amended the Companies (Corporate Social Responsibility Policy) Rules, 2014.

A new proviso is inserted after the First proviso of Rule 3(1):

“Provided further that a company having any amount in its Unspent Corporate Social Responsibility Account as per sub-section (6) of section 135 shall constitute a CSR Committee and comply with the provisions contained in sub-sections (2) to (6) of the said section.”

If a company having any amount lying in Unspent CSR account is now required to constitute a CSR Committee notwithstanding the total spending is less than 50 Lakhs. If a company is carrying any ongoing projects are required to constitute a CSR Committee as they have to transfer the unspent amount to Unspent CSR account.

MCA has also brought one interesting amendment and omitted the Rule 3(2).

Rule 3 (2) which was the one of the most debated/discussed provisions of CSR is no longer exist.

Henceforth, companies are required to see the criteria as specified under Section 135 (1) for triggering the CSR provisions.

A company which has profits around Five Crores is now required to check the eligibility of CSR provisions every year and to comply accordingly.

MCA also amended Rule 4 (1) which talks about CSR Implementation.

A Section 8 Company, Registered Trust, Registered Society which either established by the company/companies or having an established track record of at least three years in undertaking similar activities can implement CSR activities if:

· It either exempted under sub-clauses (iv), (v), (vi) or (via) of clause (23C) of section 10 or registered under section 12A of Income Tax Act; AND
· Approved under 80 G of the Income Tax Act, 1961

Further a new Explanation has been inserted explaining the term entity: For the purpose of clause (c), the term “entity” shall mean a statutory body constituted under an Act of Parliament or State legislature to undertake activities covered in Schedule VII of the Act.’

Rule 8(3)(c) is amended for limiting the expenditure for impact assessments.

Cost of impact assessment, which can be booked as CSR expenditure for that financial year, is reduced to Two percent of total CSR expenditure or Fifty Lakhs, whichever is higher.
MCA also amended the Annexure II for the disclosure in Board’s report.

All these changes will be affective w.e.f. 20th September, 2022. The new Annexure II will be required in case Board report is approved after 20th September, 2022.

16/09/2022

Ministry of corporate Affairs (“MCA”) vide its notification dated 15th September, 2022 increased the threshold limit of definition of small companies.

As per the revised definition a company will be treated as a small company if paid-up share capital of which does not exceed Four crore rupees AND turnover of which as per profit and loss account for the immediately preceding financial year does not exceed Forty crore rupees.

A public company, section 8 company, a holding company or a subsidiary company will continue to be out of purview of definition of small company.

Earlier limit was Two crore paid-up capital and Twenty crore turnover which is now increased to Four Crore and Forty Crore respectively.

This change will certainly reduce the compliance burden on few thousand companies as there are certain relaxation/exemption available for the small companies under the Companies Act.

However, this will make a dent in quality of compliance as certification/signing of annual return by a Practicing Company Secretary will not be required for these companies. There may a lapse in maintenance of statutory documents, minutes, registers etc.

The Government on one side taking very strong action for small & procedural non-compliance and imposing huge penalties for that and on other side it is creating a space where the corporate governance standard might be effected for certain companies.

Our partner has deliberated on the topic of "Enhanced information is required in revised Form DPT3 for exempted deposits...
15/09/2022

Our partner has deliberated on the topic of "Enhanced information is required in revised Form DPT3 for exempted deposits"

The same was published in @ CAclubindia and can be seen at following link : https://lnkd.in/drTPvAGX

The country is clelebrating Azadi Ka Amrit Mahotsav. Hob’ble Prime Minister of our Country Shri Narendra Modi has made a...
26/07/2022

The country is clelebrating Azadi Ka Amrit Mahotsav. Hob’ble Prime Minister of our Country Shri Narendra Modi has made appeal to all the citizen to bring the Tiranga home and to hoist it for 3 days from 13-15 August 2022 under the program of ‘Har Ghar Tiranga’.

Ministry of Corporate Affairs has also contributed to it and allowed spending of CSR funds for Har Ghar Tiranga’ campaign.

Any amount spent for activities related to this campaign such as mass scale production of Tiranga and other related activities will be treated as CSR expenditure.

Wishing all Practicing Company Secretaries, a Very Happy PCS Day!
15/06/2022

Wishing all Practicing Company Secretaries, a Very Happy PCS Day!

14/06/2022

DSV & Associates is looking for two CS Trainees for imparting training as per ICSI Guidelines.
Students who have passed CS Executive level or Professional level can apply for the training. Stipend as per ICSI Guidelines.
Interested students can send their CV / Resume at [email protected]
We will give preference to those who live in and around Pimpri-Chinchwad (“PCMC”)

13/10/2021

DSV & Associates is looking for three CS Trainees for imparting training as per ICSI Guidelines.

Students who have passed CS Executive level or Professional level can apply for the training. Stipend as per ICSI Guidelines.

Interested students can send their CV / Resume at [email protected]

We will give preference to those who live in and around Pimpri-Chinchwad (“PCMC”)

10/03/2021

A recent amendment of Companies (Management and Administration) Rules, 2014 finally clears the air about Form MGT-9. Whether annexing of Form MGT-9 with the Board Report is required or it is required to be uploaded on the website of the Company, if any, were some of the concern that were not address

Address

Office No. 6, 2nd Floor, Prasun Arcade, Lane Opposite To Gokul Hotel, Pimpri
Pune
411018

Opening Hours

Monday 10am - 6:30pm
Tuesday 10am - 6:30pm
Wednesday 10am - 6:30pm
Thursday 10am - 6:30pm
Friday 10am - 6:30pm
Saturday 10am - 6:30pm

Telephone

7620110127

Website

Alerts

Be the first to know and let us send you an email when DSV & Associates posts news and promotions. Your email address will not be used for any other purpose, and you can unsubscribe at any time.

Contact The Practice

Send a message to DSV & Associates:

Shortcuts

Share