REFERENCER ON DPT-3

Nitin Naresh June 14, 2024

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Under the Companies Act, 2013, Form DPT-3 is a vital filing requirement for companies to report outstanding loans and borrowings. Filing DPT 3 promotes transparency in financial transactions, and it holds companies accountable for their deposit-related activities. The disclosed information in Form DPT 3 is accessible to the public and other stakeholders, fostering trust and confidence in the company’s financial operations.

Since due date for filing of DPT-3 is June 30^th every year, it can be filed on the basis of unaudited financial statements. It should be kept in mind that figures so reported shall be in consonance with figures to be finalized.

In this article, we delve into the nuances of Form DPT-3, covering its applicability, filing frequency, reporting details, consequences of non-compliance, and exempted transactions.

Legal Provisions for DPT 3 Filing:

Section 73(2) of the Companies Act: Section 73(2) of the Act provides the framework for acceptance of deposits by companies, in accordance with the relevant rules issued by the Ministry of Corporate Affairs in consultation with the Reserve Bank of India.

Rule 16, Companies (Acceptance and Deposits) Rules: Rule 16 of the Companies (Acceptance and Deposits) Rules states that every company to which these rules apply, shall on or before the 30^th day of June, of every year, file with the Registrar, a return in Form DPT 3 along with the fee as provided in Companies (Registration Offices and Fees) Rules, 2014 and furnish the information contained therein as on the 31^st day of March of that year duly audited by the auditor of the company in Form DPT 3.

Rule 16A of the Companies (Acceptance and Deposits) Rules: The Company (Acceptance of Deposits) Amendment Rules, 2020 introduced amendments to the original rules and added new provisions in Rule 16A.

Important Points for DPT-3:

Applicability: All companies, including public and private companies, that fall under the Companies Act of 2013 are required to submit Form DPT-3.

Filing Frequency: Form DPT-3 is an annual filing, meaning it needs to be submitted once every financial year. The filing deadline is within 90 days from the end of the financial year, specifically on or before June 30^th each year.

Reporting Details: The form requires companies to provide comprehensive information about their outstanding loans, deposits, and other specified transactions as of the date of the balance sheet. This includes details such as the nature of the transaction, amount, parties involved, interest rates, maturity dates, and more.

Deposits And Exempted Deposits: Deposits are governed by the Companies (Acceptance of Deposits) Rules, 2014. Any transaction taken place as prescribed under Rule 2 (1) (c) of the Companies (Acceptance of Deposits) Rules, 2014 is treated as Exempted Deposits.

Any receipt of money apart from the transactions mentioned in Rule 2 (1) (c) of the Companies (Acceptance of Deposits) Rules, 2014 are treated as Deposits.

Companies Required to File DPT-3 Form:

According to rule 16A, all companies that have received money and have pending loans are obligated to file Form DPT-3.

This requirement applies to all types of companies, including small, private, non-small, OPC, and others.

Both secured and unsecured loans, along with advances for goods and services, must be reported in Form DPT-3.

Even if a Holding Company, Subsidiary Company, or Associate Company obtains a loan, they are also required to file Form DPT-3.

Filing Fees: The Companies (Registration Offices and Fees) Rules, 2014 stipulate that filing fees must be paid according to the prescribed rates.

Consequences of Non-Filing: Failure to comply with the requirements of Form DPT-3 and accepting deposits can lead to the following consequences:

Under Section 73, the company may face a penalty of a minimum of 1 crore or twice the amount of Deposits, whichever is lower, with a maximum penalty of Rs. 10 crore.

Every officer in default may be liable to imprisonment for up to 7 years and a fine ranging from Rs. 25 lakhs to Rs. 2 crores.

Under Rule 21, the company and every officer in default may face a fine of up to Rs. 5,000, with an additional fine of Rs. 500 per day for a continuing contravention.

Transactions Not Considered Deposits: There are several transactions that are not considered as deposits under the Companies Act. These include:

Amounts received from the central government, state government, or any other source with a repayment guarantee from the central or state government.

Amounts received from members, directors, or their relatives by a private limited company.

Amounts received from foreign governments, foreign or international banks, foreign body corporates, foreign investors, and foreign collaborators.

Loan facilities availed from Banking Companies, the State Bank of India, or any banking institution notified by the central government.

Loan facilities availed from public financial institutions.

Amounts received by the company against the issue of commercial paper or any other instruments.

Amounts received by the company from other companies.

Amounts received and held by the company through an offer made in accordance with the provisions of the Act for the subscription to securities, including share application money or advance received for allotment of securities, provided the allotment is made within 60 days.

Amounts received from directors of the company, accompanied by a declaration stating that the amount is not borrowed or accepted as a loan or deposit from others.

Amounts raised by the company through the issue of secured bonds or debentures.

Amounts received from employees of the company, not exceeding their annual salary, as non-interest-bearing security deposits.

Non-interest-bearing amounts received or held in trust.

Advances received from customers for the supply of goods or provision of services, which are accounted for and appropriated against such supply or provision within 365 days.

Advances received in connection with consideration for property under an agreement or arrangement, adjusted against the property as per the terms of the agreement or arrangement.