Return of Loans, Deposits and a “not Deposits”

This is the continuation of earlier post written here. Now, the Ministry of Corporate Affairs deployed the updated Form DPT – 3 which is nodal form to file the return of deposits and “not deposits”.

In this post, we will analyse the updated Form DPT – 3 and try to solve the mystery what where and when to report in the return.

The Form

The Form for return of deposits is called form DPT – 3. This is one of the frequently amended Form under the Companies Act, 2013 and rules made thereunder.

Earlier major changes in the form DPT – 3 were the introduction of Deposit insurance and Credit rating. Deposit Insurance and credit rating is no longer part of Deposit Rules and the Form. This reduced reduction of depositors’ protection is a cause of concern for the regulators. This issue of investor and depositors protection will attract more serious thought from regulators in the near future.

The present version of the Form has major change due to Rule 16A.

Purpose of the Form

There are four listed purposes of the electronic version of Form DPT – 3 officially names as “Return of Deposits”:

  1. Onetime Return for disclosure of details of outstanding money or loan received by a company but not considered as deposits in terms of rule 2(1)(c) of the Companies (Acceptance of Deposits) Rules, 2014;
  2. Return of Deposit;
  3. Particulars of transactions by a company not considered as deposit as per rule 2 (1) (c) of the Companies (Acceptance of Deposit) Rules, 2014; and
  4. Return of Deposit and Particulars of transactions by a company not considered as a deposit.

The first option is regarding much talk about one time return under the new Rule 16A of the amounts not considered as deposits. All other three options are from the newly introduced explanation to Rule 16 – a silent killer.

No killer can kill deposits and non-deposits even without any reasonable investor protection as I mentioned much earlier here. This form is just another powerless nail in the powerful coffin of zombies – called poor investors.

In this post, we will discuss this form as 4 separate forms.

Form DPT-3 Option 1 one time

One time return is compulsory when a company has an outstanding receipt of money or loan by a company but not considered as deposits in terms of clause (c) of sub-rule 1 of rule 2 from the 01st April 2014 to 31st March 2019. This is a long list reproduced earlier here. When selecting this option the form is not asking any detailed breakup. However, it is advisable to attached breakup to avoid future confusion for the registrar or the company. Critical reading of the Form supports the requirement of the breakup. This breakup is also otherwise going to be given in regular Form DPT – 3 Option 3 and Option 4.

The last date for such onetime return is 90 days from 31st March 2019 which comes to 28th June 2019.

This form is quite simple as it is asking Total amounts of outstanding money or loan received by a company but not considered as deposits in terms of rule 2(1)(c) of the Companies (Acceptance of Deposits) Rules,2014 as specified in rule 16(A)(3). It almost ends here by filling the amount in field 14.

Catch 1- Form DPT-3 Option 1 one time

Some amounts so received may require creating charge like bank loans. Please mention details of all of the charges created and registered by the company in the field 13, which is optional. The option here does not mean your option but applicability in your case. The form design is poor and may not accommodate all charges. Here you require attachment for details of charges to comply with the intention. Now, it is required to have the reconciliation of charges, other deposits, non-deposits and total amount. This is the reason for my earlier suggestion for attachment of all breakups of the amount.

Simply, a company may ignore this field 13. MCA may not successfully prosecute a company for this lapse.

Catch -2 Form DPT-3 Option 1 one time

Field 16 requires credit rating details. Credit rating for deposits was an on-off game in the deposit rules. However, some of the amounts included in the total amount mentioned in Field 14 may be taken after taking a credit rating. Should I repeat all thing mentioned against Catch 1 above? That is applicable here also.

Catch -3 Form DPT-3 Option 1 one time

Auditor certificate, which seems another optional field, will be a great grey area. The amount mentioned in this form is an acknowledgement of debt. Why should you acknowledge a penny more? Will not your acknowledgement of a lesser amount amounting to the misleading statement? Why should the Registrar put his stamp of approval on any non-verified amount?

Please get the auditor certificate first. A delay may always be better than a future problem. Yes, most of the Registrars sending this form without auditor certificate for resubmission. I appreciate their concern.

Catch -4 Form DPT-3 Option 1 one time

I am writing a thank you note to MCA for not considering my pre-certification on the form.

Form DPT-3 Option 2 Annual Return of Deposits

This is familiar old forms DPT – 3. The last date is 30 June 2019.

Most of the optional fields are not optional at will but applicability. This form is well explained and familiar with most of the companies taking deposits and professionals.

Form DPT-3 Option 3 Annual Return of non-Deposits

This is the form which was enough for the purpose one-time form want to achieve. This is more detailed and useful to achieve its purpose. Any company which is filing Form DPT-3 Option 1 one time return should file this form also. Further, any company which has accepted any such amount before 1st April 2014which is still outstanding, it will also file this form.

While Form DPT-3 Option 1 one time is asking the total amount of non- deposits this Form asking the breakup. Total of the amounts mentioned in both forms may or may not tally depending upon the time when such amount was taken by the company.

Form DPT-3 Option 4 Annual Return of Deposits and non-deposit.

This is the form which should replace with present 4 headed monsters DPT -3. This single form with all fields in this form are enough to achieve the purpose, the Government may want to achieve.

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