Annual Compliance for Companies: Form DPT-3

Annual Compliance for Companies: Form DPT-3

Annual Compliance for Companies: Form DPT-3

For safeguard the interest of creditors or depositors, the Government with consultation of the Reserve Bank of India notified the amendment in the Companies (Acceptance of Deposits) Rules 2014 through Companies (Acceptance of Deposits) Amendment Rules 2019. Through this amendment the form DPT-3 was introduced and is required to be filed annually. With reference to sub-rule (3) of rule 16A of the Companies (Acceptance of Deposit) rules, 2014 read as:

Every company other than a Government company shall file a return of outstanding receipts of money or loan by a company but not considered such receipts as deposits, in terms of clause (c) of sub-rule 1 of rule 2 the form must be filed within 90 days from the end of financial year i.e. 30th June of following financial year.

Even if the holding or subsidiary or associate company obtains any loan from its parent company needs to file DPT-3.

Exemption from filing of DPT-3

  1. Government Companies
  2. Banking Companies
  3. Non-Banking Financial Company (NBFC)
  4. Housing Finance Company registered with National Housing Bank
  5. Any other company as notified by the act time to time.

Type and Filing of form DPT-3

The form DPT-3 is of two types:

  1. One Time Return: The one time return is to be filed for the period starting from 1st April 2014 to 31st march 2019. Thus companies received any receipts or deposits which stand outstanding as on 31st march 2019 must file this return DPT-3.
  2. Annual Return: The annual return is to be filed annually from the financial year 2019 onwards, this includes all amount standing outstanding at closing of financial year.

Transections not considered as Deposits

Following transactions are not considered as deposits and thus the form DPT-3 is not required to file to report these transactions.

  1. Any amount or guarantee received by government or a foreign government.
  1. Amount received as a loan from any Public Financial Institutions, Insurance Companies or Banks
  2. Any amount received by a company.
  3. Subscription to securities and call in advance.
  4. Any amount received from the director of the company or a relative of the director of the Private limited company, who held the positions at the time of lending.  
  5. Any amount received by the company from an employee, not exceeding his annual salary under the employee contract such as non-interest bearing security deposit.
  6. Any amount received in the course of, or for the purposes of, the business of the company as an advance for the supply of goods or provision of services or as a security deposit for the performance of the contract for the supply of goods or provision of services.
  7. Receipt of Rs 25 lakh or more by a startup company in the form of a convertible note, in a single tranche.
  8. Amount raised by the issuing secured bonds or debentures with first charge, non-convertible debentures not having a charge on the assets of the company.
  9. Unsecured loans from promoters.
  10. Any amount received by the company from a collective investment scheme, alternate investment funds or mutual funds registered with SEBI.
  11. Any other amount which is not considered as a deposit under Rule 2(1)(c).

Hence any amount whether secured or unsecured and which is outstanding money or loan not considered as deposits must be reported. 

Prerequisites of form DPT-3

  1. CIN no of the company
  2. Email id registered with ROC
  3. Business object of the company
  4. Net-worth of the company
  5. Particulars of charge if any
  6. The total amount outstanding as on 31st march of the year.

Attachments required to submit along with Form DPT-3

  1. Certificate issued from Auditor
  2. List of depositors ( list of deposits matured and cheque issued but not yet cleared to be shown separately)
  3. Details of liquid assets
  4. Details of Charge
  5. Any other details

Consequences of non-filing of form DPT-3

A penalty is imposed for delayed filing of form DPT-3, which could be up to 12 times of normal form fee i.e. Rs. 3600/-

Punishment for contravention of section 73 or 76 of the Companies Act 2013

If a company accepts or invites or allows any other person on its behalf to accept of invite any deposits in contravention of the conditions prescribed under section 73 or 76 or rules made thereunder or if a company fails to repay the deposit or part thereof or any interest within the time period specified then it will face the following consequences:

  • Under Section 73 A penalty of minimum 1 crore or twice the amount of deposits whichever is lower,  which may extend to Rs. 10 crore 
  • For every officer who is in default imprisonment up to 7 years and with a fine not less than Rs.  25 lakhs which may extend to Rs. 2 crores.  
  • Under Rule 21 On the company and every officer in default a fine which may extend up to Rs.  5,000, and where the contravention is a continuing one, a fine of Rs. 500 for every day since the default.  

Our opinion: There is no established view on non-filing of form DPT-3, it is always advisable to file the form and even if there is no relevant transections taken place during the previous year.