Amount received by Private Companies prior to 1st April, 2014 shall not be treated as deposit under new Companies Act, 2013

1. The Ministry of Corporate Affairs (MCA), vide circular no. 5/2015 dated 30-03-2015, has clarified that amount received by private companies from their members, directors or their relatives prior to 1st April, 2014 shall not be treated as deposit under new Companies Act, 2013 and Companies (Acceptance of Deposits) Rules, 2014.

2. 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.

3. 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.

Circular of Ministry of Company Affairs is attached herewith.