18 April 2014
No Deposits have been defined as any receipt of money. Thus the Company will have to comply with the provisions of deposits on amount taken from person other than promoters at the time of initiation of new projects. However, the situation changes when Unsecured Loans are taken from Promoters as the same have been exempted from deposits as per Rule 2 c (xiii). It states that any amount brought in by the promoters of the company by way of unsecured loans in pursuance of stipulation of any loan agreement (of lending financial institution or bank) and the loan is brought in by promoters or relatives or both, the same will be exempt from deposits till the loan of bank is repaid.
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CAclubindia
