Deposits query

This discussion clarifies how to handle advance payments received by a company that haven't been adjusted within 365 days, as these may be classified as deposits under the Companies Act 2013. It explores the distinction between advances and deposits, the relevant sections of the Act (73-76), and how the source and purpose of the funds are crucial. The advice suggests that if the advance is tied to a specific contract or service (like a warranty), it might be exempt from deposit rules, even if utilisation extends beyond 365 days, provided this is clearly stated in the contract. If not properly accounted for, there's a limited window to return the money before stricter deposit provisions apply.