Sectiom 58a

Siddharth (Student) (128 Points)

10 September 2013  

Dear friends,

A private construction company has received advances from customers regarding a particular project. Later that particular project was cancelled & closed. The same advances were not returned for 2yrs. Will these be considered as deposits and attracts sec 58A provisions of companies Act. If yes please explain the reason for considering such advances as deposits. Part of Advances was repaid to one of the customers though.

Thanks in Advance.