BACKGROUND
The Ministry of Corporate Affairs (MCA) introduced e-Form DPT-3 as a compliance requirement under the Companies (Acceptance of Deposits) Rules, 2014.
The form is intended to facilitate reporting of deposits and certain categories of outstanding receipts of money or loans received by companies that are not treated as deposits under the applicable legal framework.
Every company falling within the scope of the relevant provisions is required to file the prescribed information within the timelines specified under the Companies Act, 2013 and the associated rules.
APPLICABLE LAW
- Chapter V of the Companies Act, 2013 – Acceptance of Deposits by Companies.
- Rule 16 of the Companies (Acceptance of Deposits) Rules, 2014.
- Rule 16A of the Companies (Acceptance of Deposits) Rules, 2014.
Rule 16 – Annual Return of Deposits
Every company, other than a Government Company, to which the rules apply is required to file e-Form DPT-3 with the Registrar on or before June 30 of every year.
The return must contain information as of March 31 of the relevant financial year and must be accompanied by the applicable filing fees prescribed under the Companies (Registration Offices and Fees) Rules, 2014.
In cases involving deposits, the information is required to be duly audited by the company’s auditor.
Rule 16A(3) – One-Time Return
Every company, other than a Government Company, was required to file a one-time return in respect of outstanding receipts of money or loans not considered deposits under Rule 2(1)(c).
The return covered amounts outstanding during the period from April 1, 2014 to March 31, 2019 and was required to be filed within 90 days from March 31, 2019 along with the prescribed fees.
PURPOSE OF FORM DPT-3
One-Time Return
The one-time return was introduced for disclosure of details relating to outstanding money or loans received by a company that were not considered deposits under Rule 2(1)(c) of the Companies (Acceptance of Deposits) Rules, 2014.
Annual Return
The annual filing requirement serves the following purposes:
- Reporting particulars of transactions not considered deposits under Rule 2(1)(c).
- Reporting deposits accepted by the company.
- Reporting both deposits and transactions not considered deposits, where applicable.
The filing framework enables regulatory authorities to monitor deposits and related financial transactions undertaken by companies.
COMPANIES TO WHICH THE RULES DO NOT APPLY
The provisions relating to Form DPT-3 are not applicable to certain specified entities.
- Banking Companies.
- Non-Banking Financial Companies (NBFCs) registered with the Reserve Bank of India.
- Housing Finance Companies registered with the National Housing Bank.
- Companies specifically exempted by the Central Government under the proviso to Section 73(1) of the Companies Act, 2013.
CONSEQUENCES OF NON-FILING
Additional Filing Fees
Delay in filing Form DPT-3 may attract additional filing fees ranging from two to twelve times the normal filing fees depending upon the period of delay.
Penalties
Rule 21 of the Companies (Acceptance of Deposits) Rules, 2014 prescribes penalties for non-compliance.
- A fine which may extend to ₹5,000 for the company and every officer in default.
- In case of continuing contravention, an additional fine of up to ₹500 per day after the first day of default.
CLARIFICATIONS ISSUED BY MCA
The Ministry of Corporate Affairs, through Letter No. P-01/08/2013-CL-V Vol. VI dated June 24, 2019, provided important clarifications regarding filing of Form DPT-3.
Auditor’s Certificate
- The Auditor’s Certificate is mandatory only when filing a Return of Deposits.
Transactions Not Considered Deposits
- For reporting transactions not considered deposits, the information as of March 31 of the relevant year is not required to be derived from audited financial statements.
Return of Deposits
- For returns involving deposits, the information reported as of March 31 of the relevant year must be based on duly audited financial statements of the company.
CONCLUSION
Form DPT-3 is an important compliance requirement under the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014. It ensures transparency regarding deposits and other financial transactions that are not categorized as deposits under the law.
Companies should carefully evaluate their financial arrangements, determine the applicable filing requirements and ensure timely compliance to avoid additional fees and penalties.
Proper understanding of the MCA clarifications is equally important, particularly in determining when audited financial information and auditor certifications are required.
Timely filing of Form DPT-3 not only ensures statutory compliance but also promotes transparency in corporate financial reporting and strengthens regulatory oversight of deposits and related financial transactions.
