Gyaansanchaar law

Answer 1:Rule 2(1)(c)(viii) of the Companies (Acceptance of Deposits) Rules 2014, provides that any amount received from a person who, at the time of receipt of the amount, was a director of the company shall not be regarded as deposit, if the director from whom money is received, furnishes to the company at the time of giving the money, a declaration in writing that the amount is not being given out of funds acquired by him by borrowing or accepting loans or deposits from others. However, proviso to Section 73(1) read with Rule 1(3)(iii) of the Companies (Acceptance of Deposits) Rules 2014 excludes a housing finance company registered with National Housing Bank established under the National Housing Bank Act, 1987 from the provisions of Section 73 to 76A of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014. So, the transaction of accepting money from the director recorded by Amal Housing Finance Ltd. in its book of account is not regarded as non-compliance of the provisions of the Companies Act 2013.

Answer 2: As per Rule 3(4) of the Companies (Acceptance of Deposits) Rules, 2014, no eligible company can accept or renew-
(a) any deposit from its members, if the amount of such deposit together with the amount of deposits outstanding as on the date of acceptance or renewal of such deposits from members exceeds 10% of the aggregate of the paid-up share capital, free reserves and securities premium account of the company;
(b) any other deposit, if the amount of such deposit together with the amount of such other deposits, other than the deposit referred to in clause (a), outstanding on the date of acceptance or renewal exceeds 25% of aggregate of the paid-up share capital, free reserves and securities premium account of the company.
In the instant case, as the net-worth of the company is exceeding `100 crore, so the company is assumed to be an eligible company.
Further, aggregate of the paid-up share 26 capital, free reserves and securities premium account is `220 crores and the company has not accepted any deposits as of now.
Accordingly, from the members, the eligible company can accept upto 10% of `220 crores i.e. `22 crores. From the public it can accept upto 25% of `220 crores i.e.`55 crores.

Answer3 : Rule 1(3) of the Companies (Acceptance of Deposits) Rule, 2014 made under Section 73 and 76 of the Companies Act, 2013 provide that the Companies (Acceptance of Deposits) Rule, 2014 shall apply to a company other than - (i) a banking company; (ii) a non-banking financial company as defined in the Reserve Bank of India Act, 1934 registered with the Reserve Bank of India; (iii) a housing finance company registered with the National Housing Bank established under the National Housing Bank Act, 1987; and (iv) a company specified by the Central Government under the proviso to sub-section (1) of section 73 of the Act. Accordingly, the Companies (Acceptance of Deposits) Rules, 2014 is not applicable to banking company. Hence, a banking company can freely accept deposits. A private company is allowed to accept deposits from its members subject to fulfillment of conditions provided under section 73(2)(a) to (e) of the Companies Act, 2013However, the Ministry of Corporate Affairs vide the notification dated 13th June 19 2017 provides that the section 73(2)(a) to (e) shall not apply to following classes of private companies,
(A) which accepts from its members monies not exceeding one hundred per cent of aggregate of the paid up share capital, free reserves and securities premium account; or
(B) which is a start-up, for five years from the date of its incorporation; or

(C) which fulfills all of the following conditions, namely:-
(a) which is not an associate or a subsidiary company of any other company;
(b) if the borrowings of such a company from banks or financial institutions or anybody corporate is less than twice of its paid up share capital or fifty crore rupees, whichever is lower; and
(c) such a company has not defaulted in the repayment of such borrowings subsisting at the time of accepting deposits under this section:
The company referred to in clauses (A), (B) or (C) shall file the details of monies accepted to the Registrar in Form DPT-3.

Answer 4: Section 71(4) of Companies Act, 2013, read with Rule 18(7) of the Companies (Share 27 Capital & Debentures) Rules, 2014 provides for creation of a Debenture Redemption Reserve (DRR) out of the profits of the company available for payment of dividend.
The amount credited to such account shall not be utilised by the company except for the redemption of debentures. The provisions for creation of DRR for manufacturing companies are 25% of the value of outstanding debentures issued through public issue as per present SEBI (Issue and Listing of Debt Securities) Regulations, 2008 and also 25% DRR is required in the case of privately placed debentures by listed companies.
For unlisted companies issuing debentures on private placement basis, the DRR will be 25% of the value of outstanding debentures. Every company required to create Debenture Redemption Reserve shall on or before the 30th day of April in each year, is required to invest or deposit a sum which shall not be less than 15% of the amount of debentures maturing during the current financial year ending 31st March of next year. In case of partly convertible debentures, Debenture Redemption Reserve shall be created in respect of non- convertible portion of debenture issue in accordance with this rule. Since, only 50% of the debentures are convertible, for the non-convertible part the DRR is required to be created. Hence, only for 3 crore worth of debentures DRR is required. Therefore, 25% of 3 crore is 75 lakhs to be created as DRR and 45 Lakhs (15%) deposited in the invested bank account or in securities, etc. during the current financial year.