Private Companies not required to repay amount received from its members, directors or their relatives
Ministry of corporate affairs, on 30th March 2015 has issued most awaited clarification.
As per MCA circular No. 05/2015 “amounts received by private companies from their members, directors or their relatives prior to 1st April, 2014 shall not be treated as ‘Deposits’ under the Companies Act, 2013 and Companies (Acceptance of Deposits) Rules, 2014 subject to the condition that relevant private company shall disclose, in the notes to its financial statement for the financial year commencing on or after 1st April, 2014 the figure of such amounts and the accounting head in which such amounts have been shown in the financial statement.
Any renewal or acceptance of fresh deposits on or after 1st April, 2014 shall, however, be in accordance with the provisions of Companies Act, 2013 and rules made thereunder.
You can download this circular from the following link:
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