The government said recently said that the amounts received by private firms from its members, directors or their relatives prior to April 1, 2014, would not be considered as deposits under the new Companies law.
- However, companies are required to provide details about such money received in their financial statement for the year starting from April 1, 2014 — the date when most provisions of the Companies Act, 2013, came into force.
- The Corporate Affairs Ministry, which is implementing the Act, has provided the clarification after having discussions with the Reserve Bank.
- The government has also said that any renewal or acceptance of fresh deposits on or after April 1, 2014, shall, however, be in accordance with the provisions of the Companies Act, and rules made thereunder.
Sources: The Hindu.