DPT-3 Filing and Meaning of Relative under Companies Act 2013

DPT-3 Filing and Meaning of Relative under Companies Act 2013

Today I am going to explain the new reporting requirement in the balance sheet by way of note about the money received by the director or its relative and one-time filing of the DPT-3 Form and other requirements of the new rule 16A of the Companies (Acceptance of Deposits) Rules. The new rule was inserted by the Notification dated 29th June 2016, which notified the Companies (Acceptance of Deposits) Amendments Rules, 2016 and inserted two requirements in the law

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  1. Every company, other than a private company, shall disclose in its financial statements, by way of notes, about the money received from the director.
  2. Every private company shall disclose in its financial statements, by way of notes, about the money received from the directors, or relatives of directors.The Rule 16A was further amended on 22 January 2019 via Companies (Acceptance of Deposits) Amendment Rules, 2019 which inserted a new sub-rule 3 to Rule 16A
  3. Every company other than Government company shall file a onetime return of outstanding receipt of money or loan by a company but not considered as deposits, in terms of clause (c) of sub-rule 1 of rule 2 from the 01st April, 2014 to the date of publication of this notification in the Official Gazette, as specified in Form DPT-3 within ninety days from the date of said publication of this notification along with fee as provided in the Companies (Registration Offices and Fees) Rules, 2014]

In can be noted that the due date of filing the Form DPT-3 is 22nd April 2019, however the MCA did not notify the form DPT-3 for this purpose and has issued a general circular on 12th April intimating the stakeholders that since the Form DPT-3 has not been made available for filing, it can be filed within 30 days of its availability on mca portal without any additional fee.

A simple analysis of the above legal pronouncement is very simple and for a private limited company following are the new requirements

  1. Prepare the financial statement
  2. Ascertain if there is any money received from any source whatsoever which is pending and is showing in the credit side of the balance sheet or is there any load in the books
  3. File DPT-3 to the ROC within 30 days, when the form is notified

In the final financial statement, a note must be appended with details of money received from the director or its relatives. The relative has been defined in section 2(77) which is further elaborated by the rules. The understanding of the meaning of “relative” under the Companies Act, 2013. is very important and its good understanding is necessary for compliance of various regulations of the companies act and especially the provisions pertaining to deposits, advance money, and loans to the company by the directors or its relatives. A person shall be deemed to be a relative of another, if he or she is related to another in the following manner, namely:-

  1. Members of HUF
  2. Husband and Wife
  3. Father or step-father.
  4. Mother or step-mother.
  5. Son or step-son.
  6. Son’s wife.
  7. Daughter.
  8. Daughter’s husband.
  9. Brother or step-brother;
  10. Sister or step-sister.