Referring to the provisions of the Companies Act, 2013, state whether the following amounts received by the company constitute deposit or not: (i)…

(a) (i) As per sub- clause vii of Rule 2 (1) (c) of Companies (Acceptance of Deposits) Rules, 2014: (i) Any amount received and held towards subscription to any securities (including share application money or advance towards allotment of securities, pending allotment), so long as such amount is appropriated only against the amount due on allotment of the securities applied for. It is clarified by way of Explanation that if the securities for which application money or advance for such securities was received cannot be allotted within 60 days from the date of receipt of the application money or advance for such securities and such application money or advance is not refunded to the subscribers within 15 days from the date of completion of 60 days, such amount shall be treated as a deposit under these rules. In the light of the facts of the question and provisions of Law: IQ Books Limited received the share application money on 8th December, 2024 and refunded the same on 20th February, 2025. Therefore, IQ Books Limited has kept the money for (24+31+19) 74 days with them which is less than (60 days + 15 days) 75 days to be considered the money as deposits. Hence, 50 crore received by IQ Books Limited will not be considered as deposit as it was refunded within the prescribed time limit. (ii) As per sub-clause (xiii) of Rule 2 (1) (c) of Companies (Acceptance of Deposits) Rules, 2014, any amount brought in by the promoters of the company by way of unsecured loan in pursuance of the stipulation of any lending financial institution or a bank subject to the fulfillment of following conditions: (a) the loan is brought because of the stipulation imposed by the lending institutions on the promoters to contribute such finance; (b) the loan is provided by the promoters themselves or by their relatives or by both; and (c) such exemption shall be available only till the loans of financial institution or bank are repaid and not thereafter. In the given question, the amount of 40 crore brought in by Suraj (10crore), Raj (15crore) and Tejas (15crore through his father Mr. K), will be not be treated as deposit as this amount brought by the promoters of Precious Jewellers Limited fulfill all the conditions as prescribed by the Act. (iii) As per sub-clause (ixa) of Rule 2 (1) (c) of companies (Acceptance of Deposits) Rule, 2014, any amount raised by issue of non-convertible debenture not constituting a charge on the assets of the company and listed on a recognized stock exchange as per applicable regulations made by Securities and Exchange Board of India, will not be treated as deposit. In the given question, the amount of 125crore raised by Pretty Cosmetics Limited will be treated as deposit as the company has created a charge on its assets in favour of the debenture holders.