DPT-3 is the formal designation given to Form DPT-3, which is “Return of Deposits“. One of the most essential compliance requirements comes under the Companies Act, 2013. The said annual return acts as a watchdog system for the proper recording of corporate financial transactions in the most transparent and accountable way, especially those relating to deposits and other money received by companies. The form represents a major step toward strengthening corporate governance and safeguarding stakeholder interests in India’s corporate landscape.
Overview of Form DPT-3
Form DPT-3 is a yearly mandatory disclosure which essentially records detailed information related to the deposit-based activities of a company. In the form, data relating to the deposits, loans, outstanding amounts, and any other type of receipts that are not categorized as deposits under the Companies Act are collected. It is a necessary tool for authorities to follow and control companies’ activities of deposit accrual that these companies perform under their supervision, in order to ensure that these activities are in line with the provisions of the law and to guarantee the safety of the creditors and depositors.
The form is moulded to collect both historical and current financial positions, mandating companies to reveal their financial standing and deposit-based transactions in a structured format. This thorough disclosure promotes transparency in corporate activities and enables regulatory oversight of companies’ financial activities.
Applicability of Form DPT-3
The Form DPT-3 filing applies to a broad range of monetary transactions and debts. These are the types of money or debts to which Form DPT-3 applies:
- Unsecured Debts: These are debts or loans without collateral or security attached.
- Commercial Borrowings: Debts or loans obtained by companies for commercial purposes are covered under Form DPT-3.
- Secured Debts: These are loans or dues secured by collateral or security provided by the borrowing company.
- External Borrowings: Form DPT-3 also covers borrowings or debts from external sources, such as banks or financial institutions.
- It is vital to note that even if a company has obtained a loan from specific entities, it must file DPT-3. These entities comprise:
- Subsidiary Company: If a loan is made by a subsidiary company regulated by the borrowing company, filing Form DPT-3 is required.
- Holding Company: If a company has received a loan from its holding company, which possesses a controlling stake, a Form DPT-3 filing is compulsory.
- Associate Company: When a company has obtained a loan from an associate company that has a significant influence on the borrowing organisation, filing Form DPT-3 is mandatory.
Eligible Companies for Form DPT-3 Return Filing
Form DPT-3 applies to diverse types of companies in India. The following classes of companies are qualified to file Form DPT-3:
- One-Person Companies (OPCs)
- Section 8 Companies
- Private Limited Companies
- Public Limited Companies
It is crucial to note that government companies are exempted from filing Form DPT-3.
Exemptions from Filing Form DPT-3
Under the Acceptance of Deposits Rules of 2014, certain companies are exempt from filing the DPT-3 form under the Companies Act. The exclusions mainly relate to the filing of loan returns. The following types of companies are not required to file Form DPT-3:
- Banking Institutions.
- Companies registered as housing finance companies under the National Housing Bank.
- Government Companies.
- Companies only notified under subsection (1), section 73 of the Companies Act.
- Non-Banking Financial Companies (NBFCs).
- Transactions not regarded as Deposits for DPT-3 Filing
Following is a list of transactions that are not regarded as deposits for the purpose of filing DPT-3
- Loans from Financial Institutions
- Relatives’ and Directors’ Contributions
- Government or Guaranteed Receipts
- Employee Deposits
- Convertible Notes for Startups
- Unsecured Promoter Loans
- Inter-Company Loans
- Business Advances
- Subscription Advances
- Secured Bonds or Debentures
- Investments from SEBI-Registered Funds
- Other Non-Deposits
Any amount, whether unsecured or secured which does not pass as a deposit must still be recorded in the DPT-3 form.
Essential Documents and Supporting Evidence
Filing form DPT-3 needs exhaustive documentation to uphold the information disclosed:
Compulsory Documents:
- Financial Statements: Audited financial declarations for the appropriate financial year, especially the Balance Sheet displaying the company’s financial position as on March 31st.
- Liquid Assets Details: Information concerning liquid assets kept by the company against deposits, as required by Section 73 and Rule 18.
- Auditor’s Certificate: The certificate is given by the company’s statutory auditor confirming that the information provided in the form is correct. This certificate is required under Rule 16 of the Companies (Acceptance of Deposits) Rules, 2014.
- List of Depositors: The comprehensive information of the depositors should be mentioned, such as their names, the number of deposits, the current status, addresses, and maturity dates.
Additional Supporting Documents:
- Trust Deed: Where relevant, copies of trust deeds or other security documents.
- Deposit Application Forms: Copies of deposit application forms and approvals issued to depositors.
- Charge Documents: Copy of instruments generating charges, if loans or deposits have been secured with any kind of security.
- Board Resolutions: Appropriate board resolutions authorizing deposit acceptance or related transactions.
- Declaration Requirements: The document should include a declaration signed by the Chief Financial Officer or Director confirming that the details given are accurate and complete.
Key Detail to be Disclosed
Detailed information is required by Form DPT-3, disclosure across diverse categories:
Company Details:
- Registered office address and contact details
- Net worth of the company
- Corporate Identification Number (CIN)
- Nature of business and primary objects
- Credit rating particulars, if applicable
Financial Information:
- Details of advances and loans received
- Liquid assets kept against deposits
- Total amount of deposits due
- Details of amounts not eligible as deposits
- Particulars of deposit repayments during the year
Compliance Particulars:
- Security offered for deposits
- Any delays or defaults in repayment
- Observance of deposit acceptance norms
- Interest payment status
Due Date of Form DPT-3
The due date for filing Form DPT-3 is June 30th of each year. These deadlines govern all companies required to record their deposits or receipts of loans or money not regarded as deposits for the financial year culminating on March 31st.
Consequences of Non-Filing
If the company does not follow the necessities of DPT-3 and keeps acknowledging deposits, then it will encounter the following consequences:
- Under Section 73, A penalty of at least 1 crore or double the number of deposits, whichever is lower, which may stretch to Rs. 10 crore
- For each officer who is in default, jail for up to 7 years, and a fine not under Rs. 25 lakhs, which may stretch to Rs. 2 crores.
- Under Rule 21, on the company and every authority in default, a penalty of up to Rs. 5,000, and where the default is a repeating one, a fine of Rs. 500 for every day following the default.
- A NIL return should be filed yearly, as there is no definite understanding of this, but it is always better to be safe and file a NIL return.
Bottom Line
Filing DPT-3 is an important regulatory requirement that changes the business partners. It increases transparency by requiring a detailed disclosure of deposit-related activities, protects the depositors’ rights, and facilitates the supervisory control to be more efficient. Companies have a duty to carry out this work with diligence, thus ensuring that the data supplied is accurate and full, and that the filing is done in time.
This records compliance, in a sense, as a tool for good corporate governance and the safety of stakeholders. Despite alterations in the regulatory environment, Form DPT-3 remains a crucial part of the corporate compliance structure in India, thus requiring companies to maintain high levels of financial reporting and transparency.
Businesses must establish strong internal systems for collecting, verifying, and filing data to be constantly compliant with this important regulation and at the same time, they should be supporting the larger goal of better corporate governance in India.
