Form DPT-3: Reporting Outstanding Loans & Borrowings | Companies Act 2013

Under the Companies Act, 2013, Form DPT-3 is a vital filing requirement for companies to report outstanding loans and borrowings. In this article, we delve into the nuances of Form DPT-3, covering its applicability, filing frequency, reporting details, consequences of non-compliance, and exempted transactions. Additionally, we explore the recent changes introduced in the web-based version, enhancing transparency and information reporting.

1. Applicability: All companies, including public and private companies, that fall under the Companies Act of 2013 are required to submit Form DPT-3.

2. Filing Frequency: Form DPT-3 is an annual filing, meaning it needs to be submitted once every financial year. The filing deadline is within 90 days from the end of the financial year, specifically on or before June 30th each year.

3. Reporting Details: The form requires companies to provide comprehensive information about their outstanding loans, deposits, and other specified transactions as of the date of the balance sheet. This includes details such as the nature of the transaction, amount, parties involved, interest rates, maturity dates, and more.

Outstanding Loans & Borrowings

4. Companies Required to File DPT-3 Form:

According to rule 16A, all companies that have received money and have pending loans are obligated to file Form DPT-3.
This requirement applies to all types of companies, including small, private, non-small, OPC, and others.
Both secured and unsecured loans, along with advances for goods and services, must be reported in Form DPT-3.
Even if a Holding Company, Subsidiary Company, or Associate Company obtains a loan, they are also required to file Form DPT-3.

5. Filing Fees: The Companies (Registration Offices and Fees) Rules, 2014 stipulate that filing fees must be paid according to the prescribed rates.

6. Consequences of Non-Filing: Failure to comply with the requirements of Form DPT-3 and accepting deposits can lead to the following consequences:

Under Section 73, the company may face a penalty of a minimum of 1 crore or twice the amount of deposits, whichever is lower, with a maximum penalty of Rs. 10 crore.
Every officer in default may be liable to imprisonment for up to 7 years and a fine ranging from Rs. 25 lakhs to Rs. 2 crores.
Under Rule 21, the company and every officer in default may face a fine of up to Rs. 5,000, with an additional fine of Rs. 500 per day for a continuing contravention.

7. Transactions Not Considered Deposits: There are several transactions that are not considered as deposits under the Companies Act. These include:

Amounts received from the central government, state government, or any other source with a repayment guarantee from the central or state government.
Amounts received from members, directors, or their relatives by a private limited company.
Amounts received from foreign governments, foreign or international banks, foreign body corporates, foreign investors, and foreign collaborators.
Loan facilities availed from Banking Companies, the State Bank of India, or any banking institution notified by the central government.
Loan facilities availed from public financial institutions.
Amounts received by the company against the issue of commercial paper or any other instruments.
Amounts received by the company from other companies.
Amounts received and held by the company through an offer made in accordance with the provisions of the Act for the subscription to securities, including share application money or advance received for allotment of securities, provided the allotment is made within 60 days.
Amounts received from directors of the company, accompanied by a declaration stating that the amount is not borrowed or accepted as a loan or deposit from others.
Amounts raised by the company through the issue of secured bonds or debentures.
Amounts received from employees of the company, not exceeding their annual salary, as non-interest-bearing security deposits.
Non-interest-bearing amounts received or held in trust.
Advances received from customers for the supply of goods or provision of services, which are accounted for and appropriated against such supply or provision within 365 days.
Advances received in connection with consideration for property under an agreement or arrangement, adjusted against the property as per the terms of the agreement or arrangement.
Security deposits for the performance of contracts for the supply of goods or provision of services.
Advances received under long-term projects for the supply of capital goods.

On August 29th, 2022, the Ministry of Corporate Affairs (MCA) introduced the web-based Form DPT-3 under Section 73 of the Companies Act, 2013. This amendment to the Companies (Registration Offices and Fees) Rules, 2014 has led to digital reforms and expanded the scope of information reporting by stakeholders.

The Revised Format of the Web version has undergone the following changes:

In case of reporting of details of exempted deposits outstanding at the year-end was the only information to be disclosed earlier, however now onwards details w.r.t opening balance along with additions, repayments, adjustments made during the year and closing balance with timeline disclosing the tenure since when the loan has been outstanding.

The above-mentioned detailed requirement is probably made for greater transparency. Revised format is as follows:

Particulars	Details of Loan (in INR)					Ageing of Loan (in Years)
	Opening Balance	Additional Loan during the year	Repaid during the year	Any other Adjustment	Closing Balance	Loans outstanding for less than or equal to 1 year	Loans outstanding for more than 1 year and less than 3 years	Loans Outstanding for more than 3 years

Conclusion: Form DPT-3 plays a crucial role in ensuring companies report their outstanding loans and borrowings as per the requirements of the Companies Act, 2013. With its applicability to all companies, filing frequency, reporting details, consequences of non-compliance, and exempted transactions, it serves as an essential compliance tool. The recent introduction of the web-based form brings about increased transparency and information reporting, strengthening the regulatory landscape. Companies must stay vigilant in fulfilling their obligations under Form DPT-3 to avoid penalties and uphold good corporate governance.

Tags: Companies Act, Companies Act 2013, DPT 3

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Name: Pardeep Kumar

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