Vanna Private Limited proposes to accept deposits amounting to ₹ 50 crore from its members. The company has no existing outstanding deposits. As per the audited financial statements for the year ended 31st March 2026, it

As per Section 73(2) of the Companies Act 2013, a company may, subject to the passing of a resolution in general meeting and subject to such rules as may be prescribed in consultation with the Reserve Bank of India, accept deposits from its members on such terms and conditions, including the provision of security, if any, or for the repayment of such deposits with interest, as may be agreed upon between the company and its members. The relevant extract of Rule 3(3) of the Companies (Acceptance of Deposits) Rules read with notification dated 19th September, 2017 provide as under: "Provided that a Specified IFSC Public company and a private company may accept from its members monies not exceeding one hundred per cent. of aggregate of the paid-up share capital, free reserves and securities premium account and such company shall file the details of monies so accepted to the Registrar in Form DPT-3. Provided further that the maximum limit in respect of deposits to be accepted from members shall not apply to the following classes of private companies, namely:- (ii) a private company which fulfils all of the following conditions, namely: - a) which is not an associate or a subsidiary company of any other company; b) the borrowings of such a company from banks or financial institutions or anybody corporate are less than twice of its paid-up share capital or fifty crore rupees, whichever is less; and c) such a company has not defaulted in the repayment of such borrowings subsisting at the time of accepting deposits under section 73: Provided also that all the companies accepting deposits shall file the details of monies so accepted to the Registrar in Form DPT-3. Analysis and Conclusion: The aggregate of paid-up share capital ₹25 crore, Free Reserve ₹10 crore and Securities Premium Account ₹5 crore is worked out to be ₹40 crore. Hence, the company in normal way cannot accept deposits more than ₹40 crore (i.e. exceeding 100%). However, as per the proviso, a private company is exempt from the above ceiling if all three conditions are satisfied. The company is not a holding or subsidiary or an associate company of any other company. So, this first condition (clause a) is fulfilled. The second condition under clause (b) is analysed as below: (a) Twice of paid-up capital is ₹50 crore. (b) Borrowing is ₹40 crore which is less than the limit of ₹50 crore Hence, this condition is also satisfied. The company has not defaulted in the repayment of such borrowings subsisting at the time of accepting deposits under section 73. As all three conditions are satisfied Vanna Private Limited can accept the proposed deposits of ₹50 crore even if that exceeds the aggregate of paid-up share capital, free reserves and the securities premium.