SSB Ltd has accepted ₹15.00 lakh as an advance against supply of goods. As per supply agreement, the company will supply the goods after three years from the date of deposit. Later on, Secretarial Auditors has taken obje

This shall be treated as deposit. According to Section 2(31) of the Companies Act read with Rule 2(c) of Companies (Acceptance of Deposits) Rules, 2014, "deposit" includes any receipt of money by way of deposit or loan or in any other form by a company, but does not include: (xii) any amount received in the course of or for the purposes of the business of the company: (a) as an advance for the supply of goods or provision of services provided that such advance is appropriated against supply of goods or provision of services within a period of three hundred and sixty five days from acceptance of such advance. In case of any advance which is subject matter of any legal proceedings before any court of law, the said time limit of three hundred and sixty five days shall not apply. SSB LTD has to comply the provisions of the Act regarding deposit and contention of the Secretarial auditors is correct.