Comment if the following transactions entered into by A Ltd attract compliance with provisions relating to acceptance of deposit: A sum of ₹5 lakh paid by Gautam towards subscription to equity shares on 1st April 2018 wa

Rule 2(c)(vii) of the Companies (Acceptance of Deposits) Rules, 2014 provides that subscription money received against issue of securities is not a deposit provided in case of non-allotment of securities, the money is refunded to the subscriber within 60 days from the receipt of money. Further, adjustment of the money for any other purpose shall not be considered as a refund. Hence, in this case, since the money was adjusted towards sales invoices, it is considered a deposit and attracts compliance with provisions relating to acceptance of deposit.