Discuss and decide with reference to the provisions of the Companies Act, 2013 and the rules made thereunder, whether the following shall be considered as 'deposits' accepted by a private company: (iii) A company has tak

(iii) In the given case, an advance was received from customers towards the contract of supply of certain products produced by the company. However, such advance should be adjusted within 365 days from the date of receipt of advance. Otherwise it would be termed as deposits. Assuming the fact that the said advance was for the supply of goods accounted for in any manner whatsoever is appropriated against the supply of certain products i.e. goods within a period of 365 days from the acceptance of such advance in absence of any legal proceedings in respect of the said matter. The same would not be treated as deposit since it is specifically excluded vide Rule 2(1)(c)(xii)(a) of the Companies (Acceptance of Deposits) Rules, 2014.