Template Description

The Certification under Rule 2(1)(c) template is a meticulously crafted 14 page MS Word document designed to assist companies in adhering to compliance requirements under The Companies (Acceptance of Deposit) Rules, 2014. This certification specifically addresses the documentation of money or loan receipts that do not qualify as deposits as per the exemptions outlined in Rule 2(1)(c). It is an essential tool for companies, chartered accountants, legal professionals, and compliance officers to ensure that statutory obligations are met effectively and with clarity.

This template provides a structured approach to detailing exempted receipts by categorizing them under specific rules and recording their particulars, including amounts, exemptions, and aging. By doing so, it simplifies the compliance process and provides a reliable framework for ensuring accuracy and consistency in reporting.

Understanding the Certification under Rule 2(1)(c)

Terminologies:

• Rule 2(1)(c): A clause in The Companies (Acceptance of Deposit) Rules, 2014, specifying the categories of money or loan receipts that are not considered deposits, such as those from government bodies, financial institutions, and other exempted sources.
• Certificate: A formal document that confirms compliance with the provisions of Rule 2(1)(c), ensuring accurate documentation of exempted receipts.
• Outstanding Receipt: Money or loans that are recorded in a company’s financial accounts but are exempt from being classified as deposits due to specific legal provisions.

Procedure for Utilizing the Certification:

Verification of Financial Records:

• Begin by reviewing the company’s financial accounts as on the certification date, typically the end of the financial year (e.g., March 31).
• Identify all instances where money or loans were received and verify if they qualify for exemptions under Rule 2(1)(c).

Categorization of Exempted Receipts:

• Use the template to categorize receipts based on the exemption criteria outlined in Rule 2(1)(c). Examples include amounts received from the central or state government, foreign bodies, banking institutions, and loans from directors or promoters.
• Include detailed breakdowns such as opening balances, additional loans during the year, repayments, and closing balances.

Completion:

• Populate the template with key details, including:

1. The name of the company, CIN, address, and contact details.
2. Specific exemption categories and corresponding rule references.
3. Detailed particulars of each receipt, such as amounts, aging, and status.

• Provide a clear description for each category, ensuring consistency and compliance with the rules.

Certification:

• The certificate must be signed by a director or an authorized representative of the company, including their name, designation, and DIN.
• The document should also include the date and place of certification to confirm its validity.

Submission and Record Keeping:

• Submit the certification to the relevant authorities, if required, and maintain a copy for the company’s internal records.
• Ensure the certificate is readily available for audit or verification by regulatory bodies.

Conclusion

The Certification under Rule 2(1)(c) is a critical document for ensuring compliance with The Companies (Acceptance of Deposit) Rules, 2014. By accurately documenting receipts that are exempted from being classified as deposits, this template helps companies maintain legal clarity and avoid potential penalties. The structured format ensures that all necessary details are recorded systematically, simplifying both preparation and submission processes.