1
Government & Statutory Receipts
Rule 2(1)(c)(i)Includes any amount received from the Central Government, State Government, or any amount received from any other source whose repayment is guaranteed by the Central or State Government.
Audit Pointer: Verify government sanction orders, guarantee letters, and treasury allocation notes.
2
Foreign Governments & International Bodies
Rule 2(1)(c)(ii)Receipts from foreign governments, foreign or international banks, multilateral financial institutions, export credit agencies, or foreign authorities subject to FEMA/FCRA compliance.
Audit Pointer: Verify Form FC-GPR/FC-TRS, RBI approval letters, and FEMA reporting acknowledgements.
3
Bank & Financial Institution Borrowings
Rule 2(1)(c)(iii)Any loan or facility received from banking companies, SBI or its subsidiary banks, regional rural banks, co-operative banks, or notified public financial institutions under Section 2(72).
Audit Pointer: Check bank sanction letters, charge registration in Form CHG-1, and audited bank confirmation balance.
4
Inter-Corporate Borrowings (ICDs)
Rule 2(1)(c)(vi)Any amount received by a company from any other company. Complies with Section 186 loan limits and market-rate interest benchmarks.
Audit Pointer: Verify Board resolution under Section 179(3), Section 186 register (MBP-2), and confirmation from lender company.
5
Director Loans (with Written Declaration)
Rule 2(1)(c)(viii)Must furnish a written declaration to the company at the time of giving loan that the amount is not given out of funds acquired by him by borrowing or accepting loans/deposits from others. Company must disclose this in Board's Report.
Audit Pointer: Crucial: Obtain written declaration from director dated on or before the loan disbursement date. Disclose explicitly in Board Report.
6
Relative of Director (Private Companies Only)
Rule 2(1)(c)(viii) ProvisoApplicable ONLY to Private Limited Companies. Relative must furnish a written declaration that the amount is from own funds and not borrowed. Relative as defined in Section 2(77).
Audit Pointer: Verify director relative definition under Section 2(77) and verify non-borrowed funds declaration letter.
7
Convertible Notes by DPIIT Startups
Rule 2(1)(c)(xviia)Recognized DPIIT startup issuing convertible notes for ₹25 Lakhs or more in a single tranche, repayable or convertible into equity within 10 years from the date of issue (extended from 5 to 10 years in 2020).
Audit Pointer: Verify DPIIT startup recognition certificate, convertible note agreement, and 10-year maturity schedule.
8
Commercial Paper (CP)
Rule 2(1)(c)(iv)Issued in accordance with the guidelines or regulations issued by the Reserve Bank of India for commercial paper.
Audit Pointer: Verify IPA certificates, credit rating certificate, and RBI reporting slips.
9
Secured Bonds & Debentures
Rule 2(1)(c)(ixa)Must be secured by a charge on assets referred to in Schedule III having market value not less than the issue amount, with maturity period not exceeding 10 years.
Audit Pointer: Check debenture trust deed, valuation certificate, and Form CHG-9 charge registration on MCA.
10
Compulsorily Convertible Debentures (CCDs)
Rule 2(1)(c)(ixb)Unsecured debentures compulsorily convertible into equity shares of the company within a period not exceeding 10 years.
Audit Pointer: Verify investment agreement terms confirming compulsory conversion (non-optional) within 10 years.
11
Share Application Money Pending Allotment
Rule 2(1)(c)(vii)If securities are not allotted within 60 days from the date of receipt, the amount must be refunded within 15 days thereafter. If not refunded within 15 days, it is treated as a DEPOSIT on the 75th day.
Audit Pointer: Strict audit: calculate exact calendar days between receipt and PAS-3 allotment. If >75 days, reclassify as Section 73 Deposit!
12
Customer Advances for Goods or Services
Rule 2(1)(c)(xii)(a)Must be appropriated against supply of goods or services within a period of 365 days from the date of receipt. Advances held beyond 365 days become DEPOSITS unless subject to legal proceedings.
Audit Pointer: Ageing analysis of customer advance ledger: ensure no unadjusted credit balances older than 365 days.
13
Security Deposits & Performance Guarantees
Rule 2(1)(c)(xii)(b)Received as security deposit for performance of the contract for supply of goods or provision of services under written agreement.
Audit Pointer: Review underlying vendor/customer contracts specifying security deposit terms and warranty durations.
14
Advance for Immovable Capital Assets
Rule 2(1)(c)(xii)(d)Advance received under written agreement for consideration of immovable property, provided it is adjusted in accordance with terms of the agreement.
Audit Pointer: Inspect registered agreement to sell, stamp duty, and property title documents.
15
Promoters Unsecured Subordinated Loans
Rule 2(1)(c)(xiii)Brought in by promoters themselves or their relatives in pursuance of the stipulation of a bank or FI. Exemption available only till loans of bank/FI are fully repaid.
Audit Pointer: Verify bank sanction condition requiring promoter equity/unsecured loan infusion and subordination undertaking.
16
Nidhi Company Receipts
Rule 2(1)(c)(xiv)Accepted in accordance with Nidhi Rules, 2014 by companies declared as Nidhi under Section 406.
Audit Pointer: Check NDH-4 approval order and compliance with 10% member deposit ratio.
17
Employee Security Deposits
Rule 2(1)(c)(x)Amount received from an employee not exceeding his annual salary under contract of employment with the company in the nature of non-interest-bearing security deposit.
Audit Pointer: Verify employment contract, employee CTC breakdown, and non-interest payment verification.
18
Trust & Mutual Fund Receipts
Rule 2(1)(c)(xi)Any non-interest-bearing amount received and held in trust; or amounts received as subscription to collective investment schemes, mutual funds, or pension funds approved by SEBI/PFRDA.
Audit Pointer: Inspect SEBI registration, trust deed, and dedicated escrow bank accounts.