BMC Associates says Replied on 25th July,2026 10:31 AM

Public deposits are generally treated as unsecured long-term borrowings, unless they are specifically secured by a charge on the company's assets. Under the Companies Act, 2013, companies usually accept public deposits without creating any security over their assets. Therefore, such deposits are classified as unsecured loans in the financial statements. However, if a company creates a charge in favour of the deposit holders in accordance with the applicable legal provisions, the deposits may be treated as secured deposits. In practice, most public deposits are unsecured long-term debt, especially when their repayment period exceeds 12 months. If the deposit is repayable within one year from the reporting date, it is classified as a current liability; otherwise, it is presented as a non-current liability. For expert guidance on company law, financial reporting, and borrowings, businesses often consult experienced chartered accountant firms in gurgaon. A qualified chartered accountant gurgaon, trusted ca firm in gurgaon, or professional ca in gurgaon can provide assistance with accounting, compliance, and statutory reporting.