Section 3 – NON-BANKING FINANCIAL COMPANIES AND MISCELLANEOUS NON-BANKING COMPANIES (ADVERTISEMENT) RULES,1977

3. Form and particulars of advertisement

(1) Every company intending to invite or allowing or causing any other person to invite or cause to be invited on its behalf, any deposits from the public, other than its directors, shareholders or employees shall issue an advertisement for the purpose in a leading English newspaper and one vernacular newspaper circulating in the State in which the registered office of the company is situate.

 

(2) No such company shall issue or allow any other person to issue or cause to be issued on its behalf, any advertisement inviting deposits unless such advertisement is issued on the authority and in the name of the board of directors of the company and contains a reference to the conditions subject to which deposits shall be accepted by the company, the date on which the said board of directors has approved the text of the advertisement and the following information, namely:-

 

(a) the name of the company;

 

(b) the date of incorporation of the company;

 

(c) the business carried on by the company and its subsidiaries with details of branches or units, if any;

 

(d) brief particulars of the management of the company;

 

(e) names, addresses and occupations of the directors;

 

(f) profits of the company before and after making provisions for tax for the three financial years immediately preceding the date of advertisement:

 

(g) dividends declared by the company in respect of the said years;

 

(h) a summarized financial position of the company as in the two audited balance sheets immediately preceding the date of advertisement in the following From.

 

Summarized financial position of the company as appearing in the two latest audited balance sheets

 

Liabilities

Figures for the latest financial year for which audited accounts are available

Figures for the financial year previous to the year referred to in col. 2

Assets

Figures for the latest financial year for which audited accounts are available

Figures for the financial year previous year to the year referred in col. 5

1

2

3

4

5

6

Shares Capital Reserve & surplus Secured loans, Unsecured loans, Current Liabilities & Provisions

 

 

Fixed Assets Investments Current Assets Loans & Advances, Misc. Expenditure, Profit & Loss account

 

 

Total

 

 

Total

 

 

 

Note.-Brief particulars of contingent liabilities may be added by way of footnote;

 

(i) The amount which the company can raise by way of deposits under the directions and the aggregate of deposits actually held on the last day of the immediately preceding financial year;

 

(j) a statement to the effect that on the day of the advertisement, the company has no overdue deposits other than unclaimed deposits or a statement showing the amount of such overdue deposits, as the case may
be;

 

(k) A declaration to the effect-

 

(i) that the company has complied with the provisions of the direction applicable to it;

 

(ii) that the compliance with the directions does not imply that repayment deposits is guaranteed by the Reserve Bank of India; and

 

(iii) that the deposits accepted by the company (other than secured deposits, if any, accepted under the provisions of the directions, the aggregate amount of which may be indicated) are unsecured and ranking pari passu with other unsecured liabilities

 

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