4.1 Total Assets to Paid-up Capital Ratio [Article 9.1 (a) of the Regulations]
N 35/2018 STA
4.1.1The total assets of the Licensed Person must not exceed ten (10) times the amount of its paid-up capital. In other words, the total assets to the paid-up capital ratio must not exceed 10:1 at any point in time; and
4.1.2The Licensed Person must comply with the following standards in relation to the calculation of this ratio:
a)Gross value of assets must be taken for the calculation, i.e. no netting-off of assets and liabilities will be permitted unless it is in accordance with International Financial Reporting Standards;
b)Total assets must not include any post-dated-cheques and/or amounts held as unclaimed funds with the Licensed Person as per Paragraph 18.2.1 (e) of Chapter 18;
c)Statutory reserve may be added to the paid up capital provided that the Licensed Person has the obligation to maintain such a reserve as per the prevailing Commercial Companies Law of the UAE;
d)Accumulated losses, including current year losses, must be deducted from the paid-up capital; and
e)Where there are subsidiaries or other foreign offices, the Licensed Person must also comply with Paragraph 4.1.1 of this Chapter based on the consolidated financial statements.
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