Intimation of Board of Director''s approval for Write-off of certain balances by the Company
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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Ad-Manum Finance Ltd's Board of Directors has approved write-off of ₹1,19,68,958 (approximately ₹1.2 crore) from its books. The major component is a receivable of ₹1,08,18,958 from Aris Capital Pvt. Ltd., dating back to a portfolio sale in August 2018, which has been classified as doubtful and non-recoverable due to prolonged outstanding status. Additionally, ₹10 lakh deposited as compounding fee with Customs Department and ₹1.5 lakh court deposit (both from old, disposed cases) have also been written off as non-recoverable. The company states these write-offs follow prudent accounting practices and will have a one-time impact on profitability but will not materially affect its operations or liquidity.
The write-off will reduce the company's profit by ₹1.19 crore in the relevant financial period. While the company reassures no material operational impact, the large write-off of a 2018 receivable indicates asset quality concerns and may raise questions about recovery practices for a finance company.