08 - Chapter 4 New PDF

Financial Reporting may be defined as communication of published financial statements
and related information from a business enterprise to third parties/external users including
shareholders, creditors, customers, governmental authorities and the public. It is the reporting of
accounting information of an entity to a user or group of users.
Benefits of Financial Reporting

The financial reporting, if adequate and reliable, would be, useful in many respect. Benefits
of financial reporting may be listed as follows :
1. Economic Decision Making :
The two important economic decisions that influence allocation of resources and which
external users usually make are : (a) Security investment (b) Credit decision.
AICPA states, that “the basic objective of financial statement is to provide information useful
for making economic decisions. Information about economic resources and obligations of a
business enterprise is required to form judgement about the ability of the enterprise to
survive, to adapt, to grow and to prosper in the changing economic conditions. In this task,
financial reporting can provide information important in evaluating the strength and
weakness of an enterprise.
2. Cost of Capital :
Adequate disclosure in annual reports is expected in the long run to enhance market price
of company share in the investment market. Higher prices of company share resulting from
the full disclosure will have a favourable impact on the company’s cost of capital.
The impact of disclosure regulations on the cost of equity capital of affected firms
concluded that segment disclosure requirement had a favourable effect on the cost of
equity capital because disclosure requirements improved the quality of financial disclosure
of affected firms and that in turn, it reduced uncertainty about their stocks.
3. Fluctuation in Share Prices :
Adequate disclosure will tend to minimise the fluctuations in company’s share prices.
Fluctuation in share prices occurred because of the ignorance prevailing in the investment
market. If the securities markets are in possession of full information, the ignorance and
uncertainty will be reduced and share prices will tend to maintain equilibrium.
4. Customer Decision :
The data presented in financial statements may affect the decision of a company's
customer and hence have economic consequences. Customers may use the financial
statement data to predict the likelihood and timing of a concern being gone bankrupt or
being unable to meet its commitments. This information may be important in estimating the
value of a warranty or in predicting the availability of supporting services or continuing
supplies of goods over an extended period of time. Financial institution also may use the
financial statements to assess their present and future solvency and hence the likelihood
that they will be able to repay funds or meet promises as contracted.
5. Employee Decision :
Employee decision may be used on perceptions of a company's economic status acquired

through financial statements. In particular prospective and present employees may use the
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financial reports to assess risk and growth potential of a company and therefore, job
security and future promotional possibilities. These decisions affect the allocation of human
capital in the economy.
Labour unions and individual employees may use financial statement as a basis for making
negotiation regarding wages and other employment benefits.
6. Management Decisions :
The accounting data published in financial reports may have economic effects through its
impact on the behaviour of the managers of corporate enterprises. The inclusion of
accounting numbers in management compensation scheme or the fear of market
misinterpretation of accounting reports may influence a managers operating and financial
decisions. Shareholders prefer accounting procedures that reflect economic events as
closely as possible. However shareholders also must be concerned that the managers
might manipulate the reported data to increase their compensation. Therefore, shareholder
also want numbers that are reliable and objectively determined.
Objective of Financial Reporting as per FASB statement:
The most comprehensive statement on objectives of financial reporting is FASB concept

No. 1 “Objectives of Financial Reporting by Business Enterprises" issued in November, 1978 by
US Financial Accounting Standard Board.
According to this Statement Financial Reporting should provide Information :

1. that is useful to present and potential investors and creditors and others users in
making rational investment, credit and similar decision.
2. that is comprehensible to those who have a reasonable understanding of business
• and economic activities and are willing to study the information with reasonable
diligence.
3. that discloses how management of an enterprises has discharged its stewardship
responsibility to owners (i.e., shareholders) for the use of enterprise resources
entrusted to it.
4. that is useful to managers and directors in making decisions in the interest of the
owners.
Concept of Disclosure :
Disclosure can be defined as a process through which a business enterprise communicates

with the external parties. American Accounting Association defines disclosure as the movement of
information from the private domain to the public domain.
There are three concepts of disclosure generally proposed viz. Adequate, fair and full
disclosure. But these terms are indicated and relative and not definitive, of these three the most
commonly used is adequate disclosure. Fair and full are more positive concepts. Fair disclosure
implies an ethical objective of providing equal treatment for all potential financial statement users.
Full disclosure implies the presentation of all relevant information. However it is contented that
there is no difference among these concepts.
Disclosure of information significant to investors and other users should be adequate, fair
and full so that it can help them in making economic decisions in the best possible way. Adequacy
of disclosure cannot be tested accurately and precisely, since no definite test to measure it exists
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in financial reporting But when information is reported outside the business enterprise, adequacy
of disclosure can be tested. The basis of the test to which the items of information are helpful to
users, for whom disclosure is made, in making economic decisions.
Disclosure with regard to NBFCs is based on the recommendations of the Narsimham

Committee and Shah Committee. Pursuant to the recommendations of these two committees RBI
prescribed with effect from April 1993 prudential norms for ail types of finance companies on which
the financial reporting and disclosure should be based.
Evolution of “Prudential Norms”
The Study Group formed by the RBI in May 1992 known as Shah Committee, to suggest
regulatory framework for the NBFCs submitted its report in September 1992 which was principally
accepted by the RBI. The report related to the whole domain of NBFC sector. One of the major
recommendations was the introduction of prudential norms.
The suggested norms : The Committee suggested comprehensive set of norms relating to :
(i) Income recognition
(ii) Asset classification
(iii) Provisioning requirements for bad doubtful debts
(iv) Credit concentration
(v) Capital adequacy
(vi) Observance of accounting standards
The 1994 notification - The RBI for giving effect to the recommendations on prudential
norms issued'a detailed Notification on 13-06-1994. The salient features of this notification
were as under:
(i) Income in respect of non performing assets not to be recognised on accrual basis.
Such income to be recognised only when received. An asset becomes NPA,when
it ceases to yield income.
(ii) Assets (loans and advances and other credit facilities) required to classified into
’performing and ‘non-performing1 on the basis of the record of recovery.
(iii) Provisioning requirements in respect of non performing assets depending upon
the period of default.
(iv) Investment in securities to be bifurcated into current investments and long term
investments. Valuation norms provided for such assets mainly on the lines of
Accounting Standard-13 issued by ICAI.
, (v) Capital to be divided into two tiers - Tier I and Tier II. Tier I consists of equity, free
reserves, and share premium etc. All intangible assets, and deferred revenue
expenditure to be deducted. Investment in the shares of group companies
exceeding a particular ceiling also to be deducted to determine Tier I capital. Tier
II capital to consist of preference shares, revaluation reserves etc.
(vi) Degrees of risk provided to determine risk weighted assets. Registered
companies to achieve capital adequacy in a phased manner. Tier II capital not to
exceed Tier I capital while determining capital adequacy.
(vii) Companies not to fund to single party and single group for more than 15 per cent
and 25 percent of the owned funds respectively.
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(viii) Companies not to. invest more than 25 per cent of its owned funds in the shares and
debentures of another company.
(ix) Half-yearly reporting in the prescribed format to the RBI.
The new directions on Prudential norms :
The RBI on 2-11-1998 completely changed the regulatory framework of NBFC sector by
issuing two sets of Directions, one relating to deposits and the other relating to prudential norms.
The directions relating to prudential norms have been completely overhauled to check the varied
accounting treatment, to clear doubts in the interpretation of some expression, to have less
reliance on borrowed funds and to diversity deployment of funds.
Earlier the prudential norms were not mandatory in nature. However, the new norms have
been issued by RBI exercising powers conferred on it by Section 45JA of the Act which implies
that new norms are mandatory.
Notification No. DFC 119/PG (SPT1-98. Date January 31.1998
The Reserve Bank of India, having considered it necessary in the public interest, and being
satisfied that, for the purpose of enabling the bank to regulate the credit system to the
advantage of the country, it is necessary to issue directions relating to the prudential
norms as set out below hereby, in exercise of the powers conferred by section 45JA of the
Reserve Bank of India Act, 1934 (2 of 1934), and of all the power enabling it in this behalf,
and in suppression of the earlier directions contained in Notification No. DFC. 115/DG
(SPT)/98 dated January 2, 1998 gives to every non-banking financial company the direction
herein after specified.____________________________ ____________________
Applicability of Prudential Norms :
(i) The new Directions are applicable to every NBFC i.e., equipment, leasing company,
or hire purchase finance company, or loan company, or investment company having
NO.F of 25 lacs and above and accepting/holding public deposits. However if these
companies do not hold/accept public deposits, the norms relating to capital
adequacy and credit/investment concentration are not applicable.
(ii) The norms will not be applicable in case of investment company if such investment
company meets the following three conditions :
(a) It holds 90% of its total assets in the form of Securities of its group/holding/
subsidiary companies.
(b) It does not trade in securities mentioned above ; and
(c) It does not accept/hold public deposits.
(i) The new Directions are also applicable in case of Residuary Non-Banking
Companies (RNBCs). For them, the conditions of at least 25 lacs is not necessary.
So, these forms are applicable for all RNBCs irrespective of the amount of NOF.
The norms are not applicable if NOF of the company is less than 25 lacs. The fact
that such company holds public deposits is to be ignored. However, there is in built
check on these companies. The check words from two angles:
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(a) Such companies cannot accept public deposits as provided in the Direction
relating to Acceptance of Public Deposits.
(b) ' If such companies fail to attain 25 lacs NOF by 08-11-2000 or extended time,
they will not be allowed to carp/ on the business of non-banking financial
institution. And when they actually achieve 25 lacs NOF, they will
automatically have to comply with the Directions relating to prudential norms.
INVESTMENT - CLASSIFICATION,
VALUATION AND
INCOME RECOGNITION
The Directions provide for classification, valuation and income recognition in respect
of the following types of investment:
(a) Quoted securities '
(b) . Unquoted equity shares
(c) Unquoted preference shares
(d) Government securities/Government Guaranteed Bonds
(e) Mutual Funds
(f) Commercial papers and treasury bills
For the purpose of valuation the securities shall be classified as :

• Current Investments
• Long-term Investments
Valuation of Current Investments : For the purpose of valuation current investment shall
be classified into following categories :
(i) Equity shares
(ii) Preference shares
(iii) Debentures and Bonds
(iv) Government Securities including treasury bill
(iii) Units of Mutual Funds
(iv) Others
(v) Valuation of Quoted Current Investment - The valuation of above six categories of
investment will be made' in the following manner
• Compute the market value of each category
• Compute the cost of each categony
• Compute the cost of each category with market value thereof

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• If the cost of a category exceeds the market value thereof, charge the difference to
profit and loss account. However it the market value of the category exceeds the cost, the excess
is to be ignored.
The NBFC cannot set off the depreciation in one category of investment against the
appreciation in other category of investment.
Valuation of Unquoted Current Investments :
(a) Equity Shares
Unquoted equity shares in the nature of current investment are required to be valued at
lower of cost or break up value.
However, NBFC can substitute fair value for break up value of the shares.
(b) Unquoted Preference Shares
Unquoted preference shares in the nature of current investment shall be valued at cost of
face value, whichever is lower.
(c) Unquoted government securities/Govemment guaranteed bonds.
These are to.be valued at carrying cost which means book value of an investment and
interest occurred thereon.
(d) Unquoted units of mutual funds
They are.to be valued at NAV declared by mutual fund.
(e) Commercial paper and treasury bills
These are to be valued at carrying cost.
Valuation of long-term investment [Para 6] - These are required to be valued at in

accordance with the recommendations of Accounting standard - 13 "Accounting for investments"
issued by ICAI. These investments are ordinarily valued at cost. However, if there is any
permanent decline in the value of such investment as indicated by -
• Market price
• Financial position of the company
• or any other factor
The same is to be provided in profit and loss account.
Note : Unquoted debentures are not treated as investment for the purpose of valuation.
They are treated as credit facility and hence do not require any valuation method.
Income Recognition on Investments TPara 41 - For the first time the mode of recognising
income arising in the form dividend on shares/units of mutual funds or interest on
debentures/Govemment securities/Govemment bonds etc. has been prescribed. The new norms
for recognition of income are as under:
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DIVIDEND
The income in respect/ of dividend from shares and units of mutual funds is to be
recognised on cash basis. However, if dividend has been declared and approved in the Annual
General Meeting it may be recognised on accrual basis.
Interest on bonds and debentures
Interest on bonds and debentures from Government and corporate bodies may be taken
into account on accrual basis provided :
(a) Interest rate is pre-determined
(b) Interest is being received regularly
Interest on Government Guaranteed Bonds
Interest on these is to be recognised on accrual basis.
Classification of Assets [Para 71
It is not the absolute value of assets side of the balance sheet which is important in case of
NBFC but the quality of the assets which they possess. The quality can be expressed in terms of
percentage and continuity of collection of receivables and value of security. The Directions require
NBFCs to classify its assets like lease/hire purchase/loans and advances/other forms of credit in
the following categories :
A. Standard Asset
B. Sub-Standard Asset
C. Doubtful Asset
D. Loss Asset
A. STANDARD ASSET : A standard asset means the asset in respect of which, not
default in repayment of principal or interest is perceived and which carries normal business risk.
These assets are also called performing assets. Mere temporary delay in repayment of dues will
not render an asset to be non-standard. However, if the management ‘perceives’ default (which
refers to happening something in future), it should not treat the asset as standard even if there
was not actual default in collection of dues.
Sub-standard Asset: A sub-standard asset means :

(i) an asset which has been classified as non performing asset for a period of up to two
year or
(ii) an asset which has been rescheduled or renegotiated. However if such asset
performs satisfactorily for at least one year from the date of reschedulement, it will
be upgraded to standard asset.
Doubtful asset: A doubtful asset mean an asset which remains sub-standard for a period
of more than 2 years.
Loss Asset: A loss asset means :
(i) an asset which has been identified as loss asset by the NBFC ; or
[J CHAPTER-4 J] ------------------------------------------------------------------------------;------;—
(ii) an asset which has been identified as loss asset by external/intemal auditor of the
NBFC or by the special auditors appointed under section 45 MA of the Act; or
(iii) an asset which has been identified as loss asset by the RBI inspecting team carrying
inspection under section 45N of the Act; or
(iv) as asset in respect of which the NBFC faces potential threat in recovering its dues to
the following reasons :
(a) value of the security has substantially reduced, or
(b) non-availability of security or
(c) fraud committed by the borrower or
(d) omission on the part of borrower like failure to get/renew the insurance cover.
Basis for classification of different assets : Assets can be broadly classifieds as either
performing or non performing. Non-performing assets can further be divided into sub-standard
assets, doubtful assets and loss assets while performing assets are standard assets. The basis of
treating different types of assets like lease assets/hire purchase assets/loans and advances/bills
discounted etc. is specified in the Directions. The basis for classification in respect of different
types of assets is as under:
(a) Term loan becomes NPA if
(i) installment is overdue for more than 6 months or
(ii) interest is past due for 6 months
(b) Bills purchased become NPA if it is overdue for 6 months or more.
. (c) Lease Rentals and hire purchase installments becomes NPA if these are overdue for
a period or more than 12 months.
(d) Other credit facilities become NPA if the interest in respect of a debt or the income
on receivable under the head “Other current asset” in the nature of short term loan/ advances
remained overdue for a period of 6 months or more.
(e) Receivables on account of account goods sold/services renders, these become NPA
if they are overdue for 6 months or more.
The classification of NPA in respect of loan and advances / other credit facilities /bill
purchased / receivables in respect of goods sold or services rendered is to be done ‘borrower
wise’ whereas classification in respect of lease assets/ hire purchase assets is to be done 'account
wise'. The implies that if the NBFC has given 4 loans under different agreements to the some
borrower and one of the account becomes NPA in that case, all the 4 accounts will be treated as
NPA and thus requiring provisioning and recognition of income accordingly. But if the NBFC has
given 4 trucks on lease under different agreements to the some lease and lessee makes default in
respect of one agreement for a period of 15 months, in such a case only one truck which default
has occurred will be treated as NPA and the remaining there will be treated as standard assets.
Income recognition in respect of other assets [Para 3] - The Directions provide four
parameters on which income recognition is to be based.
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The first parameter : The income recognition shall be based on recognised accounting
principles.
The second parameter : Income including interest / discount dr any other changes on
non-performing assets shall be recognised only when it is actually realised. Any such income
recognised before the asset become non performing and remaining unrealised shall be reversed.
This implies that the moment an asset becomes NPA any income in respect thereof can be
recognised only when it is actually realised. The asset becomes NPA due to persistent default by
the borrower. So, naturally there is time lag between the “when the default starts” and “when the
asset becomes NPA”. Normally, the company will keep on recognising the income (i.e., passing
journal entries in the books of account to the effect that the income is credited and the borrower’s
account is debited) during this period. The income so recognised during this period of default is
required to be reversed. Such income can be recognised again only when it is actually realised.
Another feature of this parameter is that it uses the word “income". Income is quite a wide term as
compared to interest and includes interest also. The income may consist of:
• Lease rentals (specifically covered by parameter 4)
• Finance charges for hire purchase transaction (specifically covered by parameter 3)
• Interest on loans and advance, debentures, bonds etc.
• Discount charges for the bills purchased
• Dividend on shares / units of mutual funds
• Profit on sale of assets
• Fees in respect of service rendered.
Which means this parameter is applicable to all the non-performing assets.
The third parameter: “In respect of hire purchase asset, where installments are overdue
for more than 12 months, income shall be recognised when hire charges are actually received.
Any such income taken to the credit of profit and loss account before the asset became non
performing and remaining unrealised shall be reversed."
Earlier there was a doubt regarding treatment of finance charges taken to the profit and loss
account before the asset become non performing because of the use of the word “shall” in the
earlier direction. The RBI has conspicuously provided that such finance charges are required to be
reversed could derecognisition.
The fourth parameter : “In respect of lease asset, where lease rentals are overdue for
more than 12 months, the income shall be recognised only when lease rentals are actually
received. The net lease rentals taken to the credit of profit and loss account before the asset
become non performing and remaining unrealised shall be reversed.”
Net lease rentals have been defined as gross lease rentals as adjusted by lease adjustment
account debited / credited to the profit and loss account and as reduced by the depreciation at the
rate applicable under schedule XIV of the Companies Act, 1956.
Lease asset / hire purchase assets stand on different footing as compared to loans and
advances / terms loan / bills etc. in a way that these assets become NPA if the installment is
overdue for more than 12 months as compared to 6/7 months for other assets.
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Provisioning requirements for NPA fPara 81 - The NBFC is now required to make
provision in the profit and loss account in respect for non performing assets. The quantum of
provision to be made by NBFC depends on the following factors :
(i) age of non performing asset
(ii) availability of the security
(iii) realisable value of the security
The provisioning requirement of lease / hire purchase assets differs from the provisioning
requirement of loan and advances other credit facilities.
Loans and advances / other credit facilities - The provision is to be made as follows:
Nature of asset Quantum of provision

(a) Loss asset Entire amount recoverable shall be written off or 100%
provision should be made.
(b) Doubtful assets The total amount shall be compared with realisable value of
security available. The unsecured portion, if any shall be fully
written off.
And
Depending on time lag the provision on the secured portion shall

be made as under:
Period for which doubtful % age
Upto 1 year 20
1 to 3 years 30
more than 3 years 50
(c) Substandard asset A general provision of 10 percent of total outstanding shall be

made.
While making provision it should be noted that provision is required to be made on capital /
principal component only. The unrealised income is to be reversed and the income recognition in
future will be based on the actual record of recovery.
Disclosure in the balance sheet [Para 9] - The provision made in respect of non
performing assets requires to be disclosed in the balance sheet in the'following manner:
(i) The provision made should be disclosed separately and it cannot be set off against
income or reduced from the value of the asset.
(ii) The provision made in respect of non performing assets and in diminution in
investments shall be disclosed under the following heads :
(a) provision for bad and doubtful debts.
(b) provision for depreciation in investments.

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(iii) The provision made cannot be appropriated against :he general provision or loss
reserves.
(iv) The provision shall be debited to the profit and loss account.
Capital Adequacy Requirement fPara 101 - For understanding capital adequacy

requirement, we must understand the terms used for this purpose. The terms are
Tier I capital
Tier II capital
Risk weighted assets
Risk adjusted value of off balance sheet items.
Tier I capital - This is core capital which provides the most permanent and readily
available support against unexpected losses. The word permanent signifies that the funds will
never have to be repaid and will always be with the company. The meaning of Tier I capital is the
same as Net Owned Funds.
Tier II capital - This consists of the following :
> Preference shares other than those which are convertible into equity. While
preference shares convertible into equity are part of Tier I capital, other preference shares are part
of Tier II capital.
> Revaluation reserves at discounted rate of 55 per cent. This means if the value of
such reserves appearing in the balance sheet is Rs. 100,000. Only Rs. 45,000 will form part of the
Tier II capital. The remaining Rs. 55,000 is to be ignored.
> General provision and loss reserves which are kept for meeting the unexpected
losses. However, if these are attributable to actual / potential loss in the assets, these cannot form
part of Tier II capital. The value included in Tier II capital cannot exceed 1.25 per cent of the risk
weighted assets.
> Hybrid debt capital instruments i.e., on instrument which possesses certain
characteristics of equity as will as debt.
> Subordinated debt i.e., fully paid up capital instrument which is unsecured and is
subordinated to the claims of other creditors and is free, from restrictive clauses and is not
redeemable at the instance of the holder or without the consent of the supervisory authority of the
NBFC. The book value of such instruments shall be subjected to discounting depending upon the
remaining tenure of the instrument. The discounting factor varies from 20 per cent to 100 per cent.
This envisages an instrument the repayment of which is second to all the creditors whether
secured or not of the company. In other words, in case of winding up proceedings they will be paid
just before the equity share holders and preference share holders.
Tier II capital cannot exceed Tier I capital for the purpose of capital adequacy requirements.
Risk Weighted Assets: All the assets appearing in the balance sheet of the NBFC carry a
certain degree of risk. Some assets like bank balance, cash, and government securities carry no
risk whereas assets like loans and advances, lease / hire purchase assets, investments, etc. carry
the normal business risk in terms of non-realisability. To quantity precisely the value of risk
adjusted assets, risk weights have been prescribed in the Directions separately for balance sheet
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items and for off-balance sheet items, off balance-sheet items are non funded exposure appearing
in the notes on accounts. The include (i) financial guarantees (ii) underwriting obligations or shares
/ debentures (iii) partly paid up shares / debentures (iv) bills discounted (v) lease contracts entered
into but yet to be executed and (vi) other contingent liabilities. All these commitments have to be
multiplied by the credit conversion percentage which is either 100 or 50. The figure so arrived is
then multiplied by risk weight of 100.
Achieving prescribed capital ratio : All NBFCs are required to maintain capital ratio of
Tier I and Tier II capital of an aggregate of risk weighted assets and risk adjusted value of off
balance sheet items. The capital ratio to be achieved is as under:
On or before 31-03-1998 10%
On or before 31-03-1995 12%
The NBFCs will continue to maintain capital ratio of 12% after 31-03-1999 also.
However, if a hire purchase finance company / equipment leasing company having NOF of
at least 25 lacs and riot having investment grade of credit rating intends to accept public deposits,
if must have 15 per cent capital adequacy ratio.
Note:
1. The NBFCs has been given on option of reducing the provision for bad and doubtful
assets from the respective assets. This will result in reduced amount of capital required for the
purposes of capital adequacy.
If the NBFC invests in the shares of group companies / any other NBFC or extends lease /
hire purchase finance to group companies then the excess of such total over 10 per cent of owned
funds is deducted to arrive at NOF. The amount so deducted while determining risk weighted
assets will have weight age of zero.
Credit and Investment concentration [Para 12] - Another part of the prudential norms
called credit concentration and investment concentration seeks to diversity risk which the NBFC
may face in its normal course of business. The risk arises if the capacity of the borrower in
repaying the debt gets reduced due to a number of reasons. The risk gets materialised when the
borrower does not pay. In that event, the NBFC will be forced to write off the asset reducing its
profitability and its own capacity to service its own debt in the form of public deposits / other
deposits / debentures / ICD etc. To minimise and diversity the risk, the norms seeks to provide
limits up to which the NBFC can grant credit to a single party or single group of parties. The norms
provide individual ceiling for lending and investment and then a cumulative ceiling for both. The
NBFC is required to satisfy all of three ceilings at any given point of time.
Individual ceiling : credit concentration - The NBFC shall not lend :

> To a single borrower exceeding 15 per cent of its owned fund
> To a single group/of borrowers exceeding 25 per cent of its owned fund
Individual ceiling : investment concentration - The NBFC shall not invest:
> In the shares of another company exceeding 15 per cent of its owned fund
> In the shares of singe group of companies exceeding 25 per cent of its owned funds.
Cumulative ceiling : lending and investment - The NBFC shall not lend and invest
> To a single party exceeding 25 per cent of its owned funds.
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> To a group of parties exceeding 25 per cent of its owned fund.
Note :
1. If the NBFC has done any lending or made any investment before the
commencement of earlier Directions, i.e., 02-01-1998, the excess has to be brought down as per
the repayment schedule of the agreement.
2. For the purpose of the concentration ceilings, the investment in debentures is treated
as credit and not investment.
3. The ceilings of credit and investment apply to own group as well as other group of
borrowers / investee companies.
4. For determining the above ceilings, off balance sheet exposures are to be converted
into credit risk by applying the relevant conversion factors.
Lending against own shares TPara 111 - NBFCs have been completely prohibited from
lending against own shares. If the NBFC has given any loan against own shares and such loan is
outstanding as on 02-01-1998, such loan is to be recovered as per the repayment schedule.
Bar on defaulting companies to make fresh investment fPara 11A1 - If the NBFC has
defaulted in paying any public deposits in accordance with the terms and conditions, it cannot.
(i) grant any loan ; or
(ii) grant any other credit facility ; or
(iii) make any investment; or
(iv) create any asset as long as the default continues.
Restrictions on investments in land and building TPara 11B1 - Hire purchase finance
companies / equipment leasing companies loan companies / investment companies which are
accepting public deposits cannot invest in land and building, otherwise for its own use, more than
10 per cent of its owned funds. It implies that the restriction will not be applicable in the following
circumstances.
(i) if the company is nqt accepting public deposits ; or
(ii) if the investment^ land and building is for own use.
If the company has acquired land and building in satisfaction of its debts, the same shall be
disposed off within a period of three years from the date of such acquisition. The period of three
years can be extended by the RBI. Thus it the NBFC has acquired a land consequent to
satisfaction of its debt on 19-12-1997, its shall dispose of this land by 18-12-2000. Even through,
this para has been inserted in the Directions w.e.f. 18-12-1998, the period of three years is to be
reckoned from the date of acquisition.
Restriction on investments in unguoted shares fPara 11B1 - Hire purchase finance

companies / equipment leasing companies which are accepting public deposits cannot invest in
unquoted shares of another company, not being subsidiary company or group company, more
than 10 per cent of its owned funds. So it is quite clear that the restriction is not applicable for
investments in group company / subsidiary company.
Loan companies / investment companies which are accepting public deposits cannot invest
in unquoted shares of another company, not being subsidiary company or group company more
than 20 per cent of its owned funds. So it is quite clear that restriction is not applicable for
investment in group company / subsidiary company.
53
CHAPTER-4
If the company has acquired unquoted shares in satisfaction of its debts, the same shall be
disposed off within a period of three years from the date of such acquisition. The period of three
years can be extended by the RBI.
If the company has invested in unquoted shares, other than unquoted shares mentioned
above, in excess of prescribed ceiling, such excess shall be disposed off within a period of three
years from the commencement of these Direction. The period of three years can be extended by
the RBI.
Reporting TPara 131 - NBFC are required to submit half yearly return in respect of
prudential norms within three months at the end of respective half year commencing from 31-03-
1998. So the information relating to different aspects of prudential norms as on 31-03-1998 is
required to be submitted upto 30-06-1998. The format in which the reporting is to done has been
prescribed by the RBI. The reporting by equipment leasing company, hire purchase finance
company, loan company, investment company is to be made to the concerned office mentioned in
the second schedule of Directions relating to Acceptance of Public Deposits by NBFCs dated 31-
03-98 whereas Residuary Non Banking Company is required to submit this form to the office
mentioned in Schedule B to the Residuary Non Banking Companies (Reserve Bank) Directions,
1987. Apart from the half yearly return the NBFCs are required to furnish various other returns like
annual return on deposits, quarterly return on statutory liquid assets etc to RBI to ensure that their
operations are not detrimental to the interest of depositors, and the economy as a whole.
54'
CHAPTER - 4
>
REPORTING FORMAT OF HALF-YEARLY RETURN
REPORTING FORMAT
Half-yearly Statement of capital funds, risk assets / exposures
and risk asset ratio, etc. as at the end of
March / September____________________
(Amount in Rupees - 000 omitted)
Name and address of the Non-Banking Financial Company
Company code number (As given by RBI) __________
Registration number (As given by RBI)________________
Classification of the company (As given by RBI)________
[PART - A
Item name Item code Amount

%
__ — ——
CAPITAL FUNDS- TIER-1

(i) Paid-up Equity Capital 111
(ii) Preference shares to be compulsorily 112
convertible into equity
(iii) Free reserves
(a) General Reserves 113
(b) Share Premium 114
(c) Capital Reserves (representing surplus 115
on sale of assets held in separate account)
(d) Debenture Redemption Reserve 116
(e)Capital Redemption Reserve 117
(f) Credit Balance in P & L Account 118
(g) Other free reserves (to be specified) 119
Total (111 to 119) 110
(iv) Accumulated balance of loss 121

55
CHAPTER - 4 >
(v) Deferred Revenue Expenditure 122
(vi) Other Intangible Assets 123
Total (121 to 123) 120
(vii) Owned Funds (110-120) 130

(viii)Investment in shares of
(a)Subsidiaries: 141
(b)Companies in the same GroUp : 142
(c)Other non-banking financial companies 143
(ix)The book value of debentures, bonds,
outstanding loans and advances, bills
discounted (including hire-purchase & lease
finance) made to, and deposits with
(a) Subsidiaries: 144
(b) Companies in the same Group ; 145
(x) Total (141 to 145) 140
(xi) Amount of item 140 in excess of 10% of item150

130 above
(xii) Tier-I Capital -
Net owned fund (130-150) 151
jPART - B|

(V (2) (3)
CAPITAL FUNDS - TIER-II
[Para 2(1) )(xx)(b) of directions)
(i) Preference Share Capital other than those 161
compulsorily convertible into equity
(ii) Revaluation reserves 162
(iii) General provisions and loss reserves 163
(iv) Hybrid debt capital instruments 164
(v) Subordinated debt 165
(vi) Aggregate Tier-ll Capital (see para 2(1)(xx) 160
of directions)
(Items 161 top 165)
Total Capital Funds (151+160) 170
56
CHAPTER-4
PART -C
(V (2)
RISK ASSETS AND OFF-BALANCE SHEET ITEMS
(i) Adjusted value of funded risk assets, 181
i.e., on-balance sheet items
(To tally with Part D)
(ii) Adjusted value of non-funded and off-balance 182
Sheet items (To tally with Part E)
(iii) Total risk weighted assets / exposures
(181+182) 180
(iv) Percentage of capital funds to risk weighted
Assets / exposure
(a) Tier-I capital
(Percentage of Item 151 to Item 180) 191
(b) Tier-I I capital
(Percentage of Item 160 to Item 180) 192
(c) Total (Percentage of Item 170 to Item 180) 193
57
CHAPTER - 4
PART -D
Weighted assets, i.e., on - Balance Sheet items

Item name Item Book Risk Adjustment
Code Value Weight Value
(D (2) (3) (4) (5)
1. CASH AND BANK BALANCE
INCLUDING FIXED DEPOSITS &
CERTIFICATES OF DEPOSITS 210 • 0 0
II. INVESTMENTS
[Para 6 of the Directions]
(a) Approved securities as defined
In Reserve Bank of India Act,
1934 221 0 0
(b) Bonds of public sector banks
and FDs/CDs/bonds of public
financial institution
(i) Amounts deducted in Part
‘A’ item (x) (Item code 150) 222 0 0
(ii) Amounts not deducted in
Part A’ Item (x)
(Item code 150) 223 20
(c) Units of Unit Trust of India 224 20
(d) Shares of all companies and
debentures / bonds /
commercial papers of
companies other than in (b)
above / units of mutual funds
others than in (c) above
(i) Amounts deducted in
Part ‘A’ Item (xi)
(Item code 150) 225 0
Part A 226 100
HI. CURRENT ASSETS
(a) Stock on hire
(Please see Note 2 below)
Part A [Item (xi)]
(Item code 150) 231 . 0
(ii) Amount not deducted
in Part A 232 100
(b) Inter-corporate loans/deposits
Part 'A' [Item (xi)]
[Item code 150] 233 0
(ii) Amount not deducted
In Part A 234 100
(c) Loans and advances fully
Secured by company's own
Deposits 235 0
58
£ CHAPTER-4
(D
Loans to staff
(2)
236
(3) (4)
0
(5)
0
(d)
(e) Other loans and advances
Part A [Item (xi)
[Item code 150] 241 0 0
Part A 242 100
(f) Bills purchased / discounted
Part A [Item (xi)]
[Item code 150] 243 0 0
Part A 244 100
(g) Others (to be specified) 245 100
IV. FIXED ASSET

(net of depreciation)
(a) Assets leased out
Part A [Item (xi)]
[Item code 150] 251 0 0
Part A 252 100
(b) Premises 253 100
(c) Furniture & Fixtures 254 100
V. OTHERS ASSETS
(a) Income-tax deduced at
Source (net of provisions) 255 0 0
(b) Advance tax paid (net of
provision) 256 0 0
(c) Interest due on Government
Securities 257 0 0
(d) Others (to be specified) 258 100
TOTAL WEIGHTED ASSETS

(Items 210 to 258) 200
Notes :
1. Netting may be done in respected of assets where provisions for depreciation or for bad
and doubtful debts have been made.
2. Stock on hire should be shown net of finance charges. I.e. interest and other charges
recoverable.
3. Assets which have been deducted [Item 150] from owned fund to arrive at net owned
fund will have a weightage of 'O'.
59
CHAPTER -4 ^1----------------------------------------
[part - e|
Weighted non-funded exposures / off-balance sheet items
Item Item Book Conversion Equivalent Risk Adjusted

code value factor weight value
value
(1) 1ST (3) (4) (5) (6) (7)
1.Financial & other

Guarantees 310 100 100
2.Share/debenture
Underwriting
Obligations / 320 50 100
3. Partly paid shares/
Debentures 330 100 100
4.Bills discounted/
Rediscounted 340 100 100
5.Lease contracts
Entered into but
Yet to be executed 350 100 100
6.0ther contingent
Liabilities
(To be specified) 360 50 100
TOTAL NON-FUNDED
EXPOSURES (ITEMS
310 TO 360) 300
Note : Cash margin/deposits shall be deducted before applying the conversion factor.
PART-F
Asset Classification
I. AGGREGATE OF CREDIT EXPOSURES CATEGORISED INTO :

required
(i) Standard assets 411
(ii) Sub-standard assets:
Lease and hire purchase assets 412
Other credit facilities 413
(iii) Doubtful assets 414
(iv) Loss assets 415
Total 410
60
CHAPTER -4
>
II.AGGREGATE PROVISIONING IN RESPECT OF 1 ABOVE AS PER THE DIRECTIONS
PRESCRIBED
Item name Item Provision Amount
code Required provision
made
(D (2) (3) (4)
(A) Loans, advances and others credit facilities
(i) Sub-standard assets :
(a) entire amount taken to the credit
of profit and loss account before
the asset became NPA and remaining
unrealised [Para 3(2) of the directions] 421
(b)1Q% of the balance of outstanding dues 422
(ii) Doubtful assets:
(a) entire amount taken to the credit of
profit and loss account before the asset
became NPA and remaining unrealised 423
[Para 3(2) of the directions]
(b) 100% to the extent not covered by
realisable value of security +20 to 50%
of the secured portion for the period the
asset has remained doubtful 424
(iii) Loss assets:
profit and loss account 'before the asset
(b)100% of the outstanding balance 426
(B) Hire purchase and leased assets
(i) Sub-standard assets
Hire purchase assets
profit and loss account before the
asset became NPA and remaining
unrealised 427
(b) deficit between total dues and
depreciated value or the net realisable
value of the underlying asset, whichever
is lower [Para 8(2)(i) of the directions] 428
(c)10% of net book value 429
[Para 8(2)(ii) of the directions]
Leased Assets
(a) net lease rentals credited to profit and
loss account before the asset became
NPA and remaining unrealised 430
(b) 10% of the net book value 431
(ii) Doubtful assets
Hire purchase assets
CHAPTER TH 61

(b)deficit between total dues and
value of the underlying asset, whichever
is lower [Para 8(2)(i) of the directions] 433
(c) 50% of net book value" 434
Leased Assets
(iii) Loss Assets
Hire Purchase assets
(b) deficit between total dues and
value of the underlying asset whichever
is lower [Para 8(2)(l) of the directions] 438
(c) 100% of net book value 439
Leased Assets
[Para 8(2)(i) of the directions]
Total 420
OTHER PROVISIONS IN RESPECT OF :
(i). Depreciation in fixed assets 451
(ii) Depreciation in investments 452
(iii) Loss/intangible assets 453
(iv) Provision for taxation 454
(v) Gratuity/provident fund 455
(vi) Others (to be specified) 456
Total___________ ___________ 450
3
62
CHAPTER
PART-G
Particulars regarding investments in and advances to companies/
firms in the same group and other NBFC________________________________ _______
Item name Item code Amounl
(D (2) O)
(i) Book value of bonds and debentures and
Outstanding loans and advances to and
Deposits with subsidiaries and companies
In the same group (Details to be enclosed
InAppendixNo.) 510
(ii) Investments in shares of subsidiaries and
companies in the same group and all non
banking financial companies (Details to be
enclosed in Appendix No.) 520
(iii) Investments by way of shares, debentures,
loans and advances, leasing, hire purchase
finance, deposits, etc., in other companies,
firms and proprietary concerns where
directors of the company hold substantial interest. 530
PART - H
Particulars regarding concentration of advances including off-balance sheet
exposure and investments to parties including those in Part G above

(1) (2) (3)
(1) Loans and advances including off-balance
sheet exposures to any single partly in excess
of 15 per cent of owned fund of the NBFC.
(Details to be enclosed in Appendix No.) 610
(ii) Loans and advances including off-balance sheet
exposures to a single group of parties in excess
of 25 per cent of owned fund of the NBFC. 620
(Details to be enclosed in Appendix No.)
(iii) Investments in a single company in excess of
15 per cent of the. owned fund of the NBFC.
(Details to be enclosed in Appendix No.) 630
(iv) Investments in the shares and debentures/
bonds issued by a single group of companies
in excess of 25 per cent of the owned fund
of the NBFC. 640
(v) Loans, advance to (including debenture's bonds
and off-balance sheet exposures) and investment
in the shares of a single party in excess of
25 per cent of owned fund of the NBFC. 650
(vi) Loans, advances to (including debentures
bonds and off-balance sheet exposures) and
investment in a single party in excess of •
40 per cent of the net owned fund of the NBFC. 660______________________ _________
Note : (1) All these exposure limits are applicable to the NBFCs own group as well as to the
borrower/investee company’s group.
(2) Investment in debentures for this purpose shall be treated as credit and not investment.
CHAPTER "4^} 63
PART -1
Particulars regarding investments in premises and unquoted shares

(!) (2) (3)
(i) Investments in premises (Land and buildings) o
except for own use, (out of item code 253 in
the return) held by the company in excess of
10 per cent of the owned fund.
(a) Acquired by the company independently 710
(b) Acquired in satisfaction of its debts 720
(ii) Investments in unquoted shares except those
held in the subsidiaries and companies in the
same group (vide item codes 141 and 142) in
excess of
(a) 10 per cent of the owned fund in case
of equipment leasing and hire purchase
finance companies 730
(b) 20 per cent of the owned fund in case of
loan and investment companies] 740
Certificate
Certified that
(1) the date/information furnished in this statement are in accordance wjth the directions
issued by the Reserve Bank of India relating to income recognition, accounting standards, asset
classification, provisioning for bad and doubtful debts, capital adequacy and concentration of,credit
and investments. The statement has been compiled from the books of account and other records
of the company and to the best of my knowledge and belief they are correct;
(2) Reserve Banks’ classification of the company as a.......................on the basis of its
principal business as evidenced from its asset and income pattern continues/does not continue to
hold good (delete whether is not applicable);
(3) the company has''accepted public deposit and the quantum of such deposit is within
the limits applicable to the company.
(4) the company has not paid interest/brokerage on deposit beyond the ceiling
prescribed under the directions ;
(5) the company has not defaulted in repayment of matured deposit;
(6) the credit rating for fixed deposits assigned by the Credit Rating Agency viz..............
(name of the Agency) at.................. (rating level) is valid ;
(7) the capital adequacy as disclosed in Part C of the return after taking into account the
particulars contained in Parts D, E and F has been correctly worked out;
(8) classification of assets as disclosed in Part F of the return has been verified and
found to be correct. No roll-over/re-phasement of loans, lease and hire purchase transactions and
bills discounted beyond due dates has been observed. The sub-standard or doubtful or loss asset,
64
CHAPTER - 4 ---------------------------------------------------------------------1--------------------
if upgraded, has been done so, in conformity with the Non-Banking Financial Companies
Prudential Norms (Reserve Bank) Directions, 1998 ;
(9) investments in group companies as disclosed in Part G of the return and exposures
to individuals/firms/other companies exceeding the credit/investment concentration norms as
disclosed in Part H of the half-yearly return and classification of such assets is correct.
(10) Net owned fund as per Tier-I capital of the company has been correctly worked out.
Place : For and on behalf of

(Name of the company)
Date : Managing Director/
Chief Executive Officer
AUDITOR’S REPORT
We have examined the books of account and other record maintained by........................
Limited in respect of the capital funds, risk assets/exposures and risk asset ratio, etc., as on
................. 20......................and statements hereinabove made by the Managing Director/Chief
Executive Officer of the company or his authorised representative. We report that to the best of
our knowledge and according to the information and explanations given to use and as shown by
the record examined by us the figures shown in Parts A, B, C, D, E, F, G and FI of the statement
hereinabove are correct.
Place: Statutory Auditors
Date:
CHAPTER-4 J]----------------------------------------------------------------- -- 65
ANNUAL RETURN ON DEPOSITS

-A SPECIMEN POINTS
[To be submitted by all NBFCs Accepting / Holding PuHic Deposits, and MNBCS - Except residuary
Non-Banking Companies]
[From - NBSl
Annual Return on Deposits as on 31, March 20.
[To be submitted by all Non-Banking Financial Companies accepting / holding public deposits, and
MNBCs - except Residuary Non-Banking Companies]
File Number
ID Number
Nature df Business
District Code
State Code
(To be filled in RBI)
Name of the Company
Instructions for filling in the Return-General
1. This Return should be submitted by a Non-Banking Financial Company covered by

Para 8(3) of Notification No. DFC. 118/DG(SPT)-9£ dated January 31, 1998 and by a
Miscellaneous Non-Banking Company covered by Para 11 of the Notification No.
DNBC.39/DG(H)-77 dated June 20, 1977 to the Regional Office of Department of Non-Banking
Supervision, Reserve Bank of India where its Registered Office is situated, once a year, after
March 31 and latest by September 30, with reference to its position as on March 31,
irrespective of the date of closed of the financial year of the Company concerned. A Certificate
from the Auditors of the company should be appended to the Return as per format furnished
herewith. However, only in respect of Part 3, the information should be furnished as per the latest
balance sheet but preceding the date of the return.
N.B. In term of Notification No. DNBS. 135/CGM(VSNM)-2000, dated 13-01-2000, NBFCs

shall prepare their balance sheets and profit and loss accounts as on March 31, every year with
effect from its accounting year ending with 31st March 2001. Therefore with-effect from accounting
year ending 31st March 2001, the information in Part 3 of the return shall be as on the date of
current balance sheet thus coinciding with the date of return.
2. Submission of the Return should not be delayed for any reason such as the
finalisation/ completion of the audit of the annual accounts. The compilation of the Return should
be on the basis of the figures available in the books of accounts of the company and should be
certified by its Statutory Auditors.
66
CHAPTER-4
3. The number of accounts should be given in actual figures while the amount of
deposits should be shown in lakhs of rupees. The amount should be rounded off to the nearest
lakh. Illustratively, an amount of Rs. 4,56,100 should be shown as 5 and not as 4.6 or 5,00,000.
Similarly, an amount of Rs. 61,49,500 is to be shown as 61 and not as 61.5 or 61.00,000:
4. The Return should be signed by a Manager (as defined in Section 2 of the

Companies Act, 1956) and if there is no such Manager, by Managing Director or any official of the
Company who has been duly authorised by the Board of Directors and whose Specimen Signature
has been furnished to the Reserve Bank of India for the purpose. In case the specimen signature
has not been furnished in the prescribed card, the Return must be signed by the authorised official
and his Specimen Signature furnished separately.
5. In case there is nothing to report in any part / item of the Return, the relevant part/
item may be marked ‘Nil’ in the column meant for ‘No of accounts’ and 00s may be indicated in
the column meant for 'Amount1'
■ 6. ' 'Subsidiaries’ and ‘Companies in the same group' mentioned in this Return have the
same meanings assigned to them in Section 4 and Section 372(11) respectively, of the
Companies Act, 1956 as appearing prior to amendment to the Companies Act dated 31sf October,
1989.
7. In case this return is being filed through electronic media (internet), to the specified
Web Server, a hard-copy of the same may be submitted to the concerned Regional Office duly
signed.
Company Profile
1. Name of the Company
-~ -----
2. Address of the Registered
Office
PIN
Phone Nos. Fax e-mail address

No. —
3. Name of the State in which

the company is registered
4. Address of the Corporate/
Head Office
—
PIN ■
Phone Nos. Fax e-mail address
No.
5. Date of incorporation
--------------- ------------------
6. Date of Commencement of
Business
7. Name and Residential
Address of
(i) Chairman
(ii) ) Managing Director/

CEO
8. is it a Government Company (Please Yes No
tick):
9. Status of the company (Please tick):
67
[* CHAPTER
(i) Public Ltd. O') Deemed

Public
(iii) Private Ltd. (Iv) Joint Venture
11. Nature of business

12. Status .of registration with RBI
(i) Number and Date of Certificate of Registration if
issued by RBI
(il) If not registered, indicate whether the application
submitted for registration is rejected/pending
13. Classification of the Company (if given by Reserve
Bank as HP/Leasing / Loan / Investment / MBC etc.
and reference number and date of such
classification)
14. Credit rating:
(I) Rating assigned
(ii) Date of rating
(iii) Name of the Rating Agency
(iv) Whether any change has occurred since the last
rating (details)
15. Number of Branches / Offices
(Please enclose a list of names and addresses
thereof in the format given below as per Note 1)
------------------------------- -------- —..................
16. If a subsidiary company, please indicate the name
and address of the holding company
17. If the company is having subsidiaries / associate
companies, number thereof,
(Please enclose a list of names, addresses, names
of Directors and particulars of business activities
thereof in the format given below as per Note 2)
18. If Joint Venture, name and address of the promoting
institution(s)
19. Name of the Company’s statutory auditors with
address and phone numbers.
20. Name(s) of the company’s Bankers with addresses
and phone numbers.
Note (1) : Format for furnishing details of branches :

SI. Name of the Date of Amount of
Address City District State
No. branch opening Public deposit
--------- __ --------- •
Total No. of Total Public
Branches Deposits of all
the branches
......(Amount)
Total Public
Deposits as per
balance sheet
dated ..............
/
68
CHAPTER-4 > Note (2): Format for furnishing details of the subsidiaries :
SI. Name of the Business

Name of the subsidiary Address
No. Directors Activity^
Details of Assets and Liabilities (as on March 31.200..,)
PART -1
Public Deposits
Item Item Number of
Particulars Amount
No. Code Accounts
1. Deposits received from public in the form of Fixed 111
Deposits, Recurring Deposits etc.
2. (i) Deposits received from shareholders by a Public 112
Limited Company (other than Nidhis).
(ii) Deposits received from Joint shareholders other 113
than the first named shareholder by a Private
Limited Company
3. (i) Money received by issue of Non-convertible 114
unsecured debentures (please see instruction No. 1
given below)
(ii) Any other type of public deposits (please specify) 115
4. Total (111 to 115) 110
5. Of the total Deposits at item 4 above, those repayable 121
(I) within 1 year
(ii) after 1 year but up to 2 years 122
(iii) after 2 years but up to 3 years 123
(iv) after 3 years but up to 5 years and 124
(v) after 5 years 125
6. Total (121 to 125) 120
7. Break up of public deposits at item 4 above, as per rate
of interest (excluding brokerage, if any)
(i) Below 10% 131
(ii) 10% or more but less then 12% 132
(iii) 12% or more but less than 14% 133
(iv) 14% or more but less than 16% 134
(v) At 16% 135
(vi) More than 16% but up to 18% 136
(vii) More than 18% 137
8. Total (131 to 137) 130
9. Break-up of Public Deposits according to the size
(I) Fixed deposits etc. received from public
(vide Item No. 1 above)
(a) upto Rs. 10,000 141
(b) over Rs. 10,000 142
(ii) Deposits from share holders in case of public limited
companies (vide item No. 2 above)
(a) upto Rs, 10,000 143
(b) over Rs. 10,000 144
(iii) Non-convertible unsecured debentures (vide item
No. 3 above)
(a) upto Rs. 10,000 145
(b) overRs. 10,000 146
10. Total of (141 to 146) [should tally with the amount 140
shown against item 110]
69
CHAPTER-4
11. Of the deposits at item 4 above-: 151
(i) Those which have matured, but not claimed.
(ii) Those which have matured, claimed but not paid 152
(please see instruction No. 2 given below)
(a) From public (vide item No. 1 above) 153
(b) From shareholders (vide item No. 2 above) 154
(c) From debenture holders (vide item No. 3 above) 155
(iii) Those shown against item (ii) above where CLB 156
has passed the orders for repayment
12. Public Deposits mobilised during the year by payment 157
of brokerage
13. Brokerage paid 158 -------------- .. _
14. % of 13 to 12 159
15. Public deposits matured but remaining unclaimed for 7 160 .
years including the year in which they have matured
PART - 2
Particulars of other borrowings

Item Particulars Item Code Number of Amount
No. Accounts
1. Money borrowed from the Central/State Government/ Local 221
Authority/others the repayment of which is guaranteed by the
Central/State Governments
2. Money borrowed from: (i) Foreign Government 222
(ii) Foreign Authority 223

(iii) Foreign Citizen or person 224
Total (222 to 224) 225
3. Borrowings from: (i) Banks 226
(ii) Other Specified Financial Institutions 227

4. Money borrowed from any other Company 228
5. Unsecured loans from Directors / Promoters 229
6. Money borrowed by a private company from its 230
shareholders
7. Money received from employees of the company by way of 231
security deposit and kept in joint accounts in the name of the
company and the employees with a scheduled bank or a post
office
8. Money received by way of caution money, margin money 232

from the borrowers, lessee, hirers or by way of security or
advance from agents in the course of company's business or
advance received against orders for supply of goods or
properties or for rendering
9. Money received by issue of convertible or secured 233

debentures/bonds (please see the instruction given below)
10. Of the above, debentures subscribed by the banks/ other 234

NBFCs.
70
CHAPTER-4
11. Money received by way of subscription to shares, bonds or 235
debentures pending allotment or money received by way of
calls in advance on shares (not
due for refinance)
12. Commercial Papers 236
13. Deposits received from relatives of Directors 237
14. Borrowings from Mutual Funds 238
15. Any others (Not treated as public deposits -Please specify) 239
16. Total (221 + 225 + 226 to 233 + 235 to 239) 250 ,
Instruction:
In the case of Partly Convertible Debentures/Bonds, only the convertible portion should be shown against item
9 of Part-2 above,
PART-3
Net Owned Fund
[ Figure to the furnished as per the latest balance sheet preceding the date of the Return or as per
balance sheet as on the date of return ]
[Balance sheet as on............................]
Items Particiuars Item Code Amount
No.
1. Capital Funds: (i) Paid-up Equity Capital 311
/
(ii) Paid-up preference shares which are compulsory convertible to Equity. 312
(iii) Free Reserves (please see instruction No.1 given below) 313
2. Total (311+312+ 313) = A 310

3. (I) Accumulated balance of loss 321
(ii) Balance of deferred revenue expenditure 322
(iii) Other intangible assets (please specify) 323
4. Total (321 + 322 + 323) = B 320

5. Owned Fund (A - B)i.e., (310 - 320) = C 330
6. Book value of investments in shares of: (i) Subsidiaries of the company 341
(ii) Companies in the same group 342
(iii) all other Non-Banking Financial Companies (Details in Annexure 343

No.......)
7. Book value of investments in debentures and bonds of: (i) Subsidiaries of 344
the Company
(ii) Companies in the same group (Details in Annexure No..........) 345
8, Outstanding loans and advances including bills purchased/discounted, 346

inter-corporate deposits, hire purchase and lease finance, CPs with: (I)
Subsidiaries of the company
(ii) Companies in the same group (Details in Annexure No ) [please 347
see instruction No.2 given below]
9. Total (341 to 347) = D 340
10. D in excess of 10% of C (340 in excess of 10% of 330) = E 351
11. Net Owned Fund (330 - 351) = ( C - E) 350
i
71
CHAPTER - 4
12. Paid-up preference Share Capital not compulsory convertible, as per latest 361
balance sheet
13. Paid-up preference share capital not compulsory convertible, as on the 362
date of this Return,
14. Total liabilities as per the latest balance sheet 363
15. Total liability as on the date of this Return 364
Instructions:
1. Free Reserves" mentioned under item 1 (iii) above shall include the balance in the
Share Premium Account, Capital and Debenture Redemption Reserves and any other Reserve
shown or published in the Balance Sheet and created through an allocation of Profits (including
credit balance of Profit & Loss Account) but not being:
(i) a Reserve created for repayment of any future liability or for depreciation of assets or
for provision against non-performing asset/bad debts; or
(ii) a Reserve created by Revaluation of the Assets of the Company.
2. Hire Purchase and /Lease Finance mean:
(i) in the case of hire purchase asset, the amount of future installments receivable reduced
by the balance of the unmatured finance charges; and
(ii) in the case of lease assets, the depreciated book value of the lease asset plus/
minus the balance in the lease adjustment account; Amount due but not received should be
added in both the cases.
PART-4
Outstanding loans and advances, including inter-Corporate Deposits/Commercial Papers

Items Particulars Item Amount
No. Code
1. Loans and advances etc. in subsidiaries of the 411
company
2. Companies in the same group 412
3. Companies, Firms and Proprietary Concerns where 420
Directors of the Company hold substantial interest/
are interested, (please see instruction No. 1 given
below). [Details in Annexure No ]
4. Others: (i) Companies not in the same Group 431
(ii) Directors / Promoters 432

(iii) Shareholders 433
(iv) Members of Staff 434
(v) Depositors 435
(vi) Others 436
5. Total (411 + 412 + 420 + 431 to 436) 400
72
CHAPTER - 4
Instructions;
1. "Substantial interest" shall have the same meaning as assigned to it in Non-

Banking Financial companies Prudential Norms (Reserve Bank) Directions, 1998.
2. Sundry Debtors, Tax paid in advance and other Recoverable items not in the
nature of loans and advances should not be shown in Part-4 above.
3. Fixed Deposit with other companies should be included under item 1,2, 3 and
4(i), as the case may be.
4. Investment in unquoted debentures shall be treated as credit and not

investment.
PART-5m
Investments (at book value)

Items Particulars Item Code Amount
No.
1. Investments in-(i) Fixed deposits with banks/certificate of 541
deposits issued by banks
(ii) Balances in any other deposit accounts with bank(s) 542
(iii) Securities of Central/State Govts, and bonds guaranteed by 543

Central/State Govts.
(iv) Units of Unit Trust of India 544
(v) Others (Please specify......... ) 545
2. Investments in shares: (i) Quoted 511
(ii) Unquoted. 512
3. Investments in(debentures)and bonds 515

4. Investments in shares and debentures/bonds of companies 520
where directors of the company hold substantial interest.
(Please see the instruction No.1 of Part-4). (Details in Annexure
No......... )
5. Total (541 to 545 + 511 + 512 + 515 + 520) 500
Instructions:
1. Details of shares, debentures and commercial papers held in investment account or by

way of stock-in-trade should be included in this part,
2. Fixed deposit with other companies should not be included here but should be shown in
Part-4.
3. Investment in unquoted debentures / bonds shall be treated as credit and not
investment,
73
CHAPTER-4
PART-5(II)
Quoted shares/debentures/bonds/commercial papers

No.
1. Books value 551
2. Market value 552
PART-6
Hire Purchase Business

Items Nature of goods on the Item Number Amount
No. Code of
Accounts
1. Automobiles: (i) Heavy Commercial Vehicles 611
(ii) Light Commercial Vehicles 612

(iii) Others 613
2. Total (611+612+ 613) 610
3. Household durables 621
4. Data processing / office automation 622
5. Agricultural implements (Tractors, Bulldozers, etc) 623
6. Industrial machinery or tools or equipment for use in 624
industries
7. All others 625
8. Total (610 + 621 to 625) 600
9. Of 8 above, dues from Subsidiaries/Companies in 691
the same group / companies, firm and proprietary
concerns where directors of the company hold
substantial interest
PART-7
Equipment leasing Business

Net Leased
Accumulated
Gross Assets plus
Items Item depreciation +/-
Nature of Equipment on Lease Leased amounts due
No. Code Lease Adjustment
Assets but not
Account
received
1. Plants & Machinery 701
2 Data Processing/office equipment 702
3 Vehicles 703
4. Others 704
5. Total (701 + 702 + 703 + 704) 700
6. Of 5 above, dues from subsidiaries / 791
companies in the same group / companies,
firms and proprietary concerns where
directors of the company hold substantial
interest / or are interested
74
CHAPTER-4
PART-8 Bills Business
No.
1. Bills purchased / discounted where the drawers, drawees or any 801
endorsers are: (i) Subsidiaries of the company
(ii) Companies in the same group 802 '
(iii) Companies or firms in which any director of the company holds 803
substantial interest or proprietary concerns owned by him
2. Bills purchased / discounted other than 1 above 820

3. Total {801 + 802 + 803 + 820) 800
PART-9
Particulars about other fixed assets

No.
1. Fixed assets (i) Land and Buildings for own use 901
(ii) Land and Buildings - other 902
(iii) Furniture and Fixtures 903

2. Other assets excluding Intangibles 905
3. Total of other assets (901 + 902 + 903 + 904 + 905) 910
4. Total assets [excluding intangibles ] (400 + 600 + 700 + 800 + 910) 900
75
CHAPTER-4
PART-10
Business Statistics / Information for the year ended 31 March, 200...
Items
Particulars Item Code Amt.
No.
1. I. Disbursements (Fund based activities)
Equipment leasing
(a) Outstanding balances as.on the date of the return 1001

(b) Total disbursement during the year 1002
2. Hire Purchase:
(a) Outstanding balance as on the date of the return 1003
(b) Total disbursement during the year 1004
3. Loans
(a) Loans against shares to corporates:
(i) Outstanding balances as on the date of the return 1005
(ii) Total disbursement during the year 1006
(b) Loans against shares to individuals :

/
(c) Loans against shares to brokers:
(d) Loans to finance Initial Public Offerings (IPOs):

(e) Inter-corporate loans / deposits:
(f) Others 1015

---- ------
4. Bills Purchased / Discounted :
(a) Outstanding balances as on the date of the return 1016
(b) Total disbursement during the yed? 1017
5. Of 4, bills re-discounted:
(a) Outstanding balance as on the date of the return 1018
(b) Total volume during the year 1019

6. II. Trading in shares / securities (quoted other than SLR) 1020
Purchase / sales of shares / debentures / commercial papers :
(a) Purchases
(b) Sales 1021
7. III. Fee based activities
------ ---- -
Guarantees issued for Capital Market Operations:

76
CHAPTER-4
---------------------------- !
Items
Particulars Item Code Amount
No.
8. Guarantees issue for other purposes:
9. Lease / Hire purchase syndicated during the year 1026
10. Loan / ICDs syndicated during the year 1027
11. Bills syndicated during the year 1028

12. Underwriting: 1029
(a) Total amount underwritten
(b) Amount devolved 1030
(c) Outstanding commitments 1031
PART-1Q(A) Status of Over dues

No.
1. Lease over dues more than 12 months 1041
2. Lease over dues up 12 months 1042
3. Hire purchase over dues more than 12 months 1043
4. Hire purchase over dues up to 12 months 1044
5. Other over dues more than 6 months 1045
6. Other over dues up to 6 months 1046
7 Total (1041 to 1046) 1040
PART-11
Particulars of selected Income and Expenditure
(Please see instruction given below)____________
Items
No.
1. Fund-based income: 1101
Gross lease income
2. Less: Depreciation on Assets on Lease + / - Lease Equalisation 1102
3. Net lease income (1101-1102) 1103
4. Hire purchase income 1104
5. Bills discounting income 1105
6. Investment income (a) Dividend / interest 1106
(b) Profit / Loss {+/-) on sale of shares / debentures / commercial papers' 1107
7. Interest Income 1108

(a) Inter-corporate deposits / loans
(b) Other loans and advance 1109
8. Other fund based income 1110
CHAPTER-4~^} 77
Items
No.
9. Total fund based income (1103 to 1110) 1111
10. Fee based income: 1112
Income from merchant banking activities
11. Underwriting commission 1113

12. Income from syndication of bills, loans, ICDs, lease & Hire purchase 1114
13. (Miscellaneous)income 1115
14. Total fee-based income (1112 to 1115) 1116
15. Total Income (1111 + 1116) 1100
16. Interest and other financing costs 1117
Interest paid on fixed deposits
17. Interest paid on ICDs 1118

18. Brokerage 1119
19. Reimbursement of expenses to brokers 1120
20. Other financing costs 1121
21. Bills re-discounting charges 1122.
22. Total financing costs (1117 to 1122) 1123
23. Operating'expenses Employee costs 1124
24. Other administrative costs 1125
25. Total operating costs (1124 + 1125) 1140
26. Depreciation on own assets 1126
27. Intangible assets amortised 1127
28. Provision for diminution in value of investments 1128
29. Provision against Non-Performing Assets 1129
30. Other Provisions if any 1130
31. Total expenses (1123 + 1140 + 1126 to 1130) 1150
32. Profit before tax (110-1150) 1160
33. Tax 1170
34. Profit after tax (1160-1170) 1180
Instructions:
1. Particulars in this part should be for a full financial year. If the company closes its books on any
date other than on 31s1 March, the date of closing of the books and the period should be indicated.
2. "Gross lease income" includes lease rentals (net of rebate), lease management fees, lease
service charges, up-front fees, profit on sale of leased assets and delayed / late payment charges relating
to lease business (including interest/compensation charges on advance payment-for purchase of assets in
respect of lease agreements entered int / finalised).
3. 'Lease equalisation account’ has the same meaning as in the guidance Note on Accounting for
Lease (revised) issued by ICAI.
4. 'Hire purchase income1 includes finance charges (net of rebate), hire service charge, delayed /
late payment charges, up-front fees and other income relating to hire purchase business (including interest
earned on advance payment for acquisition of hire purchase assets for identified hirers).
^ CHAPTER-4 J]--------------------------------------------------------------------------- 78
CERTIFICATE
1. Certified that the directions contained in the Non-Banking Financial Companies Acceptance of Public
Deposits (Reserve Bank) Directions, 1998* [as amended from time to time)/ Miscellaneous Non-Banking Companies
(Reserve Bank) Directions, 1977*, as the case may be, are being complied with,
2. Further certified that the particulars / information furnished in this Return have been verified and found to be
correct and complete in all respects, (*Please delete whichever is not applicable),
Date : Signature of Manager / Managing Director /
Place: Authorised Official
AUDITOR'S REPORT
We have examined the books of account and other records maintained by.............................
.................................■. Company Ltd. in respect of the data furnished in this return and report that to the best of our
knowledge and according to the information and explanations given to us and shown by the records examined by us,
the data furnished in this return are correct,
Place: Signature
Date : Name of the Chartered Accountants
Enclosures to the return:
1, The following documents should be submitted along with the return in case they have not already been sent,
(i) A copy of the audited balance sheet and profit and loss account dated nearest to the date of return.
(ii). Specimen signature card.
(iii) A copy of application form referred to in paragraph 4(12) of the Notification No.DFC.I 18/DG(STP)-98 dated
January 2,1998 or paragraph 6 of the Notification No.DNBC,39/DG(H)-77 dated the 20th June, 1977.
2. A list of Principal officers and the names and addresses of directors in the form enclosed is to be sent this
return.
/
< CHAPTER
5 PART-12
79
List of principal officers and directors of________________________Ltd.
I. Principal Officers
SI. Name Designation Address & Tel No. If director in any

No. company /ies, name(s)
of the company/ies
II. Directors
% of equity shares of the Names of Other
SI. Company held by the companies where
Name Address
No. director, his spouse he/she is a
and minor children director
'
Signature of Manager l Managing
Director I Authorised Official
Place: Name :
Date: Designation:
QUARTERLY RETURN ON STATUTORY
LIQUID ASSETS FOR THE QUARTER ENDED
MARCH / JUNE / SEPTEMBER / DECEMBER
FORM-NBS 3-SPECIMEN
(To be submitted by NBFCs vide Section 45-IB(2) of the Resen/e Bank of India Act, 1934 read with
Reserve Bank of India (NBFC) Return Specifications 1997)
1: Name of the Company
2. Company Code
3. Address of the Registered Office
PIN I
Phone Nos. - Fax No. e-mail address
4. Address of the Corporate / Head

Office
PIN I
Phone Nos. Fax No. e-mail address
5. Status of registration with RBI:

i) Number and date of Certificate of
Registration if issued by RBI
ii) If not registered, indicate whether

the application submitted for
registration is rejected / pending
6. Classification of the Company (HP/

Equipment Leasing / Loan /
Investment etc.)
PART-A
Details of Public Deposits and Maintenance of Liquid Assets:
I. Details of Public Deposits outstanding as at the end of preceding second quarter i.e., March / June /
September / December 20..............................................(Please see Note 1 below):
(Rupees in lakhs)
SI. No. Particulars Item Code Amount
1. Deposits received from public in the form of Fixed Deposits, 111

Recurring Deposits etc.
2. (I) Deposits received from shareholders by a Public Limited 112

Company (other than Nldhis).
(ii) Deposits received from Joint shareholders other than the 113
first named shareholder by a Private Limited Company.
3. (i) Money received by issue of Non-convertible unsecured 114

debentures (please see Note 2 below)
(ii) Any other type of public deposits 115

4. Total (111 to 115) 100
II. Details of Liquid Assets maintained :

SI. Particulars Item Amount
N«?, Code
1. Prescribed amount of Liquid Assets required to be maintained at %of 121
public deposits shown against item code 100 above
2. Statutory Liquid Assets actually maintained: (a) Unencumbered
approved securities (Please submit a list of the securities as
perAnnexure-1)
(i) Central Government 122
(ii) State Government . 123
(Ill) Deposits In scheduled commercial banks (Please enclose a list as 124
per Annexure-2 shown below)
(b) Others (please furnish details separately) 125
Total (122 to 125) •120
3. (a) Name of the designated bank and address where the securities are
lodged (please furnish details separately at Annexure-3) (b) Amount of
securities lodged.
(I) Book Value 126
(ii) Market Value 127
4. (a) Whether the company has maintained the required statutory liquid Yes
assets on a dally basis during the quarter under report? (please tick)
No
(b) If not, please indicated the date-wise position of the shortfall during Yes
the quarter (please furnish details as per Annexure-4)
No
5. (a) Whether the requirement of SLR was complied with during the last Yes
quarter? (please tick)
No
(b) If not, whether demand for penal interest was made by RBI? (please Yes
tick)
No
(c) If yes,
(i) amount 128
(ii) date of payment thereof 129
PART-B
Information regarding compliance of Non-Banking Financial Companies Acceptance of Public
Deposits (Reserve Bank) Directions, 1998 fas amended from time to time1
(Rupees in lakhs)
SI. No. Particulars Item Code Amount
1. Net owned fund (as per the last audited balance sheet of the 131
company)
za Capital Adequacy Ratio (as per the last audited balance sheet 132
of the company)
Credit rating: 133

(i) Ratinq assigned
(II) Date of rating 134
(iii) Name of the Rating Agency 135
(iv) Whether any change has occurred since the last rating 136
(Please furnish details separately)
4. Public deposits oi/tstanding as at the close of business on 137
December 18, 1998
5. Quantum of excess public deposits held, if any, by the 138
company as on December 18, 1998
6. Public Deposits outstanding as on date of this return (l.e., last 139
working day of the quarter to which this return relates
7. Quantum of public deposits permissible as per the provisions 140

of Non-Banking Financial Companies Acceptance of Public
Deposits (Reserve Bank) Directions, 1998 as on date of this
return.
8. Quantum of excess public deposits remaining to be regularised 141
on the date of this return
9. Deposits accepted during the quarter under reference 142
10. Deposits renewed during the quarter under reference 143
11. Deposits matured but remained unpaid/not renewed as on the 144

date of this return: (a) No. of accounts
(b) Amount 145
12. Of 11 above, those where Company Law Board orders have 146
been received: (a) No. of accounts
(b) Amount 147

13. (a) Steps taken/being taken to regularise the excess public
deposits within the time frame permitted under the Directions
(please furnish details in a separate statement)
(b) Steps taken to comply with Company Law Board orders

(please furnish details in a separate statement)
PART- C
Information relating to opening and closing of branches / offices for collection of deposits,
(a) List of branches /offices opened:

Name and address of the branches Date of opening Reference No. and date of Remarks
/ offices communication to RBI
(b) List of branches /offices closed:

Name and address of the branches Date of Date of Reference Norand date of Remarks
/offices pubilicity closing
DECLARATION
W6 declare that the above information is true and correct.
Place:
Date: Name and signature of the authorised official
Note:
1. For the purpose of this return, assets should be maintained on daily basis and should relate
to the public deposit liabilities (including interest accrued thereon) as defined in paragraph 1 (1 ){xii)
of the Non-Banking Financial Companies Acceptance of Public Deposits (Reserve
Bank) Directions 1998 as on the last working day of the second preceding quarter. For example,
the liquid assets to be maintained on each day during the quarter ended 30th June,
2000 (i.e., 1.4.2000 to 30 30.6.2000) on the last working day of the quarter ended
31th December 1999.
Z The non-convertible unsecured debentures / bonds including interest accrued thereon

should be included under this item.
ANNEXURE-1
List of approved securities held towards liquid assets requirement
(Rupees in lakhs)
SI. No. Name of the security Amount (at market value or carrying cost as the Interest collection
case may be) dates
ANNEXURE-2
List of deposits held with scheduled commercial banks
(Rupees in lakhs)
Name of the Bank Address of the bank's branch Amount

1 Kin
ANNEXURE-3
Name and address of designated bank(s)
(Rupees in lakhs)
SI. No. Name of the Bank Name of the branch and address Remarks
(Reference no. of
information to RBI)
ANNEXURE-4
Details of shortfall in maintenance of liquid assets
(Rupees in lakhs)
Date Amount required to be Amount actually Shortfall

maintained maintained
From To No. of
days
iv-=
NBS-5-M0NTHLY AND
SUPERVISORY RETURN
FORM - NBS - 5
MONETARY AND SUPERVISORY RETURN
(To be submitted by all Non-Banking Financial Companies, and Residuary Non-Banking Companies
covered by Para 8 (3) of Notification No.DFC.I 18DG(SPT)-98 dated January 31, 1998 and para 2 of the
RNBC (Reserve Bank) Directions 1987 respectively, holding public deposits of Rs.20 crore and above asper
the last audited balance sheet)
Name of the company______________________________ (NBFC/RNBC)
Return for the Quarter Ended_________________________
Company code (to be given by RBI)_____________________
1. This Return should submitted with .reference to position as at the end of each quarter
ending March, June, September and December to Reserve Bank of India as to reach within 10 days of the
end of the quarter,
2 The amounts should be rounded off to nearest lakhs of Rupees. In case there is nothing
to report in any part / item of the Return, the relevant part / item may be marked 'Nil' in the column
meant for "No. of accounts" and 00s may be indicated In the column meant for "Amount1,
3. The return should be certified by a Manager (as defined in Section 2 of the Companies Act.
1956) and if there is no such Manager, by Managing Director or any official of the Company who has been
duly authorised to the Reserve Bank of India for the purpose. In case the Specimen Signature
has not been furnished in the prescribed card, the Return must be signed by the authorised
official and his Specimen Signature may be furnished separately.
4. Certain expressions used in the form are defined below.
Interest Coverage Ratio = (Profit after Tax + Depreciation + Interest) / Interest
Operating Expenses to average total assets; It is the ratio of the average administrative and
establishment cost of the Company.
Average Total Assets = Average of opening and Closing balances of (net fixed assets +
investments + current assets) - (Unmatured finance charges + intangibles)
Part -1 Company Profile in brief
1.1 Name of the Company and address of the
registered office
1.2 Change in the above particulars after last
reporting, if any
2.1 Number of branches of the company Deposit taking Non-deposit taking
2.2 Change in number of branches after
last reporting,
3.1 Name, Designation and Telephone No,of
the Chief Executive Officer of the Company
3.2 If there been any change in management
including Board of Directors since the date
of last reporting, details may be given
4. If a subsidiary, then name and address of
the holding company
. 5. Whether the Company is a foreign company
CHAPTER - 4
subsidiary / joint venture of a foreign company
6. If having subsidiaries, number thereof,
7. Whether a Government Company covered by
Section 617 of the Companies Act 1956.
8. Financial Year of the Company.
Part - 2 Monetary Data

Item No. Particulars Amount
1. LIABILITIES
1.1 Paid-up Capital
1.2 Free Reserve
1.3 Accumulated balance of loss
1.4 Public Deposits
1.4.1 Outstanding maturity of one year or less
1.4.2 Outstanding maturity of over one year
1.5 Borrowings by issue of convertible or secured
Non-convertible Debentures.
1.6 Other Borrowings
1.6.1 From Banks and Institutions
1.6.2 Inter - Corporate Deposits
1.6.3 Foreign Governments, Authorities
and Individuals
1.7 Other Liabilities including share application money,
optionally fully convertible debentures.
1.7.1 In India
1.7.2 Outside India
1.8 Total Liabilities
1.9 Debt Equity ratio
2. ASSETS
2.1 Investments
2.1.1 Government Securities
2.1.2 Corporate Sector-Shares, Bonds and
Debentures, Government Guaranteed Bonds
2.1.3 Corporate Sector-Commercial Papers
2.1.4 Other (Including securities of quasi Govt.
Authorities, Municipalities etc.)
2.2 Loans and Advance (Incl. Interest Receivable)
2.2.1 In India
2.2.2 Outside India
2.3 Other Financial India
2.3.1 Hire Purchase
2.3.2 Equipment Leasing, Vehicle & Others
2.3.3 Bill Discounting
2.4 Other Assets
2.4.1 In India
2.4.2 Outside India
2.5 Total Assets
2.6 Exposure
2.6.1 To subsidiaries and companies in the same group
.2.6.2 To other NBFCs
2.7 Networth (Total assets less Total Outside Liabilities)
3. Interest Rates
3.1 Offered on deposits
3*1.1 Highest
3.1.2 Lowest
CHAPTER-4 j] 87
3,2 Charged on deployment

3.2.1 Highest
3.2.2 Lowest
Part - 3 Supervisory Data

Item No. Particulars
1. Registration No. and date (under Section 45-IA of Reserve
Bank of India Act, 1934)
2. If not registered, status of Registration i.e., whether application
pending, rejected or cancelled.
3. Activity-wise sub-classification of the company Equipment Leasing/
Hire Purchase, Loan / Investment, RNBC, if applicable
4. Credit Rating (if applicable) as at the last three financial years 1) 2) 3)
and name of the Rating Agency.
5.1 Credit Ratings valid at the end of current and last three quarters @ Qtr. 1Qtrs.2Qtr.3Qtr,4
5.2 Changes in credit rating during the previous quarter, if any Previous rating
Current rating
6. Net Owned Funds (as defined in Section 45-IA of RBI Act.) {Mid-term
fresh capital infusion may be added to the NOF disclosed in the last Qtr. 1 Qtr.2 Qtr.3
audited Balance-Sheet} @ Qtr.4
7. Capital to Risk Assets Ratio as at end of the last-four quarters

(As per last Prudential Norms Return)
8.1 Public Deposits held as at end of last four Quarters In Case of RNBCs-
Total deposits as at the end of the last four quarters.
8.2 Eligibility to hold Public Deposits in terms of Directions

On Acceptance of Deposits
8.3 Excess Deposits held if any
8.4 Public Deposits matured and claimed but not repaid (if any)
9.1 Liquid Assets required to be maintained in terms of
Section 45-IB of RBI Act, 1934
9.2 Liquid Assets (Section 45-IB of RBI Act, 1934) actually maintained
10. Name and address of the designated banker
11.1 Shortfall in maintenance of liquid assets (Section 45-IA of
RBI Act, 1934), if any
11.2 In case of shortfall, if penal interest has been paid, amount of
such interest paid
11.3 In case of RNBCs-Investments required to be made in terms
of para 6(1 )(a) of RNBC Directions
11.4 In case of RNBCs-Investments actually made in terms
of para 6 (1) (a) of RNBC Directions
11.5 Shortfall, if any in making investments in term of Para 6(1 )(a)
of Directions
11.6 In case of RNBCs-Investments required to be
made in terms of para 6(1 )(b) of RNBC Directions
11.7 In case of RNBCs-Investments required to be
made in terms of para 6(1 )(b) of RNBC Directions
11.8 Shortfall, if any in making investments in term of Para 6(1 )(b)
of Directions
11.9 In case of RNBCs-Investments made in terms of para 6(1 )(c)
of RNBC Directions
11.10 In case of RNBCs- investment made in terms
of para 6(1 )(c) of RNBC Directions
11.11 Total Assets (book value) net of intangible assets
(As per last audited Balance sheet of..........................)
88
CHAPTER-4
11.12 Realisable value of assets (As per last audited Balance sheet of)
12. Total outside liabilities
(As per last audited Balance sheet of)
13. Solvency (11.12-12)
14.1 Gross Non-Performing assets(as per last
Prudential Norms return)
14.2 Net Non-Performing assets(as per last
Prudential Norms return)
14.3 Percentage of Net NPAs to total assets
14.4 Percentage of Net NPAs to total Credit
15. Net Profit / Loss (As per last audited balance sheet)
16. Total exposure to subsidiaries / Group companies,
■ including investments
17.1 Total investments in land and building except for own use
17.2 Total investments in land and building, for own use
17.3 Land and building acquired in satisfaction of claims
17.4 Total investments in unquoted shares of companies which
are not subsidiaries in the same group
18. Has the company complied with credit / investment
concentration norms?
19. Gross income to average total assets (As per last
audited balance sheet)
20. Interest coverage ratio (As per last audited balance sheet)
21. Operating expenses to average total assets (As per last
audited balancesheet)
22. Profit after tax to average total assets (As per last
23. Return on average tangible net worth (As per last
24. • Trend of Profits after excluding non-recurring and 1)2)3)
extra-ordinary items of income and expenditure during the
last three financial years
@ N.B, The data should be furnished for the current Quarter and the last three Quarters.
The data for current Quarter should appear under the head Quarter 4,
89
CHAPTER-4
>
Part • 3 • Continued - Cash Flow Statement
Rs. In lakhs
PROJECTION ACTUAL FOR PROJECTION
FOR PREVIOUS CURRENT FOR NEXT
QUARTER QUARTER QUARTER
INFLOW
1. Preference
Capital
2. Sate of securities
3. Advance receipt
4, Term loan
5. Collection on account of
HP/Lease/Loans
6. Debentures
7. Deposits
8. Renewal of deposits
9. ICD Borrowings
10. Receipt from
11. Bank Borrowings
12. Others
TOTAL
OUTFLOW
1. Refund / Foreclosure
2; Renewal of deposits
3. Advances
4. Interest payment on
(i) Deposits
(ii) Debentures
(iii) Bank Borrowings
(rv)ICDs
(v) Others
5. FD/Deb/Loan Mobilisation expenses
6. Lease Rentals
7. Investment in securities
8. Administrative expenses
9. Payments to Associated companies
10. Other outflows
TOTAL
OPENING BALANCE EXCESS/ DEFICIT ffJFLOW
CLOSING BALANCE
/
CHAPTER-4
> CERTIFICATE
90
Certified that the above information has been extracted from the books of the company and is true to
the best of my knowledge and information.
Place
Date
(Seal of the Company) Signatures of Authorised. Signatory
Name and Designation of Authorised Signatory
Part - 4 Supervisory Comments

(To be appended and filled in by the Regional Office of RBI)
Item No. Particulars
1. Status of Registration Issued / approved but not issued / pending
If approved but not issued or pending,
reasons therefore
2.1 Compliance with returns discipline
2.2 . Annual Return on Deposits (Last three years) Current year ( .) Last year ( )
Year before last ( )
On time / Delayed on time / Delayed
2.3 Half yearly return on Prudential Norms Current year ( ) Last year ( )
(Last three half years) Year before last ( )
2.4 Quarterly Return on liquid assets Quarter ended
Quarter ended
Quarter ended
Quarter ended
2.5 Action taken for delayed / non

submission of returns
3.1 Details of On-site Examination
3.2 Date and type of last on-site
examination (Regular Inspection,
Snap scrutiny, supervisory visit etc.
3.3 Reference date of examination
3.4 Purpose of examination
3.5 Finding of the examination in brief
(Paragraphs of Directions violated
may be mentioned)
-D-
, Liquidity Ratio Stated (S) Assessed (A) S-A

Ol
, Solvency Stated Assessed (A) S-A

CO CO CO ~-J CD
, NOF Stated Assessed (A) S-A

, CRAR Stated Assessed (A) S-A
Date of issue of supervisory letter.
.1 Compliance with findings of examination Satisfactory / unsatisfactory / indifferent
.2 Paragraphs remaining complied
10.1 Whether the company has defaulted
in repayment of deposits?
*
102
10.3
CHAPTER-4
>
Details of CLB order/s if any
Date of the order/s
91
10.4 Total Amount of public deposits covered

by the order
10.5 Details of supervisory action taken
against the company
10.6 Monthly return in case of rejected Submitted regularly/ irregularly /
Companies holding public deposits not submitted
10.7 Action taken for .delayed/non
Submission of the above return
11. Brief developments in Court case,
12 Comments of the Monitoring Group
Place:
Date:
(Signature)
General Manager/Deputy General Manager
/
L. 92
CHAPTER-4 1---------------------------------------
FORM OF QUARTERLY RETURN

FORM OF QUARTERLY RETURN II
[ Reserve Bank of India (NBFC) Returns Specification, 1997 ]
(To be submitted by Equipment leasing or hire purchase finance
or loan or investment company)
Return of Investments in approved securities held during the

quarter ended March/June/September/December 200..........
[ Vide Section 45-IB of the Reserve Bank of India Act, 1934 ]
1. Name of the company :

2. Company code:
3. Full Address of the Registered Office :
Phone No.:_____________ Fax No.:___________________________
4. RBI Registration No, if any______________________________________
5. Particulars of public deposits outstanding as at the close of business on the last .working day of the
relevant second preceding quarter i.e., quarter ended March / June/September/ December 200..........
/ (Amount in thousands of Rs.)

Item No. Particulars Item Amount
Code
d) (2) (3) (4)
(a) Public deposits received from
[Please see Note(l) below]
(i) Shareholders by a public 111
limited company
(ii) Other public deposits 112
(b) . Money received by issue of non-convertible 113
unsecured debentures/bonds
[see note (2) below]
(c) Total (a + b) 100
6. Prescribed amount of liquid assets 120
required to be maintained at per
cent of public deposits at item 5(c) above
(Details of approved securities and their marked value as on the date of return to be given in a
separate annexure)
93
CHAPTER-4
7. Whether the company has maintained the required
assets in unencumbered-approved securities on a
daily basis during the quarters note (1) below 1
8. If not, please indicate the date-wise position of the
shortfall during the quarter separate statement to be
attached
9. The reasons for the shortfall
10. Information regarding Regularisation of excess
Deposits for compliance of Non-Banking Financial
Companies Acceptance of Public Deposits
(Reserve Bank) Directions, 1998
i) Net owned fund (as per the last audited balance
sheet of the company) _________
ii) Capital adequacy ratio (as per the last audited
balance sheet of the company) _________
iii) Classification of the company i.e., equipment
leasing / hire purchase finance / loan /
investment company _________
■ iv) Credit rating for fixed deposits of the company
valid as on the date of the return _________
v) Public deposits outstanding as at the close of
business on December 18, 1998 _________
vi) Quantum of excess public deposit held, rf any,
by the company as on December 18,1998 _________
vii) Public Deposit outstanding as on date of this
return # _________
viii) Quantum of public deposits permissible as
per the provisions of Non-Banking Financial
Companies Acceptance of Public Deposits
(Reserve Bank) Directions, 1998 as on date
of this return # _________
ix) Quantum of excess public deposits remaining
to be regularised on the date of this return #
x) Deposits accepted during the quarter under
reference _________
xi) Deposits renewed during the quarter under
■ Reference _________
xii) Deposits matured but remained unpaid /
un-renewed as on the date of this return # _________
xiii) Steps taken / being taken to regularise the
excess public deposits within the time
frame permitted under the Directions
(A statement should be enclosed)
# Date of return shall be reckoned with reference to the last working day of the quarter to which the
return relates.
DECLARATION
We declare that the above information is true and correct.

/
Place : Name and Signature of the
Date: authorised official
Note:
1. For the purpose of this return, assets should be maintained on daily basis and should related to the
public deposit liabilities (including interest accrued thereon) as defined in paragraph 2(l)(xii) of the Non-
Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions 1998 as on the
last working day of the second preceding quarter. For example, the liquid assets to be maintained on
each day during the quarter ending 30th June, 1998 (i.e., 1.4.1998 to 30.06.1998) should related to the
public deposits liabilities as at the close of business on the last working day of the quarter ended 31th
December 1997.
2. The non-convertible unsecured debentures/ bonds including interest accrued thereon should be
included under this item.
95
FORMAT OF SPECIAL RETURN
(To be submitted by all NBFCs whether holding public deposits or not)
1. Name and complete address of

Registered office of the company :_________________________
Telephone No,;__________________ Fax No. (If any);__________
2. Total Assets ;________________________________________
3. Classification of the Company as :________________________
per asset pattern
4 Date of last audited balance sheet:
5. Net Owned Fund as per the above balance sheet
6. Name and complete postal address:
of the Statutory Auditors
Telephone No.:__________________ Fax No. (if any):_________
7. Outstanding Public Deposits as on the
Q Date of Balance Sheet mentioned at para (4) above,
(ii) September 30, 1998
(ii) December 31, 1998
Note:
1, The term 'Net Owned Fund’ has been defined in the Explanation to Section 45-IA of the
Reserve Bank of India Act, 1934.
2 The term public deposits has been defined in the Non-Banking Financial Companies
Acceptance of Public Deposits (Reserve Bank) Directions, 1998.
DECLARATION
We declare that the above information is true and correct.
Place:
Date:
Name and Signature of the
authorised official
FIRST SCHEDULE-RETURN TO
BE SUBMITTED BY ALL NBFCs
EXCEPT RNBFCS
FIRST SCHEDULE-RETURN TO BE SUBMITTED BY ALL NBFCs EXCEPT
RNBFCs
File Number
ID Number
Nature of business
District Code'
State Code
(To be filled in by RBI)
FIRST SCHEDULE
/
Return as on March 31,200
[paragraph 8(3) of the Notification No, DFC 118/DG(SPT)-98 dated January 31, 1998 and
paragraph 11 of the Notification No. DNBC 39/ DG(H)-77 dated June 20, 1977 j
[ The completed Return is to be submitted by the Non-Banking Financial Company

(including Miscellaneous Non-Banking company but excluding Residuary Non-Banking Company)
at the concerned Regional Office of the Department of Non-Banking Supervision, as specified
in paragraph 8(5) and paragraph 11 of the above mentioned Notifications, as the case may be. ]
1. Name of the Company: Income-tax PAN:
2. Full address:
(y Registered Office
PIN
I
Phone Telex Fax No.
Nos. No.
(ii) Head / Administrative/ PIN
Corporate Office @
Phone Telex Fax No.

Nos. No.
FIRST SCHEDULE-RETURN TO BE SUBMITTED BY ALL NBFCs EXCEPT RNBFCs
Whether a Government Company | Yes No

Name of the State in which of the company is registered
Status: # (i) Private Ltd. (ii) Deemed Public Company
[iii) Private Ltd. (iv) Branch of a Foreign Company,
Date of: (i) Incorporation (ii) Commencement of
business:
Financial year of the
company
Nature of business
Classification of the company if Loan Investment Hire
given by RBI: Purchase
Finance
Equipment Leasing Mutual Benefit
Financial Co.
Miscellaneous Non-Banking Co.
10. Has the company been Registered with the RBI under Section 45-IA of
RBI Act? If yes, please furnish the Registration No. if no. please furnish
the status of the Application for Registration.
11. Whether the Half-Yearly Return on Prudential Norms as on the date of

this Return has been submitted to the RBI ? If yes, give date of
12 (a) Whether the company was holding a Credit Rating at the beginning
of the (current financial year? If yes, give the name of the Rating
Agency TGSTe and the Rating awarded.
(b) Whether Credit Rating at the beginning of the financial year has
undergone any change (newly rated, upgraded or downgraded) within
the reporting period? If yes give the name of the Rating Agency, date
and the latest Rating. —
13. Number of branches / office # #
14. Whether a Holding Company or a Subsidiary
15. f .a Joint Venture, the name of the promoting
institutions:
16. Name(s) of the Company's auditors and
addressfes)
17. Name (s) of the Company's bankers and
address(es)
@ If it is at a place other than the Registered Office,
# ' Tick the box which is applicable
## A list showing the names and addresses of the places where the branches / offices of the
Company are situated should be enclosed.
$ If it is a Subsidiary, the name of the Holding Company may be indicated.
INSTRUCTIONS FOR FILLING IN THE RETURN:
1. This Retun should be submitted by a Non-Banking Financial Company covered by Notification

No.DFC 118/DG(SPT)-98 dated January 31,1998 and by a Miscellaneous Non-Banking Company \
covered by Notification No, DNBC.39/DG(H)-77 dated 20th June, 1977 once a year, as early as
possible after March 31, and latest by September 30. with reference to its position as on March
31, irrespective of the date of closing of the financial year of the Company concerned, A Certificate
from the Auditors of the Company should be appended to the Return,
2. Submission of the Return should not be delayed for any reason such as the finalisation / completion
of the Audit of the Annual Accounts, The compilation of the Return should be on the basis of the
figures available in the books of account of the company,
3. The return, wherever possible, should be sent in a floppy diskette (floppy size 3,5", date structure ;
dbase IV+), together with a hard copy, duly signed. ;
98
4. The number of accounts should be given in actual figures while the amounts of deposits should
be shown in thousands of rupees. Amount should be rounded off to the nearest thousand. For example,
an amount of Rs.4,560 should be shown as 5 and not as 4.6 or 5,000. Similarly, an amount of
Rs.61,495 is to be shown as 61 and not as 61.4 or 61,000.
5. The period-wise classification of Deposits should be made against the various Heads under item
No.6 of Part 1 of the Return according to the periods for which these have been originally received/
last renewed and not according to the periods these have to run as from the 31st March, i.e., the
date of the Return.
6. The Return shbuld be signed by Manager (as defined in Section 2 of the Companies Act 1956)
and if there is no such Manager, by Managing Director or any official of the Company who has
been duly authorised by the Board of Directors and whose Specimen Signature has been furnished
to the Reserve Bank of India for the purpose. In case the Specimen Signature has not beer
furnished in the prescribed card, the Return must be signed by the authorised official and his
Specimen Signature furnished separately.
7. In case there is nothing to report in any part / item, of the Return, the relevant part / item may
bemarked 'NIL1.
8. 'Subsidiaries' and 'Companies in the same group' mentioned in this Return have the same meanings
assigned to them in Section 4 and Section 372 (11) respectively, of the Companies Act, 1956.
Item Item Code Number of
Particulars Amount
No. Number Accounts
(1) (2) (3) (4) (5)
1. Deposits from public in the form of Fixed Deposits, 111
Recurring Deposits etc.
2. Deposits received from shareholders by a Public 112
Limited Company (other than Nidhis)
3. Deposits received from the shareholders by a 113
Company declared, as Nidhi under Section 620A of
the Companies Act, 1956.
4. Total (1 to 3) 115
5. Money received by issue of Non-convertible 116
Unsecured Debentures (see Note 1 below)
6. Total (4 + 5) 110
7. Of the total Deposits at item 6 above, these
i) repayable on demand 122
ii) for a period up to 1 year 123
iii) for a period exceeding 1 year but up to 2 years 124
iv) for a period exceeding 2 years but up to 3 years
v) for a period exceeding 3 years but upto to 5 years 125
and
vi) for a period of more than 5 years 125
8. Total [7(i) to (vi)] should tally with item 6 above 120
9. Of the total deposits at item 6 above, these free of
interest and bearing Interest (excluding brokerage, if
any) (see note 4 below)
i) Free of interest 132
ii) Below 10% , 133
iii) 10% or more but less than 12% 134
iv) 12% or more but less than 14% 135
v) 14% or more but less than 16% 136
vi) At 16% 137
vii) More than 16% but up to 18% 138
vlil) More than 18%
10. Total [9(1) to (viii) ] should tally wtth item 6 above 130
(Amount in thousands of rupees)
Item Code Number of

Item No. Particulars Amount
Number Accounts
(D (2) (3) (4) (5)
11. Break-up of Deposits at item 4 above according
:of the size of the deposits (see note 2 below) ) 141
upto Rs. 10,00 142
i) Rs.10,001 to Rs.25,000 143
il) Over Rs.25,000
12. Total [11 (i) to (iii) ] should tally with item 4 140
above
13. Break-up of Deposits at item 5 above according
to the size of the deposits (see note 2 below) 146
i) upto Rs. 10,00 147
ii) Rs.10,001 to Rs.25,000 148
iii) Over Rs.25,000
14. Total [ 13(1) to (li) ] should tally with item 5 115
above
15. Of total deposits at item 6 above (see note 3 151
below) 152
i) those which have matured but not claimed 153
ii) those which have matured and claimed but not
paid, 154
(a) outstanding at the beginning of the year 155
(b) out of (a) above, repaid during the year
(c) matured deposits claimed during the year but
not paid, addition during the year 156
(d) outstanding at the end of the year and
(e) of (d) above, those involved in litigation
16. In respect of the Deposits at item 4 above 161
i) Deposits outstanding at the beginning of the
year, 162
ii) Deposits accepted / renewed during the year, 163
iii) Deposits repaid during the year and 164
iv) Deposits outstanding at the end of the year
(This figure should be the same as at item 4
above)
17. In respect of the Deposits at item 5 above 165
i) Deposits outstanding at the beginning of the
year, 166
ii) Deposits accepted / renewed during the year, 167
iii) Deposits repaid'during the year and 168
iv) Deposits outstanding at the end of the year
(This figure should be the same as at item 5
above)
Part-1 (B)
Particulars of Deposits mobilized [ item 16(H) and 17(H) ] during the reporting period
___________________________________________________ (Amount in thousands of rupees
Item Particulars Item Code Number of Amount
No. Number Accounts
(1) (2) (3) (4) (5)
18. Of the total Deposits at item 16(H) above those 171
ii) for a period up to 1 vear 173
iv) for a period exceeding 2 year but up to 3 years 175
v) for a period exceeding 3 years but up to 5 176
vi) for a period of more than 5 years
19. Total [ 18(1) to (vi) ] should tally with item 16(ii) 170
above
20. Of the total Deposits at item 17 (ii) above, those 181
ii) for a period up to 1 year 183
iv) for a period exceeding 2 year but up to 3 years 185
v) for a period exceeding 3 years but up to 5 years
vi) for a period of more than 5 years 186
21. Total [ 20 (I) to (vi) ] should tally with Item 17(ii) 180
above
22. Of the total Deposits at item 16 (ii) above,
(excluding brokerage, if any) those which are 191
i) free of interest 192
ii) below 10% 193
iii) 10% or more but less than 12% 194
vi) at 16% 197
vii) more than 16% but up to 18% and 198
viii) more than 18%
23. Total [ 22(l) to (vill) ] should tally with item 16(11) 190
above
24. Of the total Deposits at item 17(ii) above,
(excluding brokerage, if any) those which are 201
i) free of interest 202
Ii) below 10% 203
iii) 10% or more but less that 12% 204
vi) at 16% 208
vii) more than 16% but up to 18% and
viil) more than 18%
25. Total [24 (1) to (viii) ] should tally with item 17(ii) 210
above
26. Amount of Brokerage paid 211
27. Amount of Deposits mobilised by payment of 212

brokerage
Notes:
In the case of Partly Convertible Debentures / Bonds, the Convertible Portion should be shown
against item 9 of Part-2. The Non-convertible Unsecured debentures should be included under
this item,
i U1
2. Number of Accounts and the amounts should be calculated in respect of each range of
Deposits.
3. The reasons for non-payment of each Deposit and the steps taken for repayment should be
indicated an annexure.
4. A statement showing the rates of interest offered as also the rales of brokerage paid on different
types of deposits according to their period i.e., for one year, two years, etc, should also be .
submitted along this part of the Return.
PART - 2
Particulars of other borrowings as mentioned below, as on March 31, 200..........
(In terms of paragraphs 2(l)(xii) of Notification Nos. DFC. 118/DG(SPT>98 and paragraph .11 of the 3
Notification No. DNBC 39/DG(H)-77 dated January 31, 1998 and June 20, 1977 respectively ]
__________________________ ( Amount In thousands of rupees)
Item Item Code Number of
Particulars Number Accounts Amount
No.
(1) (2) (3) 14} (5)
1 Money borrowed from the Central or State 221
Govemment(s) or Local Authority or from others, for
which the repayment is guaranteed by the Central
or State Govemment(s)
2. Monev borrowed from:
a) Foreign Government 222
b) Foreign Authority 223
c) Foreign Citizen or person 224
d) Total (a+b+c) 225
225
3. Borrowinas from:
a) Banks 226
b) Other Specified Financial Institutions 227
4. Money borrowed from any other Company. 228
5. Money borrowed by a private Company from its 230
shareholders
6. Money borrowed by a private Company from its 231
shareholders
7. Money received from employees of the Company by 232
way of security deposit and kept in joint accounts in
the name of the Company and the employees with a
scheduled bank or a post office
8. Money received by way of caution money, margin 233
money from the borrowers, lessee, hirers or by way
of security or advance from purchasing, selling or
other agents in the course of company's business or
advance received against orders for supply of goods
or properties or for rendering of services
9. Money received by issue of convertible or secured 234

debentures/bonds (see Note 1 below)
10. Amount of Deposits mobilised by payment of 212
brokerage
11. Amount brought in by the Promoters by way of 213
unsecured loans in pursuance of stipulations of
Lending Institutions
102
12. Amount received by way of subscriptions to 238

conventional chit fundTkuri as defined in Clause(b) of
Section'2 of the Chit Funds Act, 1982, [Total of items
{a)+ (b) + (c) of which
(a) Subscriptions from subscribers) 239
(b) Advance subscriptions 240
(c) Money received from prized subscribers as 241
security for future subscriptions
13. Commercial Papers 242
14. Total (1 to 14)
Note:
1. Those amount which have already been shown in Part-1 -(A) should not be included here.
PART - 3
Statement showing the "Net Owned Fund"

Item item Code Number
Particulars Amount
No.
(D (2) (3) (4)
1 Net owned fund (Figures to be furnished as per
the latest balance sheet preceding the data of the
Return - Balance sheet as of.................... 311
I) Paid-up Equity Capital 312
ii) Preference Shares which are compulsory 313
convertible to Equity
iii) Free Reserves (see Note 2 below)
Total (i + ii + iii) = A 310
(I) Accumulated balance of loss 321
3. (ii) Balance of deferred revenue expenditure 322
(iii) Other intangible assets (please specify) 323
4. Total (I + II + iii) = B 320
5. C + (A - B) 330
6. Book value of investments in shares of
I) subsidiaries of the Company 341
ii) Companies in the same group 342
iii) all other Non-Banking Financial Companies 343
(Details in Annexure No.)
7. Book value of investments in debentures and bonds of
(I) subsidiaries of the Company 344
(ii) Companies in the same group 345
(Details in Annexure No. )
8. Outstanding loans and advance [ including inter-corporate 346
deposits, hire purchase and lease finance (see Note 3 347
below)] made to, and deposits with
(I) subsidiaries of the Company
(ii) Companies in the same group
9. Aggregate of6 + 7 + 8 = D 340
10. Amount of 9 in excess of 10% of C = E 351
11. Net Owned Fund (5 -10) F = (C - E) 350
Notes:
1. Furnish the following particulars as per the latest balance sheet preceding the date of Return and
as on the date of Return:
103
Item Particulars Item Code Amount

No. Number
(1) (2) (3) (4)
12. . Preference Share Capital not compulsory convertible, 361
as per latest balance sheet
13. Preference Share Capital not compulsory convertible, 362
as on the date of this Return
14. Total liabilities as per the latest balance sheet preceding 363
the date of Return
15. Total liability as on the date of this Return 364
"Free Reserves" mentioned under item 1 of Part 3 shall include the balance in the Share Premium
Account, Capital and Debenture Redemption Reserves and any other Reserve shown or published in the
Balance Sheet and created through an allocation of Profits (including credit balance of Profit & Loss
Account) but not being:
(i) a Reserve created for repayment of any future liability or for Depreciation of Assets or for
Provision against non-performing assets / bad debts; or
(ii) a Reserve created by Revaluation of the Assets of the Company.
3. Hire Purchase and Lease Finance mean
(i) in the case of hire purchase asset, the amount of future instalments received as
reduced by the balance of the unmatured finance charges; and
(ii) in the case of lease assets, the depreciated book value of the lease asset plus /
minus the balance in the lease adjustment account;
Amount due but not received should be added in both the cases.
PART - 4
Statement showing outstanding loans and advance, including inter-corporate deposits / loans
as on March 31,200.....
( Amount in thousands of rupees)

No. Number
<1) (2) (3) (4)
1 Subsidiaries of the Company 411
Companies in the same Proprietary Concern
2. where Directors of the ComDanv hold substantial 412
3. (i) Accumulated balance of loss 420
(ii) Balance of deferred revenue expenditure
(iii) Other Intangible assets (please specify)
4. Others:
(i) Companies not in the same Group 431
(ii) Directors 432
(iii) Shareholders 433
(iv) Chief Executive Officer and other employees 434
(v) Purchasing, Selling and other Agents 435
(vi) Depositors 436
(vii) Others 437
5. Total [4(i) to (vii)] 430
6. Grand Total (1 + 2 +3 + 5) 400
104
Notes:
1, "Substantial interest" shall have the same meaning as assigned to it in Non-Banking Financial
Companies Prudential Norms (Reserve Bank) Directions, 1998.
2 Sundry Debtors, Tax paid in advance and other Recoverable items not in the nature of
loans and advances should NOT be shown in the Statement.
3. Fixed Deposits with other Companies should be included under item 1,2,3 and 4(i), as the
case may be.
4. Investment in unquoted debentures shall be treated as credit and not investment.
PART-5
Statement showing investments at book value as on March 31, 200...........
( Amount in thousands rupees)
No. Number
(1) (2) (3) 14)
1 Investments in shares of
511
(i) Subsidiaries of the Company
512
(II) Companies in the same group
513
(iii)Other Non-Banking Financial Companies
2. Investment in debentures, bonds and commercial
515
papers of (i) subsidiaries of the company
516
(ii) companies in the same group

No. Number
(D (2) (3) (4)
3. Investments in shares of and debentures,'bonds 520
and commercial papers issued by companies
and contribution to the capital of firms and
proprietary concerns where directors of the
company hold substantial interest (See Note 1 of
Part-4)
4. Shares, debentures/bonds and commercial 530

papers of other companies (See Note 3 below)
5. Other Investments
(i) Fixed deposits with banks/certificate of 541
deposits issued by
(ii) Balance in any other deposit accounts with 542
bank/s
(iii) Securities of Central / State Govts, and bonds 543
guaranteed by Central/State Govt.
(iv) Units of Unit Trust of India 544
(v) Others 545
6. Total [ 5 (i) to (v) ] 540
7. Grand Total (1+2 +3 + 4 + 6) 500
105
Notes:
1. Details of shares, debentures and commercial papers held in investment account or by
way of stock-in-trade should be included in this part.
2 Fixed deposits with other companies should not be included here but should be shown in
Part-4.
3. Quoted shares / debentures / bonds / commercial papers:
(Amounts in Rs. thousands)
Item Code
Book value : 551
Market value :552
4. Investment in unquoted debenturs/bonds shall be treated as credit and not investment.
PART - 6
Statement showing Hire Purchase Business as on March 31, 200......
(Amount in thousands of rupees,
Item Number of Amo
Nature of goods on hire ItemCode Number
No. Accounts unt
(1) (2) (3) (4) (5)
1 Automobiles:
(I) Heavy Commercial Vehicles 611
(ii) Light Commercial Vehicles 612
(ili) Cars/Jeeps 613
(iv) Two wheelers / Three wheelers 614
(v) Others 615
2. Total f 3 (i) to (v) 1
3. Household durables:
(I) Electrical Items like fans, radio, etc. 621
(ii) Electronic items like TV, Video, Music 622
(ii!) Cooking range, storage and other appliances 623
like refrigerator, washing machine, micro oven, etc.
(iv) Others 624
4. Total f 3 (i) to (iv) 1 620
5. Data processing / office automation equipment 630
6. Agricultural implements (Tractors, Bulldozers, etc.) 640
7. Industrial machinery or tools or equipment for use in 650

industries •
8. All others 660
9. Total (2 + 4 + 5 + S + 7 + 8) 600
The total amount of stock-on-hire against item No.9 above includes dues from the following:
10. Subsidiaries of the company 691

11. Companies in the same group 692
12. Companies, firms and proprietary concerns where 693
directors of the company hold substantial interest
13. Total (10+11+12) 690

106
PART - 7
Statements showing Equipment Leasing business as on March 31, 200
( Amount in thousands of rupees)

tte Nature of Equipment on Lease Item Code Gross Accumulated Net Leased
m No. Leased depreciation +/- Assets plus
No. Assets Lease Adjustment amounts due
Account but not
received
(1) (2) (3) (4) (5) (6)

1. Plants & Machinery 701
2. Construction/Earth moving equipment 702
3. Material Handling Equipment 703
4. Data Processing Equipment 704
5. Vehicles 705
6. Office Equipment 706
7. Others 707
8. Total 700
The total amount of equipment on lease against item No.8 above includes dues from the
following:'
9. Subsidiaries of the company 791

10. Companies in the sale group 792
11. Companies, firms and proprietary 793
concerns where directors of the company
hold substantial interest
12. Total (9 +10 +11 ) 790
PART-8
Statement showing bills business as on March 31, 200
(Amount in thousands of rupees )
Item Item Code Amount outstanding as on
Particulars
No. No March 31,199
d) (2) (3) (4)
1. Bills purchased /discounted where the
drawers, drawees or any endorsers are:
(I) Subsidiaries of the company, 801
(ii) Companies in the same group, 802
(iii) Companies or firms or proprietary concerns 803
in which any director of the company holds
substantial interest.
2. Other bills purchased / discounted. 820

3. Total 800
Particulars about other assets as on the date of this return:

107
4. Fixed assets 851

5. Other assets excluding intangibles 852
6. Total assets [excluding intangibles ] 850
PART-9
Business statistics / information for the financial year ended....................200
(Please see note 1 below)
(Amounts in thousands of Rupees)
Item No. Particulars Item Code No. Amounts
(D (2) (3) (4)
1. Disbursements (Fund based activities)
1. Equipment leasing (Total volume) 901
2. Hire purchase (Total volume) 902'
3. Loans
(a) Inter-corporate loans / deposits (Total volume) 903
(b) Others (Total volume) 904
4. Bills discounted (Total volume) 905
5. Of 4, bills re-discounted (Total volume) 906
11, Trading in shares / securities (quoted, other than SLR)
6. Purchases / sales of shares / debentures / commercial papers:
(a) Purchases (Total volume) 907
(b) Sales (Total volume) 908
111. Status of over dues
7. Lease over dues more than 12 months 909
8. Lease over dues upto 12 months 910
9. Hire purchase over dues more than 12 months 911
10. Hire purchase overdue upto 12 months 912
11. Other over dues more than 6 months 914
12. Other overdue up to 6 months
IV. Fee-based activities
13. Lease / hire purchase syndicated (Total amount) 921
14. Loans / ICDs syndicated (Total amount) 922
15. Bills syndicated (Total amount) 923
16. Underwriting :
(a) Total amount underwritten 924
(b) Amount devolved 925
(c) Outstanding commitments 926
VI. Selected income and Expenditure particulars
17. Gross lease income (See note 2 below) 931

18. Less Depreciation on Assets on Lease +/- Lease Equalisation (See note 3 below) 932
19. Net lease income (17 -18) 933
20. Hire purchase Income (See Note 4 below) 934
21. Bills discounting income 935
22. Investment income
(a) Dividend / interest 936
(b) Profit / Loss (+ / -) on sale of shares / debentures / commercial papers 937
23. Investment income
(a) Inter-corporate deposits / loans 938
(b) Other loans and advances 939
24. Other fund based income 940
108
Item Particulars Item Code No. Amounts

No.
(D (3) (4)
25. Total fund based income (19 + 20 + 21 + 22(a +/- b) + 23 (a + b) + 241 930
Fee based Income
26. Income from merchant banking activities 951
27. Underwriting commission 952
28. Income from syndication of bills; loans, ICDs, lease. & hire purchase 952
29. Miscellaneous income 954
30. Total fee-based income (26 to 29) 955
31. Total income (25+ 30) 950
VI. Interest and other Financial costs

32. Interest paid on fixed deposits 961
---------------... .
33. Interest paid on ICDs 962

34. Brokerage 963
35. Reimbursement of expenses to brokers 964
36. Other financing costs 965
37. Bills re-discounting charges-' 966
38. Total financing costs (32 to 37) 960
39. Employee costs 971
40. Other administrative costs 972
41. Total operating costs (39 + 40) 973
42. Depreciation on own assets 974
43. Intangible assets amortised 975
44. Provision for diminution in value of investments 976
45. Provision against bad and doubtful assets / against non-performing Assets / 977
depreciation in investments
46. Total expenses (38 + 41 to 45) 970
---------------------- —
47. Profit before tax (31 - 46) 980
48. Tax 985
49. Profit after tax (47 -48) 900
Notes:
1. Particulars in this part should be for a full financial year. If the company closes its books on any
date other than on 31 st March, the date of closing of the books and the period should be indicated.
2 "Gross lease income" includes lease rentals (net of rebate), lease management fees, lease
service charges, up-front fees, profit on sale of lease assets and delayed / late payment
charges relating to lease business (including interest / compensation charges on advance
payment for purchase of assets in respect of lease agreements entered into/ finalised).
3. lease equalisation account' has the same meaning as in the Guidance Note on Accounting for
Lease (revised) issued by ICAI.
4. 'Hire purchase income' Includes finance charges (net of rebate), hire service charges, delayed
/ late payment charges, up-front fees and other income relating to hire purchase business
(including interest earned on advance payment for acquisition of hire purchase assets for
identified hirers).
109
CERTIFICATE
Manager's / Managing Director's / Authorised Official's @ Certificate:
1. Certified that the directions contained in the Non-Banking Financial Companies Acceptance of;
Public Deposits (Reserve Bank) Directions, 1998 or Miscellaneous Non-Banking Companies (Reserve
Bank) Directions, 1977, as the case may be, are being complied with,
2. Further certified that the particulars / information furnished in this Return have been verified and
found to be correct and complete in all respects.
Date: Signature of
Place : Manager / Managing Director/

Authorised Official
AUDITORS REPORT
We have examined the books of account and other records maintained by-Co. Ltd. in respect of
the date furnished in this return and report that to the best of our knowledge and according to the
information and explanations given to us and shown by the records examined by us, the date furnished in
this return are correct.
Place:
Date: Chartered Accountants
Enclosures to the return:
1. The following documents should be submitted along with the return in case they have not already been
sent. Please tick in the box against the item for the documents enclosed and state the date of
submission in other cases.
(i) A copy of the audited balance sheet and profit and loss account dated nearest to the
date of return.
. (ii) Specimen signature card.
(ii) A copy of application form referred to in paragraph 4(12) of the Notification No.DFC.
118/ DG(SPT)-98 dated January 2,1998 or paragraph 6 of the Notification
No.DNBC.39/DG(H)-77 dated the 20th June 1977.
2. A list of Principal officers and the names and addresses of directors in the form enclosed is to be
sent with this return,
'Co. Ltd/as on March 31,200
List of Principal officers and directors of.
I. Principal Officers
SI. Nane Designation Address & Tel. If director in any company / ies,
No. No. name / s of the company/ ies
1 !0
I. Directors
SI. Name Address % of equity Name of other companies
No. shares of the where he is a director
company held by
the director, his
spouse and
minor children
Signature of Manager/ Managing Director/Authorised Official
Name:_____
Designation :
Place :
Date :

ANNEXURE
(Please see paragraph 13 of the Non-Banking Financial Companies Prudential Norms
(Reserve Bank) Directions, 1998)
REPORTING FORMAT
Half yearly Statement of capital funds, risk
assets / exposures and risk asset ratio etc.
as at the end of March / September__________________________
(Amounts in Rupees - 000 omitted)

Name and address of the
Non-Banking Financial Company____________________________________
Company code number (As given by RBI) ____________________________
registration number (As given by RBI)________________________________
Classification of the company (as given by RBI)____________________ '
PART - A
Item Name Item Code Amount
(D (2) (3)
(1) Capital Funds - Tier-i
(i) Paid-up Equity Capital and 111
(ii) Preference shares to be compulsory 112
convertible into equity
(iii) Free reserves
(a) General Reserves 113
(b) Share Premium 114
(c) Capital Reserves (representing surplus
on sale of assets held in separate
account) 115
/
(d) Debenture Redemption Reserve 116
(e) Capital Redemption Reserve 117
(f) Credit Balance in P & L Account 118
(g) Other free reserve (to be specified) 119
Total (111 to 118) 110

(iv) Accumulated balance of loss 121
(v) Deferred Revenue Expenditure 122
(vi) Other Intangible Assets______ _____ ___ 123
Total (121 to 123) _______________ ________ 120
(vii) Owned Funds: (110-120)__________________ 130
(viii) Investment in shares of:
a) Subsidiaries 141
b) Companies in the same Group: 142
c) Other non-banking financial companies: 143
(ix) The book value of debentures, bonds,
outstanding loans and advances,
bills purchased and discounted (including
hire-purchase and lease finance) made to,
and deposits with
a) Subsidiaries 144
b) Companies in the same Group: 145
(x) Total: (141 to 145): 140
(xi) Amount of item 140 in excess of 10% of item
130 above 150
(xii) Tier Capital
Net owned fund (130-150) 151
PART-B

(!) (2) . (3).....
Capital Funds - Tier II
(Para 2(l)(xx)(b) of directions)
(i) Preference Share Capital other than those
compulsory convertible into equity 161
(ii) Revaluation reserves 162
(iii) General provisions and loss reserves 163
(iv) Hybrid debt capital instruments 164
(v) Subordinated debt 165
(vi) Aggregate Tier II Capital (Items 161 to 165) 160
Total Capital Funds (151 + 160) 170
/
112
PART- C
(D_____________________________ (2)________ (3)_
Risk Assets and Off-Balance Sheet items
(i) Adjusted value of funded risk assets i.e.
on-balance sheet items (To tally with
Part D) 181
(ii) Adjusted value of non-funded and
off-balance sheet items (To tally
with Part E) 182
(iii) Total risk weighted assets / exposures (181 + 182) 180
(iv) Percentage of capital funds to risk weighted

assets / exposures
(a) Tier 1 capital (Percentage of item 151 to 180) 191
(b) Tier II capital (Per centage of item 160 to 180) 192
(c) Total (Percentage of item 1 70 to 180) 193
PART -D
Weighted assets i.e., on-balance sheet items
Item Item Book Risk Adjusted
name code value Weight value
(D (2) (3) (4) (5)
I. Cash and bank balance
including fixed deposits &
certificate of deposits 210 0 0
II. Investments [see para 6
of the Directions]
(a) Approved
securities as defined
India Act, 1934 221 0 0
(b) Bonds of public
sector banks and
FDs/CDs/bonds of
public financial institutions
part 'A ite (x) 7
(item code 150) 222 0 _0
(ii) Amounts not deducted
in part A ite (x)
(item code (150) 223 20
c) Units of Unit Trust of India 224 20 _____
d) Shares of all companies
and debentures/bonds/
commercial papers of
companies other than
in (b) above/units of mutual
fund other than in (c) above
Part 'A' item (xi)
(item code 150) 225 0 0
(ii) Amount not deducted in Part A'' 226 100
111. Current Assets;
(a) Stock on hire
(Please see note 2 below)
(item code 150) 231 0 0
in part A 232 100
(b) Inter corporate !oans/deposits(i) Amounts deducted in
part A [item (xi)
item code 150] 233 0 . 0
(ii) Amounts deducted
in Part ‘A'. 234 100
(c) Loans and advance fully
secured by company's own
deposits 235 0 0
(d) Loans to staff 236 0 0
(e) Other secured loans and
advance considered qood
Part'A*' [Item (xi)
item code 150] 241 0 0
in Part A 242 100
Item Item Book Risk Adjusted

name code value Weight value
(1) (2) (3) (4) (5)
(f) Bills purchased/discounted
(i)Amounts deducted in
Part A [Item(xi)
item code 150] 243 0 0
(g) Other (to be specified) 245 100
IV. Fixed Assets

(net of depreciation)
(a) Assets leased out
Part A [Item (xi)
item code 150] 251 0
(ii) Amount deducted in
Part A 252 100
(b) Premise 253 100
(c) Furniture & Fixtures . 254 100
V. Other assets:
(a) Income-tax deducted
at source (net of provisions) 255 0 0
(b) Advance tax paid
(net Of provision) 256 0 0
(c) Interest due on
Government securities 257 0 0
(d) Other (to be specified) 258 0 0
Total weighted assets
(items 210 to 258)__________________ 200
Notes:
1. Netting may be done in'respect of assets where provisions for depreciation or for bad and doubtful
debts have been made.
2. Stock on hire should be shown net of finance charges i.e., interest and other charges recoverable.
3. Assets which have been deducted (item code 150) from owned fund to arrive at net owned fund will
have a weightage of ‘0.
115
PART - E
Weighted non-funded exposures /off-balance sheet items:
Item Item Book Conversion Equivalent Risk Adjusted

code value factor Weight Value
(D (2) (3) (4) (5) (6) (7)
1. Financial & other
guarantees 310 100 100
2. Share/debenture
underwriting
obligations 320 50 100
3. Party paid shares
/ debentures 330 100 100
4. Bills discounted/
Rediscounted 340 100 100
/
5. Lease contracts
entered into but
yet to be executed 350 100 100
6. Other contingent
liabilities (To be
specified) 360 50 100
Total non-funded
Exposures
(item 310 to 360) 300
Note. Cash margin/deposits shall be deducted the before applying conversion factors,
PART -F
Asset Classification:
1. Aggregate of credit exposures categories into:
item name Item code Amount

(i) Standard assets 411
Sub-standard assets:
(a) Lease and hire purchase assets 412
(b) Other credit facilities 413
(iii) Doubtful assets 414
(iv) Loss assets 415
Total 410
II. Aggregate provisioning In respect of 1 above as per the Directions prescribed:
Item. Item Provision Actual
Name __________________________ code Required provision made
(1) (2) (3) (4)
A. Loans, advances and
Other credit facilities
(i) Sub-standard assets:
(a) entire amount taken to the
credit of profit and loss
account before the asset
became NPA and remaining
unrealised [Para 3(2) of the
directions]
(b) 10% of the balance of
outstanding dues 422
(i) Doubtful assets:
(a) entire amount taken to the 423
account before the assets
directions ]
(b)100% to the extent not 424
covered by realisable value
of security + 20 to 50% of the
secured portion for the
period the asset has
remained doubtful
(iii) Loss Assets:
(a) entire amount taken to 425
the credit of profit and
loss account before the
asset became NPA and
remaining unrealised
(b) 100% of the outstanding 426
B. Hire purchase and Leased assets

(i) Sub-standard assets:
! [Para 8(2) of the directions ]
Hire Purchase assets
directions]
(b)deficit between total dues 428
depreciated value or the net
realisable value of the
underlying assets, whichever
is lower [Para 8(2)(i) of the
directions]
Leased Assets:
(a) net lease rentals credited 430
117
to profit and loss account

before the asset became
NPA and remaining unrealised
[Para 8(2)(ii) of the directions ]
C. Doubtful Assets:
Hire Purchase Assets
directions]
• (b) deficit between total dues 433
depreciated value or the net
realisable value of the
underlying assets, whichever
directions]
Leased Assets:
before the asset became NPA
and remaining unrealised
[Para 3(4)of the directions]
[Para 8(2)(ii) of the directions ]
(iii) Loss Assets:
(a) entire amount taken to 437
the credit of profit and
loss account before the
asset became NPA and
remaining unrealised
(b) deficit between total dues 438
and depreciated value or
the net realisable value of
the underlying asset
directions]
Leased Assets
before the asset became
NPA and remaining unrealised
Total 420
HI. Other provisions in respect of:
(i) Depreciation in fixed assets 451
(i) Depreciation in investments 452
/
118
(ill) Loss/intangible in investments 453

(iv) Provision for taxation 454
(v) Gratuity/provident fund 455
(vi) Others (to be specified) 456
Total 450
PART -G
Particular regarding investments in and advances to
companies/firms in the same group and other NBFCs
torn Item Amount
______ name________________________________________________code__________ __ __
(D " (2) ~ (3)
(i) Book value of bonds and debentures and

advances to end deposits with subsidiaries
companies in the same group (Details to
be enclosed in Appendix No................... ) 510
(ii) Investments in shares of subsidiaries and companies
in the same group and all non-banking financial
companies (Details to be enclosed.in Appendix
No......................) 520
(iii) Investments by way of shares, debentures, loans and
advances, leasing, hire purchase finance, deposits
etc. in other companies, firms and proprietary concerns
where directors of the company hold substantial interest
(Details to be enclosed in Appendix No.................... ) 530
PART -H
Particulars regarding concentration of advances including off balance sheet
exposure and investments to parties including those in Part G above
Item Item Amount
______ name______________________________________________ code ____
(1) (2)_________ _______________ _
(I) Loans and advances including off-balance sheet
exposures to any single party in excess of 15 per
cent of owned fund of the NBFC.
(Details to the enclosed in Appendix No.......... ) 610
(ii) Loans and advances including off-balance sheet
exposures to a single group of parties in excess of
25 per cent of owned fund of the NBFC.
(Details to be enclosed in Appendix No................. ) 620
(iii) Investments in a single company in excess of
15 per cent of the owned fund of the NBFC. 630
(iv) Investment in the shares issued by a single group
of companies in excess of 25 per cent of the
owned fund of the NBFC. 640
(v) Loans, advances to (including debentures/
bonds and off-balance sheet exposures) and
investment in the shares of single party in
excess of 25 per cent of the owned fund of the
NBFC 6&>
(vi) Loans, advances to (including debenture/bonds
and off-balance sheet exposures) and investment in
the shares of single group of companies in excess of 40
per cent of the owned fund of the NBFC 660
Notes:
1. All these exposure limits are applicable to the NBFC's own group as well as to the borrower/
invested company's group.
2. Investment in debentures for this purpose shall be treated as credit and not investment.
PART - I
Particulars regarding Investments in premises and unquoted shares.

Item / Item Amount
name code
(D (2) (3)
(i) Investments in Premises.
(Land and buildings)
except for the own use, (out of item code 263 in
the return) held by the company in excess of
10 per cent of the owned fund.
(a) Acquired by the company independently 710
(b) Acquired in satisfaction of its debts. 720
(ii) Investments in unquoted shares except those held in
the subsidiaries and companies in the same group
(vide item code 141 and 142) in excess of
(iii) 10 percent of the owned fund in case of equipment
[easing and hire purchase finance companies 730
(iv) 20 percent of the owned fund in case of loan and
investment companies' 740
120
CERTIFICATE
Certified that
1. The data/information furnished in the statement are in accordance with the directions issued by the
Reserve Bank of India relating to income recognition, accounting standards, asset classification,
provisioning for bad and doubtful debts of capital adequacy and concentration of credit and
investments. The statement has been compiled from the books of account and other records of the
company and to the best of my knowledge and belief they are correct.
Z Resen/e Banks classification of the Company as a......................on the basis of its principal business -
as evidence from its asset and income pattern continues/does not continue to hold good (delete
whatever is not applicable).
3. The company has accepted public deposit and the quantum of such deposit is within the limits
applicable to the company;
4. The company has not paid interest/brokerage on deposit beyond the ceiling prescribed under the
directions;
5. The company has not defaulted in repayment of matured deposit.
6. The credit rating for fixed deposits assigned by the Credit Rating Agency
viz........................................ (Name of the Agency at.........................................(rating level) is valid.
7. The capital adequacy as disclosed in part C of the return after taking into account the particulars
contained in part D, E and F has been correctly worked out;
8. Classification of assets as disclosed in part F of the return has been verified and found to be correct.
No rollover/re-phasement of loans, lease and hire purchase transactions and bills discounted beyond
due dates has been observed. The sub-standard or doubtful or loss assets, if up-grade, has been
done so, in conformity with the Non-Banking Financial Companies Prudential Norms (Reserve Bank)
Directions 1998.
9. Investments in group companies as disclosed in part G of the return and exposures to individuals/
firms/other companies exceeding the credit/investment concentration norms as disclosed in part H
of the half-yearly return and classification of such assets is correct;
10. Net owned fund as per tier-l capital of the company has been correctly worked out.
Place: For and on behalf of
(Name of the company)
Date: Managing Director/Chief

Executive Officer
AUDITOR'S REPORT
We have examined the books of accounts and other records maintained by..............................
Limited in respect of the capital funds, risk assets/expsosures and risk asset ratio etc. as on
200................ '
:................................................................................................................................................................................................................................................................................................................................
........................................................................................................................................................................and
statements herein above made by the Managing Director/Chief Executive Officer of the company or his
authorised representative. We report that to the best of our knowledge and according to the information and
explanations given to use and as G and H of the statement herein above are correct.
Place:
Date:

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Financial Reporting may be defined as communication of published financial statements

Benefits of Financial Reporting

Employee decision may be used on perceptions of a company's economic status acquired

Objective of Financial Reporting as per FASB statement:

The most comprehensive statement on objectives of financial reporting is FASB concept

According to this Statement Financial Reporting should provide Information :

Disclosure can be defined as a process through which a business enterprise communicates

Disclosure with regard to NBFCs is based on the recommendations of the Narsimham

Evolution of “Prudential Norms”

The new directions on Prudential norms :

Notification No. DFC 119/PG (SPT1-98. Date January 31.1998

Applicability of Prudential Norms :

(b) It does not trade in securities mentioned above ; and

(c) It does not accept/hold public deposits.

For the purpose of valuation the securities shall be classified as :

• Compute the market value of each category

• Compute the cost of each categony

• Compute the cost of each category with market value thereof

Valuation of Unquoted Current Investments :

(a) Equity Shares

(b) Unquoted Preference Shares

(c) Unquoted government securities/Govemment guaranteed bonds.

(d) Unquoted units of mutual funds

They are.to be valued at NAV declared by mutual fund.

(e) Commercial paper and treasury bills

These are to be valued at carrying cost.

Valuation of long-term investment [Para 6] - These are required to be valued at in

• Financial position of the company

• or any other factor

The same is to be provided in profit and loss account.

Interest on bonds and debentures

(a) Interest rate is pre-determined

(b) Interest is being received regularly

Interest on Government Guaranteed Bonds

Interest on these is to be recognised on accrual basis.

Classification of Assets [Para 71

Sub-standard Asset: A sub-standard asset means :

Loss Asset: A loss asset means :

(a) value of the security has substantially reduced, or

(b) non-availability of security or

(c) fraud committed by the borrower or

(a) Term loan becomes NPA if

(i) installment is overdue for more than 6 months or

(ii) interest is past due for 6 months

(b) Bills purchased become NPA if it is overdue for 6 months or more.

Which means this parameter is applicable to all the non-performing assets.

(i) age of non performing asset

(ii) availability of the security

(iii) realisable value of the security

Nature of asset Quantum of provision

Depending on time lag the provision on the secured portion shall

Period for which doubtful % age

more than 3 years 50

(c) Substandard asset A general provision of 10 percent of total outstanding shall be

(a) provision for bad and doubtful debts.

(b) provision for depreciation in investments.

Capital Adequacy Requirement fPara 101 - For understanding capital adequacy

Tier II capital - This consists of the following :

On or before 31-03-1998 10%

On or before 31-03-1995 12%

Individual ceiling : credit concentration - The NBFC shall not lend :

Restriction on investments in unguoted shares fPara 11B1 - Hire purchase finance

Half-yearly Statement of capital funds, risk assets / exposures