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Net Owned Fund

Nupur Sharma (CA) (426 Points)

23 December 2008

What is meant by Net Owned Fund? and how is it computed?

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6 Replies

CS Diwaker Agrawal (COMPANY SECRETARY) (167 Points)
Replied 24 December 2008

Net owned funds mean -

Add the following --

Paid up capital

Reserve and Surplus (excluding revaluation reserve)

Long term liablities (to be paid after one year)

Deduct the following -

Trading investment

Fictititous assests (like preliminary exp., debit bal of P & L)

Generally meaning of Net owned fund varies according to the act, regulation since these law itself provides the specific meaning of Net owned fund.

Regard

Diwaker Agrawal

Purnima Singh (-) (38 Points)
Replied 26 December 2008

Name of Company :

NBFC Registration No. :

(Amount in Rs. thousand)

	Particulars of Items	Item Code	Amount as on 31-03-2006
	(1)	(2)	(3)
	Capital Funds
1	Paid-up Equity Capital	8010
2	Paid-up preference shares which are compulsory convertible to equity	8020
3	Free Reserves	8030
4	Total (1+2+3) = A	8040
5	Accumulated balance of loss	8050
6	Balance of deferred revenue expenditure	8060
7	Other intangible assets (Preliminary Expenses)	8070
8	Total (5+6+7) = B	8080
9	Owned Fund (A-B) = C	8090
	BOOK VALUE OF INVESTMENT IN SHARES OF
10	Subsidiaries of the Company	8100
11	Companies in the same group	8110
12	All other NBFCs	8120
13	Total (10+11+12)	8130
	BOOK VALUE OF INVESTMENTS IN DEBENTURES AND BONDS OF
14	Subsidiaries of the Company	8140
15	Companies in the same group	8150
16	Total (14+15)	8160
	OUTSTANDING LOANS AND ADVANCES INCLUDING BILLS PURCHASED/DISCOUNTED, INTER CORPORATE DEPOSITS, HIRE PURCHASE AND LEASE FINANCE, CPs WITH :
17	Subsidiaries of the Company	8170
18	Companies in the same group	8180
19	Total (17+18)	8190
20	Total Investments (13+16+19) = D	8200
21	D in excess of 10% of C = (D – C / 10) = E	8210
22	Net Owned Funds (C – E)	8220

Place : Kolkata

Date : __th ______, 2008

meenu (cs) (416 Points)
Replied 12 January 2010

Kindly clarify whether other companies shares are included in this.

nithya (article assistant) (63 Points)
Replied 16 July 2011

Can warrants which are convertible into equity shares be included for calculating net owned funds in fixed deposits of the company

vaibhav (CA) (21 Points)
Replied 18 July 2011

CAn some own give me a list of NBFC Companies providing loans to MSMEs

Regards

Vaibhav

Swati Sharma (CA ) (70 Points)
Replied 19 March 2012

Annexure II

Name of the Company: ....................................................................................................... RBI Certificate No: ................... DTD. ...........................

Calculation of Net Owned Fund of the Company

S.N.	Item Name	Item code	As on 31.03.2011	As on 31.03.2010
	Capital Fund –Tier I
(i)	Paid Up Equity Capital	001
(ii)	Preference Shares to be compulsorily convertible in to equity.	002
(iii)	Free Reserves
a)	General Reserve	003
b)	Share Premium	004
c)	Capital Reserve (Representing Surplus on Sale of Asset)	005
d)	Debenture Redemption Reserve	006
e)	Capital Redemption Reserve	007
f)	Credit Balance in P&L Account	008
g)	Other free Reserves (To be Specified)	009
	Total (001 to 009)	010
(iv)	Accumulated Loss	011
(v)	Deferred Revenue Expenditure	012
(vi)	Other Intangible Assets	013
(vii)	Short Provisioning against NPA/diminution in value of Investment	014
	Total (011 to 014 )	015
(viii)	Owned Fund (010 minus 015)	016
(ix)	Investment in Shares of
a)	Subsidiaries	017
b)	Companies in the same group	018
c)	Other NBFCs	019
(x)	The book value of debentures, bonds, Outstanding loans and advances, bills purchased and discounted( HP& lease ) Made to and deposits with
a)	Subsidiaries	020
b)	Companies in the same group	021
(xi)	Total (017 to 021)	022
(xii)	Amount of item 022 in excess of 10% of item 016 above.	023
(xiii)	Net Owned Fund (016 minus 023)	024