Schedule - 11 - Annual Report - Securities and Exchange Board of India (Mutual Funds) Regulations, 1996

1 [ELEVENTH SCHEDULE ANNUAL REPORT 1. Annual Report The annual report shall contain- (i) Report of the 23 [ trustee company ] on the operations of the various schemes of the fund and the fund as a whole during the year and the future outlook of the fund; (ii) Balance Sheet and Revenue Account in accordance with paras 2, 3 and 4, respectively of this Schedule; (iii)Auditor s Report in accordance with paragraph 5 of this Schedule; (iv) Brief statement of the 23 [ trustee company ] on the following aspects, namely:- (a) Liabilities and responsibilities of the Trustees and the Settlor; (b) Investment objective of each scheme; (c) Basis and policy of investment underlying the scheme; (d) If the scheme permits investment partly or wholly in shares, bonds, debentures, real estate asset and other scrips or securities whose value can fluctuate, a statement on the following lines: The price and redemption value of the units, and income from them, can go up as well as down with the fluctuations in the market value of its underlying investments in securities or fair value in underlying real estate asset, as the case may be; (e) Comments of the Trustees on the performance of the scheme, with full justification. (v) Statement giving relevant perspective historical per unit statistics in accordance with paragraph 6 of this Schedule; 7 [ (vi) Statement on the following lines: On written request, present and prospective unitholders/investors can obtain a physical copy of the trust deed, the annual report and scheme related documents at a nominal price. ] 2. Accounting Policies 8 [(a) For investments in securities - The accounting policies given in Part A of the Ninth Schedule shall be followed. ] (b) For investments in real estate assets- Following accounting policies shall be followed by real estate mutual fund schemes for the preparation of accounts: 9 [ (i) The accounting policies given in Part A of the Ninth Schedule in respect of investment in securities; ] ii. The accounting policies given in Part B of the Ninth Schedule in respect of real estate assets; and iii. In a real estate mutual fund scheme which provides to the unit holders the option for an early redemption or repurchase their own units the par value of the unit shall be debited to Capital Account and the difference between the purchase price and the par value, if positive, should be debited to reserves and, if negative, shall be credited to reserves. 3. Contents of Balance Sheet (i) The Balance Sheet shall give scheme wise particulars of its assets and liabilities 10 [ in the format specified by the Board ] . 11 [ **** ] . It shall also disclose, inter alia, accounting policies relating to valuation of investments including real estate investment asset and other important areas. 12 [ (ii) The aggregate market value of investments in securities shall be stated separately in respect of each type of investment, such as equity shares, preference shares, convertible debentures listed on recognised stock exchange, non-convertible debentures or bonds further differentiating between those listed on recognised stock exchange and those privately placed. ] 4 [ (iii)(A) The balance-sheet shall disclose under each type of investment(s) in securities, the aggregate market value or fair value of securities classified as below investment grade and default. A security shall be classified as below investment grade or default in the manner specified in guidelines issued by the Board. ] (iii)(B) The balance-sheet shall disclose under each category of real estate asset the aggregate carrying amount of nonperforming investment properties. A real estate asset shall be regarded as non-performing if it has provided no returns in the form of rental income for a period specified by the Board. (iv) 5 [***] (v) The Balance Sheet shall disclose the per-unit net asset value (NAV) as at the end of the accounting year. (vi) As in case of companies, the Balance Sheet shall give against each item, the corresponding figures as at the end of the preceding accounting year. (vii)(A) The notes to the balance sheet should disclose the following information regarding investments:- (a) all investments shall be grouped under the major classification given in the balance sheet; (b) under each major classification, the total value of investments falling under each major industry group (which constitutes not less than 5% of the total investment in the major classification) shall be disclosed together with the percentage thereof in relation to the total investment within the classification; (c) a full list of investments of the scheme shall be made available for inspection with the Asset Management Company; (d) the basis on which management fees have been paid to the Asset Management Company and the computation thereof; (e) if brokerage, custodial fees or any other payment for services are paid to or payable to any entity in which the Asset Management Company or its major shareholders have a substantial interest (being not less than 10% of the equity capital), the amounts debited to the revenue account or amounts treated as cost of investments in respect of such services shall be separately disclosed together with details of the interest of the Asset Management Company or its major shareholders; (f) aggregate value of purchases and sales of investments during the year and expressed as a percentage of 13 [ average net asset ] ; 14 [ (g) In case of securities, excluding debt securities, where the non-traded investments which have been valued in good faith exceed 5% of the net assets at the end of the year, the aggregate value of such investments along with percentage to net assets. In case of debt securities which have been valued at a price other than the price given by the Independent Valuation Agencies at the end of year, the aggregate value of such securities and percentage to net assets; and ] (h) movement in unit capital should be stated. An example of the manner in which the movement in unit capital may be disclosed is given below : No. of units (Rs. in lakhs) Balance as on 1st April, 1994 12,50,00,000 12,500.00 Units sold during the year 1,27,50,000 1,275.00 Units repurchased during the year (15,40,000) (154.00) 13,62,10,000 13,621.00 (i) the name of the company including the amount of investment made in each company of the group by each scheme and the aggregate investments made by all schemes in the group companies of the sponsor; 15 [ (j) The total income of the scheme shall include unrealised depreciation or appreciation on investment. ] Rs. in lakh Rs. in lakh Net income as per Revenue Account 100 Add : Balance of undistributed income as at 1st April, 1994 brought forward 20 120 Less : Unrealised appreciation on investments As on 31st March, 1995 30 As on 1st April, 1994 15 (15) 105 Less : Distributed to unitholders 80 Transfer to reserve 5 (85) 20 (vii)(B) In respect of real estate asset, the following additional disclosures shall be made in the balance sheet: (a). a reconciliation between the carrying amounts of real estate investment properties at the beginning and end of the period, showing the following: 1. Additions resulting from purchase during the period; 2. Additions resulting from acquisitions through business combinations; 3. Deletions resulting from sales during the period; 4. Deletions resulting from disposal through business combinations; 5. Net gain or loss from fair value adjustments; 6. Other changes. (b) the method and significant assumptions applied in determining the fair value of each real estate investment asset including a statement whether the determination of fair value was supported by market evidence or was more heavily based on other factors (which the real estate mutual fund scheme should disclose) because of the nature of the asset and lack of comparable data. (c) the use of two approved valuers and the extent to which the fair value determined is based on the lower of the two valuations done by the approved valuers having recent experience in the category of the real estate asset being valued. (d) the existence and amounts of restrictions on the realisability of real estate asset or the remittance of income and proceeds of disposal. (e) When the lower valuation obtained from the two approved valuers is adjusted significantly for the purpose of the balance sheet, for example to avoid double-counting of assets or liabilities that are recognised as separate assets or liabilities, the real estate mutual fund scheme should disclose the reconciliation between the so selected lower valuation and the adjusted valuation shown in the balance sheet. (f) In case where a real estate mutual fund scheme measures a real estate asset using the cost model [as mentioned in paragraph (vii) of Explanation in Part B of the Ninth Schedule], the reconciliation required as per item (a) this paragraph shall disclose amounts relating to that real estate asset separately from the amounts relating to other real estate assets. In addition, an real estate mutual fund scheme shall disclose: 1. a description of the real estate asset; 2.an explanation of why fair value cannot be determined reliably; 3.if possible, the range of estimates within which fair value is highly likely to lie; and 4.on disposal of investment of the real estate asset not carried at fair value: the fact that the real estate mutual fund scheme has disposed of the real estate investment asset not carried at fair value; the carrying amount of that real estate investment asset at the time of sale; and the amount of gain or loss recognised. (viii) Provisions for doubtful deposits, doubtful debts and for doubtful outstandings and accrued income shall not be included under provisions on the liability side of the balance sheet, but shall be shown as a deduction from the aggregate value of its relevant asset. (ix) Disclosure shall be made of all contingent liabilities showing separately underwriting commitments, uncalled liability on partly paid shares and other commitments with specifying details. 4. Contents of Revenue Account (i) The Revenue Account shall give schemewise particulars of the income, expenditure and surplus of the mutual fund 16 [ in the format specified by the Board ] . 17 [ **** ] (ii) If profit on sale of investments including real estate asset shown in the Revenue Account includes profit/loss on inter-scheme transfer of investments including real estate asset within the same mutual fund the aggregate of such profit recognised as realised, shall be disclosed separately without being clubbed with the profit/loss on sale of investments to third parties. (iii) Unprovided depreciation in value of investments in securities representing the difference between their aggregate market value and their carrying cost shall be disclosed by way of a note forming part of the Revenue Account. Conversely, unrealised profit on investment representing the difference between their aggregate market value and carrying cost, shall be disclosed by way of note to accounts. However, if investments are marked to market, depreciation may not be provided. 18 [ **** ] (v)(A) The following disclosures shall also be made in the revenue account: (a) provision for aggregate value of doubtful deposits, debts and outstanding and accrued income; (b) profit or loss in sale and redemption of investment may be shown on a 19 [ gross ] basis; (c) custodian and registrar fees; (d) total income and expenditure expressed as a percentage of average net assets, calculated on a 20 [ daily ] basis. (v)(B) In respect of real estate asset, the following additional disclosures shall be made: (a) rental income from real estate asset; (b) direct operating expense (including repairs and maintenance) arising from real estate asset that generated rental income during the period; and (c) direct operating expenses (including repairs and maintenance) arising from real estate asset that did not generate rental income during the period. 5. Auditor s Report (i) All mutual funds shall be required to get their accounts audited in terms of a provision to that effect in their trust deeds. The Auditor s Report shall form a part of the Annual Report. It should accompany the Abridged Balance Sheet and Revenue Account. The auditor shall report to the 24 [ trustee company ] and not to the 25 [ unit holders ] . (ii) The auditor shall state whether: (1) he has obtained all information and explanations which, to the best of his knowledge and belief, were necessary for the purpose of his audit, (2) the Balance Sheet and the Revenue Account are in agreement with the books of account of the fund. (iii) The auditor shall give his opinion as to whether: 1. the Balance Sheet gives a true and fair view of the schemewise state of affairs of the fund as at the balance sheet date, and 2. the Revenue Account gives a true and fair view of the schemewise surplus/deficit of the fund for the year/period ended at the balance sheet date. 21 [ (6) Perspective historical per unit statistics (1) This statement shall disclose the following scheme wise per unit statistics for the past 3 years: (a) net assets value, per unit at plan/option level; (b) gross income per-unit broken up into the following components: (i) income other than profit(loss) on sale of investment, per unit; (ii) income from profit(loss) on inter-scheme sales/transfer of investment, per unit; (iii) income from profit(loss) on sale of investment to third party, per unit; (iv) transfer to revenue account from past year s reserve, per unit. (v) gross income - sum of b(i),(ii) and (iii) (c) aggregate of expenses, write off, amortisation and charges, per unit; (d) net income, per unit (gross income aggregate of expenses); (e) unrealised appreciation/depreciation in value of investments, per unit; (f) if the units are traded, the highest and the lowest prices per unit during the year; (g) ratio of expenses to average net assets by percentage; (h) ratio of gross income to average net assets by percentage (excluding transfer to revenue account from past year s reserve but including unrealised appreciation on investments); (i) the highest and the lowest NAV per unit during the year at plan/option level; (j) face value per unit; (k) total unit capital (in Rupees); (l) average Net asset (in Rupees); (m) no. of days; (n) Weighted average Price Earnings Ratio of equity/equity related instruments held as at end of year/period. ] 22 [****] ************** NOTES:- 1 Substituted by the SEBI (Mutual Funds) (Amendment) Regulations, 2008, w.e.f. 16-4-2008. Prior to substitution, Eleventh Schedule was amended by the SEBI (Mutual Funds) (Amendment) Regulations, 1998, w.e.f. 12-1-1998, SEBI (Mutual Funds) (Amendment) Regulations, 2001, w.e.f. 23-1-2001 and SEBI (Mutual Funds) (Amendment) Regulations, 2000, w.e.f. 14-3-2000. 2 Inserted by SEBI (Mutual Funds) (Amendment) Regulations, 2009, w.e.f. 08-04-09. 3. Omitted vide Notification No. SEBI/LAD-NRO/GN/2019/37 dated 23-09-2019 w.e.f. 15-10-2019 before it was read as, viii. Where income receivable on investments has been accrued and has not been received for a period of 12 months beyond the due date, provision shall be made by debit to the revenue account for the income so accrued and no further accrual of income should be made in respect of such investment. 4. Substituted vide Notification No. SEBI/LAD-NRO/GN/2019/37 dated 23-09-2019 w.e.f. 15-10-2019 before it was read as (iii)(A) The balance-sheet shall disclose under each type of investment(s) in securities the aggregate carrying value and market value of non-performing investments. An investment shall be regarded as non-performing if it has provided no returns in the form of dividend or interest for a period specified in the guidelines issued by the Board. 5. Omitted vide Notification No. SEBI/LAD-NRO/GN/2019/37 dated 23-09-2019 w.e.f. 15-10-2019 before it was read as (iv) The Balance Sheet shall indicate the extent of provision made in the Revenue Account for the depreciation/loss in the value of non-performing investments in securities. However, if the investments in securities are valued at marked to market, provisions for depreciation shall not be necessary. 6. Omitted vide Notification No. SEBI/LAD-NRO/GN/2021/08 dated 04-02-2021 w.e.f. 30th day from the date of their publication in the Official Gazette, that is 04-02-2021 before it was read as xi. In a close-ended scheme 2 [launched prior to the commencement of the Securities and Exchange Board of India (Mutual Funds) (Amendment) Regulations, 2009] which provides to the unitholders the option for an early redemption or repurchase their own units, the par value of the unit shall be debited to Capital Account and the difference between the purchase price and the par value, if positive, should be debited to reserves and, if negative, should be credited to reserves. In case of such schemes launched prior to the commencement of the Securities and Exchange Board of India (Mutual Funds) (Amendment) Regulations, 2008 a proportionate part of the unamortised initial issue expenses shall also be transferred to the reserves so that the balance carried forward on that account is proportional to the number of units remaining outstanding. 7. Substituted vide Notification No. SEBI/LAD-NRO/GN/2022/70 dated 25-01-2022 before it was read as (vi) Statement on the following lines: On written request, present and prospective unitholder/investors can obtain copy of the trust deed, the annual report at a price and the text of the relevant scheme. 8. Substituted vide Notification No. SEBI/LAD-NRO/GN/2022/70 dated 25-01-2022 before it was read as (a) For investments in securities- Following accounting policies shall be followed by Mutual Funds for investments in securities for the preparation of accounts: i. The realised gains or losses on sale or redemption of investment, as well as unrealised appreciation or depreciation shall be recognised in all financial statements. For the purpose of all financial statements, all investments shall be marked to market and investments shall be carried out in the balance sheet at market value. However, till necessary guidance notes are issued by the Institute of Chartered Accountants of India to their members, in the above matter, investments may be continued to be valued at cost, with the market value shown separately and the reconciliation statement for the changes in investments valued in the two different ways shall be provided. Where the financial statements are prepared on a marked to market basis, there need not be a separate provision for depreciation. Since unrealised gain arising out of appreciation on investments cannot be distributed, provision has to be made for its exclusion and for calculating distributable income. ii. Non-traded investments shall be valued in good faith in accordance with the norms specified in Seventh Schedule. Provided that in the case of real estate mutual funds schemes, investments in unlisted equity shares shall be valued as per the norms specified by the Board in this regard. iii. For quoted shares, the dividend income earned by the scheme shall be recognised, not on the date the dividend is declared, but on the date the share is quoted on an ex-dividend basis. For investments in shares which are not quoted on the stock exchanges, the dividend income must be recognised on the date of declaration. iv. In respect of all interest-bearing investments, income shall be accrued on a day to day basis as it is earned. Therefore when such investments are purchased, interest paid for the period from the last interest due date upto the date of purchase, shall not be treated as a cost of purchase, but shall be treated to Interest Recoverable Account. Similarly, interest received at the time of sale for the period from the last interest due date upto the date of sale must not be treated as an addition to sale value but shall be credited to Interest Recoverable Account. v. In determining the holding cost of investments and the gains or loss on sale of investments, the average cost method shall be followed. vi. Transactions for purchase or sale of investments shall be recognised as of the trade date and not as of the settlement date, so that the effect of all investments traded during a financial year are recorded and reflected in the financial statements for that year. Where investment transactions take place outside the stock market, for example, acquisitions through private placement or purchases or sales through private treaty, the transaction shall be recorded, in the event of a purchase, as of the date on which the scheme obtains in enforceable obligation to pay the price or, in the event of a sale, when the scheme obtains an enforceable right to collect the proceeds of sale or an enforceable obligation to deliver the instruments sold. vii. Bonus shares to which the scheme becomes entitled shall be recognized only when the original shares on which the bonus entitlement accrues are traded on the stock exchange on an ex-bonus basis. Similarly, rights entitlements shall be recognised only when the original shares on which the right entitlement accrues are traded on the stock exchange on an ex-rights basis. 3 [***] ix. When the units of an open-ended scheme are sold, the difference between the sale price and the face value of the unit, if positive, shall be credited to Reserves and if negative is debited to reserve, the face value being credited to Capital Account. Similarly, when units of an open-ended scheme are repurchased, the difference between the purchase price and face value of the unit, if positive should be debited to reserves and, if negative, should be credited to reserves, the face value being debited to the capital account. x. (a) In the case of an open-ended scheme, when units are sold an appropriate part of the sale proceeds shall be credited to an Equalisation Account and when units are repurchased an appropriate amount shall be debited to Equalisation Account. The net balance on this Account should be credited or debited to the revenue account. The balance on equalization account debited or credited to the Revenue Account shall not decrease or increase the net income of the fund but is only an adjustment to the distributable surplus. It shall, therefore, be reflected in the Revenue Account only after the net income of the fund is determined. (b) The Trustees of the Board of the Trustee Company may, if necessary, transfer a portion of the distributable profits to a dividend equalization reserve. Such a transfer would be independent of the requirement to operate an Equalisation Account as provided in (x)(a). 6 [ **** ] xii. The cost of investments acquired or purchased shall, inter alia, include brokerage, stamp charges and any charge customarily included in the broker s bought note. In respect of privately placed debt instruments any front-end discount offered shall be reduced from the cost of the investment. xiii. Underwriting commission shall be recognised as revenue only when there is no devolvement on the scheme. Where there is devolvement on the scheme, the full underwriting commission received and not merely the portion applicable to the devolvement shall be reduced from the cost of the investment. 9. Substituted vide Notification No. SEBI/LAD-NRO/GN/2022/70 dated 25-01-2022 before it was read as i. The accounting policies given in paragraph 2(a) in respect of investment in securities; 10. Inserted vide Notification No. SEBI/LAD-NRO/GN/2022/70 dated 25-01-2022 11. Omitted vide Notification No. SEBI/LAD-NRO/GN/2022/70 dated 25-01-2022 before it was read as These particulars shall contain information enumerated in Annexures 1A and 1B hereto 12. Substituted vide Notification No. SEBI/LAD-NRO/GN/2022/70 dated 25-01-2022 before it was read as (ii) If investments in securities are carried at costs or written down cost, their aggregate market value shall be stated separately in respect of each type of investment, such as equity shares, preference shares, convertible debentures listed on recognised stock exchange, non-convertible debentures or bonds further differentiating between those listed on recognised stock exchange and those privately placed. 13. Substituted vide Notification No. SEBI/LAD-NRO/GN/2022/70 dated 25-01-2022 before it was read as, average weekly net asset value 14. Substituted vide Notification No. SEBI/LAD-NRO/GN/2022/70 dated 25-01-2022 before it was read as (g) where the non-traded investments which have been valued in good faith exceed 5% of the NAV at the end of the year, the aggregate value of such investments; and 15. Substituted vide Notification No. SEBI/LAD-NRO/GN/2022/70 dated 25-01-2022 before it was read as (j) if the investments are marked to market, the total income of the scheme shall include unrealised depreciation or appreciation on investment. There should be disclosure and unrealised appreciation deducted before arriving at the distributable income in the following manner, e.g. 16. Inserted vide Notification No. SEBI/LAD-NRO/GN/2022/70 dated 25-01-2022 17. Omitted vide Notification No. SEBI/LAD-NRO/GN/2022/70 dated 25-01-2022 before it was read as These particulars shall contain information enumerated in Annexure 2 of this Schedule. 18. Omitted vide Notification No. SEBI/LAD-NRO/GN/2022/70 dated 25-01-2022 before it was read as (iv) The Revenue Account shall indicate the appropriation of surplus by way of transfer to reserves and dividend distributed. 19. Substituted vide Notification No. SEBI/LAD-NRO/GN/2022/70 dated 25-01-2022 before it was read as net 20. Substituted vide Notification No. SEBI/LAD-NRO/GN/2022/70 dated 25-01-2022 before it was read as weekly 21. Substituted vide Notification No. SEBI/LAD-NRO/GN/2022/70 dated 25-01-2022 before it was read as 6. Perspective historical per unit statistics (1) This statement shall disclose the following schemewise per unit statistics for the past 3 years: (a) net assets value, per unit; (b) gross income per-unit broken up into the following components: (i) income other than profit on sale of investment, per unit; (ii) income from profit on inter-scheme sales/transfer of investment, per unit; (iii)income from profit on sale of investment to third party, per unit; (iv) transfer to revenue account from past year s reserve, per unit. (c) aggregate of expenses, write off, amortisation and charges, per unit; (d) net income, per unit; (e) unrealised appreciation/depreciation in value of investments, per unit; (f) if the units are traded or repurchased/resold, the highest and the lowest prices per unit during the year and the price-earning ratio ; (g) per unit, ratio of expenses to average net assets by percentage; (h) per unit, ratio of gross income to average net assets by percentage (excluding transfer to revenue account from past year s reserve but including unrealised appreciation on investments) ; (i) per unit NAV. 22. Omitted vide Notification No. SEBI/LAD-NRO/GN/2022/70 dated 25-01-2022 before it was read as ANNEXURE 1A [Refer para 3] Contents of schemewise Balance Sheet ASSETS SIDE OF THE BALANCE SHEET: I. The assets of the balance sheet shall be grouped into the following categories: - Investments - Deposits - Other Current Assets - Fixed Assets II. INVESTMENTS: (a) The following types of investment in securities shall be separately disclosed: (i) Equity shares; (ii) Preference shares; (iii) Privately placed debentures/bonds; (iv) Debentures and Bonds listed/awaiting listing on the recognised stock exchange; (v) Calls paid in advance; (vi) Term Loans; (vii) Central and State Government Securities (including treasury bills); (viii) Commercial Paper; (ix) Others. (b) Real estate assets shall be separately classified into (1) major classes of residential and commercial properties and (2) sub-classified on the basis of developers, location and project. Particulars shall include area, cost, fair value, basis of fair value, and legal disputes, etc. -Accounting policy of valuation of investments shall be disclosed. III. DEPOSITS Distinguishing between : - Deposits with scheduled banks; - Deposits with Companies/Institutions; - Others. IV. OTHER CURRENT ASSETS Distinguishing between: - Balances with banks in current account; - Cash on hand; - Sundry Debtors; - Contracts for sale of investments in securities; - Outstanding and accrued income; - Advance, Deposits, etc.; - Bridge Finance; - Shares/debentures application money, pending allotment; - Others. V. FIXED ASSETS - Depreciated cost of the fixed assets as a whole or net block may be disclosed. ANNEXURE 1B [Refer para 3] Contents of schemewise balance sheet LIABILITIES SIDE OF THE BALANCE SHEET I. Liabilities side of the balance sheet be divided into the following groups : (i) Unit Capital; (ii) Reserves Surplus; (iii) Loans; (iv) Current Liabilities and Provisions. II. Unit Capital: Distinguishing between: - Initial capital; - Unit capital (including number of units and face value per unit). III. Reserves surplus Distinguishing between: - Unit premium reserve; (optional) - General reserve; - Dividend equalisation reserve; (optional) (Equalisation Account, as per 2(x) of the Schedule); - Any other reserve (disclosing its nature); - Appropriation account; - Opening balance, transfer from/to reserve, closing balance shall be separately disclosed for each above type of reserve. IV. Loans Distinguishing between: - Loan from Reserve Bank of India; - From Settlor; - From Other Commercial Banks; - From others; - If the above loans are secured, the nature and extent of security should be disclosed; - Borrowings by the scheme with amount, rate of borrowings, rate of interest, source and other terms shown separately, source-wise. V. Current liabilities and provisions Distinguishing between the following current liabilities and provisions Current liabilities: - Sundry creditors; - Interest payable on loans; - Contract for purchase of investments in securities; - Bank account overdrawn as per books; - Unclaimed distributed income; - Others. Provisions: - Provisions for loss/depreciation in value of investments in securities (separately with reference to each type of investment in securities) (optional, if marked to market); - Provision for doubtful deposits; - Provision for outstanding any accrued income considered doubtful; - Provision for gratuity; - Provision for staff welfare fund; - Proposed income distributed on initial capital and unit-capital; - Other provisions. VI. Contingent liabilities - Disclosure should be made of all contingent liabilities, showing separately :- (i) Underwriting commitments; (ii) Uncalled liability on partly paid shares; (iii) Other commitments; and (iv) Others (specifying details). ANNEXURE 2 [Refer para 4] Contents of revenue account - Dividend; - Interest; - Rental (lease) income - Profit on sale/redemption of investments in securities (other than inter-scheme transfer/sale); - Profit on sale of real estate assets (other than inter-scheme transfer/sale) - Profit on inter-scheme transfer/sale of investments; - Other income (indicating nature). Expenses and losses: - Provision for depreciation in value of investments in securities; - Provision for outstanding accrued income considered doubtful; - Provision for doubtful deposits and current assets; - Loss on sale/redemption of investments in securities (other than inter-scheme transfer/sale); - Loss on sale of real estate investment properties (other than inter-scheme transfer/sale); - Loss on inter-scheme transfer/sale of investments; - Management fees; - Trusteeship fees; - Staff cost including salaries, allowances, contributions to provident fund, gratuity, etc.; - Office and administrative expenses; - Registration and local charges; - Commission to Agents; - Publicity expenses; - Audit fees; - Legal Title Search Fee; - Insurance security expenses; - Advisory fee in respect of real estate investment asset; - Other operating expenses; - Depreciation of fixed assets; - Custodian fees; - Registration fees; - Repairs and maintenance in case of real estate asset. Less: Amount recovered on sale of units on account of management expenses. Note: (i) Accounting policy in respect of recognition of revenue and income from investments (including dividend and interest in case of securities and rental income in case of real estate asset) shall be disclosed by way of a note. (ii)Unprovided depreciation and unrealised appreciation in value of investments in securities representing the difference between their aggregate market value and their carrying cost shall be disclosed by way of note. (iii) Provision for doubtful deposits, debts and outstanding accrued income need not be separately shown but can be aggregated. (iv)Profit on sale/redemption of investments and loss on sale/redemption of investments need not be shown on a gross basis but only the net profit or loss need be shown. (v) The total income and expenditure expressed as a percentage of average net assets, calculated on a weekly basis should be indicated. (vi)Appropriation of the surplus by way of transfer to reserves and dividends distributed shall be disclosed in the Abridged Revenue Account itself. (vii) The Balance Sheet and the Revenue Account shall be signed by the schemewise fund manager/s and the Board of Trustees, and reported upon by the Auditors. The financial statements of the scheme should be approved at a meeting of the Board of Directors of the Asset Management Company and also at a meeting of the trustees or in the case of a trustee company by the Board of Directors of the trustee company.] 23. Substituted vide Notification No. SEBI/LAD-NRO/GN/2023/134 dated 26-06-2023 w.e.f. 01-01-2024 before it was read as, Board of Trustees 24. Substituted vide Notification No. SEBI/LAD-NRO/GN/2023/134 dated 26-06-2023 w.e.f. 01-01-2024 before it was read as, Board of Trustees 25. Substituted vide Notification No. SEBI/LAD-NRO/GN/2023/134 dated 26-06-2023 w.e.f. 01-01-2024 before it was read as, unitholders