How to calculate Net Owned Funds (NOF)? - FEMA - FAQ - FEMA

Ans. Applicant companies should calculate their Net Owned Funds (NOF) of as per the following. (a) Owned Funds :- (Paid-up Equity Capital + Free reserves + Credit balance in Profit Loss A/c) minus (Accumulated balance of loss, Deferred revenue expenditure and Other intangible assets) (b) Net Owned Funds :- Owned funds minus the amount of investments in shares of its subsidiaries, companies in the same group, all (other) non-banking financial companies as also the book value of debentures, bonds, outstanding loans and advances made to and deposits with its subsidiaries and companies in the same group in excess of 10 per cent of the Owned funds.