A. Earning Value :	Average Profit after tax (net of
	dividend on preference shares
	and extra ordinary items ) for
	the last three years		Capitalisation
		X	factor
	Number of equity shares

Hypothetically, the profit after tax for the last three	}	Rs. 100.00 lakhs,
financial years net of dividend on preference shares }		Rs. 120.00 lakhs
and net of extra ordinary items	} &	Rs. 140.00 lakhs
No. of equity shares of the company		10,00,000 shares
The investee company is a predominantly manufacturing
company and the capitalisation factor would be		: 8 per cent
The earning value will be worked out as under :

(100.00+120.00+140.00)		100
	X	---	= Rs.150/-
3 X 10,00,000		8

1. The Prudential Norms have prescribed that the unquoted shares should be valued at break up value. However, an NBFC can also value these shares at fair value, if it so desires.

Break up value and fair value are to be calculated as per the formula given in the Directions. The formula is illustrated as under :

If the paid equity capital of the company is = Rs. 1,00,00,000

The free reserves net of intangible assets

and deferred revenue expenditure = Rs. 3,20,00,000

Number of equity shares = 10,00,000 shares

The break up value will be :	1,00,00,000 + 3,20,00,000	= Rs. 42/-
	10,00,000

If we take the earning value worked out in the previous question, and since we know that the fair value is the mean of the break up value and the earning value, the fair value will be	150+42	= Rs.96/-
	2

In the given case, the company may value its shares at fair value viz, Rs.96/- which is higher than the break up value at Rs.42/- or cost, whichever is lower.

Yes. Different designs of ₹10 coins are currently in circulation. All coins of ₹10 denomination minted from time to time by the Government of India (with/without the Rupee symbol) are legal tender. For more details kindly see our Press Release issued in this regard which is available at the following link www.rbi.org.in>>Issuer of currency>>Press Release>>January 17, 2018. /en/web/rbi/-/press-releases/rbi-reiterates-legal-tender-status-of-%E2%82%B9-10-coins-of-different-designs-42887

Yes, the overseas branches of the banks can make donations abroad, provided the banks do not exceed the prescribed ceiling of one per cent of their published profit of the previous year.

The credit concentration norms are applicable to commercial transactions only. Advance deposits of money as security for performance of some contract between the two parties, like office premises, advance deposits with the Government authorities towards services, etc. are not governed by the credit concentration norms.

The Government of India is responsible for the designing and minting of coins in various denominations.

1. The Board of Directors of the banks should lay down the policy and formulate operational guidelines separately in respect of metropolitan, urban, semi-urban and rural areas covering all areas in respect of acquiring premises on lease/ rental basis for the banks’ use. These guidelines should include also delegation of powers at various levels. The decision in regard to surrendering or shifting of premises other than at rural centers should be taken at the central office level by a committee of senior executives.

2. The Board of Directors of the bank should lay down separate policy for granting of loans to landlords who provide them premises on lease/ rental basis. The rate of interest to be charged on such loans should be fixed as per the lending rate directives issued by RBI with BPLR as the minimum lending rate for the loans above Rs.2 lakhs. The rate of interest may be simple or compound, in accordance with the usual practice of the bank, as applicable to other term loans.

3. Banks should provide a suitable mechanism for redressing the genuine grievances of the landlord expeditiously.

4. The details of negotiated contracts in respect of advances to landlords and rental (including taxes etc. and deposits of Rs.25 lakhs and above) on premises taken on lease/ rental by the public sector banks, should be reported to the Central Bureau of Investigation (CBI) as per the extant Government instructions. This requirement will not be applicable to banks in the private sector.

No. The Prudential Norm Return should be certified by the company’s Statutory Auditors only and not by any other Chartered Accountant.

Indian Banks’ Association (IBA) has dispensed with the practice of prescribing service charges to be levied by banks for various services rendered by them. With effect from September 1999, the Reserve Bank has granted freedom to banks to prescribe service charges with the approval of respective Board of Directors.

The Government of India decides on the quantity of coins to be minted on the basis of indent received from the Reserve Bank on yearly basis.

The Reserve Bank has instructed the banks to accept coins for transactions and exchange at all their branches. The public can continue to accept these coins as legal tender in all their transactions without any hesitation. A press release in this regard can be accessed at the following link: /en/web/rbi/-/press-releases/public-can-continue-to-accept-all-the-coins-as-legal-tender-rbi-47414

A The RBI regulations are aimed at protecting the depositors' interest indirectly. The Bank also exercises Off-site Surveillance and/or On-site Inspection of NBFCs. The RBI, however, does not guarantee or offer insurance cover to public deposits of NBFCs.

A. The NBFC has been in existence for at least two years. (New NBFCs are not permitted to mobilise public deposits during first two years of existence) The NBFC has a minimum credit rating of A- (CRISIL AND ICRA),BBB(CARE), BBB- (DCR India) if it is an Equipment Leasing/Hire Purchase Company and a minimum rating of A if it is a Loan/Investment Company. The NBFC does not have overdue deposits, except unclaimed deposits, while soliciting fresh deposits. The NBFC is a profit making company. The NBFC has declared that it has complied with the RBI Directions.

For commemorative coins, you may refer to the website of SPMCIL at http://www.spmcil.com or contact SPMCIL.

A This information is required to be printed in the Application Form issued by the company soliciting deposits.

In case of grievance against a specific bank, a complaint may be lodged with the bank branch concerned. If not satisfied with their reply, a complaint may be lodged with Nodal Officers/Principal Nodal Officers at Controlling Office/Head Office of the bank branch, appointed under the Banking Ombudsman Scheme, 2006, for redressal of complaints. If the complaint is not redressed within one month, a complaint can be made to Banking Ombudsman, under the Banking Ombudsman Scheme, 2006. Non-acceptance, without sufficient cause, of coins tendered and charging of commission in respect thereof is a valid ground for lodging complaints against a bank under the Banking Ombudsman Scheme 2006.The details of the Banking Ombudsman Scheme are available on RBI's website www.rbi.org.in. The name and contact details of the Nodal Officers of the banks are available in their respective official website.

For the complaints not covered under Banking Ombudsman Scheme, 2006, the complainants may approach to Consumer Education and Protection Cell, Reserve Bank of India (at cms.rbi.org.in) of respective region with their grievance about deficiency in customer service by RBI regulated entities.

A Please note that: The NBFCs are allowed to accept public deposits in any form only for periods ranging between 12 months and 60 months. NBFCs cannot offer interest rates higher than the ceiling rate prescribed by RBI from time to time. The present ceiling is 16 per cent per annum. The interest may be paid or compounded at rests not shorter than monthly rests. NBFCs cannot offer gifts/incentives or any other additional benefit to the depositors.

A It should be noted that higher the interest, the higher is the risk. Particularly, the NBFCs offering interest or incentives (which are not permitted under the regulations) should be viewed with caution.

A While making deposits with an NBFC the following aspects should also be borne in mind. Note that all public deposits are unsecured. Insist on a proper deposit receipt which should, besides the name of the depositor/s state the date of deposit, the amount in words and figures, rate of interest payable and the date of maturity. Amounts taken under any other nomenclature may not be treated as public deposits and may not be governed by RBI regulations.

A. The deposit acceptance activities of the class of NBFCs, popularly known as RNBCs, are governed by the provisions of Residuary Non- Banking Companies (Reserve Bank) Directions, 1987. That the functioning of these companies (which are very few in number) is entirely different from those of the NBFCs in terms of method of mobilisation of deposits and requirement of deployment of depositors’ funds. These companies are required to invest not less than 80 per cent of their aggregate deposit liabilities according to the prescribed investment pattern. Only 20 per cent of the deposits or ten times the NOF, whichever is lower, can be deployed in other assets. These companies are characterised by poor NOF and as such they are obliged to invest the entire deposit funds as directed by RBI. Serious action has been taken against the erring RNBCs and more than 200 such companies have so far been prohibited from acceptance of deposits.