TaxTMI 
TaxTMI 
Annual Report
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.... 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.....
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....% 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" e....
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....t 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 m....
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....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 de....
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....); (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 b....
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....curities 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 f....
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....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 ....
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....alised 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) ne....
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....ances 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 ....
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.... 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 b....