15 February 2010
Do NBFC's have to maintain any ratio between the Main Business Income with it's total income? i.e. for eg. the total income an NBFC is Rs. 100/- (Rs. 60 from it main business of lending loans & Rs. 40 from income from other sources like FD interest etc.)
So in the above eg. the Ratio of Main Business Income comes to 60%.
So my question is, whether NBFC's have to earn a certain % of income from Main business income & rest from other sources? What is the ratio of it? If specified in the NBFC Act then in which section or notification or circular?
02 March 2010
Press Release 1998-99/1269 dated April 8, 1999 states as follows:
The Company will be treated as a Non-banking financial company (NBFC) if its financial assets ar emore than 50 per cent of its total assets (netted off by intangible assets) and income from financial assets is more than 50 per cent of the gross income. Both these tests are required to be satisfied as the determinant factor for principal business ofa company."
CAclubindia
