State the method of calculating Net Owned Funds as per RBI definition for obtaining NBFC license.

Calculating Net Owned Funds as per RBI Definition The NOF should be computed on the basis of last audited Balance Sheet and any capital raised after the Balance Sheet date should not be accounted for while computing NOF Net owned Fund will consist of paid-up equity capital, free reserves, balance in share premium account and capital reserves representing surplus arising out of sale proceeds of assets but not reserves created by revaluation of assets. From the aggregate of items will be deducted accumulated loss balance and book value of intangible assets, if any, to arrive at owned funds. Further, investments in shares of other NBFCs and in shares, debentures of subsidiaries and group companies in excess of ten percent of the owned fund mentioned above will be deducted to arrive at the Net Owned Fund. Net owned funds = Paid up equity capital + free reserves + balance in share premium account +capital reserves representing surplus arising out of sale proceeds of assets (not created by revaluation of assets) (-) accumulated losses (-) book value of intangible assets (-) investments in shares of other NBFCs and in shares, debentures of subsidiaries and group companies in excess of ten percent of the owned fund mentioned above.