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As the Bank is state controlled enterprise within the meaning of AS-18 ‘Related
Party Disclosures’, the related party relationship with other state-controlled
enterprises and transactions with such enterprises are not given.
47. Consolidation of Special Fund with the General Fund
47.1 The Voluntary Deposits (Immunities and Exemptions) Act, 1991 was passed with the
objectives of providing certain immunities and exemptions from direct taxes to persons
making voluntary deposits with the National Housing Bank and exemptions from
direct taxes in relation to such amounts. The amount so collected under the Voluntary
Deposits Scheme is required to be kept in a Special Fund exclusively for the purpose
of financing slum clearance and low cost housing for the poor. In terms of National
Housing Bank (Slum Improvement & Low Cost Housing Fund) Regulations, 1993,
Profit and Loss Account for the year ended 30th June and Balance Sheet as on that date
are required to be prepared each year in respect of the Special Fund and audited by the
Statutory Auditors appointed by the Reserve Bank of India under Section 40 (1) of the
National Housing Bank Act, 1987.
47.2 Accordingly, the Profit and Loss account and the Balance Sheet of the Special Fund have
been prepared as per the provision of the National Housing Bank (Slum Improvement &
Low Cost Housing Fund) Regulations, 1993 and attached as Annexure to these financial
statements. The balance lying in the Special Fund is included under the schedule
“Reserves & Surplus” in the Bank’s consolidated Balance Sheet. Various assets and
liabilities of the Special Fund have also been grouped in the consolidated Balance Sheet
under the respective heads.
48. Implementation of IND AS
In terms of the Reserve Bank of India’s circular dated August 04, 2016, Bank is
continuously preparing proforma Ind AS statements and is submitting to the regulator
regularly. The Reserve Bank of India vide its letter dated May 15, 2019, has advised
that implementation of Indian Accounting Standards by All India Financial Institutions
(AIFIs) has been deferred until further notice.
49. Dewan Housing Finance Limited (DHFL) and Punjab & Maharashtra Co-operative
Bank Limited (PMC Bank)
In mid-2019, DHFL started defaulting on its loan and bond repayment obligations
towards various lenders due to liquidity concerns. On November 20, 2019, Reserve
Bank of India (RBI), superseded the Board of Directors of DHFL owing to governance
concerns and defaults made by DHFL in meeting various repayment obligations and
appointed an Administrator to oversee the operations of DHFL.NHB, being one of its
310 | Annual Report 2020-21
Party Disclosures’, the related party relationship with other state-controlled
enterprises and transactions with such enterprises are not given.
47. Consolidation of Special Fund with the General Fund
47.1 The Voluntary Deposits (Immunities and Exemptions) Act, 1991 was passed with the
objectives of providing certain immunities and exemptions from direct taxes to persons
making voluntary deposits with the National Housing Bank and exemptions from
direct taxes in relation to such amounts. The amount so collected under the Voluntary
Deposits Scheme is required to be kept in a Special Fund exclusively for the purpose
of financing slum clearance and low cost housing for the poor. In terms of National
Housing Bank (Slum Improvement & Low Cost Housing Fund) Regulations, 1993,
Profit and Loss Account for the year ended 30th June and Balance Sheet as on that date
are required to be prepared each year in respect of the Special Fund and audited by the
Statutory Auditors appointed by the Reserve Bank of India under Section 40 (1) of the
National Housing Bank Act, 1987.
47.2 Accordingly, the Profit and Loss account and the Balance Sheet of the Special Fund have
been prepared as per the provision of the National Housing Bank (Slum Improvement &
Low Cost Housing Fund) Regulations, 1993 and attached as Annexure to these financial
statements. The balance lying in the Special Fund is included under the schedule
“Reserves & Surplus” in the Bank’s consolidated Balance Sheet. Various assets and
liabilities of the Special Fund have also been grouped in the consolidated Balance Sheet
under the respective heads.
48. Implementation of IND AS
In terms of the Reserve Bank of India’s circular dated August 04, 2016, Bank is
continuously preparing proforma Ind AS statements and is submitting to the regulator
regularly. The Reserve Bank of India vide its letter dated May 15, 2019, has advised
that implementation of Indian Accounting Standards by All India Financial Institutions
(AIFIs) has been deferred until further notice.
49. Dewan Housing Finance Limited (DHFL) and Punjab & Maharashtra Co-operative
Bank Limited (PMC Bank)
In mid-2019, DHFL started defaulting on its loan and bond repayment obligations
towards various lenders due to liquidity concerns. On November 20, 2019, Reserve
Bank of India (RBI), superseded the Board of Directors of DHFL owing to governance
concerns and defaults made by DHFL in meeting various repayment obligations and
appointed an Administrator to oversee the operations of DHFL.NHB, being one of its
310 | Annual Report 2020-21
