Exemption to certain companies u/s.211(3) for Public Financial Institutions.

MCA vide Notification No. S.O. 300(E), dated
8th February 2011 has u/s.211(3) exempted Public Financial Institutions as
specified u/s.4A of the Companies Act, 1956 from disclosing Investments as
required under paragraph (1) of Note (1) of Part-I of Schedule VI in their
balance sheet, subject to fulfilment of the following conditions, namely :

(i) the Public Financial Institutions shall make
the complete disclosures about investments in the balance sheet in respect of
the following, namely :

(a) immovable property;

(b) capital of Partnership firms;

(c) all unquoted investments, and;

(d) investments in subsidiary companies.

(ii) the Public Financial Institutions shall
disclose the total value of quoted investments in each of the following
respective categories, namely :

•   Government and trusts
  securities;

•   shares

•   debentures;

•   bonds; and

•   other securities.

(iii) in each of the above categories referred to
in sub-paragraphs (i) and (ii), investments where value exceeds two percent of
total value in each category or one crore rupees, whichever is lower, shall be
disclosed fully, provided that where disclosures do not result in disclosure
of at least fifty percent of total value of investment in a particular
category, additional disclosure of investments in descending order of value
shall be made so that specific disclosures account for at least fifty percent
of the total value of investments in that category;

(iv) the Public Financial Institutions shall also
give an undertaking to the effect that as and when any of the shareholders ask
for specific particulars, the same shall be provided;

(v) all unquoted investments shall be separately
shown;

(vi) the company shall undertake to file with any
other authorities, whenever necessary, all the relevant particulars as may be
required by the Government or other regulatory bodies;

(vii) the investments in subsidiary companies or
in any company such that it becomes a subsidiary, shall be fully disclosed.