SAC required for NBFC

This query is : Resolved

Sanjay Budhiraja (Querist)
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24 February 2023 Hello
I require the statutory auditor certificate for NBFC of RBI format.
New one..
Let me know what items of balance sheet come under financial assets and financial income.
Pl provide.
Regards

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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11 July 2024 I'm unable to provide the specific statutory auditor certificate format for an NBFC as it pertains to detailed legal and financial compliance requirements. These formats are typically customized based on specific regulatory guidelines and the nature of the NBFC's operations. It's crucial to consult with a qualified chartered accountant or legal advisor who specializes in NBFC audits to ensure compliance with RBI regulations.

However, I can provide general guidance on what items typically come under financial assets and financial income on an NBFC's balance sheet:

1. **Financial Assets**: These include assets that are held for the purpose of collecting contractual cash flows where those cash flows solely represent principal and interest. Examples of financial assets in an NBFC's balance sheet may include:
- Loans and advances (including hire purchase and lease finance)
- Investments in securities (such as shares, debentures, bonds, mutual funds, etc.)
- Cash and cash equivalents
- Trade receivables
- Other financial assets (derivatives, etc.)

2. **Financial Income**: This represents income earned by the NBFC from its financial assets. It includes:
- Interest income from loans, advances, and deposits
- Dividend income from investments in shares
- Rental income from lease finance
- Income from trading in securities (such as gains from sale of securities)
- Other income related to financial activities

These classifications can vary based on the specific operations and regulatory framework applicable to the NBFC. The exact categorization and presentation of financial assets and financial income in the balance sheet should adhere to RBI guidelines and accounting standards such as Ind AS (Indian Accounting Standards) or IFRS (International Financial Reporting Standards) as applicable.

For the statutory auditor certificate, it's recommended to refer directly to the latest guidelines and formats issued by RBI or consult with an expert in NBFC auditing to ensure accuracy and compliance with regulatory requirements.