Page 300 - CA Final Audit Titanium Full Book. (With Cover Pages)
P. 300
CA Ravi Taori
Liquidity Norms: Whether the company has complied with the liquid assets requirement as prescribed by the
Bank in exercise of powers under section 45 IB of the RBI Act and whether the details of the designated bank
in which the +6communicated to the office concerned of the Bank in terms of NBS 3; Non-Banking Financial
Company Returns (Reserve Bank) Directions, 2016;
Default of Interest: Whether the company has defaulted in paying to its depositors the interest and/or
principal amount of the deposits after such interest and/or principal became due;
Compliance with Prudential Norms: Whether the company has complied with the prudential norms on
income recognition, accounting standards, asset classification, provisioning for bad and doubtful debts, and
concentration of credit/ investments as specified in the Directions issued by the Bank in terms of the Master
Direction Non-Banking Financial Company Systemically Important No deposit taking Company and Deposit
taking Company (Reserve Bank) Directions,2016;
Return of Deposit: Whether the company has furnished to the Bank within the stipulated period the return
on deposits as specified in the NBS 1 to – Non- Banking Financial Company Returns (Reserve Bank)
Directions, 2016;
Quarterly Report: Whether the company has furnished to the Bank within the stipulated period the quarterly
return on prudential norms as specified in the Non-Banking Financial Company Returns (Reserve Bank)
Directions, 2016;
Violation of Public Deposit Direction: Whether the company has violated any restriction on acceptance of
public deposit as provided in Non-Banking Financial Companies Acceptance of Public Deposits (Reserve
Bank) Directions, 2016;
New Branches (Different Point): Whether, in the case of opening of new branches or offices to collect
deposits or in the case of closure of existing branches/ offices or in the case of appointment of agent, the
company has complied with the requirements contained in the Non-Banking Financial Companies Acceptance
of Public Deposits (Reserve Bank) Directions,2016.
3. NBFCs Not Accepting Deposits
In the case of a non-banking financial company not accepting public deposits Apart from the aspects
enumerated in (A) above, the auditor shall include a statement on the following matters, namely: -
Board Resolution: Whether the Board of Directors has passed a resolution for non- acceptance of any public
deposits;
Acceptance of Deposit: Whether the company has accepted any public deposits during the relevant
period/year;
Classification: whether the non-banking financial company has been correctly classified as NBFC Micro
Finance Institutions (MFI) as defined in the Non-Banking Financial Company – Non-Systemically Important
Non-Deposit taking Company (Reserve Bank) Directions, 2016 and Non-Banking Financial Company -
Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank)
Directions, 2016.
Systematically Important NBFC: In respect of Systemically Important Non-deposit taking NBFCs as defined
in Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit
taking Company (Reserve Bank) Directions, 2016:
Whether the capital adequacy ratio as disclosed in the return submitted to the Bank in form NBS- 7, has been
correctly arrived at and whether such ratio is in compliance with the minimum CRAR prescribed by the Bank;
Whether the company has furnished to the Bank the annual statement of capital funds, risk assets/exposures
and risk asset ratio (NBS-7) within the stipulated period. 4
Prudential Norms: Whether the company has complied with the prudential norms relating to Quarterly
Report Whether the company has furnished to the Bank within the stipulated period the quarterly return on
prudential norms as specified in the Non-Banking Financial Company Returns (Reserve Bank) Directions,
2016;5
NBFC not Required COR: In the case of a company engaged in the business of non-banking financial
www.auditguru.in 14.44