Master Circular – Non-Banking Financial Companies Auditor’s Report Directions, 2008
The Reserve Bank of India (RBI) has issued directions for Non-Banking Financial Companies (NBFCs) regarding the submission of an auditor’s report to the Board of Directors.
The directions apply to all NBFCs, including those accepting/holding public deposits and those not accepting public deposits.
Matters to be included in the Auditor’s Report:
In the case of all NBFCs, the report should include:
- Verification of assets and liabilities
- Verification of income and expenditure
- Comments on the financial position and performance of the company
In the case of NBFCs accepting/holding public deposits, the report should also include:
- Verification of public deposits
- Comments on the company’s compliance with the RBI’s directions on public deposits
In the case of NBFCs not accepting public deposits, the report should include a statement to that effect.
In the case of companies engaged in the business of non-banking financial institutions not required to hold a Certificate of Registration (CoR) subject to certain conditions, the report should include a statement to that effect.
The auditor’s report should be submitted to the Board of Directors within four months from the close of the financial year.
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Download: Master Circular – Non-Banking Financial Companies Auditor’s Report (Reserve Bank) Directions, 2008