The Reserve Bank of India on 19th April 2022, has made it mandatory for the NBFCs to make additional disclosure in financial statement in accordance with the existing prudential guidelines, applicable accounting standards, laws, and regulations.
The additional disclosure requirements are in accordance with the Scale Based Regulation and the disclosure requirements applicable to lower layers of NBFCs will be applicable to NBFCs in higher layers. These guidelines shall be effective for annual financial statements for year ending March 31, 2023, and onwards.
Further RBI has notifies the format for disclosures which is a common templates for all categories of NBFCs (i.e. Investment and Credit Companies, Housing Finance Companies, Core Investment Companies, etc.). Individual NBFCs may omit those line items/disclosures which are not applicable/not permitted or with no exposure/ no transaction both in the current year and previous year.
NBFCs shall disclose comparative information in respect of the previous period for all amounts reported in the current period’s financial statements. Further, NBFCs shall include comparative information for narrative and descriptive information if it is relevant to understanding the current period’s financial statements.
