Balance Sheet Disclosure Guidelines for NBFCs in Middle Layer and Above

NBFCs must include certain items in their Notes to Accounts (NTA). These are additional to other disclosure requirements.

Summary of Significant Accounting Policies:

NBFCs should disclose their accounting policies in one place in their financial statements. This includes policies on accounting basis, foreign exchange transactions, investment classification and valuation, advances and provisions, fixed assets and depreciation, revenue recognition, employee benefits, taxation, and net profit.

Capital:

Disclose the Capital to Risk (Weighted) Assets Ratio (CRAR), Tier 1 and Tier 2 capital percentages, and amounts raised through subordinated debt and Perpetual Debt Instruments.

Investments:

Report the gross and net value of investments, both in India and abroad, and movements in provisions for depreciation on investments.

Derivatives:

Detail the notional principal, losses, collateral, credit risk, and fair value of Forward Rate Agreements/Interest Rate Swaps and Exchange Traded Interest Rate Derivatives. Include qualitative and quantitative disclosures on risk exposure in derivatives.

Assets Liability Management:

Show the maturity pattern of assets and liabilities like deposits, advances, investments, borrowings, and foreign currency items.

Exposure:

Detail exposure to the real estate sector, capital market, and specific information on single borrower/group borrower limit exceeded. Disclose unsecured advances and differentiate them from other loans.

Miscellaneous:

Include information on registration with other financial regulators, penalties imposed by regulators, related party transactions, credit ratings, remuneration of directors, and management discussion in the annual report. Disclose net profit or loss, revenue recognition policies, and consolidated financial statements.

Additional Disclosures:

Detail provisions and contingencies, draw down from reserves, and concentration of deposits, advances, exposures, and Non-Performing Assets (NPAs). Include sector-wise NPAs and movement of NPAs. For those with overseas assets or off-balance sheet Special Purpose Vehicles (SPVs), provide relevant details.