NBFC in India has witnessed huge growth in Indian Market. Considering growth factor and expandi...
The Ministry of Corporate Affairs or MCA on 30th January 2020 published Companies (Accounts) Amendment Rules, 2020. These new rules amend the already existing Companies (Accounts) Amendment Rules, 2014. According to this new rule, the NBFCs or Non-Banking Financial Company will have to file the financial statements of the company with the Registrar together with Form AOC-4 NBFC (Ind AS) and the consolidated financial statement, with Form AOC-4 CFS NBFC (Ind AS). These rules shall come into force on the date of their publication in the Official Gazette.
Section 45-I (f) of the Reserve Bank of India (RBI) Act, 1934 defines NBFC or Non-Banking Financial Company. It includes Housing Finance Companies, Merchant Banking Companies, Micro Finance Companies, Mutual Benefit Companies, Venture Capital Fund Companies, Stock Broker or Sub Broker Companies, Nidhi Companies, Chit Companies, etc. Non-Banking Financial Company or NBFC offers banking services such as loans and credit facilities, retirement planning, currency exchange, underwriting, and merger activities. To run their business, NBFC needs to get a license from the Reserve Bank of India.
Financial Statements are the primary source through which the Board of Directors and shareholders evaluate the performance of the company. Form AOC-4 is basically for filing of the company’s financial statement for every year with the Registrar of Companies. The company needs to fill the form within 30 days of its Annual General meeting. The companies under the XBRL or Extensible Business Reporting Language format can file financial statements through the Form AOC-4 XBRL.
The new Companies (Accounts) Amendment Rules, 2020, has introduced two forms. The two forms are Form AOC-4 NBFC and Form AOC-4 CFS NBFC. Form AOC-4 NBFC and Form AOC-4 CFS NBFC relates to the filing of financial statements. These forms apply to NBFC or Non-Banking Financial Company. The newly introduced amended rules state that NBFCs have to file their financial statements to the Registrar, just like other companies. The financial statement for the Non-Banking Financial Company requires the same details as for Form AOC-4. The Form AOC-4 CFS NBFC is for filing of consolidated financial statements.
The details required for Form AOC-4 NBFC are very similar to that of the Form AOC-4. Apart from that, the following information must be filled in the new Form AOC-4 NBFC:
The details for Form AOC-4 CFS NBFC are quite similar to that of the Form AOC-4 CFS.
The newly introduced Form AOC-4 CFS NBFC requires the following information:
The NBFC Company must get a duly certified certificate by practicing professionals in Form AOC-4 NBFC and Form AOC-4 CFS NBFC. The NBFC Company should specify that:
Contact Enterslice for the NBFC Compliance process. We have certified professionals who will help you in the filing of Form AOC-4 NBFC and Form AOC-4 CFS NBFC and help you in the end to end process of filing with the Registrar.
The Ministry of Corporate Affairs introduced new norms for NBFCs to bring it at par with other companies. Now every Non-Banking Financial Company is required to comply with the Indian Accounting Standards (Ind AS). NBFCs shall file their financial statements with the Registrar with Form AOC-4 NBFC and Form AOC-4 CFS NBFC. Non-Banking Financial Companies must file a financial report and consolidated financial statements like other companies. For submitting the financial statements professionals help is suggested. They will help you in filing both the forms and also in the certification process.
Form AOC-4 NBFC (Ind AS) and Form AOC-4 CFS NBFC (Ind AS) can be accessed from the below link:Rules_31012020