Nbfc companies as per rbi

Abhijit (Querist) 07 November 2015 This query is : Resolved
I have following queries relating to our NBFC Companies-

1. This year one of our NBFC Company is unable to meet up the basic requirement of Financial Parameters i.e. % Financial Asset to Total assets is 42.17% what will be the written submission to the RBI in favour of the Company. The reason for shortfall is major fund has been invested in Bank Fixed Deposits and as per RBI Bank Fixed Deposit is not counted as Financial Asset.

Please note that this is the first time when Company is failed to meet this requirement.

2. Similarly, in one of our NBFC Company, % of Financial Income to Total Income is 47.94%. The reason for such shortfall is that there is future Option losses in the current year that decreases the total Financial Income of the Company.

Suppose, Financial Income is Rs.50.00, Future Options Losses is Rs.40.00 and Other Income is Rs. 20.00. Therefore, in simple accounting Total Income is Rs.30.00 and Financial Income is Rs 10.00, which is less than 50%. Whether we should count income/loss in absolute terms, if so the Total Income is Rs 110.00 and Financial Income is Rs 90.00, which is more than 50% and meet the requirement. Is is correct way of calculation?

3. There are few Companies whose principal Business is not to provide NBFC services, still they are engaged in those services, Further In their Balance Sheet they have shown income generating there from in Revenue from Operation. Is it Correct?

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Kumar Doab (Expert) 07 November 2015
You may prefer to Consult an able counsel for such matters in person with all details and documents and avail the professional advise and solution.