NBFC- PROVISIONING

NORMS AND ACCOUNTING

www.bharadwajinstitute.com
9790809900 / 9841537255

CMA FINAL FR www.bharadwajinstitute.com 9790809900 9841537255

CONCEPT

Not a Bank but carries similar activities to that of a Bank

As per Sec. 45I(f) of RBI Act, 1934, a non-banking financial company’’ means: (i) a
financial institution which is a company;

(ii) a non-banking institution which is a company and which has as its principal
business the receiving of deposits, under any scheme or arrangement or in any
other manner, or lending in any manner;

(iii) such other non-banking institution or class of such institutions, as the Bank may,
with the previous approval of the Central Government and by notification in the
Official Gazette, specify.

CMA FINAL FR www.bharadwajinstitute.com 9790809900 9841537255

CONCEPT
A Non-Banking Financial Company (NBFC) is a company registered under the
Companies Act, 2013 which is engaged in the business of:
loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued
by Government or local authority or other marketable securities of a like nature,
leasing, hire-purchase, insurance business, chit business.

However, such a company but does not include any institution whose principal
business is that of:
agriculture activity,
industrial activity,
purchase or sale of any goods (other than securities), or providing any services, and
sale/ purchase/ construction of immovable property

CMA FINAL FR www.bharadwajinstitute.com 9790809900 9841537255

ASSET CLASSIFICATION
Standard Assets
No default in repayment of principal or payment of Interest is perceived and which does
not disclose any problem nor carry more than normal risk attached to the business

Sub – standard Assets

An Asset which has been classified as NPA for a period not exceeding 18 months

Doubtful Assets
A term loan or Lease asset or a hire purchase which remains sub-standard asset for a period
exceeding 18 months

Loss Assets
Asset which has been identified as loss asset by NBFC or its internal or external auditor or
by RBI
Asset which is adversely affected by a potential threat of non recoverability due to either
erosion in the value of security or non availability of security or due to any fraudulent act
or omission on the part of the borrower.

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NON PERFORMING ASSET(NPA)
(a) an asset, in respect of which, interest has remained overdue for a period of six months or
more;
(b) a term loan inclusive of unpaid interest, when the instalment is overdue for a period of six
months or more or on which interest amount remained overdue for a period of six months or
more;
(c) a demand or call loan, which remained overdue for a period of six months or more from the
date of demand or call or on which interest amount remained overdue for a period of six
months or more;
(d) a bill which remains overdue for a period of six months or more;
(e) the interest in respect of a debt or the income on receivables under the head ‘other current
assets’ in the nature of short term loans/ advances, which facility remained overdue for a
period of six months or more;
(f) any dues on account of sale of assets or services rendered or reimbursement of expenses
incurred, which remained overdue for a period of six months or more;
(g) the lease rental and hire purchase instalment, which has become overdue for a period of
twelve months or more;
(h) in respect of loans, advances and other credit facilities (including bills purchased and
discounted), the balance outstanding under the credit facilities (including accrued interest)
made available to the same borrower/ beneficiary when any of the above credit facilities
becomes non-performing asset: Provided that in the case of lease and hire purchase
transactions, a non-banking financial company may classify

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INCOME RECOGNITION FOR NBFC
(a) The income recognition of NBFCs, irrespective of their categorisation, shall be
based on recognised accounting principles.
(b) Income including interest/ discount/ hire charges/ lease rentals or any other
charges on NPA shall be recognised only when it is actually realised. Any such
income recognised before the asset became non-performing and remaining
unrealised shall be reversed.
(c) Income like interest /discount /any other charges on NPAs shall be recognised only
when actually realised, RBI also requires that income recognised before asset
becoming NPA should be reversed in the financial year in which such asset becomes
NPA.
(d) The NBFCs are required to recognise income from dividends on shares of corporate
bodies and units of mutual funds on cash basis, unless the company has declared
the dividend in AGM and right of the company to receive the same has been
established, in such cases, it can be recognized on accrual basis.
(e) Income from bonds and debentures of corporate bodies and from government
securities/bonds may be taken into account on accrual basis provided it is paid
regularly and is not in arrears.
(f) Income on securities of corporate bodies or public sector undertakings may be
taken into account on accrual basis provided the payment of interest and
repayment of the security has been guaranteed by Central Government.

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ACCOUNTING FOR INVESTMENTS
(a) Investing is one of the core activities of NBFCs, hence RBI requires the Board of
Directors to Frame investment policy of the company and implement the same.
(b) The investments in securities shall be classified into current and long term, at the
time of making each investment;
(c) The Board of the company should include in the investment policy the criteria for
classification of investments into current and long-term.
(d) The investments need to be classified into current or long term at the time of
making each investment.
(e) There can be no inter-class transfer of investments on ad hoc basis later on. Inter
class transfer, if warranted, should be done at the beginning of half year, on April 1
or October 1, and with the approval of the Board.
(f) The investments shall be transferred scrip-wise, from current to long-term or vice-
versa, at book value or market value, whichever is lower;
(g) The depreciation, if any, in each scrip shall be fully provided for and appreciation,
if any, shall be ignored. Moreover, the depreciation in one scrip shall not be set off
against appreciation in another scrip, at the time of such inter-class transfer, even
in respect of the scrips of the same category

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VALUATION OF INVESTMENTS
Investment Valuation Remarks
Quoted Current Aggregate Cost or If the aggregate market value
Investments Aggregate Market Value is lower than Aggregate cost,
whichever is Lower (to be then depreciation shall be
done scrip wise within charged to Profit and Loss
each category) Account. If aggregate market
value > Cost, then it is
ignored.

Unquoted equity shares – Cost or break up value As per RBI directions, Fair
Current investments which ever is lower value can also be used
instead of break up value
Unquoted Preference Cost or Face value
shares whichever is lower

CMA FINAL FR www.bharadwajinstitute.com 9790809900 9841537255

VALUATION OF INVESTMENTS
Investment Valuation
Unquoted Govt securities / Bonds At Carrying Cost

Commercial papers At Carrying Cost

Unquoted Investments in the At NAV

nature of Mutual Fund

Long Term Investment As per Accounting Standard issued by

ICAI

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PROVISIONING REQUIREMENTS - NBFC
INVESTMENTS
Type of Asset Provisioning
Loss Assets 100 %
Doubtful Assets (a) 100% provision to the extent to which the advance is not
covered by the realisable value of the security to which
the non-banking financial company has a valid recourse
shall be made. The realisable value is to be estimated on
a realistic basis;

(b) Doubtful up to 1 year – 20 %

Doubtful 1 to 3 years – 30 %
Doubtful for more than 3 years – 50 %

Sub-standard Assets A general provision of 10 % of total outstanding shall be

made
Standard Assets 0.40 %

CMA FINAL FR www.bharadwajinstitute.com 9790809900 9841537255

PROVISIONING REQUIREMENTS – HP & LEASE
INVESTMENTS
Type of Asset Provisioning
Hire Purchase Assets Total Dues (Overdue + Future Instalments)
XXX (A)
Less :
a. Finance Charges not credited to P & L
XXX
b. Depreciated value of underlying asset
XXX (B)
Amount to be provided for
XXX (A – B)
Lease charges / Hire rentals overdue NIL
up to 12 months

Lease charges / Hire Rentals overdue 10 % of the Net book value

for more than 12 months but up to 24
months

CMA FINAL FR www.bharadwajinstitute.com 9790809900 9841537255

PROVISIONING REQUIREMENTS – HP & LEASE
INVESTMENTS
Type of Asset Provisioning
Hire Charges / Lease Rentals are 40 % of the net book value
overdue for more than 24 months but
up to 36 months
Hire Charges / Lease Rentals are 70 % of the net book value
overdue for more than 36 months but
up to 48 months
Hire charges / Lease rentals are 100 % of the net book value
overdue for more than 48 months

CMA FINAL FR www.bharadwajinstitute.com 9790809900 9841537255

SUSTAINABILITY
REPORTING
CMA FINAL FR
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9790809900 9841537255
FOCUS AREAS

PEOPLE – PLANET – PROFIT

SOCIAL SUSTAINABILITY- RELATIONSHIPS WITH EMPLOYEES, CUSTOMERS AND

COMMUNITY

ENVIRONMENTAL SUSTAINABILITY – RESOUCE USAGE, HAZARDOUS SUBSTANCES,

WASTE AND EMISSIONS

ECONOMIC SUSTAINABILITY – BUSINESS EFFICIENCY, PRODUCTIVITY AND PROFIT

CMA FINAL FR
www.bharadwajinstitute.com
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BENEFITS
INTERNAL BENEFITS EXTERNAL BENEFITS

Increased understanding of Risks and Mitigating / reversing the negative

Opportunities environmental, social and governance
impact

Enhanced link between financial and non Improving reputation and brand loyalty
financial performance

More focus on long term management Enhanced perception on organization’s

strategy, policy and business plans value

Streamlining processes, reducing costs

and improving efficiency

CMA FINAL FR
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9790809900 9841537255
CSR REPORTING

CMA FINAL FR
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9790809900 9841537255
CSR IN INDIA

Governed by Sec 135 of Companies Act 2013 and CSR Rules 2014

Applicability - Companies
Net worth of Rs. 500 crores or more or
Turnover of Rs. 1000 crores or more or
Net Profit of Rs. 5 crores or more

during any financial year shall be required to constitute a CSR committee of the Board.

Includes even foreign companies having branch or project offices in India

CMA FINAL FR
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CSR REQUIREMENTS

Constitute CSR Committee

Committee shall comprise of 3 or more directors out of which atleast one director
shall be an independent director.

Boards report shall disclose the compositions of the CSR committee.

Such companies shall spend, in every financial year, atleast 2 % of the average net
profits of the company during the three immediately preceding financial years

CMA FINAL FR
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9790809900 9841537255
 CMA FINAL FR

CSR ACTIVITIES www.bharadwajinstitute.com

9790809900 9841537255

Eradicating extreme hunger and poverty

Promotion of Education
Promoting gender equality and empowering women
Reducing child mortality and improving maternal health
Combating HIV, AIDS, Malaria and other diseases
Ensuring environmental sustainability
Employment enhancing vocational skills
Social business projects
Contribution to PM relief fund or any other fund established by Central / State Govt
 CMA FINAL FR
CSR REPORTING – RULE 8 www.bharadwajinstitute.com
9790809900 9841537255

Brief outline of the CSR policy including overview of projects or programs proposed to be undertaken

Composition of CSR committee

Average net profit of the company for last three financial years

Prescribed CSR expenditure ( 2 % of the amount of net profit for last 3 FY)

Details of CSR spent during the FY

Reasons for not spending the 2 % of the amount of net profit for last 3 FY

Responsibility statement of the CSR committee

INTEGRATED REPORTING
CMA FINAL FR
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CONCEPT

Representation of financial and non financial performance of a company in a single

report.
Provides non financial data on company performance on
environmental,
social
governance parameters,
sustainability

CMA FINAL FR
www.bharadwajinstitute.com
9790809900 9841537255
VALUE CREATION AND SIX CAPITALS

Financial Capital- Pool of funds available to an organization

Manufactured Capital- human created, production – oriented equipment and tools

Intellectual Capital – Investment in R & D, Innovation

Human Capital – Knowledge, Skill, experience of employees and managers

Social Capital – Networks together with shared norms, values and understandings to
facilitate cooperation within or among groups

Natural Capital – Land, water, atmosphere and other natural resources

CMA FINAL FR
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BENEFITS OF IR
Incorporates Sustainability into its core business
Communicate the impact of company’s operations on environment and community
Competitive edge over its peers in the long term
Informed decisions and improved overall performance
Identify cost savings
Increase internal collaboration
Increase engagement with internal and external stakeholders through consistent and
balanced reporting
Address reputational risk
Increase brand value and customer loyalty

CMA FINAL FR
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9790809900 9841537255
TRIPLE BOTTOM LINE
REPORTING
CMA FINAL FR
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9790809900 9841537255
CONCEPT OF TBLR
Expands the traditional reporting framework to take into account social and
environmental performance in addition to financial performance

Reporting should incorporate the social, environmental and financial performance of

an organization.

Reporting on three different bottom lines

Income Statement (Operating result)
People Account (Social responsibility)
Planet Account (Environmental responsibility)

CMA FINAL FR
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BENEFITS OF TBLR
Enhancement of Reputation and Brand
Securing a social license to operate
Attraction and retention of high calibre employees
Improved access to investor market
Establish position as a preferred supplier
Reduced risk profile
Identification of potential cost savings
Increased scope for innovation
Aligning stakeholder needs with management focus
Creation of sound basis for stakeholder dialogue

CMA FINAL FR
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9790809900 9841537255
USERS OF TBLR
Businesses – Unilever, General Electric, P & G
Non profit Organizations
Government – decision making and performance monitoring tools

CMA FINAL FR
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IMPLEMENTATION OF TBLR
Senior Management endorsement and commitment

Clear definition of role of TBLR in driving strategic business objectives

Establishment of resource and cost requirements

Awareness of associated legal implications

Understanding the risks involved in publishing TBL information

CMA FINAL FR
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FR V TBLR
Origin – FR precedes TBLR
Nature – FR is mandatory for corporates. TBLR is voluntary
Scope – TBLR is broader in scope than FR.
Contents – Information contained in TBLR is of a different nature to that of FR

CMA FINAL FR
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BUSINESS RESPONSIBILITY
REPORTING

CMA FINAL FR
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REGULATORY REQUIREMENTS OF BRR
MCA in July 2011 – National Voluntary Guidelines on Social Environmental and
Economic Responsibilities of Business.
As per regulation 34 (2) (f) of the listing regulations issued by SEBI, the annual report
shall contain a business responsibility report describing the initiatives taken by listed
entity from the environmental, social and governance perspective in the format as
specified by the Board
Those listed entities which have been submitting sustainability reports to overseas
regulatory agencies/stakeholders based on internationally accepted reporting
frameworks need not prepare a separate report for the purpose of these guidelines
but only furnish the same to their stakeholders along with a mapping of the principles
contained in these guidelines to the disclosures made in their sustainability reports.

CMA FINAL FR
FORMAT FOR BRR
Section A – General Information about the company
Section B – Financial Details of the Company
Paid up capital
Total Turnover
Total Profit after Taxes
Total spending on CSR as a % of PAT
List of Activities in which expenditure has been incurred
Section C – Other details
Does the company have any subsidiary company
Do Subsidiary company participate in BR initiatives of the parent company
Do suppliers, distributors participate in BR initiatives of the parent company
Section D – Other Information – Director details who are responsible for BR
Section E - Principle and Performance

CMA FINAL FR
NINE PRINCIPLES
Businesses should conduct and govern themselves with Ethics, Transparency and
Accountability
Businesses should provide goods and services that are safe and contribute to
sustainability throughout their life cycle
Businesses should promote the wellbeing of all employees
Businesses should respect the interests of and be responsive towards all stakeholders,
especially those who are disadvantageous, vulnerable and marginalized.
Businesses should respect and promote human rights
Businesses should respect, protect and make efforts to restore the Environment
Businesses when engaged in influencing public and regulatory policy should do so in a
responsible manner
Businesses should support inclusive growth and equitable development
Businesses should engage with and provide value to their customers and consumers in
a responsible manner

CMA FINAL FR
XBRL REPORTING
CMA FINAL FR
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CONCEPT OF XBRL (EXTENSIBLE BUSINESS
REPORTING LANGUAGE
Extensible: User can extend the application of a particular business data beyond
its original intended purpose
Business : Platform is relevant to any type of business transaction. Describes the
financial statements for all kinds of entities
Reporting : In a consolidated manner using the specified formats
Language : XML (Extensible Markup Language) which facilitates standard means of
communicating information between businesses and on the internet
Definition : As per Companies (filing of documents and forms in XBRL) Rules 2015,
XBRL means a standardized language for communication in electronic form to
express report or file financial information by the companies under the
Companies Act 2013.

CMA FINAL FR
IMPORTANT XBRL RELATED CONCEPTS
XML
TAXONOMY
Means an electronic dictionary for reporting the business data as approved by the
Central Government in respect of any documents or forms indicated in these rules.
Different taxonomies will be required for different reporting purposes
Recognized Taxonomies are as follows
India Banking GAAP Taxonomy2014
BRAZIl GAAP Commercial and IndustrialTaxonomy
Indonesia Stock Exchange Taxonomy2014
Japan EDNET Taxonomy 2010.

CMA FINAL FR
MYTHS REGARIDNG XBRL
XBRL is not a set of Accounting Standards

XBRL is not a Chart of Accounts

XBRL is not a GAAP Translator

XBRL is not a proprietary technology

XBRL is not a transaction protocol

CMA FINAL FR
FEATURES OF XBRL REPORTING
Clear Definition

Teasable Business Rules

Multi Lingual Support

Strong Software Support

CMA FINAL FR
BENEFITS OF XBRL REPORTING
Automated Data Processing

More Accurate and Efficient

Data Review

Improved Reporting Quality

Interchangeable

Cost and Time Savings

Tagging of transactions

CMA FINAL FR
USERS OF XBRL
Companies
Not for Profit Organizations
Accountants
Analysts
Investors
Regulatory Authorities
Financial Regulators
Security regulators and stock exchange
Business registrars
Government agencies
Tax Authorities
Statistical and monetary policy authorities
Specialist Data Providers

CMA FINAL FR
XBRL IN INDIA
MCA, RBI, SEBI, BSE

COMPANIES REQUIRED TO FOLLOW XBRL REPORTING

All companies listed with any Stock exchanges in India and their Indian subsidiaries or
All companies having paid up share capital of Rs. 5 crores or above or
All companies having Turnover of Rs. 100 crores or above or

COMPANIES EXEMPT FROM XBRL REPORTING

Banking Companies
Insurance Companies
Power Sector Companies
NBFC

CMA FINAL FR
GOVERNMENT ACCOUNTING
(For Detailed Discussion Use separate material given)

CMA FINAL FR
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FEATURES OF GOVERNMENT ACCOUNTING
SPECIFIC SYSTEM OF ACCOUNTING

REPORTING OF UTILISATION OF PUBLIC FUNDS

GOVERNMENT REGULATIONS

DOUBLE ENTRY SYSTEM

BUDGET HEADS

BUDGETARY REGULATION

MODE OF TRANSACTION

FUND BASED ACCOUNTING

AUDITING

CMA FINAL FR
OBJECTIVES OF GOVERNMENT ACCOUNTING
RECORD FINANCIAL TRANSACTIONS OF REVENUE AND EXPENDITURE RELATING TO
GOVERNMENT ORGANISATIONS
PROVIDE RELIABLE FINANCIAL DATA AND INFO ABOUT OPERATIONS OF PUBLICFUND
RECORD EXPENDITURE AS PER APPROPRIATE ACT, RULES AND LEGAL PROVISIONS
SET BY GOVERNMENT.
AVOID EXCESS EXPENDITURES BEYOND THE LIMIT OF BUDGET APPROVED BY
GOVERRNMENT.
HELP IN PREPARATION OF VARIOUS FINANCIAL STATEMENTS AND REPORTS
FACILITATE AUDITING BY CONCERNED GOVERNMENT DEPARTMENT
PREVENT MISAPPROPRIATION OF GOVERNMENT PROPERTIES
FACILITATE ESTIMATING THE ANNUAL BUDGET BY PROVIDING HISTORICAL
FINANCIAL DATE OF GOVERNMENT AND EXPENDITURES

CMA FINAL FR
GENERAL PRINCIPLES OF GOVT ACCOUNTING
CLASSIFICATION OF EXPENDITURES

BASED ON BUDGET

END PRODUCTS OF GOVERNMENT ACCOUNTING

PERIOD OF ACCOUNTS

CASH BASIS OF ACCOUNTING

FORM OF ACCOUNTS

CMA FINAL FR
GOVT ACCOUNTING vs COMMERCIALACCOUNTING
BASIS GOVERNMENT ACCOUNTING COMMERCIAL ACCOUNTING
Meaning Applied in Govt departments Applied in Non Govt departments
and offices and offices ( profit or non profit )

Objective To record and report the To know the profit or loss and
utilization and position of disclose the financial position
public funds

Scope More elaborate Less elaborate

Budget Influenced by Govt Budgeting Not influenced by Govt Budgeting
system system

Basis Cash basis Cash basis or Accrual basis

Level of Central level and Operating No provision of Central level and
Accounting level accounting Operating level accounting

CMA FINAL FR
GOVT ACCOUNTING vs COMMERCIALACCOUNTING
BASIS GOVERNMENT ACCOUNTING COMMERCIAL ACCOUNTING
Rules and Financial rules and provisions Rules as per GAAP
Provisions as set by government
Information Reporting to Govt Reporting to various stakeholders
Auditing Recognised department of Chartered Accountant
Government (Auditor General
Office)

CMA FINAL FR
ROLE OF CONTROLLER GENERAL OF ACCOUNTS
APEX ACCOUNTING BODY
RESPONSIBLE FOR ESTABLISHING AND MAINTAINING A TECHNICALLY SOUND
MANAGEMENT ACCOUNTING SYSTEM
CONSOLIDATING MONTHLY ACCOUNTS OF GOVERNMENT OF INDIA AND REPORTING
ON FISCAL DEFICIT
MONTHLY REVIEW INDICATING FLOW OF EXPENDITURES, REVENUE COLLECTION,
INTERNAL AND EXTERNAL BORROWING AND FISCAL DEFICIT IS PREPARED FOR
MINISTRY OF FINANCE
SUMMARY OF MONTHLY ACCOUNTS IS PLACED ON THE INTERNET
PREPARES ANNUAL APPROPRIATION ACCOUNTS AND UNION FINANCE ACCOUNTS FOR
PRESENTATION FOR THE PARLIAMENT
PROVIDE ADVICE TO MINISTRIES AND DEPARTMENTS ON ACCOUNTING PROCEDURES
FOR NEW SCHEMES AND PROGRAMMES

CMA FINAL FR
ACCOUNTS OF GOVERNMENT
CONSOLIDATED FUNDS OF INDIA
Constituted under Article 266(1) of the Constitution of India
Largest of the Funds
Credited with All Revenues ( like Taxes, GST , Customs duty etc)
Credited with Internal and External Debts
Debited with Expenditures
No amount can be withdrawn from the fund without authorization from the Parliament
PUBLIC ACCOUNTS OF INDIA
Constituted under Article 266 (2) of the Constitution of India
Debts other than those recorded in the Consolidated Funds of India
Transactions under Debts, Deposits and Advances in this part are those in respect of which
Government incurs a liability to repay the money received or has a claim to recover the
amounts paid
Parliament authorization for payments from the public account is not required
CMA FINAL FR
ACCOUNTS OF GOVERNMENT
CONTINGENCY FUNDS OF INDIA
Constituted under Article 267 of the Constitution of India
It records the transactions connected with Contingency
It is held on behalf of President by the Secretary to the Government of India, Ministry of
Finance, Department of Economic affairs
Corpus of the fund is Rs. 500 crores
Advances from the fund are made for the purpose of meeting unforeseen expenditure
which are resumed to the fund to the full extent as soon as Parliament authorizes
additional expenditure
More like Imprest account of Government of India

CMA FINAL FR
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ROLE OF C & AG (COMPTROLLER AND AUDITOR
GENERAL
TO COMPILE ACCOUNTS OF UNION AND STATES
TO PREPARE AND SUBMIT ACCOUNTS TO THE PRESIDENT, GOVERNORS OF STATES
AND ADMINISTRATORS OF UNION TERRITORIES HAVING LEGISLATIVE ASSEMBLIES
PROVIDE INFORMATION AND RENDER ASSISTANCE TO THE UNION AND STATES
TO AUDIT ALL EXPENDITURES FROM THE CONSOLIDATED FUND OF INDIA AND OF
EACH STATE AND EACH UNION TERRITORY HAVING A LEGISLATIVE ASSEMBLY
TO AUDIT TRANSACTIONS OF UNION AND STATES RELATING TO CONTINGENCY
FUDNS AND PUBLIC FUNDS
TO AUDIT ALL TRADING, MANUFACTURING, PROFIT AND LOSS ACCOUNTS AND
BALANCE SHEETS AND OTHER SUBSIDIARY ACCOUNTS KEPT IN ANY DEPARTMENT
OF THE UNION OR STATE
AUDIT OF RECEIPT AND EXPENDITURES OF BODIES OR AUTHORITIES
SUBSTANTIALLY FINANCED FROM UNION OR STATE REVENUES
CMA FINAL FR
ROLE OF C & AG (COMPTROLLER AND AUDITOR
GENERAL
AUDIT OF RECEIPTS OF UNION OR STATES

AUDIT OF ACCOUNTS OF STORES AND STOCK

AUDIT OF GOVERNMENT COMPANIES AND CORPORATIONS

LAYING OF REPORTS IN RELATION TO ACCOUNTS OF GOVERNMENT COMPANIES

AND CORPORATIONS

AUDIT OF ACCOUNTS OF CERTAIN AUTHORITIES OR BODIES

CMA FINAL FR
POWER OF C & AG – AUDIT OFACCOUNTS

INSPECT ANY OFFICE OF ACCOUNTS UNDER THE CONTROL OF UNION OR STATES OR

TREASURIES RESPONSIBLE FOR KEEPING OF INITIAL/ SUBSIDIARY BOOKS OF
ACCOUNTS

TO INSPECT SUCH BOOKS OF ACCOUNTS WHICH ARE RELEVANT TO HISAUDIT

TO PUT QUESTIONS OR MAKE SUCH OBSERVATIONS AS HE MAY CONSIDER

NECESSARY OR CALL FOR SUCH INFORMATION AS HE MAY REQUIRE FOR THE
PREPARATION OF ANY ACCOUNT OR REPORT

CMA FINAL FR
PUBLIC ACCOUNTS COMMITTEE & ITS ROLE

COMMITTEE OF SELECTED MEMBERS OF PARLIAMENT CONSTITUTED BY THE

PARLIAMENT OF INDIA
REPORT OF THE C & AG IS FURTHER EXAMINED BY THE PAC
IT CONTAINS NOT MORE THAN 22 MEMBERS COMPRISING 15 MEMBERS ELECTED BY
LOK SOBHA EVERY YEAR FROM AMONGST ITS MEMBERS ACCORDING TO THE
PRINCIPLE OF PROPORTIONATE REPRESENATION BY MEANS OF SINGLE
TRANSFERABLE VOTE AND NOT MORE THAN 7 MEMBERS OF THE RAJYASABHA
CHAIRMAN IS APPOINTED BY THE SPEAKER OF LOK SABHA

CMA FINAL FR
PUBLIC ACCOUNTS COMMITTEE & ITS ROLE

ROLE REGARDING EXAMINATION OF REPORT OF C & AG

ROLE REGARDING UNAUTHORIZED EXPENDITURE OR EXCESS EXPENDITURE

ROLE REGARDING SPENDING OF MONEY BY MINISTRIES

SCRUTINISING THE AUDIT REPORTS OF THE PUBLIC CORPORATIONS

SCRUTINISING THE WORKING PROCESS OF MINISTRIES AND PUBLIC

CORPORATIONS

CMA FINAL FR
INDIAN GOVT ACCOUNTING STANDARDS - IGAS

ACCOUNTING NAME
STARDARD
IGAS 1 GUARANTEES GIVEN BY GOVERNMENT
IGAS 2 ACCOUNTING AND CLASSIFICATION OF GRANTS IN AID
IGAS 3 LOANS AND ADVANCES MADE BY GOVERNMENT
IGAS 7 FOREIGN CURRENCY TRANSACTIONS AND LOSS / GAIN
BY EXCHANGE RATE VARIATION
IGAS 9 GOVERNMENT INVESTMENTS IN EQUITY
IGAS 10 PUBLIC DEBT AND OTHER LIABILITIES OF GOVERNMENTS

CMA FINAL FR
INDIAN GOVT FINANCIAL REPORTING STANDARDS
(IGFRS)

ACCOUNTING STARDARD NAME

IGFRS 1 PRESENTATION OF FINANCIAL STATEMENTS
IGFRS 2 PROPERTY, PLANT AND EQUIPMENT
IGFRS 3 REVENUE FROM GOVERNMENT EXCHANGE TRANSACTION
IGFRS 4 INVENTORIES
IGFRS 5 CONTINGENT LIABILITIES AND CONTINGENT ASSETS

CMA FINAL FR
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