Rklmonica620@gmail.comrklmonica620@gmail.com asked 12 months ago
7 Answers
RaviRavi Staff answered 12 months ago

This question was repeated in these exams
N08E, N12E, N13R, M15R, M16R, P17M, M18M
E – Exam
R – RTP
M- MTP

Compliance of Prudential Norms by NBFC
(i) The auditor has to verify the compliance of prudential norms relating to (1)
income recognition; (2) Income from investments; (3) Asset classification; (4)
Provision for bad and doubtful debts; (5) Capital adequacy norm; (6)
Prohibition of granting loans against its own shares; (7) Prohibition on loans
and investments for failure to repay public deposits and (8) Norms for
concentration of credit etc.
(ii) The auditor shall ensure that Board of the NBFC shall frame a policy for
granting demand/call loans and implement the same.
(iii) The auditor should verify the classification of advances and loans as standard/
substandard/doubtfull/loss and that proper provision has been made in
accordance with the directions.
(iv) Auditor should ensure that unrealised income from non-performing assets has
not been taken to Statement of Profit and Loss.
(v) The auditor should check all NPAs of the previous years to verify whether  during the current year any payments have been received or still they continue
to be NPA during the current year also.

Rklmonica620@gmail.comrklmonica620@gmail.com answered 12 months ago

Sir yaha nbfc co reg as a investment co diya hua h so investment co ka pts ana chhiye na that’s why I asked u sir

RaviRavi Staff answered 12 months ago

they didnt expect points in detail, they simply wanted key headings which are present in “prudential norms” 

Rklmonica620@gmail.comrklmonica620@gmail.com answered 12 months ago

Sir but in pm nbfc registered with RBI ka another pts h n nbfc registered with RBI as investment ka alg so I Thor ye investment wala ka prudential norms mang RHA h q m …will I get zero as I h. Written loan and investment limit wala pts 

RaviRavi Staff answered 12 months ago

give me question number of nov 19 and question number of PM, i will understand what you want to say

Rklmonica620@gmail.comrklmonica620@gmail.com answered 12 months ago

Sir Nov 18 q 5 (c) n pm q no 7 … 

RaviRavi Staff answered 12 months ago

For Nov 18 Q5(c) most appropriate answer is Q3 of PM. If you have written points of Q7 then you may get some marks, but that was not what they were expecting. Question focused on “compliance of prudential norms” and not on overall audit of investment company. 

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