NBFC — Ind-AS: a New, Contemporary Look We Request Your Ballot
12 July 2018 Motilal Oswal values your support in the Asiamoney Brokers Poll 2018 for India Today’s top research theme Research, Sales and Trading team. NBFC — Ind-AS: A new, contemporary look We request your ballot. Entering an era of transparent reporting and enhanced disclosure practices Indian NBFCs are all set to adopt Ind-AS from FY19. This will bring in more transparency in the system and ensure disclosures are in line with global standards. It will also change the way companies conduct their business in Market snapshot terms of structuring their loans, liabilities, employee compensation, Equities - India Close Chg .% YTD.% securitization/assignment, etc. Sensex 36,266 0.1 6.5 We believe the impact on reserves for most NBFCs will be neutral to positive, Nifty-50 10,948 0.0 4.0 given (a) largely mono-line businesses with a proven track record, near-zero Nifty-M 100 18,555 -0.5 -12.2 Equities-Global Close Chg .% YTD.% any other form of stressed loans (besides NPA) and high provisioning and (b) S&P 500 2,774 -0.7 3.8 reversal of DTL recognized on special reserves. Nasdaq 7,717 -0.5 11.8 Companies having ZCBs, structured debt, preference shares, a higher share of FTSE 100 7,592 -1.3 -1.2 lumpy fees and higher ESOP cost would be adversely impacted. DAX 12,417 -1.5 -3.9 We believe that HFCs are best placed, while corporate lenders will be adversely Hang Seng 10,658 -1.5 -9.0 Nikkei 225 21,932 -1.2 -3.7 impacted.
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