
	Home Advisory & Audit ESG Advisory BRSR Reporting Sustainability and ESG Solutions ESG Reporting ESG Assurance in Audit Sustainable Supply Chain Management Sustainable Finance ESG Due Diligence Advisory Services Income Tax Notice Tax Litigation Tax Preparation Services Tax Optimization Corporate Tax Corporate Tax and Regulatory Compliance Corporate Tax Advisory Services Transfer Pricing in India TP Planning Documentation and assistance in Compliances Domestic Transfer Pricing Indian Accounting Standards International Tax Advisory Services International Tax Planning Audit Insurance broker audit Income Tax Audit Secretarial Audit in India NBFC Audit Internal Control Audit Internal Audit Co-Sourcing Internal Audit Insurance Audit Human Resource Audit Public Limited Audit Private Limited Audit Financial Statement Audit NGO Audit Advertising Audit Media Audit Cinema Audit Management Audit Virtual Audit Audit Services Global Audit Stock Audit Audit and Assurance Consulting Sustainability and ESG Solutions Manufacturing Consulting BFSI Consulting Employee Benefit Plans System and Organizational control reporting Accounting Advisory and Financial Reporting Dispute Advisory Global Expansion Advisory GST Advisory Services Investment Banking Advisory IPO Readiness Advisory Regulatory FEMA Advisory Foreign Exchange Regulations Inbound Investment under FEMA Outbound Investment under FEMA Establishment of Foreign Office in India Foreign Direct Investment under the Approval Route FEMA Compliance for Insurance Companies Compliance under FEMA ECB Compliance Advisory Compliances Insurance Broker Compliances Insurance Web Aggregator Compliances Payment Aggregator and Payment Gateway Compliances NBFC Account Aggregator Compliances NBFC Annual Compliance Funding in NBFC Appeal Against NBFC Registration Cancellation Financial Intelligence Unit India Central KYC Registry in India Money Changer Compliance MCA Compliance for Insurance Company IRDA Compliance for Insurance Company IBC Services Corporate Insolvency RBI Registration NBFC Business Plan RBI Regulatory Sandbox NBFC Due Diligence NBFC Debt Recovery Advisory NBFC Legal Support NBFC Registration NBFC Takeover NBFC Marketing NBFC Account Aggregator (AA) License Conversion Of NBFC Into Bank Peer to Peer Lending License Full Fledged Money Changers Prepaid Wallet License Payment Aggregator License Payment Bank License Microfinance Company Registration Small Finance Bank License Core Investment Company Asset Reconstruction Company Registration MTSS (Money Transfer Service Scheme) Credit Co-operative society Housing Finance Company Registration Housing Cooperative Society Registration SEBI Registration Registration of Mutual Fund with SEBI Alternative Investment Fund Registration Collective Investment Schemes Credit Rating Agency SEBI Registration Depository Participant SEBI Registration Foreign Portfolio Investor Registration Asset Management Company Registration Investment Advisors registration with SEBI Portfolio Manager Registration With SEBI Registrar and Share Transfer Agent Registration Registration of Underwriters with SEBI Venture Capital Company Registration Merchant Bankers License in India IRDA Registration Insurance Web Aggregator Legal Support ISNP Certification IRDAI Regulatory Sandbox Insurance Web Aggregator License Insurance Broker License Insurance Marketing Firm Licence Insurance Surveyors and Loss Assessors Licence Internal Control and Organisation SOPs Third Party Administrator Licence Corporate Agency Licence IRDA Insurance License Outsourcing VFCO Services Estate Planning Enterprise and Strategic Risk Management Services Wealth Management Services For Non Executive Directors Leadership Management Revenue Recognition Cash Flow Management Compensation and Benefits Virtual CFO for NBFC CFO Support Services Virtual CFO Services Financial Process Outsourcing Finance And Accounting Outsourcing Legal Process Outsourcing Human Resource Outsourcing Financial Reporting IFRS Reporting Strategic Planning Services Company About Us Our Team Career Contact Us Knowledge Bank Calculators GST Calculator Tax Calculator TDS Calculator Calculate Net Profit Calculate Net Worth Effective Capital HRA NSC EMI Auto Loan Calculator Home Loan Calculator Get No. Of Installment RERA Calculator Developers Calculator Home Buyer Delay Interest Home Buyer Refund SIP CALCULATOR Lumpsum CALCULATOR Bulletins RBI SEBI Notification Circular Income Tax Service Tax Central Sales Tax Excise Matters Customs Company Law Labour Laws FEMA The LLP Act 2008 Accounting Standard (INDAS) Others GST VAT Delhi VAT Maharastra VAT Gujarat VAT Telangana VAT Tamil Nadu VAT IGST UTGST Compensation Cess IBC Regulation Utilities Rates of TDS TDS Rates for N.R.I us 195 Rates of Income Tax Depreciation Rates Companies Act Depreciation Rates Income Tax Act ROC Filing Fees (Cos Act, 2013) ROC Fee Structure (Cos Act, 2013) Cost Inflation Index IFSC Codes MICR Codes Rates of NSC Interest Gold and Silver Rates Rates of Stamp Duty LLP Fees National Industries Classification HSN Rate List Deduction u/s 80TTA Vs 80TTB Links Quick Links Important Links GST/VAT Links Ease Of Doing Business Acts Direct Tax Income Tax Act Wealth Tax Act Income Declaration Scheme 2016 Direct Tax Vivad Se Vishwas Scheme Indirect Tax Service Tax(Finance Act, 1994) Central Sales Tax Act, 1956 The Central Excise Act, 1944 Customs Act, 1962 Entry Tax Act Corporate Laws Companies Act, 2013 Companies Act, 1956 LLP ACT SEBI Act, 1992 Company Secretaries Act, 1980 VAT Laws Delhi Value Added Tax Act, 2004 MVAT Act, 2002 West Bengal VAT Act, 2003 Tamilnadu VAT ACT, 2006 Karnataka Value Added Tax Act, 2003 Gujarat Value Added Tax Act, 2003 UP VAT Act, 2008 Rajasthan Value Added Tax Act, 2003 Punjab Value Added Tax Act Haryana Value Added Tax Act Telangana VAT Act 2005 Andhra Pradesh VAT Act, 2005 Bihar Value Added Tax Act, 2005 Other Statutes ESI Act, 1948 PF Act, 1952 Profession Tax Act The Indian Partnership Act, 1932 Societies Registration Act, 1860 Competition Act, 2002 Reserve Bank of India Act, 1934 MRTP Act, 1969 Equalisation Levy Act, 2016 Right To Information Act, 2005 FEMA, 1999 Maharashtra RERA RERA, 2016 Insolvency & Bankruptcy Code, 2016 Benami Property Act 1988 GST Laws IGST Act , 2017 CGST Tax Act, 2017 UTGST Act, 2017 GST (Compensation to States) Act Rules Direct Tax Rules Income Tax Rules Wealth Tax Rules 1957 Income Declaration Scheme Rules 2016 Indirect Tax Rules GST Valuation Rules , 2016 Service Tax Rules CST (Delhi) Rules, 2005 CST (Maharashtra) Rules Customs Valuation Rules Cenvat Credit Rules, 2017 Entry Tax Rules Corporate Laws Rules Companies Rules, 2014 LLP Rules, 2009 LLP Winding up Rules, 2012 Cos Unpaid Dividend Rules, 1978 VAT Laws Rules Delhi VAT Rules, 2005 Maharashtra VAT Rules, 2005 West Bengal VAT Rules, 2005 Tamilnadu VAT Rules, 2007 Karnataka VAT Rules, 2005 Gujarat VAT Rules, 2006 Uttar Pradesh VAT Rules, 2008 Rajasthan VAT Rules, 2006 Punjab VAT Rules Haryana VAT Rules, 2003 Telangana VAT Rules 2005 Andhra Pradesh VAT Rules, 2005 Bihar Value Added Tax Rules, 2005 Other Statutes Profession Tax Rules NBFC Deposits Directions, 1998 NBFC & Misc NBC (Advt) Rules, 1977 NBFC Auditor Report Directions, 2008 Delhi Labour Welfare Fund Rules, 1997 Cost records and audit Rules, 2014 Baggage Rules, 2016 Equalisation Levy Rules, 2016 NCLT And NCLAT Rules Insolvency & Bankruptcy Rules Benami Property Rules, 2016 GST Rules CGST Rules, 2017 IGST Rules 2017 Forms Income Tax Forms ROC Forms (Cos Act, 2013) ROC Forms (Cos Act, 1956) Income Declaration Forms Wealth Tax Forms Service Tax Forms Companies Unpaid Dividend Forms NBFCs Forms LLP Winding up FEMA Forms LLP Forms CGST Forms GST Forms Accounts and Records Advance Ruling Appeals and Revision Assessment and Audit Composition Demands and Recovery Input Tax Credit Inspection, Search and Seizure Offences and Penalties Payment of Tax Refund Registration Returns Transitional Provisions Value of Supply Careers

Virtual CFO for NBFC

We at TAP GLOBAL are equipped to provide NBFC a virtual chief financial advisor (CFO) facility to monitor an NBFC and its growth. The Small and Medium Scale NBFC cannot afford the cost of an onsite Chief Financial Officer due to high fees.

Package inclusions:

Management of Loan Products
Measuring and Mitigation of Risk
Comparing Annual Operations Plan with Actual
Supervision and Planning
Making Growth Strategy for NBFC
Expansion Strategy
Exponential Growth of NBFC
New Product Development

Overview of Virtual CFO for NBFC Services

With advent of the concept of Virtual CFO, small businesses now receive virtual support that would not be possible before. The service of a Virtual CFO for NBFS has paved the way for small and medium businesses to avail the expertise in the systematic management of the growth of NBFC. The services of the CFO differ from company to company as per the requirement and need. However, some services are standard and often rendered to every NBFC who is willing to hire a Virtual CFO for NBFC:

It undertakes all the duties of a traditional CFO of an NBFC, but on a part-time basis.
Keeps a watch on the financial health through cloud based software technology.
Offer financial guidance and insight to the business on the matters related to finance.
Give companies back-office functions, including managing account ledgers, depending on the client and their needs.

Often companies that cannot afford in-house CFO prefer to go with Virtual CFO. Organization's deal with many challenges daily in terms of financial aspects, growth, accounting, and management. To curb those challenges, a need arises to appoint a Virtual CFO who can primarily be responsible for managing activities like financial reporting, record keeping and financial risks of the company. Virtual CFO helps meet those challenges effectively by giving financial and professional aid, analysis and support to the management.

Why is Virtual CFO for NBFC needed?

The position of the CFO in a business enterprise is often considered most significant as they function beyond compliance and quality control to business planning and process adjustments and act as a strategic partner to an NBFC. The services of Virtual CFO can be a boon for growing companies and business start-ups as they can be hired at any stage of the business and significantly impact corporate strategy for growth.

Virtual Chief Finance Officers develops, implements, and controls the lending strategy management of NBFC. The Virtual CFO for NBFC is responsible for maximizing the return on investment while utilizing the financial resources in cost-effective manner.

Essential Function of Virtual CFO for NBFC

Some Important roles and responsibilities of the Virtual CFO for NBFC are mentioned below:

Risk Management and Mitigation

One of the foremost responsibilities of a CFO is Risk Management; a Virtual CFO creates a line of protocols for resilient defense mechanism and have a complete oversight for managing risks and mitigating the same before it because any potential harm. Due to dynamic and face-paced digital innovations, expanding regulatory compliance has increased the number of risks and can impact the growth of an NBFC.

Virtual CFOs are involved in managing risk for any NBFC in a certain area, which are the following:

Financial Risk

No business is risk-proof; risk in day to day business functions can't be avoided. There is a Compliance Risk where NBFC are required to adhere to the tax compliances and company laws and must follow the guidelines issued by the Reserve bank of India in letter and spirit. Financial risk also includes several forms of Debt Risks, as NBFCs are involved in the role of lending, which makes them prone to the creation of non-performing assets due to higher no. of defaults. Virtual CFO for NBFC saves companies from failing due liquidity crises by managing the regular cash flow issues. The Virtual CFO also reviews the contracts and access the risk related to the mergers and acquisitions which are essential for the growth of NBFC.

Operational Risk

An organization is not immune from the risk related to the operational functions of the NBFC. The risks are related to the expansions of business enterprises, supply chain management, data protection, and quality of labour. The virtual CFO is also involved in discussions and decision-making related to recruiting employees in view of prevailing market conditions. The mandated regulatory compliances have to be put in place to have smooth functioning.

IT Risk

The breaches in organization security protocols are regularly increasing and negatively impact the /image in the market. Most companies are unable to handle the IT functions due to high infrastructure costs and are outsourced. The Virtual CFO plays an integral part in keeping the data of clients, business partners, and plugging gaps over breaches by working in tandem with IT professionals.

Other Miscellaneous Risks

If catastrophic and geopolitical risks are not identified or managed properly, they can be dangerous and has to be minimized for the proper functioning of the organization's. Either CFO or Virtual CFO should never exist in isolation from the rest of the organization as they are tasked with managing and mitigating risk.

Supervision and Planning

Virtual CFO gives financial direction based on the analysis and need of the NBFC . An appropriate financial planning create potential for growth of the business. With this, administration can concentrate on the critical zones without contemplating the budgetary issues.

Budgeting-Virtual CFO administrations adopts standard budgeting procedure . Budgeting is done with the aim to keep the track of all the operations business is performing. Spending should be explored month-to-month or quarterly, so changes can be made to meet the end goal.

Audit Support -Start to finish audit support is given by the virtual CFO by resolving questions asked by the auditors.

Debt Planning -A virtual CFO prepares a standard debt plan intending to accomplish the ideal objective. An appropriate debt planning plays a significant part in meeting the obligation.

Year-End Accounts Closure and Filing-Virtual CFO guarantee the drafting and filing of financial statements at scheduled time . It additionally guarantees the Income Tax Return (ITR) documenting, GST return filing and other related compliances.

Compliances of the Various Acts- Under this, start-to-finish arrangement will be offered by the virtual CFO as per the provisions of Companies Act 2013, FEMA, Income Tax Act 1961, Contract Act 1882, GST Act 2017, IPR laws etc.

Accounting Policies and Procedures

Accounting Functions

Accounting services is a model that helps evaluate NBFC's monetary bookkeeping status. Here, an accounting health check signifies a total evaluation of the budgetary and accounting part of the association. For this, a prominent team of experts in the administration are required to set up extensive framework for identifying with the bookkeeping practices, for example, planning of information and other accounting policies.

Planning different policies and executing key ideas are required to have a standard account check. In this procedure, legitimate guidance pertaining to annual turnover, benefit, operational and bookkeeping frameworks, and key execution markers are examined and assessed. The business structure, tax proficiency, and development forthcoming are likewise considered in the accounting health check.

Cash Flow Forecasting and Cost Management

Virtual CFOs forecast cash flows in the NBFCs. An NBFC must better understand their cash flows for decision making and meeting future commitments. It helps in making choices concerning the requirement of funds.

Cost management is a procedure under which a Virtual CFO makes a legitimate want to limit the organization's expense. Virtual CFO helps in improving the working productivity. The virtual CFO breaks down a variable expense to control it.

For a far-reaching structure of interior control in the association, a very much planned and appropriately maintained system of accounting policies helps upgrade the organization's responsibility and consistency. Accounting policies and methodology help plan and use well-defined accounting and management in the organization.

AI Inclusion- Cloud technology is taking over traditional accounting methods and also tends to reduce the basic expense for services related to finance accounting. Firms who are expressively using cloud technology to manage their finance and accounting departments tend to be more productive and efficient.

MIS Reporting-A Virtual CFO is responsible for timely reporting of precise and accurate data related budgetary health of an NBFC in MIS (Management Information System) reports.

Internal Control-A legitimate direction in regard to the development of the organization's by method for streamlined interior control framework helps in proceeding with unwavering quality of the association. An appropriate and precise bookkeeping record informed money-related decisions, and monetary detailing are required to make the internal control framework more viable.

New Product Development

In a highly competitive market, CFOs can be key differentiators between the success and failure of an NBFC. A virtual CFO plays a critical role in making strategies related to enrollment and the effectiveness of NBFC New Product Development process.

Expansion and Growth Strategy

Virtual CFOs have the expertise and leadership skills that enable them to remotely assemble a successful finance lending and accounting team as per the needs of an NBFC. For example, appointing an AML Compliance Officer with defined roles and responsibilities. A successful expansion and continuous growth can be experienced organically, through Mergers & Acquisitions, or efficient management of NBFC's finances. A Virtual CFO helps find potential investment opportunities and use NBFC funds efficiently.

Benefits of Virtual CFO for NBFC

Some of the benefits of availing services of Virtual CFO for NBFC are as follows:

Virtual CFO delivers services to its customers through a team-based model.
Virtual CFO assigns a dedicated and experienced CFO consultant to support and deliver solutions to each customer.
Virtual CFOs deliver the collective experience of our entire team of resources to their customers.
Our customers often benefit from accessing the knowledge, best practices, and best-in-class solutions developed and shared by the entire Virtual CFO team.
Similarly, Virtual CFO for NBFCs often benefit from our accounting team approach by being able to access Virtual CFO resources that may have lower billing rates (such as Consultant Controllers, Assistant Controllers, Financial Analysts or Staff Accountants)
Through Virtual CFO team-based services approach, NBFCs will get the benefit of specialized and flexible levels of experience and support for wholesome management, NBFC should be paying only for the time when services are required at a blended, cost-effective rate.

Risk and resilience maintain the momentum of your NBFC plan by getting insight into the linked dynamics creating challenges to your NBFC, so you can prepare to minimise weaknesses and dangers to your NBFC resilience.

Frequently Asked Questions

Can NBFCs charge high-interest rates from their borrowers? Is there any provision for ceiling on the interest rate charged by the NBFC?

RBI has deregulated interest rates to be charged to borrowers by financial institutions (other than NBFC- Micro Finance). The rate of interest to be charged by the Non Banking Finance Company is governed by the terms and conditions of the loan agreement between the borrower and the NBFC. However, the NBFC have to be transparent about the procedures for deciding the rate of interest to different categories of borrowers and must disclose it to the borrower in the application form and communicate through the sanction letter, etc.

Whether Loan to value ratio for loans issued against the collateral of shares is to be computed at the portfolio level?

Loan to value ratio would be computed at the portfolio level or scrip level.

Can a Non-Banking Finance Company pre-pay its public deposits?

An NBFC accepts public deposits under a mutual contract with its depositors. In case, where a depositor requests for pre-mature payment, RBI has prescribed Regulations for such an eventuality in the NBFC Acceptance of Public Deposits (Reserve Bank) Directions, 1998 wherein it is specified that NBFCs cannot grant any loan against a public deposit or make premature repayment of deposit within a period of 3 months (lock-in period) from the date of its acceptance. However, in the event of the death of a depositor, the company may, even within the lock-in period, repay the deposit at the request of the nominee/legal heir / joint holders with the survivor clause only after submission of relevant proof, to the satisfaction of the NBFC.