# Financial Services & NBFCs

NBFCs, fintech lenders, and investment platforms reporting under IFRS-converged Ind AS and supervised under scale-based regulation.

For a lender, the credit loss model decides what the accounts say about the business.

Non-banking financial companies and fintech lenders report under Ind AS, India’s IFRS-converged standards, while the Reserve Bank of India supervises them under its scale-based regulatory framework. The two frameworks meet in the same three numbers: expected credit loss, income recognition, and the capital both of those determine.

We work with lenders and their boards on models, controls, and reporting that satisfy both frameworks, and on explaining where and why they differ.

## On the agenda

Expected credit loss

### Staging, significant increases in credit risk, and overlays

Staging under IFRS 9 (Ind AS 109) decides whether an exposure carries twelve-month or lifetime expected losses. The criteria for a significant increase in credit risk should look beyond days past due, allow exposures to cure under stated conditions, and stay stable when parameters move slightly.

Management overlays are legitimate when they are engineered: **a trigger, a quantified basis, a defined population, and a condition for release**. Without those, an overlay looks like a reserve.

Income recognition

### Effective interest, fees, and co-lending

Processing fees and directly attributable origination costs belong in the effective interest rate rather than in income when received. Co-lending and direct assignment arrangements raise derecognition questions under IFRS 9, and retained interests and servicing should be accounted for as the contracts actually work.

Prudential reporting

### Accounting numbers and prudential norms, side by side

The RBI’s prudential norms on income recognition, asset classification, and provisioning continue to apply alongside Ind AS. Where the prudential provision exceeds the Ind AS impairment allowance, the difference is appropriated to an impairment reserve rather than charged to profit.

Reconciling the two views every quarter, and explaining them to the board, is a recurring task that is far easier with **a standard bridge** than with a fresh analysis each time.

Digital lending

### Partnerships, guarantees, and fund flows

Arrangements between regulated lenders and lending service providers carry obligations on disclosure, fund flows, and default loss guarantees. Those guarantees, and the fees attached to them, also have accounting consequences for both parties that often go unaddressed.

## How we help

[Financial Reporting & Technical Accounting · Credit loss model design and validation, effective interest calculations, and derecognition analysis.](https://soniassociates.in/service-financial-reporting)

[Audit, Assurance & Transaction Support · Internal audit, internal financial controls, and IT general controls for lending platforms.](https://soniassociates.in/service-audit)

[Performance Management & Analytics · Portfolio reporting, vintage analysis, and collections forecasts built with machine learning.](https://soniassociates.in/service-analytics)

[Finance Function Transformation · Close, reconciliation, and regulatory reporting processes.](https://soniassociates.in/service-finance-transformation)

## Examples of our work

[All client impact](https://soniassociates.in/case-studies)

Technology · Financial Reporting

### [Rebuilding an expected credit loss model for a listed IT services company with US$855 million in receivables](https://soniassociates.in/case-ecl-model-listed-it-services)

US$855mn Gross trade receivables covered by the model

## Featured insights

[All insights](https://soniassociates.in/insights)

Article · The Audit-Ready Company

### [The judgements auditors test in an expected credit loss model](https://soniassociates.in/insight-ecl-models-audit-scrutiny)

June 10, 2026 · 11 min read

Article · The Audit-Ready Company

### [The audit trail requirement is a control, not a software setting](https://soniassociates.in/insight-audit-trail-edit-log)

August 26, 2026 · 10 min read

Article

### [Before the dashboard: agreeing what the numbers mean](https://soniassociates.in/insight-kpi-definitions)

July 22, 2026 · 9 min read

## Talk to us about financial services

We work with a small number of clients in each sector, which keeps senior attention where it belongs.

[Contact us](https://soniassociates.in/contact) [LinkedIn](https://www.linkedin.com/in/in-aditya/)

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Soni Aditya & Associates, Chartered Accountants. Office No 502, Unit 507, 5th Floor, 45 Baner Street, Baner, Pune, Maharashtra 411045, India. aditya@soniassociates.in · +91 93400 75288 · https://soniassociates.in/contact

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