The Reserve Bank of India(RBI) has an extended timeline for the finalization of audited accounts.
The RBI said that, In view of the on-going situation and taking in to account the feedback received from various stakeholders, it has been decided that every applicable NBFC shall finalize its balance sheet within a period of 3 months from the date to which it pertains or any date as notified by SEBI for submission of financial results by listed entities.
The most important and crucial function of financial accounting is to ascertain the financial position and the profitability of the business. The trading and profit and loss account show the profit or loss of the business. The Balance Sheet depicts the financial position of the business.
In accounting parlance, finalization of accounts means closing the books of entry for the financial year. This is done by preparing a trial balance based on the Ledger accounts with the help of trial balance and will prepare the Final Accounts, namely: Trading & Profit and Loss Account Balance Sheet.
