Page 17 - Banking Finance July 2020

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waterway usage charges with imme- evaluating various aspects including banks and 21 non-banking financial
diate effect considering the Govern- revenue recognition, valuation of finan- companies (NBFCs).
ment of India's vision to promote inland cial instruments and assessing going Under the ECLGS, the loan amounts
waterways as a supplementary, eco- concern assumptions, in discussions
sanctioned by PSBs increased to Rs
friendly and cheaper mode of trans- with the management," said Kaushal 69,135.19 crore, of which Rs 41,819
port," the shipping ministry said. Kishore, partner at accounting firm crore has been disbursed as of July 15,
BSR & Co. she said.
ICAI issues guidance for fi- At the same time, private sector banks
nancial reporting, auditing Credit card spend fell 51% have sanctioned Rs 54,209.97 crore

taking into account Covid- in April, shows survey and disbursed Rs 26,492 crore.
19 Credit card spending tumbled 51 per The country's largest lender SBI has
cent in April amid the coronavirus sanctioned Rs 20,910 crore of loans
The regulator for the accounting pro- lockdown, though categories like and disbursed Rs 14,362 crore. It is
fession, the Institute of Chartered Ac-
streaming platforms and online classes followed by Punjab National Bank,
countants of India (ICAI), issued an
saw growth, a survey said. Credit card which has sanctioned Rs 9,121 crore.
accounting and auditing advisory, with spending dropped initially by 10 per
guidance on incorporating the impact On May 20, the Cabinet approved ad-
of disruptions caused by COVID-19 on cent in March and declined further ditional funding of up to Rs 3 lakh crore
financial reporting and auditing. April onwards, according to the survey at a concessional rate of 9.25 per cent
by digital platform CRED. through ECLGS for MSME sector.
The note provides guidance to compa-
nies and auditors on measuring impair- Banks sanction about Rs Under the scheme, 100 per cent guar-
ment of assets, evaluating contingent antee coverage will be provided by the
liabilities and the ability of business to 1.23 lakh crore loans to National Credit Guarantee Trustee
remain operational. Experts said the MSMEs under credit guar- Company (NCGTC) for additional fund-
advisory was timely and that auditors ing of up to Rs 3 lakh crore to eligible
would have a major role to play in antee scheme MSMEs and interested Micro Units
evaluating the going concern status of The finance ministry said banks have Development and Refinance Agency
companies in the current scenario. sanctioned loans of about Rs 1.23 lakh (MUDRA) borrowers in the form of a

"There is a need to advise the crore under the Rs 3-lakh crore Emer- guaranteed emergency credit line
(GECL) facility.
preparers of financial statements to gency Credit Line Guarantee Scheme
ensure that the potential impact of (ECLGS) for MSME sector, reeling un- For this purpose, a corpus of Rs 41,600
COVID-19 is suitably considered in pre- der the economic slowdown caused by crore was set up by the government,
paring and reporting their financial COVID-19 pandemic. spread over the current and next three
statements for the year ended March However, disbursements against this financial years.
31, 2020," said the guidance note.
stood at Rs 68,311 crore till July 15
The guidance note has also called on under the 100 per cent ECLGS for mi- Centre notifies amended
companies to evaluate whether they cro, small and medium enterprises FDI policy on civil aviation
will be able to continue as a going con- (MSMEs). The government has notified changes
cern. "In the current scenario, while in Foreign Direct Investment (FDI)
making this (going concern) assess- The scheme is the biggest fiscal com- norms on civil aviation, which will per-
ment, management would generally ponent of the Rs 20-lakh crore mit non-resident Indian nationals to
be expected to prepare detailed fore- Aatmanirbhar Bharat Abhiyan package own 100 per cent stake of Air India.
casts which will require regular announced by Finance Minister The gazette notification comes amid
updation till the financial statements Nirmala Sitharaman in May. the ongoing process of strategic disin-
are authorised for issue," the guidance The latest numbers on ECLGS, as re- vestment of Air India. The gazette
noted. leased by the finance ministry, com- notification comes amid the ongoing
"Those preparing and auditing ac- prise disbursements by all 12 public process of strategic disinvestment of
counts will have a major role to play in sector banks (PSBs), 22 private sector Air India. T

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