Section 35K in The Companies (Indian Accounting Standards) Rules, 2015
35K. To enable users of financial statements to understand the effect of collateral and other credit enhancements on the amounts arising from expected credit losses, an entity shall disclose by class of financial instrument:
(a)the amount that best represents its maximum exposure to credit risk at the end of the reporting period without taking account of any collateral held or other credit enhancements (e.g. netting agreements that do not qualify for offset in accordance with Ind AS 32).(b)a narrative description of collateral held as security and other credit enhancements, including:(i)a description of the nature and quality of the collateral held;(ii)an explanation of any significant changes in the quality of that collateral or credit enhancements as a result of deterioration or changes in the collateral policies of the entity during the reporting period; and(iii)information about financial instruments for which an entity has not recognized a loss allowance because of the collateral.(c)quantitative information about the collateral held as security and other credit enhancements (for example, quantification of the extent to which collateral and other credit enhancements mitigate credit risk) for financial assets that are credit-impaired at the reporting date.
