Shriram City Union Finance Limited - Karvy

maintain low gross and net NPA levels. Our historical Assets Under Management for each segment and Net NPAsof our business have been as follows:ParticularsAssets UnderManagement forProduct FinanceLoan LoansAssets UnderManagement forVehicle LoansAssets UnderManagement forPersonal LoansAssets UnderManagement forLoans Against GoldAssets UnderManagement forSmall EnterpriseFinance SegmentLoansOther Assets UnderManagementTotal Assets UnderManagementNet Nonperforming assets` In LakhsAs at March As at March As at March As at March As at March31, 2007 31, 2008 31, 2009 31, 2010 31, 201173,904.25 1,38,519.97 98,219.95 79,422.24 1,16,584.391,25,459.69 1,01,631.66 2,14,126.71 2,07,372.26 1,93,530.5923,337.61 37,814.52 39,755.51 49,785.79 71,548.151,519.19 13,436.18 34,751.82 85,478.36 2,20,472.8124,157.05 4,35,85.85 70,294.50 99,197.48 1,95,329.922,308.70 1,901.60 5,802.41 294.05 2,339.012,50,686.49 3,36,889.78 4,62,950.89 5,21,550.18 7,99,804.882,561.44 2,495.70 3,590.35 3,322.73 2,982.76Classification of AssetsThe Prudential Norms Directions, 2007, read with the NBFC Acceptance of Public Deposits Directions, 1998, asamended, prescribed by the RBI, among other matters, require us to observe the classification of our asset; treatmentof NPAs; and provisioning against NPAs.An asset is termed as an NPA if interest or installments of the principal amount remain overdue for a period of 180days or more. Each deposit-accepting NBFC is required to classify its lease/hire purchase assets, loans, advancesand other forms of credit into the following classes, namely:Standard assets: An asset in respect of which no default in repayment of principal or payment of interest isperceived and which does not disclose any problem nor carry more than normal risk attached to the business.Sub-standard assets: An asset will be classified as an NPA for a period not exceeding 18 months or where the termsof the agreement regarding interest and / or principal have been renegotiated or rescheduled after commencement ofoperations, until the expiry of one year of satisfactory performance under the renegotiated or rescheduled terms.Doubtful assets: An asset which remains a sub-standard asset for a period exceeding 18 months.Loss assets (a) An asset which has been identified as loss asset by the NBFC or its internal or external auditor or bythe RBI during the inspection of the NBFC, to the extent that it is not written off by the NBFC; and (b) an assetwhich is adversely affected by a potential threat of non-recoverability due to either erosion in the value of security ornon availability of security or due to any fraudulent act or omission on the part of the borrower.91