Shriram City Union Finance Limited - Karvy

Annexure XIIISignificant Accounting PoliciesBack GroundShriram City Union Finance Limited (SCUFL) was incorporated on 27 th March 1986, as a Private LimitedCompany and became a Public Limited Company on 29 th October 1988. The Company is a Non-Banking FinanceCompany registered with Reserve Bank of India (RBI)a. Basis of preparationThe financial statements have been prepared under historical cost convention on an accrual basis and inaccordance with generally accepted accounting principles in India and specifically to comply in all materialrespects with the notified Accounting Standards (AS) issued under the Companies Accounting Standard Rules2006 and the relevant provisions of the Companies Act 1956. (‘The Act’) and the guidelines issued by theReserve Bank of India (‘RBI’) as applicable to a Non Banking Finance Company (‘NBFC’). The Accountingpolicies are consistent with those used in the previous year.b. Use of estimatesThe preparation of financial statements in conformity with generally accepted accounting principles requiresmanagement to make estimates and assumptions that affect the reported amounts of assets and liabilities anddisclosure of contingent liabilities at the date of the financial statements and the results of operations during thereporting year end. Although these estimates are based upon management’s best knowledge of current events andactions, actual results could differ from these estimates. Any revisions to the accounting estimates are recognizedprospectively in the current and future years.F-44