Shriram City Union Finance Limited - Karvy

g. Revenue recognitioni. Income from Financing Activities is recognised on the basis of internal rate of return. This includesAdditional Finance Charges which is accounted when received because of uncertainty of realization.ii.iii.iv.Gain arising on securitization/direct assignment of assets is recognized over the tenure of agreements asper guideline on securitization of standard assets issued by RBI. Loss (if any) is recognized upfront.The Prudential norms for income recognition prescribed under Non-Banking Financial (Deposit Acceptingor Holding) Companies Prudential Norms (Reserve Bank) Directions 2007 are followed.Income from services is recognized as per the terms of the contract on accrual basis.v. Interest Income on deposit accounts with banks is recognized on a time proportion basis taking intoaccount the amount outstanding and the rate applicable.vi.vii.Dividend is recognized as Income when right to receive is established by the date of balance sheet.Profit / Loss on sale of investments is recognized at the time of actual sale / redemption.Up to the year ended March 31, 2010Income from power generation is recognized on supply of power to the grid as per the terms of the PowerPurchase Agreements with State Electricity Boards.Up to the year ended March 31, 2007Income from financial lease is recognized on the basis of Internal Rate of Return and thecorresponding assets are booked as receivable in accordance with Accounting Standard AS-19issued by the institute of Chartered Accountants of India. Lease rentals is respect of assets leasedup to 31.03.2011are recognized as per “Guidance Note on Accounting for Leases (Revised)”issued by the Institute of Chartered Accountants of India and in respect of these assets leaseequalization/adjustment accounts are created for the shortfall in capital recovery and adjusted inlease rental income/fixed assets. Interest on Hypothecation loans, Personal loans, Microfinanceand Hire Purchase finance charges are recognized on the basis of Internal Rate of Return.Additional finance charges are treated to accrue only on realization, due to uncertainty ofrealization and are accounted for accordingly.F-47