Shriram City Union Finance Limited - Karvy

(E)InvestmentsInvestments intended to be held for not more than a year are classified as current investments. All otherinvestments are classified as long-term investments. Current investments are carried at lower of cost andfair value determined on an individual investment basis. Long Term Investments are carried at cost.Provision for diminution in the value of long term investments is made to recognize decline in value otherthan temporary in nature.(F)Assets under financing activitiesAssets under Financing Activities are stated at the amount advanced including finance charges accrued andexpenses recoverable, as reduced by the amounts received up to Balance sheet date and assets securitized.Non performing Asset are written off / provided for, as per management estimates, subject to the minimumprovision required as per Non-Banking Financial (Deposit Accepting or Holding) Companies PrudentialNorms (Reserve Bank) Directions 2007.Provision @0.25% on standard asset is made as per the notification DNBS.PD.CC.No.207/ 03.02.002/2010-11 issue by Reserve Bank of India.(G)Foreign currency translationForeign currency transactions are accounted at the exchange rate prevailing on the date of transactions.Foreign currency monetary items on the Balance Sheet date are restated at the closing exchange rates. AllExchange differences are dealt with in the profit and loss account.(H)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 ofrealization.ii. Gain arising on securitization/direct assignment of assets is recognized over the tenure ofagreements as per guideline on securitization of standard assets issued by RBI. Loss (if any) isrecognized upfront.iii.iv.The Prudential norms for income recognition prescribed under Non-Banking Financial (DepositAccepting or 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.F-157