MAY 2010 - Final (New Course) Group 1 - Paper 1

While closing its books of account as on 31.12.2009 a non-banking finance

company (NBFC) has its advances classified as under:

Rs. in lakhs

Standard assets                                                                        10,000

Sub-standard assets                                                                  1,000

Secured portion of doubtful debts

- Upte one year                                                                        160

- One year to three year                                                            70

- More than three years                                                            20

Unsecured portion of doubtful debts                                          90

Loss assets                                                                               30

Calculate the provision to be made against advances ,byNBFC as per prudential norms