Multiple choice

Which of the following is not a treatment of NPA?

  1. Accrual of income 0 NPA has to be stopped

  2. Income accrued but not received on the asset classified as NP A has to be provided

  3. NAV has to be reduced by 1%

  4. Provision has to be made for the principal due, in a graded manner
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The question asks which is NOT a treatment of NPA. Options A, B, and D are all valid NPA treatments: stopping accrual of income, providing for accrued but unrealized income, and making provisions for dues. Option C about reducing NAV by 1% is not a standard SEBI-mandated NPA treatment. While NPAs may impact NAV, there is no fixed 1% reduction rule. Therefore C is the correct answer as the statement that is NOT true.

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