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Accounting Policies of Mansi Finance (Chennai) Ltd. Company

Mar 31, 2015

1 Mansi Finance Chennai Limited (the Company) is a public Company and incorporated under the provisions of the Companies Act,1956. Its shares are listed in the Bombay Stock Exchange in India. The Compnay is registered as a Non-Banking Company (NBFC) with Reserve Bank of India. The Company is presently classified as Non-Deposit Taking NBFC.

2.1 BASIS FOR PREPARATION OF FINANCIAL STATEMENT

a The Financial Statements are prepared under the historical cost convention in accordance with the generally accepted Accounting Principles.

b The Company follows the directions prescribed by the Reserve Bank of India for Non - Banking Financial Companies and the applicable Accounting Standards issued by the Institute Of Chartered Accountants Of India.

2.2 USE OF ESTIMATES

The preparation of financial statements required the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the financial statements and reported income and expense during the reporting period. Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. future results may vary from these estimates.

2.3 REVENUE RECOGNITION

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

Interest on loans is recognized on accrual basis at the contract rate wherever feasible.

Income in respect of Non-performing assets is recognized as and when received as per the guidelines given in the Non Banking Financial Companies prudential norms (Reserve Bank) Directions, 2007.

2.4 VALUATION OF FIXED ASSETS :

Fixed Assets are stated at historical cost Less accumulated depreciation.

2.5 DEPRECIATION/ AMORTIZATION POLICY :

Depreciation on Fixed Assets is provided on written down value method based on useful life of the assets as prescribed in Schedule II to the Companies Act,2013 and for the assets acquired prior to April 1,2014, the carrying amount as on April 1,2014 is depreciated over the remaining useful life based on an evaluation.

In respect of assets which have no remaining useful life, the carrying cost less residual value as on 31st March 2015 has been absorbed against retained earnings.

2.6 VALUATION OF INVESTMENTS :

Investments intended to be held for not more than one year are classified as current investments. All other investments are classified as non-current investments. Current Investments are carried at lower of cost and fair determination on an individual investment basis. Non - Current investments are carried at cost. However , provision for diminution in value is made to recognize a decline, other than temporary , in the value of Investments.

2.7 TAXATION

Current Tax is the amount of tax payable on the taxable income for the year and determined in accordance with the provisions of the Income Tax Act,1961. Deferred tax is recognized, on timing difference, being the difference between taxable income and accounting income that originates in one period and are capable of reversal in one or more subsequent periods.

2.8 IMPAIRMENT OF ASSETS

The Company is basically a finance Company holding only finance assets hence no impairment of assists is accounted.

2.9 Provisions, contingent Liabilities & contingent Assets.

Provisions are recognized only when the Company has present, legal, or constructive obligations as a result of past events, for which it is probable that an outflow of economic benefit will be required to settle the transactions and a reliable estimate can be made for the amount of the obligation.

Contingent liability is disclosed for (1) possible obligations which will be confirmed only by future events not wholly within the control of Company or (2) present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

Contingent assets are not recognized in the financial statements since this may result in the recognition of income that may never be realized.


Mar 31, 2014

1.1 BASIS FOR PREPARATION OF FINANCIAL STATEMENT

a The Financial Statements are prepared under the historical cost convention in accordance with the generally accepted Accounting Principles.

b The Company follows the directions prescribed by the Reserve Bank of India for Non - Banking Financial Companies and the applicable Accounting Standards issued by the Institute Of Chartered Accountants Of India.

1.2 USE OF ESTIMATES

The preparation of financial statements required the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contigent liabilities) as of the date of the financial statements and reported income and expense during the reporting period. Management believes that the estimates used in preparation of the financial statements are prudent and reasonable, future results may vary from these estimates.

1.3 REVENUE RECOGNITION

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

Interest on loans is recognised on accrual basis at the contract rate wherever feasible.

Income in respect of Non-performing assets is recognised as and when received as per the guidelines given in the Non Banking Financial Companies prudential norms (Reserve Bank) Directions, 2007

1.4 VALUATION OF FIXED ASSETS :

Fixed Assets are stated at historical cost Less accumulated depreciation.

1.5 DEPRECIATION/ AMORTIZATION POLICY :

Depreciation on Fixed Assets is provided on written down value method as per the rates specified in the Schedule XIV of The Companies Act, 1956.

1.6 VALUATION OF INVESTMENTS :

Investments intended to be held for not more than one year are classified as current investments. All other investments are classified as non-current investments. Current Investments are carried at lower of cost and fair determination on an individual investment basis. Non - Current investments are carried at cost. However, provision for diminution in value is made to recognise a decline, other than temporary , in the value of Invesments.

1.7 TAXATION

Current Tax is the amount of tax payable on the taxable income for the year and determined in accordance with the provisions of the Income Tax Act, 1961. Deferred tax is recognised, on timing difference, being the difference between taxable income and accounting income that originates in one period and are capable of reversal in one or more subsequent periods. Since there is no significant timing difference, no deferred tax has been provided.

1.8 IMPAIRMENT OF ASSETS

The Company is basically a finance Company holding only finance assets hence no impairment of assests is accounted.

1.9 PROVISIONS, CONTIGENT LIABILITIES & CONTIGENT ASSETS

Provisions are recognised only when the Company has present, legal, or constructive obligations as a result of past events, for which it is probable that an outflow of economic benefit will be required to settle the transactions and a reliable estimate can be made for the amount of the obligation.

Contigent laibility is disclosed for (1) possible obligations which will be confirmed only by future events not wholly within the control of Company or (2) present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

Contigent assets are not recognised in the financial statements since this may result in the recognition of income that may never be realised.


Mar 31, 2012

1.1 INCOME RECOGNITION

a The Financial Statements are prepared under the historical cost convention in accordance with the generally accepted Accounting Principles

b Income And Expenditure is accounted on accrual basis. In the case of Non Performing Assets interest income is recognized on receipt basis.

1»2 The Company follows the directions prescribed by the Reserve Bank of India for Non - Banking Financial Companies and the applicable Accounting Standards issued by the Institute Of Chartered Accountants Of India.

1.3 USE OF ESTIMATES

The preparation of financial statements required the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contigent liabilities) as of the date of the financial statements and reported income and expense during the reporting period. Management believes that the estimates used in preparation of the financial statements are prudent and reasonable, future results may vary from these estimates.

1.4 VALUATION OF FIXED ASSETS :

Fixed Assets are stated at historical cost Less accumulated depreciation.

1.5 DEPRECIATION/ AMORTIZATION POLICY :

Depreciation on Fixed Assets is provided on written down value method as per the rates specified in the Schedule XIV of The Companies Act, 1956.

1.6 VALUATION OF INVESTMENTS :

Investments are stated at Cost (The Company holds only Long Term Investments)

1.7 TAXATION

Current Tax is the amount of tax payable on the taxable income , for the year and determined in accordance with the provisions of the Income Tax Act,1961. Deferred tax is recognised, on timing difference, being the difference between taxable income and accounting income that originates in one period and are capable of reversal in one or more subsequent periods. Since there is no significant timing difference, no deferred tax has been provided.

1.8 IMPAIRMENT OF ASSETS

The Company is basically a finance Company holding only finance assets hence no impairment of assests is accounted.


Mar 31, 2010

1.1 INCOME RECOGNITION

a The Financial Statements are prepared under the historic cost convention in accordance with the generally accepted Accounting Principles.

b Income and Expenditure is accounted for on accrual basis. In the case of Non Performing Assets Interest income is recognized on receipt basis.

1.2 The Company follows the directions prescribed by the Reserve Bank of India for Non - Banking Financial Companies and the applicable Accounting Standards issued by the Institute Of Chartered Accountants Of India.

1.3 VALUATION OF FIXED ASSETS :

Fixed Assets are stated at historical cost Less accumulated depreciation.

1.4 DEPRECIATION/ AMORTIZATION POLICY :

Depreciation on Fixed Assets are provided on written down value method as per the rates specified in the Schedule XIV of The Companies Act, 1956.

1.5 VALUATION OF INVESTMENTS :

Long - Term Investments are stated at cost

1.6 TAXATION

Current Tax is the amount of tax payable on the taxabie income for the year and determined in accordance with the provisions of the Income Tax Act,1961. Deferred tax is recognised, on timing difference,, being the difference between taxable income and accounting income that originates in one period and are capable of reversal in one or more subsequent periods. Since there is no significant timing difference, no deferred tax has been provided.

1.7 IMPAIRMENT OF ASSETS

The Company is basically a finance Company holding only finance assets hence no impairment of assests is accounted for

2.3 Balances of loans & advances, sundry creditors, sundry debtors and other loans are as per books and subject to confirmation.

 
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