Accounting Policies of Mansi Finance (Chennai) Ltd. Company

Mar 31, 2024

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3.1 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.

Interst Income

Interest Income is recognised by applying effective interest rate to the
gross carrying amount of financial assets other than credit impaired
assests, taking into account principal outstanding and the applicable
interest rate. Interest income is recognised on non performing assets at
net of expected credit loss.

Delayed payment interest levied on customers for delay in repayment/
non payment of contractual cashflows is recognised on realisation.

Dividend Income

Dividend income is recognised when the Company''s right to receive
dividend is established by the reporting date and no singnificant
uncertainty as to collectability exists.

Recovery of financial assets

The Company recognises income on recoveries of financial assets written
off on realisation or when the right to receive the same without any
uncertainties of recovery is established.

3.2 Property, Plant & Equipement

Property, plant and equipement are stated in the balance sheet at cost
(net of duty/tax credit if any availed) less accumulated depreciation and
accumulated impairment losses. Cost of acquisition is inclusive of freight,
non refundable duties & taxes and other direcly attributable cost of
bringing the asset to its working condition for the intended use.

Depreciation on Fixed Assets is provided on written down value method
based on useful life of the assets as prescibed in Schedule II to the
Companies Act, 2013.

In case addition/deletion of property,Plat & equipement, depreciation
has been provided on a pro rata basis from the date of such addition or,
as case may be , upto the date of deletion of such asset.

3.3 Investment property

Properties held to earn rental income or for capital appreciation or both
and that is not occupied by the Company is classified as Investment
property. Investment property is measured and reported at cost,
including transaction costs.

Depreciation is not charged on the investment property building.

An Investment property is derecognised upon disposal or when the
investment property is permanently withdrawn from use and no future
benefits are expected from the disposal. Any gain or loss arising on
derecognision of property is recognised in the Statement of profit &
loss in the same period.

3.4 Financial Instruments
i) Financial Assets

Financial assets include cash, or an equity instrument of another
entity, or a contractual right to receive cash or another financial asset
from another entity. Few examples of financial assets are loan
receivables, investment in equity and debt instruments, trade
receivables and cash and cash equivalents.

All financial assets are recognised initially at fair value including
transaction costs that are attributable to the acquisition of financial
assets except in the case of financial assets recorded at FVTPL where
the transaction costs are charged to profit or loss.

Subsequent Measurement

a) Financial assets carried at amortised cost (AC)

A financial asset is measured at amortised cost if it is held within
a business model whose objective is to hold the asset in order to
collect contractual cash flows and the contractual terms of the
financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount
outstanding.

b) Financial assets at fair value through other comprehensive
income (FVTOCI)

A financial asset is measured at FVTOCI if it is held within a business
model whose objective is achieved by both collecting contractual
cash flows and selling financial assets and the contractual terms of
the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount
outstanding.

c) Financial assets at fair value through profit or loss (FVTPL)

A financial asset which is not classified in any of the above categories
are measured at FVTPL.

ii Financial Liabilities

a) Initial recognition and measurement

All financial liabilities are recognized at fair value and in case of
loans, net of directly attributable cost.

Financial liabilities are carried at amortized cost using the effective
interest method. For trade and other payables maturing within one
year from the balance sheet date, the carrying amounts approximate
fair value due to the short maturity of these instruments.

iii Derecognition of financial instruments

The Company derecognizes a financial asset when the contractual rights
to the cash flows from the financial asset expire or it transfers the financial
asset and the transfer qualifies for derecognition under Ind AS 109.
A financial liability (or a part of a financial liability) is derecognized
from the Company''s Balance Sheet when the obligation specified in
the contract is discharged or cancelled or expires.

3.5 Cash & cash equivalents

Cash and cash equivalents include cash on hand, Cheques/Drafts on
hand, balances in current accounts with banks, other short tem, highly
liquid investments with original maturities of three months or less
that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value.

3.6 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 temporary differences between the
carrying amounts of assets and liabilities in the financial statements
and the corresponding tax bases used in the computation of taxable
profit.

Deferred tax liabilities and assets are measured at the tax rates that
are expected to apply in the period in which the liability is settled or

the asset realised, based on tax rates (and tax laws) that have been
enacted or substantively enacted by the end of the reporting period.

3.7 IMPAIRMENT OF NON FINANCIAL ASSETS

An assessment is done at each Balance Sheet date to ascertain whether
there is any indication that an asset may be impaired. If any such indication
exists, as estimate of the recoverable amount of asset is determined, If
the carrying value of relevant asset is higher than the recoverable amount,
the carrying value is written down accordingly.

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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.

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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.

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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.

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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.