NOTES TO ACCOUNTS 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 Company is registered as a Non-Banking Company (NBFC) with Reserve Bank of India. The Company is brsently classified as Non-Deposit Taking NBFC. 2 SIGNIFICANT ACCOUNTING POLICIES 2.1 BASIS FOR brPARATION OF FINANCIAL STATEMENT a The Financial Statements are brpared under the historical cost convention in accordance with the generally accepted Accounting Principles. b The Company follows the directions brscribed 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 brparation 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 brparation of the financial statements are prudent and reasonable. future results may vary from these estimates. 2.3 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. 2.4 VALUATION OF FIXED ASSETS : Fixed Assets are stated at historical cost Less accumulated debrciation. 2.5 DEbrCIATION/ AMORTIZATION POLICY : Debrciation on Fixed Assets is provided on written down value method based on useful life of the assets as brscibed 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 debrciated 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 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. 2.8 IMPAIRMENT OF ASSETS The Company is basically a finance Company holding only finance assets hence no impairment of assests is accounted. 2.9 Provisions, contingent Liabilities & contingent Assets. Provisions are recognised only when the Company has brsent, 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) brsent 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. As at As at 31st March 2015 31st March 2014 _Rs. Ps._Rs. Ps. 3. SHARE CAPITAL Authorized Share Capital 55,00,000 Equity Shares Of Rs.10/- Each 55,000,000.00 55,000,000.00 Issued,Subscribed & paid up: 35,34,900 Equity Shares Of Rs.10/- Each 35,349,000.00 35,349,000.00 3.1 Company has one class of share capital, comprising ordinary shares of Rs. 10 each. Subject to the Company's Articles of Association and applicable law, the Company's ordinary shares confer on the holder the right to receive notice of and to vote at general meetings of the Company, the right to receive any surplus assets on a winding up of the Company and an entitlement to receive any dividend declared on ordinary shares. 4. EMPLOYEES BENEFIT: The Company has not made any provision in the books for employees benefits-hence the Accounting Standard (AS) 15, is not applicable. 5. DUES TO MICRO, SMALL & MEDIUM ENTERPRISES The Company has no dues to Micro, Small & Medium enterprises during the year ended 31st March 2015. 6. Previous Year's Figures Have Been Re-Grouped And Re-Classified Wherever Necessary, To Confirm To Current Year's Classification. AS PER OUR REPORT OF EVEN DATE ATTACHED For SIROHIA & CO., For and on behalf of the Board CHARTERED ACCOUNTANTS Firm Reg. No.003875S VINOD KUMAR Partner M.No.207094 SURESH BAFNA Managing Director M K TATED Director PLACE: CHENNAI . DATE : 29-05-2015 |