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Can Fin Homes

BSE: 511196|NSE: CANFINHOME|ISIN: INE477A01012|SECTOR: Finance - Housing
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Mar 15
Accounting Policy Year : Mar '16
i.  METHOD OF ACCOUNTING
 
 The Company adopts the accrual method and historical cost concept in
 the preparation of the accounts in accordance with generally accepted
 accounting principles.
 
 ii.  REVENUE RECOGNITION
 
 The Company follows National Housing Bank''s (NHB) Prudential Norms for
 recognition of income for Non-performing assets and provision for
 Non-performing & Standard assets. As per NHB Prudential Norms, an asset
 will be classified as non-performing if the interest or installments
 are overdue for 90 days or more. Further, non-performing assets are
 classified into sub-standard, doubtful and loss assets depending upon
 the age. Income is recognised on accrual basis in respect of performing
 Assets and on receipt basis for non-performing Assets.
 
 iii.  ACCOUNTING OF HOUSING LOANS
 
 Loans to the extent, the installments have not become due as at the
 year-end and suit filed accounts are being shown under housing loans.
 
 iv.  INTEREST ON LOANS
 
 Repayment of loans is by way of Equated Monthly Installments (EMIs)
 comprising of principal and interest. EMIs commence once the entire
 loan is disbursed. Pending commencement of EMIs, Pre-EMI interest is
 receivable every month. Interest is calculated on annual/ monthly rest
 basis.
 
 v.  INVESTMENTS
 
 Investments are long term in nature and capitalised at cost inclusive
 of brokerage and stamp charges and adjusted for any front-end fees
 received. Premium paid on Investments are written off in the year of
 purchase. Weighted Average Cost is taken for determining the profit on
 sale of Investments.
 
 vi.  FIXED ASSETS
 
 Fixed Assets are capitalised at cost inclusive of legal and/or
 installation expenses.
 
 vii.  DEPRECIATION
 
 Depreciation is calculated on the Written Down Value Method as per the
 useful life, in the manner prescribed in Schedule II to the Companies
 Act, 2013.
 
 viii. EMPLOYEE BENEFITS
 
 The Provision towards Gratuity, Compensated Absence, Exempt Provident
 Fund, Leave Fare Concession and Sick Leave are made based on the
 actuarial valuation as at the end of the year and charged to the Profit
 & Loss Account along with actuarial gains/losses.
 
 ix.  TAXATION
 
 Tax expense comprises Current and Deferred Taxes. Provision for Current
 Taxes is measured at amount expected to be paid to the tax authorities
 in accordance with the Indian Income Tax Act, 1961 on the basis of
 estimated taxable income for the current accounting period. Deferred
 Income Taxes resulting from timing difference between book and taxable
 profit is accounted for using the rates and laws that have been enacted
 or substantially enacted as at the Balance Sheet date. The Deferred Tax
 Asset is recognised and carried forward only to the extent that there
 is a future taxable income.
 
 x. ACCOUNTING OF BORROWING EXPENSES
 
 Expenses incurred for issue of NCDs & CPs such as ROC fee, Stamp Duty
 etc., are charged to Profit & Loss Statement in the year of issue. The
 discount on CP pertaining to the period after the Balance Sheet date is
 disclosed as unamortised discount on CP.
Source :
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