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Moneycontrol.com India | Accounting Policy > Finance - Leasing & Hire Purchase > Accounting Policy followed by Mahan Industries - BSE: 531515, NSE: N.A
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Mahan Industries
BSE: 531515|ISIN: INE735D01033|SECTOR: Finance - Leasing & Hire Purchase
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Mahan Industries is not listed on NSE
« Mar 08
Accounting Policy Year : Mar '09
a.  Basis of Preparation
 
 The financial statements have been prepared to company in all material
 respects with the Notified accounting standards by Companies Accounting
 Standards Rules,2006 and the relevant provision of the Companies Act,
 1956, The financial statements have been prepared under the historical
 cost convention on accrual basis.
 
 The accounting policies have been consistently applied by the Company
 and except for the change in accounting policy discussed more fully
 below are consistent with those used in the previous year.
 
 b.  Use of estimates
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires management to make estimates
 and assumptions that affect the reported amounts of assets and
 liabilities and disclosure of contingent liabilities at the date of the
 financial statements and the results of operations during the reporting
 period ended. Although these estimates are based upon managements best
 knowledge of current events and actions, actual results could differ
 from these estimates.
 
 c.  Revenue and Expenditure Recognition: Income is recognized as under:
 
 i.  Project consultancy and other activities:
 
 Income recognized upon completion of stages as per contracts.  ii.  It
 is general policy of Company to account for all expenditure on accrual
 basis.
 
 d.  Fixed Assets and Depreciation:
 
 i.  Fixed Assets are capitalized at cost inclusive of installation
 expenses. Fixed Assets are shown at cost less accumulated depreciation.
 
 ii.  Depreciation has been charged by straight line method (SLM) at the
 rates prescribed in schedule XIV to the Companies Act, 1956 on pro-rata
 basis.
 
 e.  Investments:
 
 a) Quoted Shares is delisted so taken value of Rs. l/-and Un-quoted
 securities are valued at cost.
 
 b) Income from dividends recognized upon receipt and the gains at the
 time of sale of investments.  Interests from inter corporate deposit
 recognized on accrual basis. Securities purchased cum inter- est shown
 at cost on balance sheet date after reducing interest accrued there on
 from the purchase consideration.
 
 Long-term investments are carried at cost. Provision for diminution, if
 any, in the value of each long- term investment is made to recognize a
 decline, other than of a temporary nature.
 
 f.  Valuation of stocks in trade:
 
 a) Stock in trade of quoted Scripts are taken at year end and closing
 market rate or cost whichever is lower.
 
 g.  Deferred Tax:
 
 The effect at end of the year consequent to compliance with Accounting
 Standard 22Accounting for Taxes on Income  result in deferred tax
 asset & the same has been not recognized as there is not virtual
 certainly to support that sufficient future taxable income will be
 available against such deferred tax assets.
 
 h.  Segment Reporting:
 
 During the current year the company has dealt in shares hence the
 segment information required under segment reporting is not furnished.
 
Source : Dion Global Solutions Limited
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