Mas Financial Services Ltd.
You can view the entire text of Accounting Policy of the company for the latest year.
ISIN No INE348L01012 52Wk High (Rs.) 657 BV (Rs.) 131.69 FV (Rs.) 10.00
Bookclosure 23/11/2018 52Wk Low (Rs.) 368 EPS (Rs.) 19.17 P/E (X) 28.67
Mkt Cap. (Rs. Cr.) 3,005.05 P/BV (X) 4.17 Div Yield (%) 0.67 Mkt Lot 1

The financial statements are prepared under the historical cost convention on accrual basis B. USE OF ESTIMATES :

The preparation of financial statements, in conformity with the generally accepted accounting principles requires that the management makes estimates and assumptions that affect the reported amounts of assets and Liabilities, disclosure of contingent liabilities as at the date of financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Differences between the actual results and the estimates are recognised prospectively in current and future periods in which the results are known/ materialised.


Fixed assets are stated at cost of acquisition inclusive of incidental expenses leis accumulated depreciation/amortisation.


Depreciation on tangible fixed assets is provided as per Straight Line Method, at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956 Assets costing less than Rs.5000 are fully depreciated in the year of acquisition.

Intangible assets (Computer Software) are amortised equally over a period of five years from the date of acquisition.'


At the Balance sheet date, an assessment is done to determine whether there is any indication of a material impairment in the carrying amount of the Company's fixed assets. If any such indication exists, the asset's recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount.


Long-term investments are stated at cost. A provision for diminution is made to recognize a decline, other than temporary, in the value of long term investments.

Current investments are stated at the lower of cost and fair value determined on an individual investment basis.


Subsidies related to depreciable fixed assets are treated as deferred income which is allocated to income over the periods and in the proportions in which depreciation on those assets is charged. The deferred income balance is separately disclosed in the financial statements as "Deferred Subsidy".



The Company follows accrual basis of accounting for its income and expenditure except income on assets classified as non-performing assets, which in accordance with the guidelines issued by the Reserve Bank of India for Non-Banking Finance Companies, is recognized on receipt basis.

Other income is mainly accounted on accrual basis, except in case of significant uncertainties.

Income from Loans:

Interest income on loan transactions is accounted for over the period of the contract by applying the interest rate implicit in such contracts.

Service charges and documentation charges are booked at the commencement of the contract.

Income from Assignment

In case of assignment of receivables the assets are derecognized as all the rights, titles, future receivables and interest thereof are assigned to the purchaser. On de-recognition, the difference between the book value of the receivables assigned and consideration received as reduced by the estimated provision for loss/expenses and incidental expenses related to the transaction is recognized as gain or loss arising on assignment.

Income from Investments

Dividend from investments is accounted for as income when the right to receive dividend is established.

Interest income is accounted for on accrual basis.


The value of advances under loan cum hypothecation agreements is arrived at by reducing installments received/due from the value of the assets.


Value of advances under loan cum hypothecation agreements includes the value of repossessed assets. The value of repossessed assets is arrived at by deducting the estimated loss on realisation. The estimation of loss on realization is done based on past track record of loss on sale of such assets.


(i) Defined contribution plans

The Company's contributions under defined contribution schemes such as Provident Fund and Employee's State Insurance are charged to Profit & Loss Account as incurred.

(ii) Defined benefit plans

The Company's liability towards gratuity is determined using the projected unit credit method which considers each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately to build up the final obligation. Actuarial gains and losses are recognised immediately in the statement of profit and loss as income or expense. Obligation is measured at the present value of estimated future cash flow using a discount rate that is determined by reference to market yields at the Balance Sheet date on government bonds where the currency and terms of the government bonds are consistent with the currency and estimated terms of the defined benefit obligations. The liability is provided for on the basis of valuation done by an independent actuary.

(iii) The Company's liability on account of leave to employees is recognised as an expense at the undiscounted amount in the profit and loss account of the year in which the related service is rendered.


The company assigns Micro Loans and Auto Loans under assignment transactions. The assigned loans are derecognized and gains/losses are recorded on assignment of loan contracts. Recourse obligations with respect to Debt Assignment and Microfinance arrangement with other financiers are provided in books as per past track record of delinquency/servicing of the loans of the company.


Income tax expense for the year comprises of current tax and deferred tax charge or credit.

Provision for current tax is determined in accordance with the provisions of the Income Tax Act, 1961 prevailing for the relevant assessment years.

Deferred tax resulting from "timing differences" between book and taxable profit is accounted for using the tax rates and laws that have been substantively enacted as on the balance sheet date. Deferred tax assets are recognized and carried forward only to the extent that there is a reasonable certainty that the asset can be realised in future.


A provision is recognised when the Company has a present obligation as a result of past events, for which it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made. Provisions are reviewed regularly and are adjusted where necessary to reflect the current best estimate of the obligation.

A disclosure for contingent liabilities is made where there is a possible obligation or a present obligation that probably will not require an outflow of resources. When there is a possible or a present obligation for which the likelihood of outflow of resources is remote, no provision or disclosure is made.

Contingent assets are neither recognized nor disclosed in the financial statements.