Accounting Policies of IMC Finance Ltd. Company

Mar 31, 2013

(i) Basis of Preparation of Financial Statements

The accompanying financial statements are prepared in accordance with Generally Accepted Accounting Principles and provisions of the Companies Act, 1956 under the historical cost convention on the accrual basis of accounting. The accounting policies have been consistently applied by the company unless otherwise stated.

(ii) Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosures of contingent liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates and the differences between actual results and estimates are recognized in the periods in which the results are known / materialize.

(iii) Revenue Recognition:

(a) The company recognizes income on an accrual basis.

(b) The Company follows prudential norms for income recognition and provisioning for non-performing assets as prescribed by Reserve Bank of India for non-banking financial companies

(c) Dividend:

Dividend including interim are accounted for when declared.

(iv) Fixed assets and depreciation:

(a) Fixed assets are carried at cost of acquisition less accumulated depreciation.

(b) The Company has provided depreciation on written down value method at the rates prescribed by schedule XIV to the Companies Act, 1956 as amended from time to time.

(v) Investments:

Investments are capitalized at cost of acquisition plus incidental expenses and are classified into two categories viz. Current and long term. Provision for diminution in the value of investments is made in accordance with the prudential norms issued by the Reserve Bank of India and Accounting Standards 13 issued by the Institute of Chartered Accountants of India.

(vi) Taxation:

Provision for taxation has been made in accordance with the income tax laws prevailing for the relevant assessment years.

(vii) Deferred Taxation:

Deferred tax resulting from timing differences between book and tax profits is accounted for under the liability method, at the tax rates that have been enacted or substantively enacted after the balance sheet date, to the extent that the timing differences are expected to crystalize as deferred tax charge/benefit in the statement of profit and loss and as deferred tax asset/liabilities in the Balance Sheet. ,

(viii) Minimum Alternative Tax (MAT) Credit Entitlement MAT Credit is recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period. In the year in which MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in Guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the statement of profit and loss and shown as MAT Credit Entitlement. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal income tax during the specified period.

(ix) Contingencies and Events Occurring After The Balance Sheet Date:

Events occurring after the date of the Balance Sheet, which provide further evidence of conditions that existed at the Balance Sheet date or that arose subsequently, are considered upto the date of approval of accounts by the Board of Directors, where material.

(x) Provisions, Contingent Liabilities & Contingent Assets

A provision is recognized when an enterprise has a present obligation as a result of past event(s) and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation(s), in respect of which a reliable estimate can be made for the amount of obligation. Contingent liabilities, if material, are disclosed by way of notes, contingent assets are not recognized or disclosed in the financial statements.

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Mar 31, 2011

(i) Basis of Preparation of Financial Statements

The accompanying financial statements are prepared in accordance with Generally Accepted Accounting Principles and provisions of the Companies Act, 1956 under the historical cost convention on the accrual basis of accounting. The accounting policies have been consistently applied by the company unless otherwise stated.

(ii) Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosures of contingent liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates and the differences between actual results and estimates are recognised in the periods in which the results are known7 materialize.

(iii) Revenue Recognition:

(a) The company recognises income on an accrual basis.

(b) The Company follows prudential norms for income recognition and provisioning for non-performing assets as prescribed by Reserve Bank of India for non-banking financial companies.

(c) Dividend:

Dividend including interim are accounted for when declared.

(iv) Fixed assets and depreciation:

(a) Fixed assets are carried at cost of acquisition less accumulated depreciation.

(b) The Company has provided depreciation on written down value method at the rates prescribed by schedule XIV to the Companies Act, 1956 as amended from time to time.

(v) Investments:

Investments are capitalised at cost of acquisition plus incidental expenses and are classified into two categories viz. Current and long term. Provision for diminution in the value of investments is made in accordance with the prudential norms issued by the Reserve Bank of India and Accounting Standards 13 issued by the Institute of Chartered Accountants of India.

(vi) Taxation:

Provision for taxation has been made in accordance with the income tax laws prevailing for the relevant assessment years.

(vii) Deferred Taxation:

Deferred tax resulting from timing differences between book and tax profits is accounted for under the liability method, at the tax rates that have been enacted or substantively enacted after the balance sheet date, to the extent that the timing differences are expected to crystalise as deferred tax charge/benefit in the profit and loss account and as deferred tax asset/liabilities in the Balance Sheet.

(viii) Minimum Alternative Tax (MAT) Credit Entitlement

MAT Credit is recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period. In the year in which MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in Guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the profit and loss account and shown as MAT Credit Entitlement. The Company reviews the same at each balance sheet date and writes down the carrying appropriate Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal income tax during the specified period.

(ix) Contingencies and Events Occurring After The Balance Sheet Date:

Events occurring after the date of the Balance Sheet, which provide further evidence of conditions that existed at the Balance Sheet date or that arose subsequently, are considered up to the date of approval of accounts by the Board of Directors, where material.

(x) Provisions, Contingent Liabilities & Contingent Assets

A provision is recognized when an enterprise has a present obligation as a result of past event(s) and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation(s), in respect of which a reliable estimate can be made f6TThe"amount of obligation. Contingent liabilities, if material, are disclosed by way of notes, contingent assets are not recognized or disclosed in the financial statements.

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Mar 31, 2009

(i) Basis of Preparation of Financial Statements

The accompanying financial statements are prepared in accordance with Generally Accepted Accounting Principles and provisions of the Companies Act, 1956 under the historical cost convention on the accrual basis of accounting. The accounting policies have been consistently applied by the company unless otherwise stated.

(ii) Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosures of contingent liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates and the differences between actual results and estimates are recognised in the periods in which the results are known / materialize.

(iii) Revenue RecoRnition:

(a) The company recognises income on an accrual basis.

(b) The Company follows prudential norms for income recognition and provisioning for non-performing assets as prescribed by Reserve Bank of India for non-banking financial companies.

(c) Dividend:

Dividend including interim are accounted for when declared.

(iv) Fixed assets and depreciation:

(a) Fixed assets are carried at cost of acquisition less accumulated depreciation.

(b) The Company has provided depreciation on written down value method at the rates prescribed by schedule XIV to the Companies Act, 1956 as amended from time to time.

(v) Investments:

Investments are capitalised at cost of acquisition plus im idental expenses and are classified into two categories viz. Current and long term. Provision for diminution in the value of investments is made in accordance with the prudential norms issued by the Reserve Bank of India and Accounting Standards 13 issued by the Institute of Chartered Accountants of India.

(vi) Taxation:

Provision for taxation has been made in accordance with the income tax laws prevailing for the relevant assessment years.

(vii) Deferred Taxation:

Deferred tax resulting from timing differences between book and tax profits is accounted for under the liability method, at the tax rates that have been enacted or substantively enacted after the balance sheet date, to the extent that the timing differences are expected to crystalise as deferred tax charge/benefit in the profit and loss account and as deferred tax asset/liabilities in the Balance Sheet.

(vii) Contingencies and Events Occurring After The Balance Sheet Date:

Events occurring after the date of the Balance Sheet, which provide further evidence of conditions that existed at the Balance Sheet date or that arose subsequently, are considered upto the date of approval of accounts by the Board of Directors, where material.

(viii) Provisions, Contingent Liabilities & Contingent Assets

A provision is recognized when an enterprise has a present obligation as a result of past event(s) and it is probable that an outflow of resources = embodying economic benefits will be required to settle the obligation(s), in- respect of which a reliable estimate can be made for the amount of; obligation. Contingent liabilities, if material, are disclosed byway of notes, contingent assets are not recognized or disclosed in the financial statements.