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Accounting Policies of Unisys Software & Holding Industries Ltd. Company

Mar 31, 2015

Company Information

The company is incorporated on 1st October 1992 at Calcutta, West Bengal, India. It is a Public limited company by its shares. The company operates in Capital Market and Commodity Market. The activities of the company includes trading, investing in shares & other securities and other related activities of capital market as well as Commodity Market. The Company is also doing trading activities in Mobile Software popularly known as MVAS.

ACCOUNTING POLICIES

Basis of preparation of Financial Statements

These financial statements have been prepared to comply in all material aspects with applicable accounting principles in India, the applicable Accounting Standards prescribed under Section 133 of the Companies Act, 2013 ('Act') read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified) and other counting principles generally accepted in India, to the extent applicable.

All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and the time between acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current/non-current classification of assets and liabilities.

Use of Estimates

The preparation of the financial statements in conformity with the generally accepted principles requires the management to make estimates and assumptions that effect the reported amount of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities. The estimates and assumptions used in the accompanying financial statements are based upon management's evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results may differ from that estimates and assumptions used in preparing the accompanying financial statements. Any differences of actual results to such estimates are recognized in the period in which the results are known / materialized.

Cash Flow Statement

Cash flow statement has been prepared in accordance with the "indirect method" as explained in the AS-3 issued by the Institute of Chartered Accountants of India.

Fixed Assets

Tangible assets are stated at acquisition cost, net of accumulated depreciation and accumulated impairment losses, if any. Subsequent expenditures related to an item of tangible asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

Items of fixed assets that have been retired from active use and are held for disposal are stated at the lower of their book value and net realisable value and are shown separately in the financial statements under Other Current Assets. Losses arising from the retirement of, and gains or losses arising from disposal of fixed assets which are carried at cost are recognised in the profit and loss account.

Depreciation and Amortisation of Tangible Assets :

Depreciation on tangible assets is calculated on a pro-rata basis on the Written Down Value Method at the rates

prescribed under Schedule II to the Companies Act, 2013 with the exception of the following:- i. assets costing Rs. 5,000/- or less are fully depreciated in the year of purchase.

Intangible Assets & Amortisation

Intangibles assets are stated at cost less accumulated amortisation. Intangibles assets are stated at cost less accumulated amortisation. Intangible assets are amortized on a straight line basis over the estimated useful economic life. The Company uses a rebuttable presumption that the useful life of an intangible asset will not exceed ten years from the date when the asset is available for use. All intangible assets are assessed for impairment whenever there is an indication that the intangible asset may be impaired.

Revenue Recognition

Revenue is recognized to the extent it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized

a) Revenue from sales is recognized when significant risk and rewards in respect of ownership of the products are transferred, recovery of the consideration in reasonably certain. Revenue from sale of goods includes excise duty, sales tax and is net of returns.

b) Revenue from sales is recognized on dispatch of products from the Company's Office / Shop / Godown and in case of consignment sale, on further sale made by the agents.

c) Profit / loss earned on sale of investment/inventories are recognised on trade date basis. Profit/Loss on sale of Investment/inventories is determined on basis of FIFO cost of the investment sold.

Other Income Recognition

Interest on investments and Loans and Advances is booked on a time proportion basis taking into account the amounts invested or loan given and the rate of interest.

Dividend income is recognized when the right to receive payment is established.

Foreign Currency Transactions :

Foreign currency transactions are recorded in the books at exchange rates prevailing on the date of the transaction. Exchange differences arising on foreign exchange transactions settled during the period are recognized as income or expense in the profit and loss account of the same period.

Foreign currency assets and liabilities are translated at the period end rates and the resultant exchange differences, are recognized in the profit and loss account.

Borrowing Cost :

Borrowing Costs that are directly attributable to the acquisition or construction of qualifying assets are capitalized as the cost of the respective assets until the time all subs activities necessary to prepare the qualifying assets intended use are complete. Other Borrowing Costs are charged to the Profit and Loss Account in the period in which they are incurred.

Retirement and other Employees benefits :

All employee benefit obligations payable wholly within twelve months of the rendering the services are classified as Short Term Employee Benefits. Such Benefits are estimated and provided for in the period in which the employee renders the related service.

Post Employment Benefits

1. P.F. and E.S.I.C Scheme is not applicable to the company.

2. Gratuity is accounted when an employee works for more the 6 months.

Inventories

Inventories are measured at lower of the cost and net realizable value. Cost of inventories comprises all costs of purchase (net of input credit) and other costs incurred in bringing the inventories to their present location and condition. Costs of consumable and trading products are determined by using the First-In First-Out Method (FIFO).

Investments

Current investments are stated at the lower of cost and fair value. Long-term investments are stated at cost. A provision for diminution is made to recognise a decline, other than temporary, in the value of long-term investments. Investments are classified into current and long-term investments.

Investments that are readily realisable and are intended to be held for not more than one year from the date, on which such investments are made, are classified as current investments. All other investments are classified as non-current investments.

Cash & Cash Equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into cash and have original maturities of three months or less from the date of purchase, to be cash equivalents.

Impairment of Assets

The Company assesses at each balance sheet date whether there is any indication that an assets may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or recoverable amount of the cash generating unit to which the assets belongs is less than the carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as impairment loss and is recognized in the profit and loss account. If at the balance date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the assets is reflected at the recoverable amount.

Taxes on Income

Provision for current Income Tax is made on the taxable income using the applicable tax rates and tax laws. Deferred tax assets or liabilities arising on account of timing differences between book and tax profits, which are capable of reversal in one or more subsequent years is recognized using tax rate and tax laws that have been enacted or subsequently enacted. Deferred tax asset in respect of unabsorbed depreciation and carry forward losses are not recognized unless there is sufficient assurance that there will be sufficient future taxable income available to realize such losses.

Earnings per Share

Basic earnings per share is calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

Stock In Trade

Shares are valued at cost or market value, whichever is lower. The comparison of Cost and Market value is done separately for each category of Shares.

Contingent Liabilities & provisions

A provision is recognised when there is a present obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. Provision is not discounted to its present value and is determined based on the best estimate required to settle the obligation at the yearend date.

These are reviewed at each year end date and adjusted to reflect the best current estimate.


Mar 31, 2014

General

Basis of Preparation of Financial Statements

1. The Financial Statements are prepared on mercantile basis under the historical cost convention in accordance with the generally accepted accounting principles in India, Accounting Standards notified under section 211(3C) of the Companies Act 1956, read with the Companies (Accounting Standard) Rules, 2006 and the other relevant provisions of the Companies Act, 1956.

FixedAssets

2. All Fixed Assets are stated at Cost less accumulated Depreciation. Costs include purchase price and all other attributable costs of bringing the assets to working condition for intended use.

Depreciation

3. Depreciation on all assets is charged proportionately from the date of acquisition/installation on written down value method at rates prescribed in Schedule XIV of the Companies Act, 1956. Assets costing less than Rs. 5000/- individually have been fully depreciated in the year of purchase.

Investments

4. Stock/Securities acquired and intended to be held for a longer period are classified as Investments.

5. Investments are valued at cost of acquisition with the provision where necessary for diminution, other than temporary, in the value of investments.

Revenue Recognition

7. Income is accounted on accrual basis except Dividend.

Retirement Benefit

8. None of the Employee has completed the service period to become eligible for payment of gratuity.

Income Tax

9. Provision for taxes comprising of current tax is measured in accordance with Accounting Standard 22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India.

10. Tax expenses comprise of current and deferred tax.

11. Provision for current income tax and fringe benefit tax is made on the basis of relevant provisions of Income Tax Act, 1961 as applicable to the financial year.

12. Deferred Tax is recognized subject to the consideration of prudence on timing differences, being the difference between taxable Income and Accounting Income that originate in one period and are capable of reversal in one or more subsequent periods.

Provisions, Contingent Liabilities & Contingent Assets

Disclosures in terms of Accounting Standards (AS 29) Provisions, Contingent Liabilities and Contingent Assets issued by the Institute of Chartered Accountants of India:-

13. The Company creates a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation.

14. A disclosure for a contingent liability is made when there is a possible obligation or present obligation that probably will not require an outflow of resources or where reliable estimate of the amount of the obligation cannot be made.

15. Contingent Assets are neither recognized nor disclosed.

NBFC Companies

16. Information as required in terms of paragraph 13 of Non Banking Financial (Non Deposit accepting or holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 is given in separate annexure.

Others

17. None of the Raw Materials, Stores, Spares and Components consumed or purchased during the year have been imported.

18. None of the Earnings / Expenditures is in Foreign Currency.

19. Balance of Debtors, Creditors, Deposits, Loans and Advances are subject to confirmation.

20. In the opinion of the Board, the Current Assets, Loans & Advances are approximately of the value stated if realized in the ordinary course of business. The provision for depreciation and all known liabilities are adequate and not in excess of the amounts reasonably necessary.

21. Investments of the Company have been considered by the management to be of a long term nature and hence they are long term investments and are valued at cost of acquisitions.

Segment Report

22. Segment reporting as defined in Accounting Standard 17 as the Company was primarily engaged in the business of Software and hardware and Mobile phones trading. (Segment Report as under)-

Rs. in Lac

1. Segment Revenue

Sale of Software & Hardware/Mobile 38538.18

Investment Activities 45.18

Other Operational Activities 150.00

Total - 38733.36

2. Segment Profit

Sale of Software & Hardware/Mobile 55.00

Investment Activities (123.53)

Other Unallocated Activities 150.00

Total - 81.47

3. Capital Employed

Software & Hardware/Mobile 3793.90

Investment Activities 29385.73

Other Unallocated Activities 135.35

Total - 33314.98


Mar 31, 2013

General

Basis of Preparation of Financial Statements

1. The Financial Statements are prepared on mercantile basis under the historical cost convention in accordance with the generally accepted accounting principles in India, Accounting Standards notified under section 211(3C) of the Companies Act 1956, read with the Companies (Accounting Standard) Rules, 2006 and the other relevant provisions of the Companies Act, 1956.

Fixed Assets

2. All Fixed Assets are stated at Cost less accumulated Depreciation. Costs include purchase price and all other attributable costs of bringing the assets to working condition for intended use.

Depreciation

3. epreciation on all assets is charged proportionately from the date of acquisition/ installation on written down value method at rates prescribed in Schedule XIV of the Companies Act, 1956. Assets costing less than Rs. 5000/- individually have been fully depreciated in the year of purchase.

Investments

4. Stock/Securities acquired and intended to be held for a longer period are classified as Investments.

5. Investments are valued at cost of acquisition with the provision where necessary for diminution, other than temporary, in the value of investments.

Revenue Recognition

6. Income is accounted on accrual basis except Dividend.

Retirement Benefit

7. None of the Employee has completed the service period to become eligible for payment of gratuity.

Income Tax

8. Provision for taxes comprising of current tax is measured in accordance with Accounting Standard 22- "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India.

9. Tax expenses comprise of current and deferred tax.

10. Provision for current income tax and fringe benefit tax is made on the basis of relevant provisions of Income Tax Act, 1961 as applicable to the financial year.

11. Deferred Tax is recognized subject to the consideration of prudence on timing differences, being the difference between taxable Income and Accounting Income that originate in one period and are capable of reversal in one or more subsequent periods.

Provisions, Contingent Liabilities & Contingent Assets

Disclosures in terms of Accounting Standards (AS 29) Provisions, Contingent Liabilities and

Contingent Assets issued by the Institute of Chartered Accountants of India :-

12. The Company creates a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation.

13. A disclosure for a contingent liability is made when there is a possible obligation or present obligation that probably will not require an outflow of resources or where reliable estimate of the amount of the obligation cannot be made.

14. Contingent Assets are neither recognized nor disclosed.

NBFC Companies

15. Information as required in terms of paragraph 13 of Non Banking Financial (Non Deposit accepting or holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 is given in separate annexure.

Others

16. None of the Raw Materials, Stores, Spares and Components consumed or purchased during the year have been imported.

17. None of the Earnings / Expenditures is in Foreign Currency.

18. Balance of Debtors, Creditors, Deposits, Loans and Advances are subject to confirmation.

19. In the opinion of the Board, the Current Assets, Loans & Advances are approximately of the value stated if realized in the ordinary course of business. The provision for depreciation and all known liabilities are adequate and not in excess of the amounts reasonably necessary.

20. Investments of the Company have been considered by the management to be of a long term nature and hence they are long term investments and are valued at cost of acquisitions.

Segment Report

21. Segment reporting as defined in Accounting Standard 17 as the Company was primarily engaged in the business of Software and hardware and Mobile phones trading. (Segment Report as under)-


Mar 31, 2012

Basis of Preparation of Financial Statements

1. The Financial Statements are prepared on mercantile basis under the historical cost convention in accordance with the generally accepted accounting principles in India, Accounting Standards notified under section 211(3C) of the Companies Act 1956, read with the Companies (Accounting Standard) Rules, 2006 and the other relevant provisions of the Companies Act, 1956.

Fixed Assets

2. All Fixed Assets are stated at Cost less accumulated Depreciation. Costs include purchase price and all other attributable costs of bringing the assets to working condition for intended use.

Depreciation

3. Depreciation on all assets is charged proportionately from the date of acquisition/installation on written down value method at rates prescribed in Schedule XIV of the Companies Act, 1956. Assets costing less than Rs. 5000/- individually have been fully depreciated in the year of purchase.

Investments

4. Stock/Securities acquired and intended to be held for a longer period are classified as Investments.

5. Investments are valued at cost of acquisition with the provision where necessary for diminution, other than temporary, in the value of investments.

Revenue Recognition

6. Income is accounted on accrual basis except Dividend. Retirement Benefit

7. None of the Employee has completed the service period to become eligible for payment of gratuity.

Income Tax

8. Provision for taxes comprising of current tax is measured in accordance with Accounting Standard 22- "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India.

9. Tax expenses comprise of current and deferred tax.

10. Provision for current income tax and fringe benefit tax is made on the basis of relevant provisions of Income Tax Act, 1961 as applicable to the financial year.

11. Deferred Tax is recognized subject to the consideration of prudence on timing differences, being the difference between taxable Income and Accounting Income that originate in one period and are capable of reversal in one or more subsequent periods.


Mar 31, 2011

GENERAL

Basis of Preparation of Financial Statements

1. The Financial Statements are prepared on mercantile basis under the historical cost convention in accordance with the generally accepted accounting principles in India, Accounting Standards notified under section 211(3C) of the Companies Act 1956, read with the Companies (Accounting Standard) Rules, 2006 and the other relevant provisions of the Companies Act, 1956.

Fixed Assets

2. All Fixed Assets are stated at Cost less accumulated Depreciation. Costs include purchase price and all other attributable costs of bringing the assets to working condition for intended use.

Depreciation

3. Depreciation on all assets is charged proportionately from the date of acquisition/ installation on written down value method at rates prescribed in Schedule XIV of the Companies Act, 1956. Assets costing less than Rs. 5000/- individually have been fully depreciated in the year of purchase.

Investments

4. Stock/Securities acquired and intended to be held for a longer period are classified as Investments.

5. Investments are valued at cost of acquisition with the provision where necessary for diminution, other than temporary, in the value of investments.

Revenue Recognition

6. Income is accounted on accrual basis except Dividend.

Retirement Benefit

7. None of the Employee has completed the service period to become eligible for payment of gratuity.

Income Tax

8. Provision for taxes comprising of current tax is measured in accordance with Accounting Standard 22- "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India.

9. Tax expenses comprise of current and deferred tax.

10. Provision for current income tax and fringe benefit tax is made on the basis of relevant provisions of Income Tax Act, 1961 as applicable to the financial year.

11. Deferred Tax is recognized subject to the consideration of prudence on timing differences, being the difference between taxable Income and Accounting Income that originate in one period and are capable of reversal in one or more subsequent periods.

Provisions, Contingent Liabilities & Contingent Assets

Disclosures in terms of Accounting Standards (AS 29) Provisions, Contingent Liabilities and Contingent Assets issued by the Institute of Chartered Accountants of India :- 12. The Company creates a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation.

13. A disclosure for a contingent liability is made when there is a possible obligation or present obligation that probably will not require an outflow of resources or where reliable estimate of the amount of the obligation cannot be made.

14. Contingent Assets are neither recognized nor disclosed.

NBFC Companies

15. Information as required in terms of paragraph 13 of Non Banking Financial (Non Deposit accepting or holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 is given in separate annexure.

Others

16. None of the Raw Materials, Stores, Spares and Components consumed or purchased during the year have been imported.

17. None of the Earnings / Expenditures is in Foreign Currency.

18. Balance of Debtors, Creditors, Deposits, Loans and Advances are subject to confirmation.

19. In the opinion of the Board, the Current Assets, Loans & Advances are approximately of the value stated if realized in the ordinary course of business. The provision for depreciation and all known liabilities are adequate and not in excess of the amounts reasonably necessary.

20. Investments of the Company have been considered by the management to be of a long term nature and hence they are long term investments and are valued at cost of acquisitions.

Segment Report

21. Segment reporting as defined in Accounting Standard 17 as the Company was primarily engaged in the business of Software and hardware and Mobile phones trading. (Segment Report as under).












Mar 31, 2010

Basis of Preparation of Financial Statements

1. The Financial Statements are prepared on mercantile basis under the historical cost convention in accordance with the generally accepted accounting principles in India, Accounting Standards notified under section 211(3C) of the Companies Act 1956, read with the Companies (Accounting Standard) Rules, 2006 and the other relevant provisions of the Companies Act, 1956.

Fixed Assets

2. Fixed Assets are stated at cost less Depreciation, cost comprises of the purchases price and other attributable costs. Depreciation on assets is provided on written down value method as per rates prescribed in Schedule XIV to the Companies Act 1956.

Depreciation

3. No Depreciation has been provided during the year due to lack of any Fixed Assets with the Company.

Inventories

4. Inventories of Work-in-Progress, Raw Materials, Stores and Spares and Finished Goods are valued at cost and the same is done on FIFO basis. Stock of Shares is valued at cost.

Investments

5. Stock / Securities acquired and intended to be held for a longer period are classified as Investments.

6. Investments are valued at cost of acquisition with the provision where necessary for diminution, other than temporary, in the value of investments.

Revenue Recognition

7. Income is accounted on accrual basis except Dividend.

Retirement Benefit

8. None of the Employee has completed the service period to become eligible for payment of gratuity.

Income Tax

9. Tax expenses comprise of current, deferred and fringe benefit tax.

10. Provision for current income tax and fringe benefit tax is made on the basis of relevant provisions of Income Tax Act, 1961 as applicable to the financial year.

11. Deferred Tax is recognized subject to the consideration of prudence on timing differences, being the difference between taxable Income and Accounting Income that originate in one period and are capable of reversal in one or more subsequent periods.

Provisions, Contingent Liabilities & Contingent Assets

12. The Company creates a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation.

13. A disclosure for a contingent liability is made when there is a possible obligation or present obligation that probably will not require an outflow of resources or where reliable estimate of the amount of the obligation cannot be made.

14. Contingent Assets are neither recognized nor disclosed.

 
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