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Accounting Policies of USG Tech Solutions Ltd. Company

Mar 31, 2015

A. Basis of Preparation of Financial Statements

The financial statements have been prepared under historical cost convention in accordance with Indian Generally Accepted Accounting Principles on a going concern on accrual basis and the rele- vant provisions of the Companies Act, 2013.

b. Grouping / Regrouping

Previous year figures have been regrouped / reclassified wherever necessary so as to make com- parable to figure of current year presentation. The figures in bracket represent corresponding fig- ures of the previous year.

c. Fixed Assets

Fixed Assets are stated at cost of acquisition less accumulated depreciation, recoverable taxes and impairment loss, if any.

d. Depreciation and Amortisation

Depreciation has been calculated on fixed assets on their written down value method in accor- dance with section 205 of the Companies Act, 2013 at the rates specified in Schedule XIV of the Companies Act 2013. The company follows the policy of charging depreciation on pro-rata basis on the assets acquired or disposed off during the year. There is no change in the method of providing depreciation as compared to previous year.

e. Impairment of Assets

An assets is treated as impaired when the carrying cost of fixed assets exceeds its recoverable val- ue. The company on an annual basis makes an assessment of any indicator that may lead to im- pairment of assets. If any such indication exists, the company estimates the recoverable amount of such assets. If such recoverable amount is less than the carrying amount, then the carrying amount is reduced to its recoverable amount by treating the difference between them as impairment loss and is charged to Profit and Loss Account.

f. Investments

Investments are shown at acquisition cost, if any.

g. Inventories

The Inventory is valued at lower of cost price and realisable value after providing for obsolescence, if any.

h. Trade Receivable, Trade Payables and Loans and Advances

Sundry Debtors, Creditors and Loans and advances are subject to confirmation.

i. Realisation value of Current Assets

In the opinion of the Management, value of all the current assets including loans and advances, if realised in the normal course shall not be less than the value stated in Balance Sheet.

j. Revenue Recognition

a] Services: Revenue from rendering of services is recognized on the date on which the invoice is raised to customers.

b] Products: Revenue from sale of products is recognized at a point of despatch of finished prod- ucts to customers.

k. Borrowing Cost

There is no borrowing Cost which is attributable to acquisition of any assets.

l. Foreign Currency Transactions

There are no foreign currency transactions.

m. Provision for Current and Deferred Income Taxes

a] Income Tax: - Provision for current tax for the year is based on computations after considering rebates, relief and exemptions under the Income TaxAct, 1961 applicable to the company.

b] Deferred Tax: - Deferred tax assets and liabilities are recognised for future consequences at- tributable to the time difference that result between the profit offered for income tax and the profit as per financial statement of the company. Deferred tax assets and liabilities are meas- ured as per the tax rates / laws that have been enacted or substantively enacted by the Balance Sheet. Deferred tax assets and liabilities are reassessed for the appropriateness of their respec- tive carrying amount at each balance sheet.

n. Any other policy

Any other policy matter which is not specifically mentioned herein is as per generally accepted ac- counting principles and standards.


Mar 31, 2014

A. Basis of Preparation of Financial Statements

The financial statements have been prepared under historical cost convention in accordance with Indian Generally Accepted Accounting Principles on a going concern on accrual basis and the relevant provisions of the Companies Act, 1956.

b. Grouping / Regrouping

Previous year figures have been regrouped / reclassified wherever necessary so as to make comparable to figure of current year presentation. The figures in bracket represent corresponding figures of the previous year.

c. Owned Tangible Fixed Assets and Intangible Assets under Development

Fixed Assets are stated at cost of acquisition less accumulated depreciation, recoverable taxes and impairment loss, if any. An intangible asset under developments is shown on actual payment basis.

d. Intangible Assets under Development

An intangible asset under developments are shown on actual payment basis which are carried forward from previous year i.e. Rs. 17630376/-

e. Depreciation and Amortisation

Depreciation has been calculated on fixed assets on their written down value method in accordance with section 205 of the Companies Act, 1956 at the rates specified in Schedule XIV of the Companies Act 1956. The company follows the policy of charging depreciation on pro-rata basis on the assets acquired or disposed off during the year. There is no change in the method of providing depreciation as compared to previous year.

f. Impairment of Assets

An assets is treated as impaired when the carrying cost of fixed assets exceeds its recoverable value. The company on an annual basis makes an assessment of any indicator that may lead to impairment of assets. If any such indication exists, the company estimates the recoverable amount of such assets. If such recoverable amount is less than the carrying amount, then the carrying amount is reduced to its recoverable amount by treating the difference between them as impairment loss and is charged to Profit and Loss Account.

g. Amortization of Intangible Assets

No intangible asset has been amortized.

h. Investments

Investments are shown at acquisition cost.

i. Inventories

The Inventory is valued at lower of cost price and realisable value after providing for obsolescence, if any.

j. Trade Receivable, Trade Payables and Loans and Advances

Sundry Debtors, Creditors and Loans and advances are subject to confirmation.

k. Realisation value of Current Assets

In the opinion of the Management, value of all the current assets including loans and advances, if realised in the normal course shall not be less than the value stated in Balance Sheet.

l. Revenue Recognition

a) Services : Revenue from rendering of services is recognized on the date on which the invoice is raised to customers.

b) Products : Revenue from sale of products is recognized at a point of despatch of finished products to customers.

m. Employees Benefits:-

a) Short term employees

Short term benefits are recognised as an expense on an undiscounted basis in the Profit & Loss Account of the year in which the related it is rendered.

b) Long Term Benefit

(i) The company is not covered under Employees provident Fund to which defined contribution are made on regularly basis.

(ii) In accordance with the Payment of gratuity Act 1972, the gratuity is payable to an employees after completion of 5 years of his service in the company.

n. Provision for Gratuity and Leave Encashment

There is no employee eligible for gratuity as per Payment of Gratuity Act 1972 and therefore no provision has been made for gratuity. The company has also not made any provision for leave encashment. It is policy of the company to pay amount equivalent to value of leave balance in the employee account at the time full and final settlement of his account.

o. Borrowing Cost

Borrowing Cost which is attributable to acquisition of any assets is capitalized as a part of that asset. Other costs are recognized as an expense in the year in which they are incurred.

p. Foreign Currency Transactions

Foreign currency transactions are recorded at the exchange rate prevailing at time of transactions.

q. Provision for Current and Deferred Income Taxes

a) Income Tax :- Provision for current tax for the year is based on computations after considering rebates, relief and exemptions under the Income Tax Act, 1961 applicable to the company.

b) Deferred Tax :- Deferred tax assets and liabilities are recognised for future consequences attributable to the time difference that result between the profit offered for income tax and the profit as per financial statement of the company. Deferred tax assets and liabilities are measured as per the tax rates / laws that have been enacted or substantively enacted by the Balance Sheet. Deferred tax assets and liabilities are reassessed for the appropriateness of their respective carrying amount at each balance sheet.

r. Contingent Liabilities and Capital Commitments

The Income Tax department has set off Income tax Liability for F.Y 2008-09 against the refund and net outstanding demand as on date is Rs.198,190/-.

s. The Company was engaged in the business of Software Services and Development of Software Products and trading of Computer Hardware and Accessories. Hence the quantitative details as required under the Companies Act 1956.

t. Any other policy

Any other policy matter which is not specifically mentioned herein is as per generally accepted accounting principles and standards


Mar 31, 2012

A. Basis of Preparation of Financial Statements

The financial statements have been prepared under historical cost convention in accordance with Indian Generally Accepted Accounting Principles on a going concern on accrual basis and the relevant provisions of the Companies Act, 1956.

b. Grouping/Regrouping

Previous year figures have been regrouped/reclassified wherever necessary so as to make comparable to figure of current year presentation. The figures in bracket represent corresponding figures of the previous year.

c. Owned Tangible Fixed Assets and Intangible Issets under Development

Fixed Assets are stated at cost of acquisition less accumulated depreciation, recoverable taxes and impairment loss, if any. An intangible asset under developments is shown on actual payment basis.

d. Intangible Assets under Development

An intangible asset under developments is shown on actual payment basis. An amount of Rs. 56330376/- has been during the financial year 2011-2012 to acquire license of Credit Card Software which is under development..

e. Depreciation and Amortisation

Depreciation has been calculated on fixed assets on their written down value method in accordance with section 205 of the Companies Act, 1956 at the rates specified in Schedule XIV of the Companies Act 1956. The company follows the policy of charging depreciation on pro-rata basis on the assets acquired or disposed off during the year. There is no change in the method of providing depreciation as compared to previous year.

f. Impairment of Assets

An assets is treated as impaired when the carrying cost of fixed assets exceeds its recoverable value. The company on an annual basis makes an assessment of any indicator that may lead to impairment of assets. If any such indication exists, the company estimates the recoverable amount of such assets. If such recoverable amount is less than the carrying amount, then the carrying amount is reduced to its recoverable amount by treating the difference between them as impairment loss and is charged to Profit and Loss Account.

g. Amortization of Intangible Assets

No intangible asset has been amortized.

h. Investments

Investments are shown at acquisition cost.

i. Inventories

The Inventory is valued at lower of cost price and realisable value after providing for obsolescence, if any.

j. Trade Receivable, Trade Payables and Loans and Advances

Sundry Debtors, Creditors and Loans and advances are subject to confirmation.

k. Realisation Value of Current Assets

In the opinion of the Management, value of all the current assets including loans and advances, if realised in the normal course shall not be less than the value stated in Balance Sheet.

l. Revenue Recognition

a) Services: Revenue from rendering of services is recognized on the date on which the invoice is raised to customers.

b) Products: Revenue from sale of products is recognized at a point of despatch of finished products to customers.

m. Employees Benefits:-

a) Short term employees

Short term benefits are recognised as an expense on an undiscounted basis in the Profit & Loss Account of the year in which the related it is rendered.

b) Long Term Benefit

(i) The company is not covered under Employees provident Fund to which defined contribution are made on regularly basis.

(ii) In accordance with the Payment of gratuity Act 1972, the gratuity is payable to an employees after completion of 5 years of his service in the company.

n. Provision for Gratuity and Leave Encashment

There is no employee eligible for gratuity as per Payment of Gratuity Act 1972 and therefore no provision has been made for gratuity. The company has also not made any provision for leave encashment. It is policy of the company to pay amount equivalent to value of leave balance in the employee account at the time full and final settlement of his account.

o. Borrowing Cost

Borrowing Cost which is attributable to acquisition of any assets is capitalized as a part of that asset. Other costs are recognized as an expense in the year in which they are incurred.

p. Foreign Currency Transactions

Foreign currency transactions are recorded at the exchange rate prevailing at time of transactions.

q. Provision for Current and Deferred Income Taxes

a) Income Tax:-Provision for current tax for the year is based on computations after considering rebates, relief and exemptions under the Income Tax Act, 1961 applicable to the company.

b) Deferred Tax:-Deferred tax assets and liabilities are recognised for future consequences attributable to the time difference that result between the profit offered for income tax and the profit as per financial statement of the company. Deferred tax assets and liabilities are measured as per the tax rates/laws that have been enacted or substantively enacted by the Balance Sheet. Deferred tax assets and liabilities are reassessed for the appropriateness of their respective carrying amount at each balance sheet.

r. Contingent Liabilities and Capital Commitments

Income Tax demand for Rs. 2310837/- is pending for the Assessment Year 2005-2006. The Company has fled an appeal with the ITAT against the orders of CIT (Appeal). The order of ITAT is pending. The Income Tax department has set off this liability against the refund due for the following Assessment Years.

S.No. assessment year date of adjustment amount

1 2009-2010 30-03-2011 611258.00

2 2006-2007 23-04.2011 176791.00

3 2006-2007 26-04.2011 1767.00

4 2007-2008 26-04.2011 9121.00

5 2007-2008 26-04.2011 91.00

6 2008-2009 26-04.2011 28529.00

7 2008-2009 26-04.2011 285.00 Total 827842.00

s. The Company was exclusively engaged in the business of Software Services and Development of Software Products during previous year. The company has also started trading of Scientific and Technical Books and other activities from April 2011. The purchase and sale of such books are in bulk and therefore not capable of being expressed in any generic unit. Hence the quantitative details as required under the Companies Act 1956.

t. Any other Policy

Any other policy matter which is not specifically mentioned herein is as per generally accepted accounting principles and standards


Mar 31, 2011

1. The financial statements have been prepared under the historical cost convention on accrual basis and comply with the generally accepted accounting policies.

2. Fixed assets are stated at cost of acquisition less accumulated depreciation. Depreciation is provided on written down value method in accordance with the rates prescribed under Schedule XIV to the Companies Act, 1956.

3. Investments unless otherwise stated are considered as long term in nature and are valued at acquisition cost less provision for diminution, if any.

4. The Company derives its income from BPO Services, Software Services and Software Products. Income is recognized on the date on which the invoice for services is raised on the customers.

All incomes and expenditures are accounted for on accrual basis and provision is made for all known losses and liabilities.

5. Provision for current tax for the year is based on computations after considering rebates, relief and exemptions under the Income Tax Act, 1961.

6. Earnings in foreign exchange - Nil. Foreign exchange outgoing - Nil.

7. Contributions payable to recognized provident fund and employees state insurance have been charged to profit and loss account. Provision for gratuity, retirement benefits, leave encashment etc. have not been made in the accounts.


Mar 31, 2010

1. The financial statements have been prepared under the historical cost convention on accrual basis and comply with the generally accepted accounting policies.

2. Fixed assets are stated at cost of acquisition less accumulated depreciation. Depreciation is provided on written down value method in accordance with the rates prescribed under Schedule XIV to the Companies Act 1956

3. Investments unless otherwise stated are considered as long term in nature and are valued at acquisition cost less provision for diminution, if any.

4. The Company derives its income from BPO Services, Software Services and Software Products. Income is recognized on the date on which the invoice for services is raised on the customers.

All incomes and expenditures are accounted for on accrual basis and provision is made for all known losses and liabilities

5. Provision for current tax for the Year is based on computations after considering rebates, relief and exemptions under the income lax Act, 1961.

6. Earnings in foreign exchange - Nil. Foreign exchange outgoing - Nil.

7. Contributions payable to recognized provident fund and employees state insurance have been charged to profit and loss account. Provision for gratuity, retirement benefits, leave encashment etc. have not been made in the accounts

 
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