USG Tech Solutions Ltd. कंपली की लेखा नीति

Mar 31, 2025

2. Significant Accounting Policies

2.1 Statement of Compliance

The Financial Statements have been prepared as a going concern in accordance with Indian Accounting Standards (Ind
AS) notified under the section 133 of the companies Act, 2013 ("the Act") read with the Companies (Indian Accounting
Standards) Rules, 2015 and other relevant provision of the Act.

2.2 Basis of Preparation and presentation

The financial statements have been prepared on the historical cost convention on accrual basis except for certain financial
instruments which are measured at fair value at the end of each reporting period, as explained in the accounting policies
mentioned below. Historical cost is generally based on the fair value of the consideration given in exchange of goods or
services.

All assets and liabilities have been classified as current or non-current according to the Company''s operating cycle and
other criteria set out in the Act. Based on the nature of products and the time between the acquisition of assets for
processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as twelve
months for the purpose of current or non- current classification of assets and liabilities. The principal accounting policies
are set out below.

2.3 Use of Estimates and judgements

The preparation of financial statements in conformity with Ind AS requires management to make judgments, estimates
and assumptions that affect the application of accounting policies and the reported amount of assets, liabilities, income,
expenses and disclosures of contingent assets and liabilities at the date of these financial statements and the reported
amount of revenues and expenses for the years presented. Actual results may differ from the estimates.

Estimates and underlying assumptions are reviewed at each balance sheet date. Revisions to accounting estimates are
recognized in the period in which the estimates are revised and future periods affected.

2.4 Revenue Recognition

Revenue from Operations

> Sale and operating income include sale of products, services, profit from partnership firms, income from job
work services, export incentives, etc.

> Sale of goods is recognized, net of returns and trade discounts, on transfer of significant risks and rewards of
ownership to the buyer. Sales include excise duty but exclude sales tax and value added tax.

> Sale of services is recognized when services are rendered and related costs are incurred.

> Profit from partnership firms which are in the same line of operation is considered as operating Income.

> Revenue from job work services is recognized based on the services rendered in accordance with the terms of
contracts.

> Export benefit is accounted for in the year of exports based on eligibility and when there is no Uncertainty in
receiving the same.

Other Income

> Interest income is recognized on time proportion basis taking into account the amount outstanding and the rate
applicable.

> Dividend income is recognized when right to receive is established.

2.5 Employee Benefits:

Liabilities for salaries are expected to be settled within the operating cycle after the end of the period in which the
employees render the related services are recognized in the period in which the related services are rendered.

2.6 Intangible Fixed Asset:

Intangible assets are recognized when it is probable that the future economic benefits that are attributable to the asset
will flow to the enterprise and the cost of the asset can be measured reliably.

2.7 Impairment of Assets:

> The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment
based on internal / external factors. An impairment loss is recognized wherever the carrying amount of an asset
exceeds its recoverable amount. The recoverable amount is the greater of the asset''s net selling price and value
in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a
pre-tax discount rate that reflects current market assessments of the time value of money and risks specific to the
asset. Net selling price is the amount obtainable from the sale of an asset in an arm''s length transaction between
knowledgeable, willing parties, less the costs of disposal.

> After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful
life.

2.8 Inventories

Stock in trade, stores and spares are valued at the lower of the cost or net realizable value. Net realizable value is the
estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs
necessary to make the sale. Cost of stock in trade procured for specific projects is assigned by specific identification of
individual costs of each item. Costs of stock in trade, that are interchangeable and not specific to any Project is
determined using the weighted average cost formula. Cost of stores and spare parts is determined using weighted
average cost.

2.9 Taxation

Tax expense comprises current and deferred tax. Current income tax expense comprises taxes on income from
operations in India and in foreign jurisdictions. Income tax payable in India is determined in accordance with the
provisions of the Income Tax Act, 1961 and tax expense relating to overseas operations is determined in accordance
with tax laws applicable in countries where such operations are domiciled.

> Deferred tax expense or benefit is recognized on timing differences being the difference between taxable
incomes and accounting income that originate in one period and are capable of reversal in one or more
subsequent periods.

> Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or

substantively enacted by the balance sheet date. Deferred income tax relating to items recognized directly in equity
is recognized in equity and not in the statement of profit and loss. Deferred tax assets and deferred tax liabilities are
offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred
tax assets and deferred tax liabilities relate to the taxes on income levied by the same governing taxation laws.

> Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets are recognized
only to the extent that there is reasonable certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realized. In situations where the Company has unabsorbed
depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty
supported by convincing evidence that they can be realized against future taxable profits. In the situations
where the Company is entitled to a tax holiday under the Income realized against future taxable profits. In the
situations where the Company is entitled to a tax holiday under the Income tax Act, 1961 enacted in India, no
deferred tax (asset or liability) is recognized in respect of timing differences which reverse during the tax
Holiday period, to the extent the Company''s gross total income is subject to the deduction during the tax
holiday period. Deferred tax in respect of timing differences which reverse after the tax holiday period is
recognized in the year in which the timing differences originate.

> At each balance sheet date, the Company re-assesses recognized and unrecognized deferred tax assets. The
Company writes-down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably
certain or virtually certain, as the case may be, that sufficient future taxable income will be available against
which the deferred tax asset can be realized. Any such write-down is reversed to the extent that it becomes
reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be
available. The Company recognizes unrecognized deferred tax assets to the extent that it has become
reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be
available against which such deferred tax assets can be realized.

> Minimum Alternate Tax (''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 the MAT credit becomes eligible to be recognized as an asset, the said asset is created by way of a credit
to the statement of profit and loss. 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.

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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.

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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

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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

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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.

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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