At first I thought it is something to do with my monitor resolution settings
After googling on this I found out it was not the monitors display resolution issue
It was the display setting which usplash uses for startup and shutdown screen
The usplash screen at startup and shutdown was meant to have a 1280X1024 resolution
and my monitor was not supporting 1280X1024 resolution.
Follow the steps below to getrid of this problem
Note : Before making changes to the files given below make sure to backup these files
1) Open /etc/usplash.conf to edit
command : sudo gedit /etc/usplash.conf
In that change 1280 to 1024 in the x resolution and 1024 to 768 in the y resolution
This should solve your shutdown issue
To solve the start-up problem,you need to follow following steps
2) Open /boot/grub/menu.lst
command : sudo gedit /boot/grub/menu.lst
.In this file reach the line
## ## End Default Options ##
By default the next paragraph will have the boot information for the option you choose while booting up.It will say something like-
title Ubuntu 7.10, kernel 2.6.22-14-generic
kernel /boot/vmlinuz-2.6.22-14-generic root=UUID=ebddbc03-0e71-41dd-babd-278109f26a95 ro quiet splash
At the end of kernel line i.e after the splash word add vga=791.791 is the code for 1024X768 resolution in 16 Bits.
Mine was 24 Bits so I added vga=792
Now we need to update the settings and generate a new usplash image of the resolution you selected.
Execute this command in a terminal window-
sudo update-initramfs -u -k `uname -r`
Reboot your computer now and youll be able to see the orange Startup splash screen without any trouble now.