Virgo Global Ltd. कंपली की लेखा नीति

Mar 31, 2024

1.1 CORPORATE INFORMATION

Virgo Global Limited, a company having its registered office at 3-45-117, Plot No: A-23,
Vikrampuri Colony, Kakaguda, Hyderabad, Telangana-500009. The Shares of the Company is
listed on Bombay Stock Exchange Limited.

1.2 BASIS OF PREPARATION

1.2.1 ACCOUNTING CONVENTION

These standalone Ind AS financial statements of the company have been prepared in
accordance with Indian Accounting standard (Hereinafter referred to as the "Ind AS”) as noticed
by the Ministry of corporate Affairs pursuant to the section 133 of the Companies Act, 2013
("the Act”) read along with the companies (Indian Accounting standard) Rules, 2015 and the
companies (Indian Accounting standard) amendment rules, 2016 and other relevant provisions of
the companies act as applicable in India. For all the periods up to and including the year ending
march 31, 2024, the company had prepared and presented its financial statements in
accordance with the Accounting standards notified undersection 133 of companies Act, 2013,
read together with the rule 7 of the companies (Accounts) Rules, 214 ("Indian GAAP”) and other
relevant provisions of the companies act as applicable in India.. For detailed explanations on how
the transition from Indian GAAP to Ind AS has affected the Company’s balance Sheet, Statement
of Profit and loss and the Statement of Cash Flows.

This Ind AS financial statement have been prepared and presented under the Historical cost
Convention, on accrual basis of accounting except for certain financial assets and financial
liabilities that are measured at the fair values at the end of each reporting period, as stated in the
accounting policies set out below. The accounting policies, have been applied consistently
over all the periods presented in these Ind AS financial statements, including the preparation of
Opening Ind AS balance Sheet as at April 01,2016 being the date of transition to the Ind AS.

1.2.2 Use of Estimates

The preparation of these Ind AS financial statements in conformity with Ind AS requires the
management to make estimates, judgments and assumptions. These estimates, judgments and
assumptions affect the application of accounting policies and the reported amount of assets and
liabilities, the disclosures of contingent assets and liabilities at the date of Ind AS financial
statements and reported amount of revenues and expenses during the periods. The application
of the accounting policies that require critical accounting estimates involving complex and
subjective judgments and the use of assumptions in these Ind AS financial statement have
been disclosed in "Notes to Ind As Financial Statements.”.

Accounting estimates could change from period to period. Actual results could differ from those
estimates. Appropriate changes in estimates. Change in estimates and reflected in the Ind AS

financial statements”.

1.2.3 Current/ Non- Current Classification

Any assets or liabilities are classified as Current if it satisfies any of the following conditions:

> The assets/liabilities are expected to be realized/ settled in the company’s
normal operating cycle;

> The assets is intend for sales or consumptions;

> The assets/liabilities are held primarily for the purpose of trading;

> The assets/ liabilities are expected to be realized/ settled within a 12 month of
period after the end of the reporting period.

> In the case of liabilities, the Company does not have and unconditional right to
defer the settlement of the liabilities for at least 12 month after the end of the reporting period. All
other assets and liabilities are classified as Non - current.

For the purpose of liabilities classification, the Company has ascertained, the Company has
ascertained its normal operating cycle as 12 months. This bases on the nature of services and
the time between the acquisition of assets or inventories for processing and their realization in
cash Equivalents.

1.2.4 Property, plants and equipments Measurement at recognition:

An Item of property, plants and Equipments that qualifies as an asset is measured on initial
recognition at cost, net of recoverable taxes, if any less accumulated depreciation/amortization
and impairment losses, if any.

The Company identifies and determines cost of each part of an item of property, plants and
Equipment separately. If the part has a cost which is significant to the total cost of that item of
property, plant and equipment and has a useful life that is materially different from that of
remaining items.

The cost comprises of its purchase price including import duties and other non-refundable
purchase taxes or levies, directly attributable to the cost of bringing the asset to its present
location and working condition for its intended use and the initial estimate of decommissioning,
restoration and similar liabilities, if any. Any trade discount and rebates are deducted in arriving at
the purchase prices of such property, plants and Equipments.

Such cost also includes the cost of replacing a part of the plants and Equipments and the
borrowing cost of the long term construction projects, if the recognition criteria are met. When the
significant parts of property, plants and Equipment are required to be replaced at periodical
intervals, the Company recognizes such part as individual assets with specific useful lives and
depreciates them accordingly. Likewise, when a major inspection is performed, its cost is
recognized in the carrying amount of the plants and Equipments as a replacement as a
replacement if the recognition criteria are satisfied.

All other repair and maintenance costs are recognized in the statement of profit and loss as
incurred. The present value of the expected cost for the decommissioning of assets after its use
is included in the cost of the respective asset if the recognition criteria for a provision are met.

All costs, including administrative, financing and general overhead expenses, as are specifically
attributable to construction of a project or to the acquisition of a property, plants and Equipments
or bringing it to its present location and working condition, is included as a part of the cost of
construction of a project or as a part of the cost of property, plants and Equipments, till the
commencement of the property, plants and Equipments are capitalized as aforementioned.
borrowing cost relating to the acquisition / construction of property, plants and Equipments are
ready to be put to use. Any subsequent expenditure related to an item of property plants and
Equipments is added to its book value only if it increases the future economic benefits from the
existing property, plants and Equipments beyond its previously assessed standard of
performance. Any items such as spare parts, stand by equipment are servicing equipment that
meet the definitions of the property, plants and equipments are capitalized at cost and
depreciated over the useful life of the respective property, plants and Equipments. Cost is in the
nature of repair and maintance are recognised in the statement of profit and loss as and when
incurred.

Capital work-in-progress and capital advances:

Cost of any property, plants and equipments not ready for intended use, as on the balance sheet
date, is shown as a Capital work-in-progress. Any advance given towards acquisition of property,
plants and equipments outstanding at each balance sheet date are disclosed as "Other Non¬
current Asset”.

Depreciation:

Depreciation on each part of property, plants and equipment is provided to the extent of the
depreciable amount of the assets on the basis of "Written Down Value Method (WDV)” on the
useful life the property, plants and Equipments as estimated by the management and is charged
to the statement of profit and loss as per the requirements of schedule-II to the companies Act,
2013. The estimated useful life of the property, plants Equipments has been assessed based on
the technical advice which is considered in the property, plants and equipments, the usage of the
property, plants and equipments, expected physical wear and tear of the property, plants and
equipments, the operating conditions, anticipated technological changes, manufactured
warranties and maintenance support of the property and Equipment etc.

When the parts of an item of the property, plants and Equipments have different useful life, they
are accounted for as a separate item (major components) and are depreciated over their useful
life of the principal property, plants and Equipments whichever is less.

1.2.5 Inventories

Inventories of the raw material, work-in-progress, finished goods, packing material, stores and
spares, components, consumable and trading stock are carried at lower of cost and net realizable
value. However, raw material and other items held for use in production of inventories are not
written down below cost if the finished goods in which they will be incorporated are expected to
be sold at or above cost. The comparison of cost and net realizable value is made on an item by
item basis. Cost of inventories included the cost incurred in bringing the each product to its
present location and conditions are accounted as follows:

Raw material:-Cost included the purchase price and other direct or indirect costs incurred to bring
the inventories into their present location and conditions. Cost is determined on first in first
out basis (FIFO).

Finished goods and work-in-progress:-Cost included cost of direct materials and the labour cost
and a proportion of manufacturing overhead based on the normal operating capacity, but
excluding the borrowing costs. Cost is determined on first out basis (FIFO).

Trading stock:- Cost included the purchase price and other direct or indirect costs incurred in
bringing the inventories to their present location and conditions. Cost is determined on weighted
average basis.

All other inventories of stores and spares, consumable, project material at site are valued at cost.
The stock of waste or scrap is valued at net realizable value. Excise duty wherever applicable is
provided on the finished goods lying within the factory and bonded warehouse at the end of the
reporting period.

1.2.6 Revenue recognitions

Revenue is recognised when it is probable that economic benefit associated with the transaction
flows to the company in ordinary course of its activities and the amount of revenue can be
measured reliable, regardless of when the payment is being made. Revenue is measured at the
fair values of consideration received or receivable taking into the account contractually defined
terms of payments, net of its returns,trade discounts and volume rebates allowed.

Revenue includes only the gross inflows of economic benefits, including the Excise duty received
and receivable by the company, on its own account. Amount collected on behalf of third parties
such as goods and service tax (GST) value added tax (VAT) and sales tax are excluded from
revenue.

Sales of products

Revenue from sale of products is recognized when the company transfer all significant risks and
rewards of ownership to the buyer, while the company retains neither continuing managerial
involvement nor effective control over the products sold, which generally coincide with dispatch.
Revenue from export sales is recognized on shipment basis based on the bill of lading.

1.2.7 Cash and cash equivalents

cash and cash equivalents in the balance sheet comprises cash at banks cash in hand and also
the short term deposits with maturity of three month or less, which are subject to an in significant
risk of changes in value. For the purpose of the statement of cash flows, cash and cash
equivalents consists of cash and short term deposits, as defined above.

---

Mar 31, 2015

A. Basis of preparation of Financial Statements

The accompanying financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention, on the basis of a going concern basis, while revenue, expenses, assets and Liabilities accounted/recognized on accrual basis. GAAP comprises mandatory accounting as prescribed under Section 133 of the Companies Act, 2013 ('the Act') read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI) Accounting policies are consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. Management evaluates all recently issued or revised accounting standards on an ongoing basis.

b. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the required amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates.

c. Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and revenue can be reliably measured.

d. Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation. Cost comprises the purchase price, freight, duties, taxes and any attributable cost of bringing the asset to its working condition for its intended use.

e. Depreciation

Depreciation on fixed assets has been provided on straight-line method based on useful life of asset specified in Schedule II of the Companies Act, 2013 on pro-rata basis.

f. Investments

Long term Investments are stated at cost. The short term investments of the parent company are valued and carried at cost or fair value whichever is lower. In case of sale of investments, the gain / loss brought into the books of account.

g. Borrowing costs:

Borrowing costs that are directly attributable to the acquisition or the construction of a qualifying asset is capitalized for the period until the asset is ready for its intended use. A qualifying asset is one that necessarily takes substantial period of time i.e more than 12 months to get ready for intended use. All other borrowing costs are charged to revenues

h. Income Tax

i. Current tax :

Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act, 1961.

ii. Deferred tax :

Deferred income taxes 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. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date.

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. Where the Company has carry forward of unabsorbed depreciation or tax losses deferred tax assets are recognized only if it is virtually certain backed by convincing evidence that such deferred tax assets can be realized against future taxable profits.

i. Earnings per share

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

j. Provisions

A Provision is recognized when the Company has a present obligation as a result of past event i.e it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

k. Cash Flow Statement:

Cash Flow Statement has been prepared under indirect method as per the Accounting Standard-3 "Cash Flow Statement"

l. Cash and cash equivalents

Cash and cash equivalents comprise cash and cash on deposit with banks and corporations. The Company considers all highly liquid investments with a remaining maturity at the date of purchase of three months or less and that are readily convertible to known amounts of cash to be cash equivalents.

---

Mar 31, 2014

General:

(i) These accounts are prepared on the historical cost basis and on the accounting principles of a going concern

(ii) Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

Revenue Recognition:

(i) Revenue from Internet is recognised on accural basis.

(ii) Other income comprises of Interest earned on Banks Deposit.

Fixed Assets :

(i) Fixed assets are stated at cost less accumulated depreciation. Cost of acquisition of fixed assets is inclusive of freight,duties, taxes and incidental expenses thereto.

Depreciation and Amortisation :

(i) Depreciation is provided on straight-line method on pro-rata basis and at the rates and manner specified in the Schedule XIV of the Companies Act, 1956.

(ii) Preliminary Expenses are amortised over the period of 10 years.

(iii) Public Issue Expenses are amortised over the period of 10 years.

Taxation :

The current charge for income tax is calculated in accordance with the relevant tax regulations applicable to the Company. Deferred tax asset and liability is recognised for future tax consequences attributable to the timing differences that result between the profit offered for income tax and the profit as per the financial statements. Deferred tax asset & liability are measured as per the tax rates/laws that have been enacted or substantively enacted by the Balance Sheet date.

Earning Per Share:

The earning considered in ascertaining the company''s earning per share comprises net profit after tax. The number of shares used in computing basic earning per share is the weighted average number of shares outstanding during the year

Gratuity:

No provision for gratuity has been made as no employee has put in qualifying period of service for entitlement of this benefit.

---

Mar 31, 2012

(a). General:

(i) These accounts are prepared on the historical cost basis and on the accounting principles of a going concern.

(ii) Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

(b): Revenue Recognition:

(i) Revenue from Internet is recognised on accural basis.

(ii) Other income comprises of Interest earned on Banks Deposit.

(c). Fixed Assets:

(i) Fixed assets are stated at cost less accumulated depreciation. Cost of acquisition of fixed assets is inclusive of freight' duties' taxes and incidental expenses thereto.

(d). Depreciation and Amortisation:

(i) Depreciation is provided on straight-line method on pro-rata basis and at the rates and manner specified in the Schedule XIV of the Companies Act' 1956.

(ii) Preliminary Expenses are amortised over the period of 10 years.

(iii) Public Issue Expenses are amortised over the period of 10 years.

(e). Taxation:

The current charge for income tax is calculated in accordance with the relevant tax regulations applicable to the Company. Deferred tax asset and liability is recognised for future tax consequences attributable to the timing differences that result between the profit offered for income tax and the profit as per the financial statements. Deferred tax asset & liability are measured as per the tax rates/laws that have been enacted or substantively enacted by the Balance Sheet date.

(I). Earnings Per Share:

The earning considered in ascertaining the company's earning per share comprises net profit after tax. The number of shares used in computing basic earning per share is the weighted average number of shares outstanding during the year (g). Gratuity:

No provision for gratuity has been made as no employee has put in qualifying period of service for entitlement of this benefit.

---

Mar 31, 2011

General

(i) These accounts are prepared on the historical cost basis and on the accounting principles of a going concern.

(ii) Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

Revenue Recognition

(i) Revenue from Internet is recognised on accural basis.

(ii) Other income comprises of Interest earned on Banks Deposit.

Fixed Assets

(i) Fixed assets are stated at cost less accumulated depreciation. Cost of acquisition of fixed assets is inclusive of freight, duties, taxes and incidental expenses thereto.

Depreciation and Amortisation

(i) Depreciation is provided on straight-line method on pro-rata basis and at the rates and manner specified in the Schedule XIV of the Companies Act, 1956.

(ii) Preliminary Expenses are amortised over the period of 10 years.

(iii) Public Issue Expenses are amortised over the period of 10 years.

Taxation

The current charge for income tax is calculated in accordance with the relevant tax regulations applicable to the Company. Deferred tax asset and liability is recognised for future tax consequences attributable to the timing differences that result between the profit offered for income tax and the profit as per the financial statements. Deferred tax asset & liability are measured as per the tax rates/laws that have been enacted or substantively enacted by the Balance Sheet date.

Earning Per Share

The earning considered in ascertaining the company's earning per share comprises net profit after tax. The number of shares used in computing basic earning per share is the weighted average number of shares outstanding during the year.

Gratuity

No provision for gratuity has been made as no employee has put in qualifying period of service for entitlement of this benefit.

---

Mar 31, 2010

General

(i) These accounts are prepared on the historical cost basis and on the accounting principles of a going concern

(ii) Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

Revenue Recognition

(i) Revenue from Internet is recognised on accural basis.

(ii) Other income comprises of Interest earned on Banks Deposit.

Fixed Assets

(i) Fixed assets are stated at cost less accumulated depreciation. Cost of acquisition of fixed assets is inclusive of freight, duties, taxes and incidental expenses thereto.

Depreciation and Amortisation

(i) Depreciation is provided on straight-line method on pro-rata basis and at the rates and manner specified in the Schedule XIV of the Companies Act, 1956.

(ii) Preliminary Expenses are amortised over the period of 10 years.

(iii) Public Issue Expenses are amortised over the period of 10 years.

Taxation

The current charge for income tax is calculated in accordance with the relevant tax regulations applicable to the Company. Deferred tax asset and IiabiIity is recognised for future tax consequences attributable to the timing differences that result between the profit offered for income tax and the profit as per the financial statements. Deferred tax asset & liability are measured as per the tax rates/laws that have been enacted or substantively enacted by the Balance Sheet date.

Earning Per Share

The earning considered in ascertaining the companys earning per share comprises net profit after tax. The number of shares used in computing basic earning per share is the weighted average number of shares outstanding during the year.

Gratuity

No provision for gratuity has been made as no employee has put in qualifying period of service for entitlement of this benefit.