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.
|