A provision is recognised when the Company has a present obligation as a result of past event and 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.
These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.
1. Corporate guarantee extended to wholly owned subsidiary namely M/s. Virinchi Healthcare Pvt Ltd for an amount
of H39.84 crores and the outstanding liability as on 31st March 2025 is amounting to H30.11 crores.
(j) Investments in subsidiaries Investment in subsidiaries are carried at cost.
(k) Property, plant and equipment
Property, plant and equipment are stated at cost comprising of purchase price and any initial directly attributable
cost of bringing the asset to its working condition for its intended use, less accumulated depreciation (other than
freehold land) and impairment loss, if any.
Depreciation is provided for property, plant and equipment on a straight line basis so as to expense the cost less
residual value over their estimated useful lives based on a technical evaluation. The estimated useful lives and
residual value are reviewed at the end of each reporting period, with the effect of any change in estimate accounted
for on a prospective basis.
(l) Intangible assets:
Intangible assets are recognised 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. Intangible assets purchased
are measured at cost as of the date of acquisition, as applicable, less accumulated amortisation and accumulated
impairment, if any.
Product Development: Salaries and other cost paid to resources working on new products are capitalized as intangible
asset under the head "Product Development”. Management has estimated life of this product is about 10 years
subject to certain improvements to the same product/source code.
Computer Software: The company amortizes Computer software using the straight-line method over a period of
6 years.
(m) Impairment
(i) Financial assets (other than at fair value)
The Company assesses at each date of balance sheet whether a financial asset or a group of financial assets
are impaired. Ind AS 109 requires expected credit losses to be measured through a loss allowance. For all other
financial assets, expected credit losses are measured at an amount equal to the 12 months expected credit
losses or at an amount equal to the life time expected credit losses if the credit risk on the financial asset has
increased significantly since initial recognition.
(ii) Non-financial assets
Tangible and intangible assets
Property, plant and equipment and intangible assets with finite life are evaluated for recoverability whenever
there is any indication that their carrying amounts may not be recoverable. If any such indication exists, the
recoverable amount (i.e. higher of the fair value less cost to sell and the value-in-use) is determined on an
individual asset basis unless the asset does not generate cash flows that are largely independent of those from
other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which
the asset belongs.
If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying
amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is recognised in the
statement of profit and loss.
(n) Employee benefits
(i) Defined contribution plans
Contributions to defined contribution plans are recognised as expense when employees have rendered services
entitling them to such benefits.
(ii) Short-term employee benefits
All employee benefits payable wholly within twelve months of rendering the service are classified as short-term
employee benefits. Benefits such as salaries, wages, Bonus, Earned Leave etc. and the expected cost of ex-gratia
are recognised in the period in which the employee renders the related service. A liability is recognised for the
amount expected to be paid when there is a present legal or constructive obligation to pay this amount as a
result of past service provided by the employee and the obligation can be estimated reliably.
(o) Earnings per share
Basic earnings per share is computed by dividing profit or loss attributable to equity shareholders of the Company
by the weighted average number of equity shares outstanding during the year. Diluted earnings per equity share
is computed by dividing the net profit attributable to the equity holders of the Company by the weighted average
number of equity shares considered for deriving basic earnings per equity share and also the weighted average
number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The
dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued
at fair value (i.e. the average market value of the outstanding equity shares). Dilutive potential equity shares are
deemed converted as at the beginning of the period, unless issued at a later date. Dilutive potential equity shares are
determined independently for each period presented. The number of equity shares and potentially dilutive equity
shares are adjusted retrospectively for all periods presented for any share splits and bonus shares issues including
for changes effected prior to the approval of the financial statements by the Board of Directors
(p) Lease:
At inception of the contract, the Company determines whether the contract is a lease or contains a lease arrangement.
A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period
of time in exchange for consideration.
The Company recognises right-of-use asset representing its right to use the underlying asset for the lease term
at the lease commencement date. The cost of the right-of-use asset measured at inception shall comprise of the
amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the
commencement date less any lease incentives received, plus any initial direct costs incurred and an estimate of
costs to be incurred by the lessee in dismantling and removing the underlying asset or restoring the underlying
asset or site on which it is located. The right-of-use assets is subsequently measured at cost less any accumulated
depreciation, accumulated impairment losses, if any and adjusted for any re-measurement of the lease liability. The
right-of use assets is depreciated using the straight-line method from the commencement date over the shorter of
lease term or useful life of right-of-use asset. The estimated useful lives of right-of-use assets are determined on
the same basis as those of property, plant and equipment. Right-of-use assets are tested for impairment whenever
there is any indication that their carrying amounts may not be recoverable. Impairment loss, if any, is recognised in
the Standalone statement of profit and loss.
The Company measures the lease liability at the present value of the lease payments that are not paid at the
commencement date of the lease. The lease payments are discounted using the interest rate implicit in the lease,
if that rate can be readily determined. If that rate cannot be readily determined, the Company uses incremental
borrowing rate. For leases with reasonably similar characteristics, the Company, on a lease by lease basis, may
adopt either the incremental borrowing rate specific to the lease or the incremental borrowing rate for the portfolio
as a whole. The lease payments shall include fixed payments, variable lease payments, residual value guarantees,
exercise price of a purchase option where the Company is reasonably certain to exercise that option and payments
of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease.
The lease liability is subsequently re-measured by increasing the carrying amount to reflect interest on the lease
liability, reducing the carrying amount to reflect the lease payments made and re-measuring the carrying amount to
reflect any reassessment or lease modifications or to reflect revised in-substance fixed lease payments.
The Company recognises the amount of the re-measurement of lease liability as an adjustment to the right-of-use
asset. Where the carrying amount of the right-of-use asset is reduced to zero and there is a further reduction in
the measurement of the lease liability, the Company recognises any remaining amount of the re-measurement in
Standalone statement of profit and loss.
The Company has elected not to apply the requirements of Ind AS 116 to short-term leases of all assets that have
a lease term of 12 months or less and leases for which the underlying asset is of low value. The lease payments
associated with these leases are recognized as an expense on a straight-line basis over the lease term.
Current year effect on Lease Accounting:
(i) Financial Charges on Lease H180.52 lakhs
(ii) Amortization cost on Right of Use Asset H196.13 lakhs
Note No: 24
Details of Primary and Collateral Securities (For Liabilities referred in Note No.12 & 16)
Hypothecation of Plant & Machinery, Equipment, Commercial Property and Mr. Viswanath Kompella and Mrs. Madhavilatha
Kompella (Promoter) personal guarantee.
Hypothecation of Movable Assets:
? M/s. Canara Bank, Spl. Mid Corporate Branch, Hyderabad and M/s. ICICI Bank Ltd, having charge on all movable assets
such as Plant & Machinery, Electrical & Office Equipment, Computers and Furniture of the company on Foreign Currency
Term Loan (FCLR) availed with them.
? Hypothecation of Receivables.
Collateral Security:
? EMT on 875 sq yards open land at Road.No.1 Banjara Hills, Hyderabad-500034 in the name of Virinchi Limited given to
M/s. ICICI Bank Ltd
? EMT of Land of extent Ac 2.0 and Building 46,590 Sq yards situated at Sy No. 15/A, 15B and 15/C, Suraram, Jeedemetla
Industrial Area, Quthubullapur, in the name of the M/s. Virinchi Limited given to ICICI Bank Ltd.
? EMT on 649 sq yards at Plot No 37, Nandagiri Hills, Shaikpet Village, Jubilee Hills, Hyderabad-500033 in the name of
promoter M/s. Madhivilatha Kompella given to M/s. ICICI Bank Ltd for Loans availed in M/s. Virinchi Limited.
? EMT of Land & Building admeasuring 3 acres 36 Guntas situated at Sy.No. 121 Pothaipally Village, Shameerpet Mandal,
RR District, Telangana in the name of Virinchi Limited given to M/s. Canara Bank, Spl. Mid Corporate Branch, Hyderabad.
? EMT of factory land measuring 1 acre 36.5 guntas at Survey No.441, Hakimpet Village, in Shamirpet Mandal, R R Dist,
Telangana in the name of Virinchi Limited given to M/s. Canara Bank, Spl. Mid Corporate Branch, Hyderabad.
? EMT on property located at Flat No.608, Lingapur Plaza, Himayathnagar owned by Mr.Viswanath Kompella given to M/s.
Canara Bank, Spl. Mid Corporate Branch, Hyderabad.
? Pledge of Virinchi Equity Shares Nos. 36,36,679 belongs to Mr. Viswanath Kompella to M/s. CSB Bank Ltd, Hyderabad for
purchase of H. No. 8-2-293/ 82/ A/ 1206, Plot no. 1206, under Sy no. 120 of Shaikpet and Sy. No. 102/1 of Hakimpet
village in ward no. 8 and block no. 2 in Shaikpet and Hakimpet village in Hyderabad 500033.
? EMT on property located at H. No. 8-2-293/ 82/ A/ 1206, Plot no. 1206, under Sy no. 120 of Shaikpet and Sy. No. 102/1 of
Hakimpet village in ward no. 8 and block no. 2 in Shaikpet and Hakimpet village in Hyderabad 500033, measuring 1290
sq. yards with built up area of 8917 sft. owned by M/s. Virinchi Limited given to M/s. CSB Bank Limited, Hyderabad.
? EMT on1200 sq yards at Plot No 1279, H.No. 8-2-279/82/A/1279, Sy No. 120, Shaikpet Village,Road No. 64, Jubilee
Hills, Hyderabad-500033 in the name of promoter M/s. Viswanath Kompella given to M/s. AU SMALL FINANCE BANK LTD,
Hyderabad for Loans availed in M/s. Virinchi Limited.
Note No: 26
The Company has identified Business Segments which comprise Development of Computer Software and Services and IT
Enabled Services.
Revenue and expenses directly attributable to segments are reported under each segment. Expenses which are not directly
identifiable to specific segment have been allocated on the basis of associated revenue of the segment and manpower
efforts. All other expenses which are not attributable or allocable to segments have been disclosed as un-allocable expenses.
Note No: 34 Amount spent on CSR activities
As per the Section 135(5) of the Companies Act, 2013, the Company shall ensure that an amount of 2% of the average Net
Profits of the Company made during the three immediately preceding financial years shall be spent towards Corporate Social
Responsibility activities. For the Financial Year 2024-25, the amount to be spent towards CSR activities works out to H27.06
Lacs and the Company had spent H27.06 Lacs towards the CSR activities in the financial year 2024-25.
Note No: 35 Additional Regulatory information
i. The Company is in possession of immovable property and Title Deeds are held in the Name of the company.
ii. The Company has not revalued any of its Property, Plant and Equipment during the year.
iii. The Company has not granted any loans or advances in the nature of loans to directors, KMPs, except as mentioned above
in related party disclosures.
iv. There are no proceedings initiated or pending against the company for holding any Benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made there under.
v. The Company has borrowings from banks or financial institutions on the basis of security of current assets and the
quarterly returns or statements filed by the company with such banks or financial institutions are in agreement with the
books of account of the Company.
vi. The Company is not declared as wilful defaulter by any bank or financial Institution or other lenders.
vii. The Company did not have any transactions with Companies struck off under Section 248 of Companies Act, 2013 or
Section 560 of Companies Act, 1956 considering the information available with the Company.
Note No: 37
The Company does not have any transactions which are not recorded in the books of accounts that has been surrendered or
disclosed as income in the tax assessments under the Income Tax Act, 1961 during the year.
Note No: 38
The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
Note No: 39
There are no significant events that occurred after the balance sheet date.
Note No: 40
The Company has not declared any dividend during the year.
Note No: 41
In the opinion of the management, the assets as shown in the financial Statements have a value on realization in the ordinary
course of business of at least equal to the amount at which they are stated in the balance sheet.
Note No: 43
Previous year's numbers have been regrouped, rearranged, recasted, wherever necessary to conform to Current Year
Classification. Figures have neen rounded off to the nearest Lakhs.
1) Return on Equity Ratio- Variance of 29.65% is on account of increased PAT during the current year due to Sale of Mutual
funds and increase in Interest Income.
2) Trade payables Turnover ratio- Variance of 53.26% is on account of Longer credit period.
Note No: 42 Ratios (Contd.)
3) Net Capital Turnover Ratio- Variance of 691.32% is on account of delay in payment of statutory dues.
4) Net profit ratio- Variance of37.48% is on account of increased PAT during the current year due to profit on sale of Mutual
funds and increase in Interest Income
Notes referred to above form an integral part of the financial statements.
As per our Report of Even Date
For P. Murali & Co. For and on behalf of the Board of Directors of
Chartered Accountants Virinchi Limited
FRN:007257S
M.V. Joshi M V SrinivasaRao V. Satyanarayana
Partner CFO & Wholetime Director Whole Time Director
M.No. 024784 DIN: 00816334 DIN:09070986
K.Ravindranath Tagore
Place : Hyderabad Company Secretary
Date: 28/05/2025 M.No: A18894
|