Black Opal Consultants Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Basis Of Preparation of Financial Statements:

These financial statements have been prepared to comply with the Generally Accepted
Accounting Principles in India (Indian GAAP), including the Accounting Standards notified under
the relevant provisions of the Companies Act, 2013.

The audited financial statements were prepared in accordance with the accounting principles
generally accepted in India, including the Accounting Standards as specified under Section 133 of
the Act, read with Rule 7 of the Companies (Accounting standard) Rules, 2021 (as amended). The
audited financial statements were prepared on a going concern basis under the historical cost
convention on accrual basis. The accounting policies were consistently applied by the Company
unless otherwise stated.

The financial statements are prepared on accrual basis under the historical cost convention.

The financial statements have been prepared arid presented in accordance with the
requirements of Schedule III to the Companies Act, 2013. Compliance with Schedule III affects
only the presentation and disclosure of financial statements and does not impact on the
recognition and measurement principles applied in their preparation.

Use of Estimates:

The preparation of the Financial Statements in conformity with GAAP requires that the
management makes estimates and assumptions that affect the reported amounts of assets and
liaDilities, and the reported amounts of revenue and expenses during the reported period. The
difference between the actual results and estimates are recognized in the period in which results
are known/materialized.

Revenue Recognition:

Revenue is recognized when it is probable that the economic benefits associated with the
transaction will flow to the Company and the amount of revenue can be measured reliably.
Revenue is measured at the consideration received or receivable and is recognized net of
applicable discounts, rebates, returns, and taxes collected on behalf of statutory authorities.

a) Sale of Goods

Revenue from sale of goods is recognized when significant risks and rewards of ownership are
transferred to the customer, generally upon dispatch/delivery of goods in accordance with the
terms ot sale. Revenue is recorded net of trade discounts, cash discounts, rebates, sales returns,
and applicable indirect taxes.

b) Service Income

Revenue from services is recognized when the services are rendered in accordance with the
terms of the relevant agreements and when there is reasonable certainty regarding uollection. In
case of services rendered over a period of time, revenue is recognized proportionately based on
the stage of completion, where applicable.

c) Interest and Dividend Income

Interest income is recognized on a time proportion basis considering the amounl outstanding
and the applicable rate of interest. Dividend income is recognized when the right to receive the
payment is establisned.

d) Accrual Basis

Income and expenditure are recognized on an accrual basis in the accounting period to which
they relate, irrespective of the actual receipt or payment.

e) Government Grants/Subsidies

Government grants and subsidies are accounted for in accordance with AS-12 - Accounting for
Government Grants and are recognized when there is reasonable assurance that the conditions
attached thereto will be complied with and the grants will be received. Such grants are
recognized based on their nature and matched with the related expenditure or assets and not
merely upon receipt basis..

Property, Plant & Equipment and Intangible Assets:

Tangible Assets:

Property, Plant & Equipment are stated at cost of acquisition or construction, net of recoverable
taxes, trade discounts and rebates, including expenditure directly attributable to bnnging the
assets to their intended location and condition for use, less accumulated depreciation and
impairment losses, if any. Cost also includes borrowing costs directly attributable to the
acquisition or construction of qualifying assets up to the date the assets are ready for their
intended use.

Exchange differences arising on foreign currency borrowings or transactions attributable to the
acquisition of Property, Plant & Equipment, to the extent permitted under the applicable
Accounting Standards, are capitalized. Government grants or subsidies received in respect of
specific assets are deducted from the carrying amount of the related assets.

Assets that are not ready for their intended use as at the Balance Sheet date are disclosed under
Capital Work-in-Progress.

Intangible Assets:

Intangible assets are stated at cost of acquisition, net of recoverable taxes, less accumulated
amortization and impairment losses, if any. The cost of an intangible asset comprises its purchase
price and any directly attributable expenditure incurred in preparing the asset for its intended
use. Borrowing costs directly attributable to the acquisition or development of qualifying
intangible assets, up to the date they are ready for their intended use, are capitalized. Exchange
differences arising on foreign currency transactions attributable to the acquisition of intangible
assets are capitalized to the extent permitted under the applicable Accounting Standards.

Depreciation, Amortisation and Depletion:

Tangible Assets:

Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Written
Down Value (WDV). Depreciation is provided based on useful life of the assets as prescribed in
Schedule II to the Companies Act, 2013 except in respect of the following assets, where useful
life is different than those prescribed in Schedule II are used.

Foreign Currency Transactions:

(a) Foreign Currency Transactions are recorded at the exchange rate on the date oi
transaction or that approximates the actual rate at the date of transaction.

(b) Gains and losses resulting from the settlement of such transactions and from the
translations of monetary assets and liabilities Denominated in foreign currencies are
recognized in the profit and loss account.

(c) Liability in foreign currency is valued at the closing exchange rates of currency as at the
year-end in terms of AS-11 issued by ICAI.

Investments:

Investments are classified as Current Investments and Long-term Investments in accordance
with AS-13 - Accounting for Investments.

a) Long-term investments are carried at cost less provision, if any, for diminution in value
which is other than temporary.

b) Current investments are carried at the lower of cost and fair/market value, determined on
an individual investment basis.

c) Unquoted investments are carried at cost unless there is a permanent diminution in value
requiring provision for impairment.

The Company reviews investments at each Balance Sheet date to assess whether there is any
indication of diminution in value. Provision is made for any decline in the value of investments
that is considered other than temporary in nature.

Capital work in progress:

Capital Work-in-Progress comprises the cost of Property, Plant and Equipment that are not yet
ready for their intended use as at the Balance Sheet date. It includes all direct expenditure,
borrowing costs attributable to qualifying assets, and other incidental expenses incurred in
connection with the acquisition, construction, or installation of such assets until they are ready
for their intended use.

Lease

Leases where the lessor effectively retains substantially all the risks and rewards ot ownership ot
the leased assets are classified as operating leases.

The Company has taken certain premises on operating lease arrangements. Lease payments
under operating leases are recognised as an expense in the Statement of Profit and Loss on a
straight-line basis over the lease term, unless the payments are structured to increase in line
with expected general inflation to compensate for the lessor''s expected inflationary cost

increases.

Initial direct costs incurred specifically to negotiate and arrange an operating lease are
recognised as an expense in the Statement of Prufit and Loss.

The lease agreements are generally cancellable and renewable by mutual consent on mutually
agreed terms.

There is no lease agreement which is not cancellable by Company, therefore disclosure of future
rent payment for the non-cancellable lease is not required.

During the period of Restatement, the Company does not have any finance leases.

Borrowing Costs

Borrowing costs that are directly attributable to the acquisition, construction, or production of a
qualifying asset are capitalized as part of the cost of such asset in accordance with AS 16 -
Borrowing Costs. Capitalization of borrowing costs commences when expenditures for the asset
are incurred, borrowing costs are being incurred, and activities necessary to prepare the asset for
its intended use or sale are in progress. Such capitalization ceases when substantially all activities
necessary to prepare the qualifying asset for its intended use or sale are complete.

A qualifying asset is an asset that necessarily requires a substantial period of time to get ready
for its intended use or sale.

All other borrowing costs, not directly attributable to qualifying assets, are recognized as an
expense in the Statement of Profit and Loss in the period in which they are incurred

Cash ana Cash Equivalents:

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term
balances (with an original maturity of three months or less from the date of acquisition), highly
liqu''d investments that are readily convertible into known amounts of cash and which are subject
to insignificant risk of changes in value.

Cash Flow Statement:

Cash flows are reported using the indirect method, whereby net profit before extraordinary
items and tax is adjusted for the effects of transactions of a non cash nature, any deferrals or
accruals of past or future cash receipts or payments. The cash flows from operating, investing
and financing activities of the Company are segregated based on the available information.

Earnings per Share:

Basic earnings per share is computed by dividing the net profit / (loss) after tax by the weighted
average number of equity shares outstanding during the year. Diluted earnings per share is
computed by dividing the net profit / (loss) after tax as adjusted for dividend, interest and other
charges to expense or income relating to the dilutive potential equity shares, by the weighted
average number of equity shares considered for deriving basic earnings per share and
weighted average number of equity shares which could have been issued on the conversion^<
dilutive potential equity shares. Potential equity shares are deemed to be dilutive only f thi''ir
conversion to equity shares decrease the net profit per share from continuing d
operations. Potential dilutive equity shares are deemed to be converted as at the beginning okT
the period, unless they have been issued at a later date. Dilutive potential equity shara^afej³
determined independently for each period presented. The number of shares and potential^-
dilutive equity shares are. adjusted retrospectively for all periods presented in case of share
splits. y /"N

Employee retirement benefits:

a) Gratuity: The Company has recognized a provision for gratuity in the books of account based
on an actuarial valuation carried out at the Balance Sheet date. The liability is determined using
the projected unit credit method and is recognized in accordance with the applicable Accounting
Standards.

b) Leave Encashment: The Company has recognized a provision for leave encashment in the
books of account based on an actuarial valuation carried out at the Balance Sheet date. The
liability in respect of accumulated leave entitlement of employees is determined on an actuarial
basis and recognized in accordance with the applicable Accounting Standards.

Related Party Disclosures

Related party relationships, transactions, and outstanding balances are identified and accounted
for in accordance with Accounting Standard (AS) 18 - Related Party Disclosures. Necessary
disclosures relating to related party relationships and transactions are made in the financial
statements as required by the Standard.

Provision for Current and Deferred Tax:

Provision for current tax is made by applying the applicable tax rates and considering the
relevant provisions of the applicable Income-tax Act.

Deferred tax is recognized in accordance with Accounting Standard (AS) 22 - "Accounting for
Taxes on Income", for timing differences between the accounting income and taxable income for
the year. Deferred Tax Assets and Deferred Tax Liabilities are measured using the tax rates and
tax laws that have been enacted or substantively enacted as 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 assets can be realized.