Betala Global Securities Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

1 Corporate Information

Betala Global Securities (the ''Company'') is a public limited company and incorporated in India under the provisions of the Companies Act. Its shares are listed on BSE Ltd in India. The registered office of the company is located at Chennai, India.

The Company does both institutional and retail broking. The company has a full fledged research division involved in Macro Economic studies, sectoral research and company specific equity research combined with a strong and well networked sales force which helps deliver current and up to date market information and news.

1.2 Application of new and revised Ind AS

The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015. The Financial statements have been prepared under the historical cost basis, except for the following assets & liabilities which has been measured at fair value, (i) Quoted Investments in Equity Shares. Accounting policies have been 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. The Company''s management evaluates all recently issued or revised accounting standards on an on-going basis. The financial statements are presented in Indian Rupees (''INR''). Where changes are made in presentation, the comparative figures of the previous year are regrouped and rearranged accordingly.

2A. Material Accounting Principles

(1) Statement of Compliance

The financial statements have been prepared in accordance with the provisions of the Companies Act, 2013 and the Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time) issued by the Ministry of Corporate Affairs in exercise of the powers conferred by Section 133 of the Companies Act, 2013. In addition, the guidance notes/ announcements issued by the Institute of Chartered Accountants of India (ICAI) are also applied along with compliance with other statutory promulgations which require a different treatment. Any directions issued by the RBI or other regulators are implemented as and when they become applicable.

The Balance Sheet, the Statement of Changes in Equity, the Statement of Profit and Loss and disclosures are presented in the format prescribed under Division II of Schedule III of the companies Act, as amended from time to time that are required to comply with Ind AS. The Statement of Cash Flows has been presented as per the requirements of Ind AS 7 Statement of Cash Flows.

(2) Basis of preparation

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make

estimates and assumptions that affect the reported 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 year end. Although these

estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these

estimates.

(3) Presentation of Financial Statements

The financial statements have been prepared and presented in accordance with the Indian Accounting Standards (Ind AS) as notified under the Companies (Indian Accounting Standards) Rules, 2015, and the relevant provisions of the Companies Act, 2013. The financial statements are presented on a going concern basis, under the historical cost convention, except for certain financial instruments that are measured at fair value. The company maintains its books of accounts on an accrual basis, recognizing income and expenses when they occur, rather than when cash is received or paid. All assets and liabilities are classified as current or noncurrent based on the company''s normal operating cycle and other criteria as specified in Ind AS-1. The financial statements comply with the presentation and disclosure requirements set out in Schedule III of the Companies Act, 2013, and the applicable Ind AS, ensuring consistency and comparability with previous periods.

(4) Functional and presentation currency

These financial statements are presented in Indian rupees (Rs.) which is also the Company''s functional currency. All accounts are rounded-off to the nearest lakh with two decimals, unless otherwise stated.

(5) Use of estimates and judgements

In Preparing these financial statements, management has made judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised prospectively. Judgements are made in applying accounting policies that have the most significant effects on the amounts recognised in the financial statements. Assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment are reviewed on an ongoing basis.

2 B Other Accounting Policies

(1) Revenue Recognition Interest income:

The company has only Interest income which is accounted on accrual basis. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount of a financial asset. When calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms of the financial instrument (for example, prepayment, extension, call and similar options) but does not consider the expected credit losses.

Dividend income:

Dividend Income is recognised once the unconditional right to receive the dividend is established (provided that it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably) and recorded on Receipt basis

(2) Property, Plant & Equipment (PPE)

The Company doesn''t have any Property, Plant & Equipment.

(3) Income Tax

Income tax expense represents the sum of the tax currently payable, deferred tax and any excess/ short provision of earlier years. (a) Current tax

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the applicable tax rates and the provisions of the Income Tax Act, 1961 and other applicable tax laws.

As the company has opted for the provisions of section 115 BBA under Income Tax Act, 1961, Minimum Alternate Tax (MAT) is not applicable.

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets are recognised for timing differences of items other than unabsorbed depreciation and carry forward losses only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. However, if there are unabsorbed depreciation and carry forward of losses and items relating to capital losses, deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that there will be sufficient future taxable income available to realise the assets. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each balance sheet date for their realisability. In the View of the uncertainty of earning profits in future deferred tax asset has not been recognised.

(4) Investments

The Company measures all quoted equity instruments other than in subsidiaries at fair value on initial and subsequent recognition. Changes in fair value of quoted investments in equity shares are shown as profit/loss on fair valuation of investments in Statement of Profit and Loss.

Investments that are readily realisable and intended to be held for not more than a year are classified as Current investments. All other investments are classified as Non-Current/Long term Investments. Current investments are carried at lower of cost or market value on individual investment basis. Non-Current Investments are considered at cost, unless there is an "other than temporary" decline in value, in which case adequate provision is made for the diminution in the value of Investments.

(5) Employee Benefits

(a) Retirement benefit costs and termination benefits Defined contribution plans -

The Company is not covered under Employees provident fund act and employee state insurance scheme.

(b) Short term and other long-term employee benefits

Short-term employee benefits for the services rendered by employees are recognised during the period when the services are rendered

(6) Finance costs

As the company doesn''t have any borrowings hence no borrowing cost is involved.

(7) Provisions, contingent liabilities and contingent assets

A provision is recognised when the Company has a present obligation as a result of past events 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. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the 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. Contingent liabilities are disclosed in the Notes. Contingent assets are not recognised in the financial statements.

(8) Foreign currencies Transactions

The Company doesn''t have any foreign currency transactions.

(9) Cash and cash equivalents

Cash and cash equivalents include cash at banks and cash on hand, demand deposits with banks, other short-term highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

(10) Earnings per share

Basic earnings per share is computed by dividing the 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 profit/ (loss) after tax as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.

Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date.

(11) Statement of cash flows

The Statement of cash flows shows the changes in cash and cash equivalents arising during the year from operating activities, investing activities and financing activities.

The cash flows from operating activities are determined by using the indirect method. Net income is therefore adjusted by noncash items, such as measurement gains or losses, changes in provisions, impairment of property, plant and equipment and intangible assets, as well as changes from receivables and liabilities. In addition, all income and expenses from cash transactions that are attributable to investing or financing activities are eliminated.

Cash and cash equivalents (including bank balances) shown in the statement of cash flows exclude items which are not available for general use as on the date of the Balance Sheet.

(12) Operating Cycle

Based on the nature of products / activities of the Company and the normal time between acquisition of assets and their realisation in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

A) The accounts are prepared in accordance with historical cost convention.

b) Fixed Assets and Depreciation :

Fixed assets are stated at cost less depreciation. Depreciation has been provided on straight line method at the rates prescribed under Schedule XIV to the Companies Act 1956.

c) Investments:

All Investments are long term and are stated at cost and provision for dimiunation in value of investments have been made, for fluctutation which are permanent in nature.

d) Gratuity:

The Provisions of Gratuity Act are not applicable to the Company.

A) The accounts are prepared in accordance with historical cost convention.

b) Fixed Assets and Depreciation :

Fixed assets are sated at cost less Precaution- Depreciation has been provided on 1956 prescribed under Schedule XIV to the Companies Act,

c) Investments :

All investments are long term and are stated at cost and Provision for diminution in value of investments have been made, for fluctuations which are permanent in nature.

d) Gratuity:

The Provisions of Gratuity Act are not applicable to the Company.

2.11 Previous year figures have been regrouped wherever necessary.

2.12 Contingent Liabilities - NIL

2.14 Related Party Transactions

List of Related Parties .

Associates Concern

1. Vulvae Capital Management (P) Ltd

2. Vulvae Capital Management Pvt Ltd

Key Management Personnel (KMP)

A) The accounts are prepared in accordance with historical cost convention.

b) Fixed Assets and Depreciation :

Fixed assets are stated at cost less depreciation. Depreciation has been provided on straight line method at the rates prescribed under Schedule XIV to the Companies Act, 1956.

c) Investments :

All Investments are long term and are stated at cost and provision for dimiunation in value of investments have been made, for fluctutation which are permanent in nature.

d) Gratuity :

The Provisions of Gratuity Act are not applicable to the Company.

A) The accounts are prepared in accordance with historical cost convention.

b) Fixed Assets and Depreciation :

Fixed assets are stated at cost less depreciation. Depreciation has been provided on straight line method at the rates prescribed under Schedule XIV to the Companies Act, 1956.

c) Investments :

All Investments are long term and are stated at cost and provision lordimiunation in value of investments have been made, lortluctutation which are permanent in nature.

d) Gratuity:

The Provisions of Gratuity Act are not applicable to the Company.

A) The accounts are prepared in accordance with historical cost convention.

b) Fixed Assets and Depreciation : -

Fixed assets are stated at cost less depreciation. Depreciation has been provided on straight line method at the rates prescribed under Schedule XIV to the Companies Act, 1956.

c) Investments:

All Investments are long term and are stated at cost and provision for dimiunation in value of investments have been made, for fluctutation which are permanent in nature.

d) Gratuity :

The Provisions of Gratuity Act are not applicable to the Company.

A.The accounts are prepared in accordance with historical cost convention.

b. Fixed Assets and Depreciation :

Fixed Assets are stated At cost less depreciation.Depreciation has been provided on straight Sine method at the rates prescribed under Schedule XIV to the Companies Act, 1856.

c. Investments: Investments in Trade are stated at cost.

d. Gratuity : The Provisions of Gratuity Act are not applicable to the company,

e. Closing Stock:

The foreign currencies and Foreign Traveller Cheques at the end of the year have been valued at cost or market pries whichever is tess.

f. 10% of preliminary expenses are amortised and written off to Profit & Loss account every year.