NOTE-1 SIGNIFICANT ACCOUNTING POLICIESA. OVERVIEW OF THE COMPANY
Company was incorporated as a Private Limited Company with the name of "DM Prime Square Research & Analytics Private Limited" under the Companies Act, 1956. Vide certificate of incorporation dated October 08, 2012, issued by Registrar of Companies, Delhi, bearing CIN U74140DL2012PTC243246. Further, our Company name changed in pursuance of a special resolution passed by the members of our Company at the Extra-Ordinary General Meeting and the name of our Company was changed from "DM Prime Square Research & Analytics Private Limited" to "Ace Alpha Tech Private Limited"
Further, Company was converted into a Public Limited Company in pursuance of a special resolution passed by the members of our Company and the name of our Company changed from "Ace Alpha Tech Private Limited" to "Ace Alpha Tech Limited" Bearing CIN U74140DL2012PLC243246 & Registrar of Companies, Delhi has issued a new certificate of incorporation consequent upon conversion to public company dated 12th September, 2024.
Ace Alpha Tech Limited are serving financial industry with our comprehensive suite of trading solutions catering to all types of clients, ranging from institutional investors to retail traders via brokers. & Customized trading solutions in which we use advanced, institutional-grade algorithms that work as a front-end layer over existing order management systems/ RMS which are connected with stock exchanges. These customized solutions enable clients to execute their trading strategies automatically and without manual intervention, offering enhanced efficiency and performance, backed by robust risk management tools. Since these strategies are back tested and checked on simulated environment, they ensure the safety and smooth operation of trading activities. Our user management and risk management system further streamline operations, automating processes like user onboarding, access management, and ongoing risk monitoring. This comprehensive approach not only enhances operational efficiency but also ensures security and compliance across businesses of all sizes.
B. Basis of preparation of financial statements
The financial statements have been prepared to comply in all material respects with the accounting standards specified under Section 133 of Companies Act, 2013 read with Rule 7 of the Companies
(Accounts) Rules, 2014. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.
C. 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 reported amount of assets, liabilities, disclosures relating to contingent liabilities and assets as at the balance sheet date and the reported amounts of income and expenses during the year. Difference between the actual amounts and the estimates are recognized prospectively in the year in which the events are materialized.
D. Current Vs Non -Current Classification
All Assets & liabilities are classified as current as per the Company Normal operating cycle and other criteria set out ins Schedule III of the Companies Act, 2013.
Base on the nature of services and its time Realization into cash and Cash & cash Equivalents, the Company has ascertained its normal Operating Cycle as 12th months for the Purpose of Current or Non current classification of Assets and liabilities.
Deferred Tax Assets & liabilities are Classified as non-Current only.
E. Revenue Recognition
The company follows the mercantile system of accounting and recognizes income and expenditure on an accrual basis. Revenue is measured based on the transaction price, which is the consideration, net of returns, rebates and discounts to customers from rendering of services.
F. Property, Plant and Equipment
Property, Plant and Equipment's are stated at cost and deduction of accumulated depreciation/amortization and impairment.
G. Depreciation on Tangible Property Plant & Equipment.
The company is providing depreciation in line with the requirements of part C of schedule II of Companies Act 2013. The company continues to follow Straight Line Method value method of depreciation. In respect of additions to Property, Plant & Equipment, Depreciation is calculated on prorata basis from the
H. Intangible assets
Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment losses, if any. Intangible representing computer software are amortized using the straight line method over their estimated useful lives of five years.
The useful lives of intangible assets are assessed as either finite or indefinite.
Intangible assets with finite lives are amortized over the useful economic life and assessed for impairment, whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortization period or method, as appropriate, and are treated as changes in accounting estimates. The amortization expenses on intangible assets with finite lives is recognized in the statement of profit and loss, unless such expenditure forms part of carrying value of another asset.
Gains/(losses) arising from de-recognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit or loss when the asset is de-recognized.
Annual Review
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate
I. Interest Income
I nterest income is recognised on a time proportion basis taking into account the amount outstanding
date on which asset is put to use. Useful life used for different asset classes is as follows:
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Assets Category
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Useful Life
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Office Equipment
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5 Years
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Server
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6 Years
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Software
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5 Years
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Computer
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3 Years
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and the applicable interest rates. Interest income is included under the head "Other Income" in the Statement of Profit and Loss.
J. Taxation
Provision of Current Income Tax is made by opting for the new tax regime for corporate tax on the taxable income using the applicable tax rates as per Section 115BAA inserted by taxation laws (Amendment) Act, 2019. Deferred tax Assets or liabilities arising on account of timing differences, which are capable of reversal in one or more subsequent years is recognized using the tax rates and tax laws that have been enacted or substantively enacted. Deferred tax assets are not recognized unless there is sufficient assurance with respect to reversal thereof in future years.
K. 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. The weighted average number of equity shares outstanding during the period is adjusted for events of bonus issue, bonus element in a rights issue to existing shareholders, share split and consolidation of shares, if any. For the purpose of calculating diluted earning per share, the profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.
L. Provisions
A provisions is recognized when an enterprises has a present obligation as a result of past event and it is probable that an outflow of resources would be required to settle the obligations, 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.
M. Employee-benefits Expense I. Short-term benefits
Short term employee benefits comprise of employee costs such as salaries, bonus etc., and are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss during the period in which the employee
renders the related service. The Company recognizes the bonus payments when it has the present obligation to make such payments as a result of past events and a reliable estimate of the obligation can be made.
II. Defined Contributions Plans
A defined contribution plan is a post-employment benefit plan under which the company pays specified monthly contributions to the provident fund. The company's contribution is recognized as an expense in the statement of profit and loss during the period in which the employee renders the related service
N. Inventories
Company does not have any Inventories.
O. Investments
Investments are stated at cost less write downs where applicable.
P. Cash and cash equivalents
Cash amounts represent cash on hand and demand deposits. Cash equivalents are primarily short-term highly liquid investments with an original maturity of 90 days or less and which are subject to an insignificant risk of change in value.
Q. Others
1) There is no amount due to micro and small scale and ancillary undertaking outstanding for more than 45 days.
2) The Name of the company has been changed from "DM PRIME SQUARE RESEARCH &
ANALYTICS PRIVATE LIMITED" To "ACE ALPHA TECH PRIVATE LIMITED " w.e.f 17th May 2024 and w.e.f 12.09.2024 the Name of the the company has been changed from "ACE ALPHA TECH PRIVATE LIMITED " to "ACE ALPHA TECH LIMITED"
3) As per information and explanation given by the management there is no contingent liability.
4) In the opinion of Directors Current Assets, Loans & Advances has the value at least to the extent as stated in the accounts.
5) Balances on account of Advances and Creditors are subject to confirmation by the parties
6) Contribution made to the recognised provident fund, employees state insurance scheme etc. which are defined contribution plans, is charged to the Statement of Profit and Loss in the period in which they occur.
7) The Company has provisioned gratuity as defined benefit plan where the amount that an employee will receive on separation/retirement is defined by reference to the employee's length of service and final salary. The liability recognised in the Balance Sheet in respect of gratuity is the present value of defined benefit obligation at the Balance Sheet date together with the adjustments for unrecognised actuarial gain or losses and the past service costs. The defined benefit obligation is calculated at or near the Balance Sheet date by an independent actuary using the projected unit credit method.
8) Previous year figures have been rearranged and regrouped wherever considered necessary.
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