Note 1 - Corporate Information and Significant Accounting Policies
1. Corporate Information
Ace Engitech Limited (formerly known as Prem Somani Financial Services Limited) (“the Company”) is a listed
public company incorporated in India under the provisions of the Companies Act, 1956 (now governed by
the Companies Act, 2013). The Company has its registered office at Flat No. 408, Second Floor, Anand
Chamber, Baba Harishchandra Marg, Raisar Plaza, Indira Bazar, Jaipur - 302001.
The Company is engaged in providing Information Technology (IT) services, which is a new business activity
adopted following a change in its business line.
2. Significant Accounting Policies, Assumptions and Notes
1.1 Statement of Compliance
These financial statements comprising the Balance Sheet, Statement of Profit and Loss, Statement of Changes
in Equity, Statement of Cash Flows together with notes, including a summary of significant accounting
policies and other explanatory information for the year ended 31st March 2025, have been prepared in
accordance with the Indian Accounting Standards (“Ind AS”) notified under the Companies (Indian
Accounting Standards) Rules, 2015, as amended, and other relevant provisions of the Companies Act,
2013.
1.2 Basis of Measurement
The financial statements have been prepared under the historical cost convention, except for certain financial
assets and liabilities which are measured at fair value in accordance with Ind AS 109 - Financial
Instruments.
The Company follows the accrual basis of accounting and recognizes items of income and expenditure on that
basis, except where uncertainties exist.
1.3 Functional and Presentation Currency
The financial statements are presented in Indian Rupees (INR), which is the Company’s functional currency.
All amounts have been rounded off to the nearest thousand, in accordance with Schedule III of the
Companies Act, 2013, unless otherwise stated.
1.4 Current and Non-Current Classification
The Company presents assets and liabilities in the Balance Sheet based on current/non-current classification
as required by Schedule III, Division II of the Companies Act, 2013.
• An asset is classified as current when:
o it is expected to be realised or intended to be sold or consumed in the normal operating cycle;
o it is held primarily for the purpose of trading;
o it is expected to be realised within twelve months after the reporting period; or
o it is cash or cash equivalent unless restricted from being used to settle a liability for at least
twelve months after the reporting period.
All other assets are classified as non-current.
• A liability is classified as current when:
o it is expected to be settled in the normal operating cycle;
o it is held primarily for the purpose of trading;
o it is due to be settled within twelve months after the reporting period; or
o the Company does not have an unconditional right to defer settlement of the liability for at
least twelve months after the reporting period.
All other liabilities are classified as non-current.
1.5 Concept of Materiality
Financial statements are prepared to present a true and fair view in compliance with Ind AS. Items that are
material, either individually or in aggregate, are disclosed separately.
1.6 Significant Accounting Policies
i. Property, Plant and Equipment (PPE)
PPE is stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises
purchase price, non-refundable taxes, borrowing costs (if capitalization criteria are met), and directly
attributable expenses necessary to bring the asset to its working condition for intended use.
Subsequent expenditure is capitalised only when it increases future economic benefits from the related asset.
Other repair and maintenance costs are expensed as incurred.
An item of PPE is derecognised on disposal or when no future economic benefits are expected. Gains or losses
on derecognition are recognised in the Statement of Profit and Loss.
ii. Intangible Assets
The Company does not hold any intangible assets as at the reporting date.
iii. Depreciation
Depreciation is provided on a straight-line basis over the useful lives prescribed in Schedule II of the
Companies Act, 2013, as under:
Residual value of assets is generally considered at 5% of the original cost, unless management’s assessment
justifies a different value.
iv. Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction, or production of qualifying assets
are capitalised as part of the cost of such assets. Other borrowing costs are recognised as expense in the
period in which they are incurred.
v. Inventories
The Company does not hold inventories as at the reporting date.
vi. Cash and Cash Equivalents
Cash and cash equivalents include cash in hand, balances with banks, cheques in hand, and short-term
deposits with original maturities of three months or less that are readily convertible into known amounts
of cash and subject to insignificant risk of changes in value.
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