M. Provisions and Contingencies:
(i) Provisions
Provisions for legal claims and make good obligations are recognised when the Company has a present legal or constructive
obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and
the amount can be reliably estimated. Provisions are not recognised for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined
by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect
to any one item included in the same class of obligations may be small.
Long-term provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current
market assessments of the time value of money. Short term provisions are carried at their redemption value and are not
offset against receivables from reimbursements.
Provisions are measured at the present value of management's best estimate of the expenditure required to settle the
present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate
that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in
the provision due to the passage of time is recognised as interest expense.
(ii) Contingent Liabilities
Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be
confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of
the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources
will be required to settle or a reliable estimate of the amount cannot be made.
N. Earnings per Share:
(i) Basic earnings per share
Basic earnings per share is calculated by dividing:
- the profit attributable to owners of the company, excluding any costs of servicing equity other than ordinary shares.
- by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in
equity shares issued during the year.
(ii) Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:
- the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and
- the weighted average number of additional ordinary shares that would have been outstanding assuming the conversion
of all dilutive potential equity shares.
O. Exceptional items:
Certain occasions, the size, type or incidence of an item of income or expense, pertaining to the ordinary activities of the
Company is such that its disclosure improves the understanding of the performance of the Company, such income or expense
is classified as an exceptional item and accordingly, disclosed in the notes accompanying to the financial statements.
P. Share Capital
During the year ended March 31, 2025, the board of Ace Software Exports Limited ('ASEL') had issue 64,00,000 equity
shares of face value of Rs. 10 each on right basis ('Right Equity Shares'). In accordance with the terms of issue, Rs. 39 i.e.
50% of the issue price per equity share was received from the allottees on application and shares were alloted. The board
had made final call of Rs. 39 per right equity share (Including a premium of Rs. 34 per share) in February, 2025. As on
March 31, 2025, 2,16,671 partly paid-up Equity shares are outstanding on which aggregate amount (Including premium) of
Rs. 84.50 Lakhs is unpaid.
NOTE: 1.4 USE OF JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
While preparing financial statements in conformity with Ind AS, the management has made certain estimates and
assumptions that require subjective and complex judgments. These judgments affect the application of accounting policies
and the reported amount of assets, liabilities, income and expenses, disclosure of contingent liabilities at the statement of
financial position date and the reported amount of income and expenses for the reporting period. Financial reporting results
rely on the management estimate of the effect of certain matters that are inherently uncertain. Future events rarely develop
exactly as forecasted and the best estimates require adjustments, as actual results may differ from these estimates under
different assumptions or conditions. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognized prospectively.
Judgment, estimates and assumptions are required in particular for:
a) Recognition and measurement of defined benefit obligations
The obligation arising from defined benefit plan is determined on the basis of actuarial assumptions. Key actuarial
assumptions include discount rate, trends in salary escalation, actuarial rates and life expectancy. The discount rate
is determined by reference to market yields at the end of the reporting period on government bonds. The period to
maturity of the underlying bonds correspond to the probable maturity of the post-employment benefit obligations. Due
to complexities involved in the valuation and its long term nature, defined benefit obligation is highly sensitive to changes
in these assumptions. All assumptions are reviewed at each reporting period.
b) Recognition of deferred tax liabilities
Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between
the carrying values of assets and liabilities and their respective tax bases, and unutilized business loss and depreciation
carry-forwards and tax credits. Deferred tax assets are recognized to the extent that it is probable that future taxable
income will be available against which the deductible temporary differences, unused tax losses, depreciation carry¬
forwards and unused tax credits could be utilized.
c) Discounting of financial assets / liabilities
All financial assets / liabilities are required to be measured at fair value on initial recognition. In case of financial assets /
liabilities which are required to be subsequently measured at amortized cost, interest is accrued using the effective
interest method.
d) Provisions
Significant estimates are involved in the determination of provisions. The Company records a provision for onerous sales
contracts when current estimates of total contract costs exceed expected contract revenue. The provision for expenses
is based on the best estimate required to settle the present obligation at the end of the reporting period.
Legal proceedings often involve complex legal issues and are subject to substantial uncertainties. Accordingly,
considerable judgment is part of determining whether it is probable that there is a present obligation as a result of a past
event at the end of the reporting period, whether it is probable that such a Legal Proceeding will result in an outflow of
resources and whether the amount of the obligation can e reliably estimated. Internal and external counsels are generally
part of the determination process.
10.3 Company has only one class of Equity share of face value of ' 10/- each carrying one voting right for each equity share held.
In the event of the Liquidation of the company, the equity shareholders are eligible to receive the remaining assets of the company,
after distribution of all preferential amounts. The distribution will be in the proportion to the number of the equity shares held by
the shareholders.
10.4 Issue of shares under Right Issue
The Company had Issue 64,00,000 equity shares of face value of Rs. 10 each basis (' Right Equity Shares'). In accordance with terms
of issue, Rs.39 i.e. 50% of the issue price per equity share was received from the allottees on application and shares were alloted. The
board had made final call of Rs. 39 per right equity share (Including a premium of Rs. 34 per share) in February, 2025. as on March
31,2025 2,16,671 Partly paid-up Equity shares are outstanding on which aggregate amount (Including premium) of Rs. 84.50 Lakhs
is unpaid.
25 Disclosure Pursuant To Ind AS 19 - Employee Benefits
25.1 Defined Contribution Plan
The company makes contributions towards Provident Fund and Superannuation fund to defined contribution
retirement benefit plan for the qualifying employees. The provident fund contributions are made to the Government
administered Employees Provident Fund. Both the employees and the company make monthly contributions to
the provident fund plan equal to a specified percentage of covered employee's salary. The supperannuation fund
is administered by the Life Insurance Corporation of India. Under the plan, the company is required to contribute a
specified percentage of the covered employee's salary to the retirement benefit plan to fund the benifits.
The Company has recognized Rs. 10.75 Lakhs & Rs. (5.70) Lakhs in the Statement of Profit & Loss for the year
ended March 31, 2025 & March 31, 2024 respectively under Defined Contribution Plan.
25.2 Defined Benefit Plan
The Company's plan assets in respect of gratuity are partly funded through the Group Scheme of Life Insurance
Corporation of India. The scheme provides for the payment to vested employees as under:
i) On normal retirement/ early retirement/ withdrawal/ resignation : As per the provisions of Gratuity Act, 1972
with vesting period of 5 years of service.
ii) On death in service : As per the provisions of Payment of Gratuity Act, 1972 without any vesting period.
The following table sets out the status of Gratuity and the amounts recognised in the company's financial statements
as at March 31, 2025 and as at March 31, 2024
Financial instruments by category
(i) Fair value hierarchy
This section explains the judgments and estimates made in determining the fair value of the financial instruments that
are (a) recognized and measured at fair value and (b) measured at amortized cost and for which fair values are disclosed
in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value,
the Company has classified its financial instruments into the three levels prescribed under the accounting standard.
Explanations of level follows are as under.
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity
instruments and mutual funds that have quoted price. The fair value of all equity instruments which are traded in the
stock exchanges is valued using the closing price as at the reporting period. The equity instruments and mutual funds
are valued using the closing NAV.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation
techniques which maximize the use of observable market data and rely as little as possible on entity specific estimates.
If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in
level 3.
(ii) Valuation technique used to determine fair value
Specific valuation techniques used to value financial instruments include:
- The use of quoted market prices or quotes for similar instruments
28. FINANCIAL RISK MANAGEMENT
The Company's Board of Directors has overall responsibility for the establishment and oversight of the Company's risk
management framework.
The Company's risk management policies are established to identify and analyze the risks faced by the company, to set
appropriate risk limits and controls and to monitor risks.
Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company's
activities.
a) Credit risk
Credit risk is the risk of incurring a loss that may arise from a borrower or debtor failing to make required payments.
Credit risk arises mainly from outstanding receivables from free market dealers, cash and cash equivalents, employee
advances and security deposits. The Company manages and analyses the credit risk for each of its new clients before
standard payment and delivery terms and conditions are offered.
(i) Credit risk management
The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The
demographics of the customer and including the default risk of the industry, also has an influence on credit risk
assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the
creditworthiness of customers to which Company grants credit terms in the normal course of business.
The Company considers the probability of default upon initial recognition of asset and whether there has been a significant
increase in credit risk on an ongoing basis through each reporting period. To assess whether there is a significant increase
in credit risk the company compares the risk of default occurring on asset as at the reporting date with the risk of default
as at the date of initial recognition. It considers reasonable and supportive forwarding-looking information such as
? Actual or expected significant adverse change in business;
? Actual or expected significant changes in the operating results of the counterparty;
? Financial or economic conditions that are expected to cause a significant change to the counterparty's ability to meet
its obligation;
? Significant increase in credit risk on other financial instruments of the same counterparty;
? Significant changes in the value of the collateral supporting the obligation or in the quality of the third-party guarantees
or credit enhancements.
Financial assets are written off when there are no reasonable expectations of recovery, such as a debtor failing to engage
in a repayment plan with the Company. Where loans or receivables have been written off, the Company continues to
engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized
as income in the statement of profit and loss.
For trade receivables, the Company applies the simplified approach permitted by Ins AS-109 Financial Instruments,
which requires expected lifetime losses to be recognized from initial recognition of the receivable. When determining
whether the credit risk of the financial asset has increased significantly since initial recognition and when estimating
expected credit losses, the Company considers reasonable and relevant information that is available without undue cost
or effort. This includes both quantitative and qualitative information and analysis, based on the Company's historical
experience and informed credit assessment and including forward looking information.
b) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The responsibility for liquidity risk management
rests with the board of directors, which has established an appropriate liquidity risk management framework for
the management of the company's short-term and long-term funding and liquidity management requirements. The
company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by
continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and
liabilities.
(i) Maturities of financial liabilities
All Financial liabilities disclosed in balance sheet are contractual undiscounted cash outflow due within 12 months.
c) Market risk
i. Price Risk
The company is mainly exposed to the price risk due to its investments in equity instrument and equity mutual funds. The
price risk arises due to uncertainties about the future market values of these investments. The above instruments risks
are arise due to uncertainties about the future market values of these investments.
ii. Currency Risk
The company has not significant exposure for export's revenue and import of raw material and property, plant and
equipment so the company is not subject to risk that changes in foreign currency value impact.
iii. Foreign Currency Risk
Foreign currency risk is the risk that the fair value of future cash flows of an exposure will fluctuate because of changes
in foreign currency rates. Exposures can arise on account of the assets which are denominated in currency other than
Indian Rupee. The company has negligible foreign currency exposure in US Dollar.
29. CAPITAL MANAGEMENT
For the purpose of the company's capital management, equity includes equity share capital and all other equity reserves
attributable to the equity holders of the company. The company manages its capital to optimize returns to the shareholders
and makes adjustments to it in light of changes in economic conditions or it's business requirements. The company's
objectives are to safeguard continuity, maintain a strong credit rating and healthy capital ratios in order to support its
business and provide adequate return to shareholders through continuing growth and maximize the shareholders value.
The company funds its operation through internal accruals. The management and Board of Directors monitor the return on
capital as well as the level of dividends to shareholders.
30. OTHER STATUTORY INFORMATION
(i) Contingent Liabilities not provided for NIL
(ii) Estimated amount of Contract remaining to be executed on Capital Accounts and not provided for, net of advance is -
NIL ( Previous year - NIL)
(iii) The Company does not have any Benami property, where any proceeding has been initiated or pending against the
Group for holding any Benami property.
(iv) The Company does not have any transactions with companies struck off.
(v) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
period.
(vi) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(vii) The Company has not been declared wilful defaulter by any bank or financial institution or government or any
government authority.
(viii) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
(ix) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the Group shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
(x) The Company has not any such transaction which is not recorded in the books of accounts that has been surrendered
or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or
survey or any other relevant provisions of the Income Tax Act, 1961.
(xi) According to the opinion of the management of the Company the value of realization of Trade & Other Receivables and
Loans & Advances given in the ordinary course of business would not be less than the amount at which they are stated
in the Balance sheet.
(xii) The Company's operations fall under single segment namely Computer Software and Services Exports, hence Segment
wise information is not furnished.
(xiii) Previous year's figure have been regrouped/reclassified wherever necessary to confirm with the current year's
presentation.
See accompanying Statement on Material accounting policies & Notes to Accounts
As per my Report of even date For & on behalf of the Board of Directors,
For J. A. Sheth & Associates,
Chartered Accountants
(Firm Registration No. 119980W)
Jingal A. Sheth Amit Mehta Vikram Sanghani
Proprietor Managing Director & CEO Whole Time Director
Membership No. 107067 (DIN: 00432898) (DIN: 00183818)
Mansi Patel Jyotin Vasavada
Company Secretary Chief Financial Officer
Rajkot, Dated May 30, 2025 RaJkot- Dated May 30, 2025
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