Note 1 - Corporate Information and Significant Accounting Policies

1. Corporate Information

Ace Engitech Limited (Formerly known as Prem Somani Financial Services Limited) ("the Company") provides IT services (New activity due to change in business line of the company)

The company is a listed company incorporated under the provisions of the Companies Act, 1956 (now Companies Act, 2013). The registered office of the Company is situated at flat No. 408, Second Floor, Anand Chamber, Baba Harishchandra Marg, Raisar Plaza, Indira Bajar Jaipur- 302001.

2. Significant Accounting Policies, Assumptions and Notes

1.1 Statement of Compliance

The financial statements comprising of the Balance Sheet, Statement of Profit and Loss, Statement of changes in equity, Statement of Cash Flow together with notes comprising a summary of Significant Accounting Policies and Other Explanatory Information for the year ended 31st March 2023 and comparative information in respect of the preceding period and Balance Sheet as on previous date, i.e. 31st March 2022 have been prepared in all material aspects in accordance with IND AS notified and duly approved by the Board of Directors, along with proper explanation for material departures.

1.2 Basis of Measurement

The Company follows mercantile system of accounting and recognizes significant items item of income and expenditure on accrual basis except those with significant uncertainties.

The financial statement have been prepared on the historical cost basis except for certain financial assets and liabilities that are measured at fair value (refer accounting policy regarding financial instruments)

1.3 Functional and presentation Currency

These financial statements are presented in Indian Rupees (INR), which is the company’s functional currency and all values are rounded to the nearest hundred

1.4 Current and non- current classifications

The Company presents assets and liabilities in statement of financial position based on cur rent/non-current classification.

The Company has presented non-current assets and current assets before equity, non- current liabilities, and current liabilities in accordance with Schedule III, Division II of Companies Act, 2013 notified by MCA.

An asset is classified as current when it is:

• Expected to be realised or intended to be sold or consumed in normal operating cycle,

• Held primarily for the purpose of trading,

• Expected to be realised within twelve months after the reporting period, or

• Cash or cash equivalent unless restricted from being exchanged or 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 it is:

• Expected to be settled in normal operating cycle,

• Held primarily for the purpose of trading,

Registered Office: Flat No. 408, Second Floor, Anand Chamber, Baba Harishchandra Marg, Raisar Plaza,

Indira Bazar, Jaipur-302001, Rajasthan

• Due to be settled within twelve months after the reporting period, or

• There is no unconditional right to defer the 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

These financial statements are prepared on accrual basis of accounting and comply in all material aspects with the Indian accounting standards (Ind AS) notified under the companies (Indian accounting standard) Rules, 2015 (to the extent notified and applicable).

1.6 Significant accounting policies

A summary of the significant accounting policies applied in the preparation of the financial statement are as given below. These accounting policies have been applied consistently to all periods presented in the financial statements.

i. Property, Plant and Equipment

Property, plant and equipment are stated at acquisition cost (including incidental expenses directly attributable to bringing the asset to its working condition for its intended use) less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price, non-refundable taxes or levies, borrowing costs if capitalization criteria are met and any attributable cost of bringing the asset to its working condition for its intended use. Subsequent expenditure related to PPE is capitalized only when it is probable that future economic benefits associated with these will flow to the Company and the cost of item can be measured reliably. Other repairs and maintenance costs are expensed off as and when incurred.

An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit and loss when the asset is derecognised.

ii. Intangible Assets

Not applicable as no Intangible Asset are held by the Company during the year or at the reporting date.

iii. Depreciation/ Amortisation

Depreciation on property, plant and equipment's is calculated on straight line basis. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013 as under:

(ERSTWHILE PREM SOMANI FINANCIAL SERVICES LIMITED)

CIN: -L72100RJ1991PLC006220 (Incorporated under the Companies Act, 1956)

Contact No. 9322666532, Email Id: aceengitechlimited@gmail.com Website: https: //www.aceengitech.com

ANNUAL REPORT 2023-24

Salvage Value of the assets has been taken @5% of Original Cost (except intangible assets) as prescribed in Schedule II.

iv. Borrowing cost

Borrowing cost are recognized in the profit or loss account in the period in which they are incurred.

v. Inventories

Not Applicable as no inventories are held by the Company during the year or at the reporting date.

vi.Cash and Cash Equivalents

Cash and cash equivalents in the financial statements comprise cash at banks, Cash in hand, cheque in hand and short-term deposit with an original maturity of three months or less that are readily convertible to known amount of cash. vii. Provision

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The expense relating to any provision is presented in the statement of profit and loss net of any reimbursement. pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

viii. Revenue recognition

Revenue is recognized to the extent that it probable that the economic benefits will flow to the Company, the revenue can be reliably measured and there exists reasonable certainty of its recovery.

a) Revenue from operation

• Revenue for fixed-price contracts is recognised using percentage-of completion method. The Company uses judgement to estimate the future cost-to-completion of the contracts which is used to determine degree of completion of the performance obligation.

b) Other Income

Other income from a financial asset is recognised when it is probable that the economic benefits will flow to the company and the amount of income can be measured reliably.

ix. Earnings per share

a) Basic earnings per share

Basic earnings per share Basic earnings per share is calculated by dividing the profit attributable to owners of the Company by the weighted average number of equities shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year and excluding treasury shares if any.

b) 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

Registered Office: Flat No. 408, Second Floor, Anand Chamber, Baba Harishchandra Marg, Raisar Plaza,

Indira Bazar, Jaipur-302001, Rajasthan

additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.

x. Tax Expenses

a) Current Tax

The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

b) Deferred Tax

The Company has not provided for deferred taxes with respect to differences between income for financial reporting purpose and tax purpose since there are many carry forward losses and these losses are not expected to be cleared in coming years.

xi. Use of estimates, assumption and judgment-

a. The operating cycle is the time between the acquisition of assets for processing and their realization in cash or cash.

b. The preparation of the financial statements in conformity with recognition and measurement principles of Ind AS requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year.

c. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which estimates are revised if the revision affects only that period or in the period of the revision and future