AUDITED NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025
i. Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation
as a result of past events and it is probable that there will be an outflow of resources.
ii. Contingent Liability is
(a) a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non¬
occurrence of one or more uncertain future events not wholly within the control of he entity ; or
(b) a present obligation that arises from past events but is not recognized because :
(i) it is not probable that an outflow of resources embodying economic benefits will be settle the obligation ; or
(ii) the amount of the obligation cannot be measured with sufficient reliability.
iii. Contingent liabilities are not recognized but are disclosed in the notes after careful evaluation of facts and legal aspects
of the matter involved.
iv. A Contingent Asset is possible asset that arises from past events and whose existence will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity.
Contingent Assets are neither recognized nor disclosed.
v. Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date.
1.21.Share Capital
Ordinary Shares
Ordinary shares are classified as equity. Incremental costs, if any, directly attributable to the issue of Ordinary shares are
recognized as a deduction from other equity, net of any tax effects.
1.22.Fair Value Measurement
Fair value is the price that would be received from the sale of an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The fair value measurement is based on the
presumption that the transaction to sell an asset or transfer the liability takes place either:
- in the principle market for the asset or liability
- in the absence of principle market, in the most advantageous market for the asset or liability.
The principle or the most advantageous market must be accessible by the Company.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when
pricing the asset or liability, assuming that market participants act in their economic best interest.
The fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic
benefits by using the asset in its highest and best use or by selling it to another market participant that would use the
asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are
available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable
inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within
the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value
measurement as a whole:
- Level 1 Quoted (Unadjusted) Market prices in active markets for incidental assets or liabilities
- Level 2 Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly
1) Financial Assets - Debt Instruments at amortized cost
After initial measurement the financial assets are subsequently measured at amortized cost using the Effective Interest
Rate (EIR) method. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees
2) Financial Assets - Debt Instruments at Fair Value through Other Comprehensive Income (FVTOCI)
Measured initially as well as at each reporting date at fair value. Fair value movements are recognized in the Other
Comprehensive Income (OCI). On de-recognition of the asset, cumulative gain or loss previously recognized in OCI is
3) Debt instruments & derivatives at Fair Value through Profit or Loss (FVTPL)
FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for
categorization as at amortized cost or as FVTOCI, is classified as at FVTPL.
4) Equity Instruments at Fair Value through Other Comprehensive Income
On initial recognition, the Company can make an irrevocable election (on an instrument by instrument basis) to present
the subsequent changes in fair value in other comprehensive income pertaining to investments in equity instruments.
These elected investments are initially measured at fair value plus transaction costs. Subsequently, they are measured at
fair value with gains / losses arising from changes in fair value recognized in other comprehensive income. This
5) Financial Liabilities
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit & loss, loans and
borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.
All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of
directly attributable transaction costs. The Companies financial liabilities include trade and other payables, loans and
Subsequent Measurement
Fair value through Profit & Loss
Financial liabilities at fair value through profit & loss include financial liabilities held for trading and financial liabilities
designated upon initial recognition as at fair value through profit or loss. All changes in fair value of such liabilities are
Loans and Borrowings
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the
EIR method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the
EIR amortization process. The EIR amortization is included as finance costs in the statement of profit and loss.
1.23.Current/Non-Current Classification
The Company presents assets and liabilities in the balance sheet based on current/non-current classification. An asset is
classified as current when it satisfies any of the following criteria:
- It is expected to be realized or intended to be sold or consumed in normal operating cycle
- It is held primarily for the purpose of trading
- It is expected to be realized within 12 months after the date of reporting period, or
- Cash and cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after
reporting period.
Current assets include the current portion of non-current financial assets.
All other assets are classified as non-current.
A liability is current when it satisfies any of the following criteria:
- It is expected to be settled in normal operating cycle
- It is held primarily for the purpose of trading
- It is due to be settled within 12 months after the reporting period, or
- There is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period
Current liabilities include the current portion of long term financial liabilities.
The Company classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities.
The operating cycle is the time between the acquisition of assets and their realization in cash and cash
30 Taxation:
Current Taxes
Inspite of profits earned during the year ended 31st March, 2025, no provision for income tax is made, in view of bought forward losses & unabsorbed depreciation. Further, the
company had opted for the new taxation regime under section 115BAA of Income Tax Act ,1961 during the previous year and accordingly no provision for tax is required to be
made under section 115JB of Income T ax Act, 1961 as well.
31 Contingent liabilities
a Provision for Warranties :
As per Ind AS 37, Provisions, Contingent Liabilities and Contingent Assets, issued by the Institute of Chartered Accountants of India, there is no warranty provision during the
year.
32 Derivative Instruments and Un-hedged foreign currency exposure :
There is no unhedged foreign currency exposure and open positions on derivative instruments as at year ended 31st March, 2025
34 Foreign Currency Income/Expense
The Company has neither earned any income nor incurred any expenses in foreign currency during the year
(b) Fair Value Hierarchy
The Fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and consist of the following
three levels :
Level 1: Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Inputs are other than quoted prices included within level1 that are observable for the asset or liability , either directly (i.e as prices )or indirectly
(i.e derived from prices)
Level 3: Inputs are not based on observable market data (unobservable inputs. Fair value are determined in whole or in part using a valuation model based on assumption that are
neither supported by prices from observable current market transaction in the same instrument nor are they based on available market data.
40 Details of Benami Property held
No proceedings have been initiated or are pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and
rules made thereunder.
41 Borrowings from banks for Credit Facility
The Company has not availed off any credit facilities from banks or financial institutions against the security of current assets during the year ended 31st March, 2025
42 Wilful Defaulter
PAE Limited (hereinafter called "The Company") went into CORPORATE INSOLVENCY RESOLUTION PROCESS (CIRP) after one of the Financial Creditors ALP Acres and
Landlines filed an application under section 7 of Insolvency and Bankruptcy Code, 2016.
The said application was admitted by the National Company Law Tribunal vide order dated 22nd April, 2024.
The Resolution Plan submitted by Successful Resolution Applicant Mr. J atinbhai Ramanbhai Patel, was unanimously approved by the CoC (Committee of Creditors), by 100% of
the voting share through e-voting.
The approved resolution plan was managed by Implementation and Monitoring Committee (IMC).
43 Relationship with Struck Off Companies
The Company has not entered into any transactions with the companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956 during the
year.
44 Registration of Charges or satisfaction with Registrar of Companies
During the year, there are no instances of any registration, modification or satisfaction of charges which are pending for registration with Registrar of Companies (ROC) beyond
the statutory period.
45 Compliance with number of layers of companies
The Company is in compliance with the relevant provisions of the Companies Act, 2013 with respect to the number of layers prescribed under clause (87) of Section 2 of the
Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017.
46 Compliance with approved Scheme(s) of Arrangements
There is no Scheme of Arrangement approved by the Competent Authority in terms of Sections 230 to 237 of the Companies Act, 2013 during the year and hence, no disclosures
are required to be made by the Company in these financial statements for the year ended 31st March, 2025.
47 Utilisation of Borrowed Funds and Share Premium under Rule 11(e)
No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other
person(s) or entity(ies), including foreign entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest
in party identified by or on behalf of the Company (Ultimate Beneficiaries).
The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other
persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
48 Rounding of Amounts
All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs, or decimals thereof, as per the requirement of Schedule III, unless
otherwise stated.
49 The Company has not traded or invested in any crypto currency or virtual currency during the year and previous year.
50 There has been no fraud by the company or on the company during the year and previous year.
51 Dividend
During the year ended 31st March, 2025, no dividend has been proposed.
52 The Company does not have any transactions not recored in the books of accounts that has been surrendered or disclosed as income during the year or the previous year in the tax
assessments under Income T ax Act, 1961.
53 Due to the ongoing CIRP and the uncertainty surrounding the company's future operations and financial performance, the calculation of Deferred Tax Assets (DTA) and Deferred
Tax Liabilities (DTL) has not been performed.
54 Due to the ongoing Corporate Insolvency Resolution Process (CIRP), the company is unable to provide specific details or make provisions related to employee benefits at this
stage. As a result, no reporting is made under the section of employee benefits for the duration of the CIRP.
55 Due to the ongoing Corporate Insolvency Resolution Process (CIRP), the company has not engaged an actuarial professional to prepare the actuary report. Consequently, no
impact related to this has been reflected in the financial statements.
56 Due to the ongoing Corporate Insolvency Resolution Process (CIRP) and the unavailability of necessary records, it is not possible to verify and report under Ind AS 19, Ind AS 36
and Ind AS 116.
As per our report of even date attached For and on behalf of the Board of Directors
For, G.P. Kapadia & Co. PAE Limited (In CIRP)
Chartered Accountants
Firm Registration No. 104768W
Nimeshkumar Patel Jatinbhai Patel
Chairperson & MD Director & CFO
DIN: 10939411 DIN: 06973337
Priyang Pandit
Partner Sarah Kantharia
Membership no. 153595 Compliance Officer & Company Secretary
Membership No: A70875
Date: 29 May 2025 Date: May 29 2025
Place: Ahmedabad Place: Ahmedabad
UDIN: 25153595BMKQEO2745
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