Audited Standalone Financial results for March 31, 2026 has been attached herewith.
Awaiting price reaction for this filing.
PAE Limited has reported revenue of Rs. 253.13 lakh and net profit of Rs. 33.14 lakh for FY 2025-26. However, the statutory auditor J.M. Patel & Bros. has issued a DISCLAIMER OF OPINION, refusing to express any audit opinion. Key concerns include: (1) Rs. 5.39 crore quasi-equity write-off from NCLT resolution, (2) Rice trading revenue of Rs. 1.27 crore recorded only through book entries with no banking transactions, E-way bills, or transport receipts to verify authenticity, (3) Dividend of Rs. 0.20/share recommended based on unverified profits, (4) Unverified bank balances, and (5) Business shift from automobile to agro-commodity sector without verified trade history. Operating cash flow is deeply negative at Rs. 1,579.32 lakh. The company also announced a 6:1 bonus issue for public shareholders to meet minimum public shareholding requirements.
The disclaimer of opinion is a severe red flag indicating potential material misstatement or fraud. The negative operating cash flow despite reported profits raises serious doubts about earnings quality. Shareholders should exercise extreme caution and await further clarification from the company.