Pau Capital Ltd

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Accountants' Report	1
Balance Sheet	2—3
Notes to the Financial Statements	4—6

Chartered Accountants' report to the directors on the preparation of the unaudited statutory accounts of Pau Capital Ltd for the year ended 31 December 2025

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Pau Capital Ltd for the year ended 31 December 2025 which comprise the Profit and Loss Account, the Balance Sheet and the related notes from the company's accounting records and from information and explanations you have given to us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/en/membership/regulations-standards-and-guidance.

This report is made solely to the directors of Pau Capital Ltd , as a body, in accordance with the terms of our engagement letter dated 04 September 2026. Our work has been undertaken solely to prepare for your approval the accounts of Pau Capital Ltd and state those matters that we have agreed to state to the directors of Pau Capital Ltd , as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Pau Capital Ltd and its directors, as a body, for our work or for this report.

It is your duty to ensure that Pau Capital Ltd has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit or loss of Pau Capital Ltd . You consider that Pau Capital Ltd is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit of the accounts of Pau Capital Ltd . For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the financial statements.

STG Accountants Ltd t/as STERLING

15/09/2026

STG Accountants Ltd t/as STERLING

Chartered Accountants

505 Pinner Road

Harrow

Middlesex

HA2 6EH

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Pau Capital Ltd

Balance Sheet

As At 31 December 2025

Balance Sheet

Registered number: 12534684

		2025		2024
	Notes	£	£	£	£
FIXED ASSETS
Tangible Assets	4		108,477		144,636

			108,477		144,636
CURRENT ASSETS
Debtors	5	1,771,750		2,360,517
Cash at bank and in hand		23,747		185,211

		1,795,497		2,545,728
Creditors: Amounts Falling Due Within One Year	6	(1,520,605 )		(2,371,313 )

NET CURRENT ASSETS (LIABILITIES)			274,892		174,415

TOTAL ASSETS LESS CURRENT LIABILITIES			383,369		319,051

NET ASSETS			383,369		319,051

CAPITAL AND RESERVES
Called up share capital	7		100		100
Profit and Loss Account			383,269		318,951

SHAREHOLDERS' FUNDS			383,369		319,051

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Pau Capital Ltd

Balance Sheet (continued)

As At 31 December 2025

For the year ending 31 December 2025 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The company has taken advantage of section 444(1) of the Companies Act 2006 and opted not to deliver to the registrar a copy of the company's Profit and Loss Account.

On behalf of the board

Vimal Pau

Director

15/09/2026

The notes on pages 4 to 6 form part of these financial statements.

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Pau Capital Ltd

Notes to the Financial Statements

For The Year Ended 31 December 2025

Notes to the Financial Statements

1. General Information

Pau Capital Ltd is a private company, limited by shares, incorporated in England & Wales, registered number 12534684 . The registered office is 505 Pinner Road, Harrow, Middlesex, HA2 6EH.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

These financial statements have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland, including the provisions of Section 1A “Small Entities”, and the Companies Act 2006.

These are the company’s first financial statements prepared in accordance with FRS 102 Section 1A. The financial statements for the year ended 31 December 2024 were prepared in accordance with FRS 105, The Financial Reporting Standard applicable to the Micro-entities Regime. The date of transition to FRS 102 was 1 January 2024.

The adoption of FRS 102 Section 1A has not resulted in any adjustments to the amounts previously reported under FRS 105. Accordingly, there has been no change to the company’s assets, liabilities or shareholders’ funds at 1 January 2024 or 31 December 2024, nor to the profit reported for the year ended 31 December 2024.

2.2. Turnover

Turnover represents interest, arrangement fees, commission and other income receivable in connection with the company’s short-term lending activities, net of value added tax where applicable.

Interest income is recognised using the effective interest method over the period of the relevant loan. Arrangement fees and other amounts that are integral to the yield of a loan are included in the calculation of the effective interest rate and recognised over the expected term of the loan.

Fees for separately identifiable services are recognised when the relevant service has been provided and the company’s entitlement to the income can be measured reliably.

Where the recovery of interest or fees is considered doubtful, income recognition is suspended or an appropriate impairment provision is recognised.

2.3. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Motor Vehicles

25% Reducing balance

2.4. Financial Instruments

The company has elected to apply the recognition and measurement provisions of Sections 11 and 12 of FRS 102 in respect of financial instruments.

Basic financial assets, including loans receivable, amounts owed by connected companies and cash at bank, are initially recognised at the transaction price, including transaction costs where applicable. They are subsequently measured at amortised cost using the effective interest method, less any impairment.

Basic financial liabilities, including amounts owed to lenders and investors, amounts owed to connected companies and directors’ loan accounts, are initially recognised at the transaction price and subsequently measured at amortised cost using the effective interest method.

Financial assets and liabilities are derecognised when the contractual rights or obligations expire, are settled or are transferred and the transfer qualifies for derecognition.

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Pau Capital Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2025

2.5. Taxation

The taxation expense represents the aggregate of current and deferred tax recognised in the reporting period.

Current tax is recognised on taxable profit for the year using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date, except where otherwise required by FRS 102. Deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the balance sheet date and are expected to apply when the timing differences reverse.

2.6. Impairment of loans receivable

At each reporting date, the company assesses whether there is objective evidence that any financial asset measured at cost or amortised cost is impaired.

In assessing impairment, the directors consider the borrower’s payment history and financial position, breaches or extensions of contractual terms, the expected timing of recovery, the value and enforceability of any security held, and estimated costs of recovery or enforcement.

Where objective evidence of impairment exists, the impairment loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the asset’s original effective interest rate. Any impairment loss is recognised immediately in profit or loss.

If, in a subsequent period, the amount of an impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed to the extent permitted by FRS 102.

2.7. Interest and borrowing costs

Interest expense and other borrowing costs arising on funds obtained to finance the company’s lending activities are recognised using the effective interest method over the period of the relevant borrowing.

Borrowing costs are recognised in profit or loss in the period in which they are incurred.

3. Average Number of Employees

Average number of employees, including directors, during the year was: 3 (2024: 3)

4. Tangible Assets

	Motor Vehicles
	£
Cost
As at 1 January 2025	236,000

As at 31 December 2025	236,000

Depreciation
As at 1 January 2025	91,364
Provided during the period	36,159

As at 31 December 2025	127,523

Net Book Value
As at 31 December 2025	108,477

As at 1 January 2025	144,636

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Pau Capital Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2025

5. Debtors

	2025	2024
	£	£
Due within one year
Loans receivable	1,181,750	1,475,300
Prepayments and accrued income	-	11,417
Amounts owed by connected companies	590,000	873,800

	1,771,750	2,360,517

6. Creditors: Amounts Falling Due Within One Year

	2025	2024
	£	£
Trade creditors	744	695
Corporation tax	36,453	35,045
Other creditors	-	6,875
Loan creditors	677,440	700,324
Amounts owed to connected companies	241,000	287,350
Accruals and deferred income	94,353	43,483
Directors' loan accounts	470,615	1,297,541

	1,520,605	2,371,313

7. Share Capital

	2025	2024
	£	£
Allotted, Called up and fully paid	100	100

The share capital consists of 100 ordinary shares of £1 each.

8. Related Party Transactions

During the year, the company entered into financing and other transactions with companies under common control or in which the directors have a beneficial interest.

At 31 December 2025, amounts of £590,000 (2024: £873,800) were due from connected companies and amounts of £241,000 (2024: £287,350) were due to connected companies.

At the reporting date, the company owed £470,615 (2024: £1,297,541) to its directors. The balances are unsecured and bear interest at a rate of 4.56% per annum. They have no fixed repayment date and are repayable on demand.

9. Transition to FRS 102

These are the company’s first financial statements prepared in accordance with FRS 102, “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, including the provisions of Section 1A “Small Entities”.

The company’s previous financial statements were prepared in accordance with FRS 105, “The Financial Reporting Standard applicable to the Micro-entities Regime”. The date of transition to FRS 102 was 1 January 2023.

The transition from FRS 105 to FRS 102 has not resulted in any adjustments to the company’s previously reported assets, liabilities, equity or profit for the comparative period. Accordingly, no transition adjustments were required.

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