Company Number: 13819970

Analysis Date: 2025-07-20 11:52 UTC

1. Credit Opinion: APPROVE with caution
   AIG CONTRACTS LTD is a micro-entity operating in electrical installation and domestic building construction. The company shows a positive improvement in net assets and net current assets over the last financial year, indicating better short-term financial health and balance sheet strength. The single director and 100% shareholder, Arun Passi, has maintained stable control and consistent filing compliance with no overdue accounts or returns. While the company is still small and relatively new (incorporated late 2021), its improving liquidity and equity position support approval for credit facilities, albeit with monitoring due to limited trading history and scale.

2. Financial Strength:

• Fixed assets are minimal (£2,349) reflecting light capital investment, typical for the trade.
• Current assets increased significantly to £19,455 from £5,958, driven likely by receivables or cash buildup.
• Current liabilities increased to £15,357 but were well covered by current assets, producing net current assets of £4,098 (up from a negative £1,527).
• Net assets improved markedly to £6,447 from £903, showing retention of profits or capital injection.
• Shareholders’ funds equal net assets, confirming no long-term debt or outside equity, which supports financial stability.

3. Cash Flow Assessment:

• Positive net current assets indicate the company can meet short-term obligations without liquidity stress.
• The increase in current assets suggests improved cash or receivables collection.
• No off-balance-sheet liabilities were disclosed, reducing hidden risks.
• The company operates with one employee (the director), suggesting low overhead and tight cost control.

4. Monitoring Points:

• Continued growth in turnover and profitability to build a longer track record and buffer.
• Maintain or improve working capital management to avoid liquidity strains.
• Monitor any increases in liabilities or capital expenditure that may impact cash flow.
• Watch for director’s conduct or ownership changes that could affect governance or control.
• Confirm ongoing compliance with filing deadlines and regulatory requirements.