Company Number: 13108330

Analysis Date: 2025-07-19 12:46 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Basandrai Properties Limited is a very young private limited company incorporated in early 2021, engaged in real estate management and investment activities. The most recent accounts show a net liability position and negative working capital, primarily due to significant long-term and short-term liabilities against relatively modest fixed assets (mainly investment properties valued at £601,500). The company has no operating history or earnings reported yet and remains dormant for filing purposes, which raises concerns on immediate cash flow generation capacity. However, the presence of investment property assets and director loans suggests some backing. Approval is conditional on close monitoring of cash flow and refinancing plans, especially given reliance on director loans and bank financing.

2. Financial Strength

• Fixed Assets: £603,264 (mostly investment property) provide some collateral value.
• Current Assets: Minimal cash of £2,347.
• Current Liabilities: £270,999 resulting in net current liabilities of -£268,652 indicating tight liquidity and working capital deficiency.
• Long-term Liabilities: £345,611 bank loans, creating total liabilities exceeding assets.
• Net Assets: -£10,999 (negative shareholders’ funds).
  Overall, the balance sheet shows weak equity and significant leverage. The company’s asset base is concentrated in investment property, but the negative net assets and current liabilities exceeding current assets highlight financial vulnerability.

3. Cash Flow Assessment

• Cash on hand is negligible (£2,347) and insufficient to cover current liabilities.
• The company relies on director loans (£9,999) and bank loans (£345,611) for funding.
• No employees and no trading profit reported; likely no operating cash inflows yet.
• Negative working capital and absence of operational cash flow imply potential short-term liquidity risks without further capital injection or refinancing.
• Cash flow is likely to be dependent on external financing or asset liquidation in the near term.

4. Monitoring Points

• Liquidity position and ability to meet short-term liabilities as they fall due.
• Progress in generating rental income or other operating revenues from investment properties.
• Refinancing or repayment plans for director and bank loans.
• Changes in net assets and shareholders’ funds indicating improved capitalization.
• Timely filing of accounts and confirmation statements to ensure regulatory compliance.
• Possible changes in ownership or business strategy affecting credit risk.