Company Number: 15113865

Analysis Date: 2025-07-19 13:02 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Chakra Oriental Ltd is a newly incorporated micro-entity with limited operating history (incorporated Sept 2023). Its latest accounts as of Sept 2024 show very modest net assets (£979) and negative working capital (-£3,806), indicating a weak liquidity position. The company’s ability to meet short-term obligations is currently constrained, and it relies heavily on the sole director/shareholder for control. Given its small scale and early stage, approval should be conditional on continued monitoring of cash flow and receivables/payables management.

2. Financial Strength:
   The company’s balance sheet reflects minimal fixed assets (£4,785) and low current assets (£7,694) versus current liabilities of £11,500. Net assets stand at only £979, implying very limited equity buffer. The negative net current assets point to a working capital deficit, which is a risk factor for creditor protection. However, there are no off balance sheet liabilities or audit qualifications, and the company benefits from the small company reporting regime.

3. Cash Flow Assessment:
   Current liabilities exceed current assets, producing a working capital shortfall that raises concerns about liquidity and the ability to cover immediate debts without additional financing or cash injections. With only one employee and limited asset base, operating expenses are likely low, but cash flow from operations has not been presented. Close attention should be paid to cash flow statements or bank statements where available to ensure ongoing solvency.

4. Monitoring Points:

• Working capital trends in subsequent periods to assess liquidity improvements or deterioration
• Cash flow from operations and any reliance on director loans or external funding
• Timely filing of next accounts and confirmation statement to maintain compliance
• Business development and revenue growth to support strengthening of financial position
• Any changes in director or ownership structure that may affect governance or financial control