Company Number: 14368660

Analysis Date: 2025-07-29 13:32 UTC

1. Credit Opinion: CONDITIONAL APPROVAL. Chandar & Sons Limited is a micro private limited company with a very recent incorporation date (September 2022) and limited operating history. The company’s net liabilities position (-£922) and negative shareholders’ funds indicate a weak equity base and current financial vulnerability. However, the company shows a significant increase in current assets (£114,538) as of the latest accounts (year ended 30 September 2024), which is almost offset by long-term creditors (£114,500). The close matching of assets and liabilities suggests limited financial cushion. The company’s ability to meet short-term obligations is currently balanced but depends heavily on managing these creditor obligations. Given the limited history and marginal net liabilities, credit can be considered on a conditional basis, subject to monitoring cash flow and capital structure improvements.

2. Financial Strength: The balance sheet shows a micro-entity scale operation with one employee and modest asset size. Current assets have increased substantially compared to prior years (£189 in 2023 to £114,538 in 2024), indicating recent asset injections or receivables buildup. However, this is largely offset by substantial long-term liabilities (£114,500), creating net liabilities of £922. The negative shareholders’ funds reflect accumulated losses or shareholder loans not fully covered by equity. The company does not hold fixed assets, and the working capital position is technically positive (£114,538 net current assets) due to matching current liabilities of same amount. Overall, the capitalization is weak and the company relies on creditor financing, which poses risk if creditors demand repayment or withholding.

3. Cash Flow Assessment: The company’s liquidity position, as implied by current assets versus current liabilities, is balanced but fragile. The exact composition of current assets is not detailed; if largely receivables or cash equivalents, liquidity risk is lower, but if stocks or other less liquid assets, risk increases. The current liabilities are small (£114,500 split between current and long-term), but the presence of accruals (£960) and deferred income suggests some future obligations. The absence of a profit and loss account reduces visibility on operational cash generation. The company’s ability to service debt depends on maintaining or increasing cash and cash equivalents and managing creditor terms. Cash flow volatility is a key concern given the negative net asset base.

4. Monitoring Points:

• Track quarterly cash flow statements when available to confirm liquidity trends.
• Monitor changes in creditor balances, especially long-term creditors (£114,500), for refinancing risks.
• Watch for improvements in net asset position and shareholder equity.
• Assess any operational revenues or profitability once P&L accounts are available.
• Review director and ownership changes or significant transactions that impact financial stability.
• Ensure timely filing of future accounts to maintain credit transparency.