CODA OCTOPUS MARTECH LIMITED

Credit Opinion: DECLINE The credit application must be declined. The company’s status is flagged as "Active - In Liquidation," which indicates the business is undergoing a formal closure process. Under these circumstances, the entity has no legal capacity to take on new debt facilities, and any credit extended would face an almost certain risk of default. Existing trade creditors will be ranked behind insolvency practitioners' fees and preferential creditors, rendering new credit unviable.

Financial Strength The balance sheet health is fundamentally compromised. While the company lists a share capital of £330,000, this figure is historical and carries no weight in assessing current creditworthiness. Because the company is in liquidation, control of the assets has shifted away from the directors (James Glyn Wilson and Paul Andrew Baxter) to an appointed insolvency practitioner. The net asset position is effectively nil from a new creditor's perspective, as any remaining assets are earmarked for existing liabilities and the costs of the liquidation process itself.

Cash Flow Assessment Liquidity and working capital are entirely deficient for ongoing trading. A company in liquidation ceases normal operations; therefore, future cash generation is non-existent. Any remaining cash or realized asset value will be distributed strictly according to statutory insolvency priorities (e.g., secured creditors, preferential creditors, unsecured creditors). New credit extended at this stage would rank at the bottom of the creditor hierarchy with no prospect of repayment.

Monitoring Points * Liquidation Status: Monitor the insolvency register to confirm whether this is a Members' Voluntary Liquidation (solvent) or a Creditors' Voluntary Liquidation (insolvent). Regardless, new credit should not be extended. * Parent Company Exposure: Note that Coda Octopus Group Inc. owns over 75% of the shares. If the parent group is looking to continue trading the underlying business, credit facilities should be sought from the parent company or a newly incorporated, solvent subsidiary, rather than this liquidated entity. * Final Accounts: Watch for the final statement of affairs and liquidator's progress reports to understand the expected dividend recovery rate for existing unsecured creditors.