GOLDEN CHARIOT PRIVATE LIMITED

Executive Summary

Golden Chariot Private Limited exhibits high risk due to significant negative net assets and heavy reliance on parent company loans for liquidity. While statutory compliance and an unqualified audit report provide some assurance, the company’s solvency and cash flow position warrant thorough scrutiny. Further due diligence on the parent support and operational viability is essential before considering investment.

GOLDEN CHARIOT PRIVATE LIMITED - Analysis Report

Company Number: 14113908

Analysis Date: 2025-07-19 12:21 UTC

1. Risk Rating: HIGH
   Justification: The company has significant net liabilities (£1.48 million negative net assets as of March 2024) with large current liabilities exceeding current assets by £8.7 million. The reliance on loans from the parent company, repayable on demand and unsecured, raises substantial solvency and liquidity concerns.

2. Key Concerns:

• Solvency Risk: Net liabilities and negative shareholders’ funds indicate the company is technically insolvent on a balance sheet basis.
• Liquidity Concerns: High current liabilities (£25.5 million) compared to relatively low cash (£0.53 million) and current assets, with a working capital deficit worsening year-over-year.
• Dependence on Parent Support: Large loans from the immediate parent (SBM International Private Limited) constitute the majority of current liabilities, and ongoing financial support is critical for the company’s survival.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statements are up to date, indicating compliance with statutory filing requirements.
• Audit Opinion: The latest accounts were audited with an unqualified report, lending credibility to the financial information presented.
• Growing Fixed Asset Investments: Substantial increase in investments from £462k to over £7.2 million, suggesting ongoing capital deployment or expansion activities.

4. Due Diligence Notes:

• Investigate the nature and terms of the loan from the parent, including the parent’s financial strength and willingness to continue support.
• Review cash flow forecasts and the company’s ability to generate operating cash flows to reduce reliance on related party funding.
• Understand the impairment risks related to the large stock balance (£16.3 million) and the valuation methodology applied.
• Confirm the company’s business model and operational activities given the SIC codes related to holding company and construction activities, to assess revenue streams and sustainability.
• Assess any contingent liabilities or off-balance sheet obligations not disclosed.