KAILASH ENTERPRISES LIMITED

Executive Summary

Kailash Enterprises Limited is a newly formed private limited company with a severely negative net asset position and minimal liquidity as of 31 December 2024. The company is currently insolvent on a balance sheet basis, with significant working capital deficits and no trading history to demonstrate repayment capacity. Credit approval is not recommended until there is clear evidence of improved financial health and cash flow generation.

KAILASH ENTERPRISES LIMITED - Analysis Report

Company Number: 15423449

Analysis Date: 2025-07-29 18:50 UTC

1. Credit Opinion: DECLINE
   Kailash Enterprises Limited is a recently incorporated company (January 2024) with very limited financial history. The latest accounts for the period ended 31 December 2024 show a severely negative net asset position (£-22,513) and negative shareholders’ funds (£-22,613), indicating the company is currently insolvent on a balance sheet basis. Current liabilities (£22,613) significantly exceed current assets (£100), resulting in a working capital deficit of £22,513. These figures reflect that the company is highly leveraged with no tangible liquid resources to service debt or meet obligations. There is no evidence of revenue or profitable trading yet to offset these liabilities. Given this financial weakness and lack of trading history, the company’s ability to service debt or honor commercial commitments is highly questionable at this stage.

2. Financial Strength:
   The company’s balance sheet is very weak. The total assets are minimal (£100 cash), and current liabilities are £22,613, mainly trade creditors and other creditors. The absence of fixed or other assets means there is no collateral to support lending. Negative net assets reflect accumulated losses or initial funding shortfall. The share capital is nominal at £100, indicating limited equity buffer. The company remains in the early start-up phase with no accumulated profits and a negative retained earnings position.

3. Cash Flow Assessment:
   Cash at bank stands at only £100, which is negligible compared to short-term liabilities of £22,613. This indicates critical liquidity constraints and low working capital. The company is unlikely to generate positive operational cash flow imminently, as there is no record of revenue or profit. The current cash position is insufficient to meet immediate creditor demands, presenting a high risk of payment default. Without strong cash injections or operational improvements, liquidity risk remains elevated.

4. Monitoring Points:

• Monitor the company’s next financial filings for evidence of revenue generation and profitability improvements.
• Track changes in current liabilities to assess if creditor balances are being managed or growing.
• Monitor cash flow statements if available, to evaluate operational cash generation and liquidity trends.
• Watch for any director or shareholder funding injections that improve equity and liquidity.
• Review director changes or any related party transactions for financial support or risk.
• Observe the company’s ability to meet statutory filing deadlines and compliance requirements as an indicator of management effectiveness.