KARUNARAJAH LEGACY HOLDINGS LTD

Executive Summary

Karunarajah Legacy Holdings Ltd is an early-stage real estate holding company with a minimal equity base and net current liability position. The company’s financial position is fragile, with no operational income disclosed, requiring cautious credit exposure. Conditional approval is recommended with close monitoring of cash flow development and additional security from the controlling shareholder.

KARUNARAJAH LEGACY HOLDINGS LTD - Analysis Report

Company Number: 14409374

Analysis Date: 2025-07-20 13:28 UTC

1. Credit Opinion: CONDITIONAL APPROVAL

Karunarajah Legacy Holdings Ltd is a newly incorporated private limited company (since October 2022) engaged in letting and operating owned or leased real estate. The company holds a modest investment property valued at £78,557, fully offset by current liabilities of £78,556, resulting in net current liabilities of £78,556 and minimal net assets of £1. The directors have not provided an income statement, and no trading or profit data is available. Given the company's very early stage and minimal equity base, credit approval should be conditional on additional security or personal guarantees from the principal shareholder, Ashley Kristian Karunarajah, who holds 75-100% control. The company’s ability to service debt is currently unproven, and exposure should be limited until further financial performance data is available.

2. Financial Strength:

The balance sheet reflects a single investment property asset balanced almost exactly by short-term creditors, leaving no working capital buffer. Shareholders' funds are nominal (£1), indicating minimal capital invested beyond the asset acquisition. The lack of net current assets and limited equity suggests weak financial resilience. The company currently has no employees and minimal operational history, limiting its capacity to absorb financial shocks. The valuation of the investment property is based on recent fair value accounting but no indication of income generation from the asset is provided.

3. Cash Flow Assessment:

No cash flow or profit and loss data is available, preventing a full liquidity analysis. The company’s net current liabilities position indicates potential short-term liquidity constraints. Without operating income or cash reserves disclosed, the company appears reliant on external funding or shareholder support to meet short-term obligations. The absence of working capital cushions raises concerns about the company's ability to meet creditor demands without additional capital injection.

4. Monitoring Points:

• Monitor future filings for profit and loss statements to assess operating cash generation.
• Track changes in current liabilities and net current asset position to identify improvements in liquidity.
• Review any capital increases or shareholder loans that may strengthen the balance sheet.
• Watch for timely submission of accounts and confirmation statements to ensure ongoing compliance.
• Monitor market value and rental income (if any) from the investment property to evaluate asset performance.