Company Number: 14003665

Analysis Date: 2025-07-20 15:39 UTC

1. Credit Opinion: APPROVE with conditions.
   KATTI LIMITED is a micro-entity with a short operating history since incorporation in March 2022. The latest accounts show positive net assets and improving working capital, indicating initial financial stability. However, the company’s size and limited trading history warrant monitoring. Approval is recommended for modest credit facilities, subject to regular review and updated financials.

2. Financial Strength:
   The balance sheet reveals a strengthening position with net assets increasing from £10,111 in 2023 to £13,101 in 2024. The company holds minimal fixed assets (£1,040) and relies primarily on current assets (£36,379), mainly cash or receivables. Current liabilities rose significantly to £24,318 but are comfortably covered by current assets, maintaining net current assets of £12,061. Shareholders' funds correspond to net assets, reflecting no long-term debt. Overall, the financial position is sound for a micro business, with no signs of over-leverage.

3. Cash Flow Assessment:
   The increase in current liabilities alongside a larger rise in current assets suggests manageable short-term liquidity. Net current assets have improved by approximately £2,000 year-on-year, implying the company maintains sufficient working capital to meet immediate obligations. Having three employees implies moderate payroll commitments. The absence of audit requirements and reliance on micro-entity accounting standards limits detailed cash flow data, so caution is advised regarding cash generation sustainability.

4. Monitoring Points:

• Track the growth trajectory beyond micro-entity thresholds to assess scalability and credit capacity.
• Observe changes in current liabilities to ensure no undue buildup of short-term debt.
• Review subsequent annual accounts and management accounts for cash flow trends and profitability.
• Monitor director Mr Erdal Bag’s ongoing financial stewardship, given sole control and responsibility.