K.J.RAHTINAM LIMITED

Executive Summary

K.J.RAHTINAM LIMITED exhibits weak financial health with negative working capital and net assets as of the latest accounts. The company’s limited scale, minimal equity, and worsening liquidity position present high credit risk. Credit facilities are not recommended without significant improvement in financial stability and cash flow.

K.J.RAHTINAM LIMITED - Analysis Report

Company Number: 13201301

Analysis Date: 2025-07-20 12:05 UTC

1. Credit Opinion: DECLINE
   The company shows deteriorating financial health with net current liabilities of £1,047 as of 28 February 2024, a reversal from positive net current assets in prior years. The negative net assets position indicates insolvency on a balance sheet basis. Given its micro-entity status, limited scale, and a single employee, there is limited financial resilience. The lack of positive working capital and small asset base limits ability to service debt or absorb shocks, posing high credit risk.

2. Financial Strength:
   K.J.RAHTINAM LIMITED operates as a micro-entity with minimal fixed assets and very limited equity (£1,047 negative net assets). The share capital is nominal (£1.00). The company's net current assets declined from £129 in 2023 to negative £1,047 in 2024, reflecting increasing current liabilities exceeding current assets. This signals weakening liquidity and erosion of shareholders’ funds. The company’s balance sheet does not demonstrate strength or buffer for unexpected expenses or downturns.

3. Cash Flow Assessment:
   Current liabilities exceeded current assets in the latest year, indicating potential liquidity stress and risk of payment delays. The working capital deficit implies cash flow constraints in meeting short-term obligations. The company operates with only one employee and likely limited cash inflows. Without evidence of significant cash reserves or reliable income, the company’s cash flow position is fragile and insufficient to cover debt or supplier payments comfortably.

4. Monitoring Points:

• Monitor subsequent filings for improvement or further deterioration in net current assets and net liabilities.
• Review any new credit facilities or payment defaults reported.
• Track director’s credit history and company trading performance updates to assess management quality and operational viability.
• Watch for signs of overdue filings or changes in company status that may indicate distress.
• Assess cash flow statements if available for operating cash generation trends.