Company Number: SC736450

Analysis Date: 2025-07-29 15:05 UTC

1. Credit Opinion: APPROVE
   Kranti Ltd demonstrates sound financial health with positive net assets and strong working capital. The business is active in the specialist medical practice sector, a generally stable industry. The directors are qualified professionals with no adverse records. The company has no overdue filings, indicating good compliance and governance. The balance sheet shows no significant debt burden, and cash levels are adequate, supporting the ability to meet obligations. Approval is recommended for reasonable credit facilities with standard monitoring.

2. Financial Strength:
   The balance sheet as of 30 June 2024 shows net assets of £28,830 and shareholders’ funds of £28,828, reflecting a well-capitalised entity. Fixed assets are modest (£3,882) and mainly consist of tangible assets with appropriate depreciation applied. The company has no long-term liabilities and current liabilities are low (£1,833), mainly corporation tax and directors’ loan accounts. This indicates low leverage and a strong equity base for this micro-sized company.

3. Cash Flow Assessment:
   Current assets total £26,781, driven predominantly by cash at bank (£26,301), providing excellent liquidity with a current ratio above 14 times. Debtors are minimal (£480), which reduces credit risk exposure. Net current assets of £24,948 suggest ample working capital to cover short-term liabilities comfortably. Cash flow appears stable and sufficient to service any short-term borrowings or credit lines without stress.

4. Monitoring Points:

• Maintain strong cash balances and monitor debtor days to ensure timely collections.
• Track corporation tax liabilities to avoid unexpected cash outflows.
• Monitor any director loan accounts for potential repayment or changes in terms.
• Review turnover and profitability trends in future filings to assess growth trajectory and sustainability.
• Stay alert to any changes in industry regulatory environment that could impact operations.