KULLAR PROJECTS LTD

Executive Summary

KULLAR PROJECTS LTD is an active private limited company operating in real estate investment with limited operational history. Financial data reveals high leverage, negative working capital, and a very small equity base, raising significant solvency and liquidity risks. However, the presence of investment property assets and timely regulatory filings are positive factors that warrant further detailed review.

KULLAR PROJECTS LTD - Analysis Report

Company Number: 14594130

Analysis Date: 2025-07-29 14:26 UTC

1. Risk Rating: HIGH
   KULLAR PROJECTS LTD exhibits significant solvency and liquidity concerns due to a negative net working capital position and a very low equity base relative to its liabilities. The company is newly incorporated with limited operational history, increasing uncertainty about sustainability.

2. Key Concerns:

• Negative Net Current Assets: The company shows net current liabilities of £36,793, indicating potential liquidity strain to meet short-term obligations.
• High Long-Term Debt: Creditors due after one year total £216,000, a substantial liability compared to net assets of only £2,413, suggesting high leverage and risk if cash flows are insufficient.
• Minimal Equity Base: Shareholders’ funds stand at only £2,313, which offers very limited capital buffer to absorb losses or financial shocks.

3. Positive Indicators:

• Investment Property Asset: Fixed assets comprise an investment property valued at £255,206, which represents a tangible asset that could be monetized or leveraged.
• Up-to-Date Filings: The company has filed accounts and confirmation statements on time, indicating compliance with regulatory requirements.
• Single Controlling Director: Full ownership and control by Mr. Jagjinder Singh may simplify decision-making and accountability.

4. Due Diligence Notes:

• Investigate the nature and terms of the £216,000 long-term creditors, particularly the bank loans and other creditors, to assess repayment schedules and covenants.
• Confirm the valuation methodology and marketability of the investment property to understand its liquidity and fair value reliability.
• Review the company’s business plan, cash flow forecasts, and funding sources to evaluate whether it can service debt and sustain operations.
• Assess whether the minimal share capital is adequate given the liabilities and business risks.
• Monitor for any director conduct issues or regulatory actions, although none are currently evident.