LARSEN & TOUBRO LIMITED

Executive Summary

LARSEN & TOUBRO LIMITED presents a high-risk profile primarily due to its minimal capitalization and asset base, which casts doubt on its ability to meet financial obligations or sustain operations. While regulatory compliance and stable directorship are positive, the lack of substantive financial resources and limited operational scale warrant thorough due diligence before investment consideration.

LARSEN & TOUBRO LIMITED - Analysis Report

Company Number: SC686917

Analysis Date: 2025-07-29 16:16 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits extremely limited financial substance with net assets and total assets less current liabilities around £1,000 consistently over reporting periods; such minimal capitalization and asset base raise significant concerns about solvency and financial resilience.

2. Key Concerns:

• Solvency and Capitalization: Net assets of only £999 indicate the company has negligible equity buffer to absorb losses or meet creditor claims, posing a high risk of insolvency.
• Liquidity and Cash Flow: Absence of detailed current asset and liability breakdowns and extremely low net asset value suggest very limited liquid resources to cover short-term obligations.
• Operational Scale and Sustainability: Despite employing 9-10 staff, the micro-entity accounts show minimal financial activity or growth, raising questions about business viability and revenue generation capacity.

3. Positive Indicators:

• Regulatory Compliance: The company is up to date with both accounts and confirmation statement filings, indicating adherence to statutory requirements.
• Stable Governance: Two directors have been in place since incorporation with no indication of disqualification or governance issues.
• Active Status: The company remains active and is not undergoing liquidation or administration, which is positive relative to distressed entities.

4. Due Diligence Notes:

• Investigate detailed financial statements beyond micro-entity summary to assess cash flows, receivables, payables, and any contingent liabilities.
• Review business model, revenue streams, and contracts to understand operational sustainability given minimal net assets.
• Confirm absence of director or shareholder related-party transactions that might affect financial stability.
• Consider obtaining management accounts or forecasts to evaluate near-term liquidity and solvency prospects.