Company Number: 15155458

Analysis Date: 2025-07-19 12:07 UTC

1. Credit Opinion: DECLINE
   MAAWAL LTD is a newly incorporated micro-entity with limited operating history and very modest financial resources. The financial statements as of 30 September 2024 show a net asset deficit of £18, indicating insolvency on a balance sheet basis. Current liabilities exceed current assets, resulting in negative net current assets of £635. The company also carries long-term liabilities of £1,075, which further strains financial capacity. Given the micro scale, negative equity, and limited liquidity, the company lacks sufficient financial strength and cash flow stability to service debt or meet credit obligations reliably. Without a track record of profitability or positive working capital, extending credit poses a high risk of default.

2. Financial Strength:
   The balance sheet reveals very weak financial health. Fixed assets of £1,692 are minimal and likely represent low-value equipment or similar. Current assets of £565 are insufficient to cover current liabilities of £1,200, yielding a working capital deficit of £635. The presence of non-current creditors of £1,075 exacerbates the negative equity position. Shareholders’ funds are negative at £18, indicating that liabilities exceed assets. Overall, the company’s capital structure is fragile, with very limited net assets and no buffer for unforeseen financial stress.

3. Cash Flow Assessment:
   Current asset levels are inadequate for meeting short-term obligations, suggesting constrained liquidity. With an average of only 2 employees, operational scale is very small, and cash inflows are likely limited. The lack of positive net current assets implies an inability to generate sufficient cash from operations or working capital management. Given the absence of historical financial data beyond one year, and no evidence of profitability or cash reserves, cash flow risk is elevated.

4. Monitoring Points:

• Monitor quarterly cash flow statements and liquidity ratios closely to detect any further deterioration.
• Track any changes in creditor terms or increases in liabilities that could impair solvency.
• Evaluate management’s ability to secure additional capital or improve working capital efficiency.
• Watch for operational progress including revenue growth or increased asset base to improve financial resilience.