Company Number: 13827874

Analysis Date: 2025-07-29 17:51 UTC

1. Credit Opinion: DECLINE
   Mahadev (Corby) Ltd presents a concerning credit profile. The company has operated with negative net assets and net current liabilities since incorporation, indicating persistent undercapitalization and liquidity stress. The worsening net liabilities position from £-6,488 in 2023 to £-4,961 in 2024, despite a slight improvement, remains below acceptable thresholds for lending. The micro-entity status and small scale retail sector further limit financial flexibility. Without evidence of profitability or cash flow improvement, the risk of default is elevated.

2. Financial Strength:
   Balance sheet analysis shows fixed assets of only £13,500 against current liabilities of £94,469 as at January 2024, resulting in net current liabilities of £18,461 and overall net liabilities of £4,961. The company’s shareholders’ funds remain negative, reflecting cumulative losses or underinvestment. This weak capital base restricts the capacity to absorb operational shocks or invest in growth.

3. Cash Flow Assessment:
   Current assets of £76,008 primarily consist of cash, debtors, or inventory but are insufficient to cover short-term liabilities. Negative net working capital signals cash flow constraints and potential difficulties in meeting immediate obligations. The absence of a profit and loss account filing precludes deeper cash flow analysis, but the balance sheet position strongly suggests strained liquidity.

4. Monitoring Points:

• Improvement in net current assets and reduction of liabilities
• Filing of profit and loss accounts to assess operational performance
• Cash flow generation trends from trading activities
• Any capital injection or shareholder support to strengthen equity
• Payment history and adherence to supplier and creditor terms