MANTRA TECH LTD

Executive Summary

Mantra Tech Ltd shows a high risk profile primarily due to significant negative net assets and poor liquidity as of its first financial year. While statutory compliance is maintained and the company benefits from a controlling shareholder, the severity of its solvency issues requires urgent further investigation into liabilities and potential financial support. The company’s very recent establishment limits assessment of operational stability at this stage.

MANTRA TECH LTD - Analysis Report

Company Number: 14986727

Analysis Date: 2025-07-29 18:59 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk with net liabilities of £288,063 and negative net current assets of £218,578, indicating it cannot cover short-term liabilities with available current assets.

2. Key Concerns:

• Severe Negative Net Assets: The company’s net liabilities position strongly suggests insolvency risk and inability to meet obligations without additional funding.
• High Current Liabilities vs. Low Current Assets: Current liabilities (£262,381) far exceed current assets (£43,803), indicating liquidity stress and potential cash flow difficulties.
• Very Recent Incorporation with Limited Operating History: Incorporated in July 2023, the company’s short operational period limits visibility on business sustainability and financial performance trends.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statements are up to date, indicating compliance with statutory filing requirements and good governance in this respect.
• Controlled by Single Shareholder: Bigmantra Ltd holds 75-100% of shares and voting rights, which may facilitate rapid decision-making and potential capital support if needed.
• Small Headcount: With only 2 employees on average, operational costs may be relatively low, potentially enabling lean management of resources.

4. Due Diligence Notes:

• Investigate the nature and origin of the substantial current liabilities to understand whether these are short-term borrowings, trade creditors, or related party debts.
• Assess the financial support from the parent entity (Bigmantra Ltd) and whether any capital injections or guarantees are planned to address solvency concerns.
• Review business model and revenue generation plans given the negative equity and limited operating history to evaluate operational viability.
• Confirm no director disqualifications or adverse conduct records for Girish Lakshmanan to ensure governance integrity.
• Examine any contingent liabilities or off-balance sheet exposures that could exacerbate financial risks.