PATHAN PARA WELFARE TRUST UK

Executive Summary

Pathan Para Welfare Trust UK is financially distressed with negative net assets due to significant provisions for liabilities and minimal operational activity. The company’s liquidity is weak, and it lacks the capacity to service debt or sustain credit facilities. Credit approval is not recommended at this stage without substantial improvement in financial health.

PATHAN PARA WELFARE TRUST UK - Analysis Report

Company Number: 13620005

Analysis Date: 2025-07-20 13:20 UTC

1. Credit Opinion: DECLINE
   Pathan Para Welfare Trust UK shows significant financial distress as indicated by its latest balance sheet. The company’s net assets have deteriorated sharply from positive £350 in 2023 to a negative £2,505 in 2024 due to provisions for liabilities of £2,697. The absence of employees and limited current assets (£492) relative to short-term liabilities (£300) suggest minimal operational activity and weak liquidity. Without signs of income generation or asset backing, the trust lacks the capacity to service any additional debt or meet credit obligations reliably.

2. Financial Strength:
   The company is categorized as a micro-entity with minimal fixed assets or operational scale. Its net asset position has worsened significantly over the last year, moving into negative equity primarily due to provisions recorded against liabilities. This indicates either contingent liabilities crystallizing or accounting recognition of potential future outflows, which materially weaken the company’s balance sheet. Shareholders’ funds are negative, reflecting an erosion of capital and limited financial resilience.

3. Cash Flow Assessment:
   Current assets stand at only £492, with current liabilities at £300, giving a small positive net current asset position of £192. However, the large provisions for liabilities totaling £2,697 negate this apparent liquidity cushion. The absence of employees and minimal operating activity imply limited cash generation capability. Working capital is insufficient for normal operations or debt servicing, and the company likely relies on external funding or reserves to meet liquidity needs.

4. Monitoring Points:

• Monitor updates on provisions for liabilities to understand their nature and potential impact on cash flows.
• Track any operational developments that might improve income generation or asset base.
• Review director actions regarding financial restructuring or fundraising efforts.
• Watch for any late filings or signs of insolvency procedures given the deteriorated financial position.