RK PHOENIX ENGINEERING LTD

Executive Summary

RK PHOENIX ENGINEERING LTD is a very young company with minimal financial footprint and no operating history beyond initial incorporation. The balance sheet is positive but extremely limited in scale, reflecting early-stage status with low risk exposure possible only with small credit lines. Approval is conditional on updated financials and ongoing monitoring of business development and cash flow. Further financial evidence is needed to support larger credit facilities.

RK PHOENIX ENGINEERING LTD - Analysis Report

Company Number: 14402187

Analysis Date: 2025-07-20 18:23 UTC

1. Credit Opinion:
   CONDITIONAL APPROVAL. RK PHOENIX ENGINEERING LTD is a newly incorporated private limited company (incorporated October 2022) operating in the manufacture of motor vehicle parts. The company’s financials are very limited due to its short trading history, showing a modest net asset position of £911 and no employees. The absence of significant liabilities is positive but the lack of operating profits and minimal balance sheet size constrain confidence. Credit could be extended with low exposure and subject to regular monitoring and updated financial information.

2. Financial Strength:
   The balance sheet shows net current assets of £911 with current liabilities presented as negative balances (creditors due within one year of -£911), indicating net positive working capital. Shareholders’ funds equal net assets at £911, reflecting minimal equity capital, likely from initial share issuance. The company has no fixed assets reported and no external borrowings other than director loans (£808). Overall, financial strength is very weak due to the small scale and absence of operating history or profitability.

3. Cash Flow Assessment:
   Cash flow visibility is limited as no cash or detailed working capital breakdown is provided. With zero employees and minimal reported liabilities, cash burn should be low, but lack of revenue or profit data hinders assessment of operating cash generation. The director loan suggests reliance on internal funding to support operations. Liquidity risk is moderate given the small scale but manageable if turnover ramps up. Monitoring cash receipts and payments closely in future filings is essential.

4. Monitoring Points:

• Future filing of profit and loss accounts to assess revenue growth and profitability trends.
• Changes in net current assets and working capital, particularly cash balances and creditor terms.
• Any increase in borrowings or director loans indicating funding strains.
• Confirmation of business activity and order book development given the early stage.
• Director conduct and any changes in ownership or control given sole control by Mr. Raja Kami.