SANGEET VISHWABHARTI

Executive Summary

Sangeet Vishwabharti is a recently incorporated micro entity with weak financials characterized by negative net assets and a working capital deficit, indicating an inability to meet short-term liabilities. The company currently lacks the financial strength and liquidity necessary for credit facilities, and no positive financial trajectory is evident. Given these factors, credit approval is not recommended at this stage.

SANGEET VISHWABHARTI - Analysis Report

Company Number: 14225838

Analysis Date: 2025-07-29 12:51 UTC

1. Credit Opinion: DECLINE

Sangeet Vishwabharti is a micro entity incorporated recently in July 2022, operating in cultural education. The latest financials (year ending March 2024) show net current liabilities of £8,294 and negative shareholders' funds of the same amount, indicating the company is currently insolvent on a balance sheet basis. There is no evidence of profitability or positive equity build-up since inception. The company has only one employee and limited current assets (£4,321), insufficient to cover current liabilities (£12,615). Given the negative net assets and working capital deficit, the entity lacks the financial strength and liquidity to service debt obligations or sustain credit risk. The directors' occupations (musician and solicitor) provide no clear indication of strong financial management or commercial experience in running a viable business. Overall, the company is in early development stage with weak financials and high risk of default.

2. Financial Strength

The balance sheet reveals a negative net asset position (£-8,294) and net current liabilities, reflecting that current liabilities exceed current assets by nearly three times. The company holds no fixed assets and minimal current assets, primarily cash or equivalents. There is no retained earnings or reserves reported, consistent with a start-up incurring initial expenses. The absence of equity capital and reliance on limited guarantees expose the company to insolvency risk. The financial trajectory from zero base in 2022 to negative equity in 2024 shows a deteriorating financial position. No audit was performed, limiting assurance on financial statement accuracy.

3. Cash Flow Assessment

The working capital deficit of £8,294 and current liabilities of £12,615 indicate liquidity stress. With only £4,321 in current assets, the company does not have sufficient liquid resources to meet short-term obligations. The lack of cash flow data limits precise cash flow analysis, but negative net current assets imply operational cash flow is inadequate to cover creditors and expenses. The company’s ability to generate positive cash inflows or obtain additional funding is uncertain. This liquidity shortfall is a significant credit concern.

4. Monitoring Points

• Monitor future filings for improvement in net current assets and positive shareholders' funds.
• Track revenue generation and profitability indicators to assess business viability.
• Review director changes and any related-party transactions for governance risks.
• Watch for timely filing of accounts and confirmation statements to avoid compliance issues.
• Evaluate any external funding or guarantees that may improve liquidity and solvency.