Company Number: 12511903

Analysis Date: 2025-07-29 13:05 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits persistent and worsening negative net assets and shareholders' funds over recent years, indicating insolvency. Current liabilities significantly exceed current assets, raising solvency and liquidity concerns. The micro-entity status limits available financial detail, complicating comprehensive assessment.

2. Key Concerns:

• Negative Net Assets and Shareholders' Funds: Net liabilities have grown from -£511 in 2023 to -£1,122 in 2024, implying the company's liabilities exceed its assets by a substantial margin.
• Poor Liquidity Position: Current liabilities (£701) far outweigh current assets (£79) as of March 2024, suggesting potential difficulties in meeting short-term obligations.
• Limited Financial Transparency: As a micro-entity, SCG Estates Ltd provides minimal financial disclosures, and absence of profit and loss data restricts evaluation of operational performance and sustainability.

3. Positive Indicators:

• No Overdue Filings: Both annual accounts and confirmation statements are filed on time, indicating compliance with statutory requirements.
• Stable Directorship: The sole director, Mr. Harjit Singh Sanghera, has been in position since incorporation, which may imply consistent management and control.
• No Indications of Formal Insolvency Proceedings: The company remains active and is not in liquidation, administration, or receivership.

4. Due Diligence Notes:

• Investigate the nature and cause of accumulating liabilities and whether these are related to operational deficits or financing arrangements.
• Assess cash flow patterns and whether the company has access to external funding or shareholder support to cover working capital shortfalls.
• Review any contingent liabilities or off-balance sheet exposures that could exacerbate financial distress.
• Confirm the status and condition of the real estate assets underlying the SIC classification to understand asset quality and potential for value realization.
• Clarify the business model and revenue generation capability given minimal current assets and negative equity.