Company Number: 13957298

Analysis Date: 2025-07-29 19:16 UTC

1. Credit Opinion: DECLINE
   SHAKEKHAN LIMITED presents a weak credit profile at this early stage of its operations. The company’s net liabilities of £39,830 and shareholder deficit indicate negative equity and insufficient capital to cover obligations. The significant long-term creditors (£111,059) against modest assets raise concerns about solvency and repayment capacity. The company is newly incorporated with minimal trading history and only one employee, limiting visibility on operational performance and cash generation. Given the negative net assets and lack of profitability data, the risk of default on credit facilities is elevated.

2. Financial Strength:
   The balance sheet shows fixed tangible assets of £60,476 and investments of £6,000, but current assets are low at £5,489, including only £266 in cash. Current liabilities are minimal (£736), resulting in positive net current assets of £4,753. However, large non-current liabilities (£111,059) heavily outweigh total assets, causing net liabilities of £39,830. The company is in a negative equity position with a profit and loss reserve deficit of £39,930. This indicates the company is reliant on external financing and potentially shareholder loans or other debt to fund operations and asset base.

3. Cash Flow Assessment:
   Cash at hand is minimal (£266) with current liabilities very low. Although net working capital is positive, the company’s liquidity is limited and may be strained by debt servicing needs. There is no income statement provided, but the negative retained earnings suggest operating losses or initial start-up costs. The ability to generate sustainable positive operating cash flow is unproven. The reliance on long-term creditors suggests cash flow pressures and potential liquidity risk.

4. Monitoring Points:

• Monitor subsequent trading results and cash flow statements to assess operational profitability and liquidity improvements.
• Watch for changes in the long-term creditor balance and whether these are restructuring or increasing.
• Track filing of next accounts and confirmation statements for timely compliance.
• Observe any changes in ownership or director appointments that may affect control or financial support.
• Evaluate any new financing arrangements or capital injections that improve the equity position.