Company Number: 13950842

Analysis Date: 2025-07-20 11:53 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Shakraz Ltd is a recently established private limited company incorporated in 2022 with a small capital base and modest financial position. The company’s balance sheet shows a positive net asset position of £9,002 at 31 March 2024, up from £2 the previous year, indicating some growth. However, the company has minimal assets, no employees, and current liabilities of £14,658, which suggests limited operational scale and working capital constraints. There is no audit requirement as per the small company exemption, and the director is the sole director and significant controller, which centralizes decision-making but may raise governance considerations. Given the limited financial history and modest scale, any credit facility should be conditional on regular financial updates and possibly personal guarantees or security.

2. Financial Strength:
   The company’s financials reflect a very small operation with cash as the sole current asset (£23,660) and current liabilities of £14,658, resulting in net current assets of £9,002. The increase in net assets from £2 in the prior year reflects initial capitalization and possibly some retained earnings, though profit and loss details are not disclosed. Absence of fixed assets and employees limits operational capacity but also reduces fixed overheads. The shareholders’ funds of £9,000 are low but positive, indicating solvency. Overall, balance sheet strength is weak but stable for a micro entity.

3. Cash Flow Assessment:
   The company holds cash of £23,660, which covers current liabilities of £14,658 with some margin, indicating short-term liquidity is adequate. Net current assets are positive, suggesting working capital sufficiency at this stage. However, absence of debt and limited financial information on cash flow from operations makes it difficult to fully assess sustainability of cash flows. The company should be monitored for ability to generate operating cash flows once trading scales up.

4. Monitoring Points:

• Review of next annual accounts to assess profitability and cash flow trends.
• Monitoring of creditor balances and payment performance to ensure no liquidity stress.
• Watch for any increase in liabilities or significant capital expenditures.
• Oversight on director’s management and governance given single director control.
• Confirmation of trading status and business activity given no employees reported.